Your Purchase Cost Could Increase October 1: Pay by September 30 to Save
If you plan to purchase service, or have a balance due on a service purchase calculated using the Basic Cost Calculation, your cost may be lower if you apply and pay in full by September 30.
(Employee + Employer)
Costs for service purchases determined using the Basic Cost Calculation are recalculated each October 1, based on your highest annual salary on record and the contribution rate as of July 1. Although the contribution rate will not increase this July 1, your highest annual salary on record may increase. If so, your recalculated purchase cost will be higher.
“You can avoid paying the higher cost for your remaining credit purchase balance by paying in full by September 30, 2012 - before the cost is recalculated,” said Sarah Otto, PSRS/PEERS Benefits Counselor. She added, “Even paying a portion of the balance before the cost is recalculated can save you money.”
“We recommend that you allow plenty of time to complete your application and payment,” Otto continued. “Verification of previous service with an employer or another retirement system is sometimes required and can take several weeks. In addition, completing a rollover of funds toward payment can also take some time.” Your properly completed application and payment must be postmarked by September 30 in order to avoid the recalculation of your credit purchase cost.
Please contact us with any questions.