2.43.2301 PROCESS FOR PURCHASING SERVICE
(1) Members of MPERA-administered retirement systems interested in purchasing any service credit permitted in PERS, JRS, HPORS, SRS, GWPORS, MPORS, or FURS must submit a written request to MPERA providing the following member information:
(a) full name, including previous surnames, if any;
(b) social security number;
(c) home address;
(d) current retirement system;
(e) name of employer for whom service was performed;
(f) type of service to be purchased, if known;
(g) dates of service to be purchased, if applicable; and
(h) number of years of "one-for-five" service to be purchased, if applicable.
(2) MPERA shall provide written notification to the member of the type and amount of service eligible to be purchased, and the cost of that service. All cost statements are valid for 30 days. Written notification will include:
(a) cost statement;
(b) service purchase contract;
(c) payroll deduction authorization form; and
(d) rollover/transfer notification form.
(3) A member who chooses to purchase service must complete and return the service purchase contract and the applicable payment form to MPERA. The service purchase contract must indicate:
(a) the type of service the member wishes to purchase;
(b) whether the member intends to purchase all, or a specific portion of the service; and
(c) how the member intends to pay for the service.
(4) Service can be purchased in a lump sum, through monthly payments, or by a combination of both. Service purchases other than by lump sum are subject to interest as determined by MPERA and computed over the entire payment period.
(5) Lump-sum payment methods include cash, personal check, and direct rollovers or trustee-to-trustee transfers from an eligible retirement plan.
(a) Lump-sum payments by cash or personal check require completion of the service purchase contract only.
(b) Payment by direct rollover or trustee-to-trustee transfers from an eligible retirement plan require completion of the service purchase contract and the rollover/transfer notification.
(6) Monthly installment payments can be made after tax through cash or personal check, or pretax through payroll deductions.
(a) Monthly installment payments that come directly from the member to MPERA require completion of the service purchase contract only.
(b) Monthly installment payments through paycheck deduction require completion of the service purchase contract and the payroll deduction authorization.
(7) If a monthly installment payment made through cash or personal check is missed, the service purchase contract will terminate and the member will receive prorated service credit based on the amount previously paid.
(8) The type of service being purchased cannot be changed once the purchase commences.
History: 19-2-403, MCA; IMP, 19-2-303(22), 19-2-704, MCA; NEW, 2008 MAR p. 2467, Eff. 12/1/08; AMD, 2011 MAR p. 1678, Eff. 8/26/11.