A.
Payroll Deduction. By making an increased rate of contribution to
Maine PERS through payroll deduction, subject to the following provisions:
(1) The minimum pay roll deduction amount is
$50.00 per month, or the amount as established in subparagraph (2), whichever
is greater.1
(2) The cost for the purchase of creditable
service through payroll deduction will be amortized over a period ending on a
date determined by the member, not to exceed ten years, or on the last day of
the month preceding the normal retirement age of the member, or on the last day
of the month preceding the member's anticipated retirement date, whichever is
earlier.
(3) The member may change
the specific payroll deduction amount, to an amount that is not less than the
minimum payment amount as established in subparagraph (1), no more than once
quarterly. The System will adjust either the amortization schedule or the
amount of creditable service accordingly.
(4) In the event of a change in the rate of
regular interest applied to the amount due, the System will:
(a) in the case of a decrease in the interest
rate, adjust the amortization period accordingly; or
(b) in the case of an increase in the
interest rate, adjust the amount of creditable service purchased accordingly,
based on the original amortization period.
(5) The member may start or stop a payroll
deduction authorization no more than once quarterly. If the member elects to
stop an authorized payroll deduction, and subsequently elects to restart the
payroll deduction, the member must submit a new authorization. The required
payroll deduction will be recalculated under this paragraph to include any
additional interest that has accrued.
(6) The member may also make periodic
payments under the provisions of paragraph B toward the same category of
service for which the member is making payments through payroll
deduction.
B.
Periodic Payments. By making a payment to Maine PERS at any time
of a portion of the principal and interest owed for all creditable service the
member is eligible to purchase in any category of creditable service.
(1) The minimum periodic payment is $50.00
or, if the member is making payment only through periodic payments as provided
in this paragraph, the amount as established in subparagraph (3), whichever is
greater.
(2) Periodic payments may
be made no more than once per month.
(3) The cost for the purchase of creditable
service through periodic payments will be amortized over a period ending on a
date determined by the member, not to exceed ten years, or on the last day of
the month preceding the normal retirement age of the member, or on the last day
of the month preceding the member's anticipated retirement date, whichever is
earlier.
(4) The member may change
the periodic payment amount, to an amount that is not less than the minimum
amount as established in subparagraph (1), no more than once quarterly. The
System will adjust the amortization schedule or creditable service,
accordingly.
(5) In the event of a
change in the rate of regular interest applied to the amount due, the System
will adjust the amortization period or amount of creditable service
accordingly.
(a) in the case of a decrease in
the interest rate, adjust the amortization period accordingly; or
(b) in the case of an increase in the
interest rate, adjust the amount of creditable service purchased accordingly,
based on the original amortization period.
(6) The member may also make payroll
deductions under the provisions of paragraph A toward the same category of
service for which the member is making periodic payments.
