Nebraska Administrative Code
Topic - PUBLIC EMPLOYEES RETIREMENT SYSTEMS
Title 303 - PUBLIC EMPLOYEES RETIREMENT BOARD
Chapter 15 - PURCHASE OF SERVICE CREDIT
Section 303-15-002 - General Provisions
Current through March 20, 2024
002.01 The Nebraska Public Employees Retirement Systems ('NPERS'), is the agency under the direction of the Public Employees Retirement Board, referred to as the Retirement Board, which is responsible for administering the various purchase of service provisions in the statutes governing the Nebraska Public Employees Retirement Systems.
002.02 For purposes of determining eligibility for purchase of service, a member, school employee, state patrol officer or judge shall mean a person working for a covered employer and contributing to their respective retirement systems.
002.03 Covered employer for purposes of this regulation shall mean any Nebraska public school, Classes I to IV and VI; participating county; or participating state agency.
002.04 Except with respect to the School Employees Retirement Plan, for interest based purchases, the interest rate used to determine the one-time cost of purchasing service shall be the annual rate of regular interest accrued on member accounts as determined annually for each retirement system by the Retirement Board. If the member is required to pay the actuarial cost as determined by the actuarial assumptions of each plan, the actuarial determination shall apply. If payments are made on the installment method then an additional finance charge will be assessed as defined.
002.05 For the School Employees Retirement Plan, actuarial cost shall mean the full cost of purchasing service allowed by law as determined by the actuary under contract with the Retirement Board. The full cost of purchasing service shall be calculated based on the increase in the actuarial accrued liability resulting from the purchase of service assuming the member is actively employed until age sixty-five (65). The actuarial assumptions used when determining the actuarial cost shall be those adopted by the Retirement Board as recommended by the actuary.
002.06 RESERVED
002.07 A member wanting to make a purchase of service must give notice of his or her intent to purchase service including method of payment on forms prescribed by NPERS.
002.08 Receiving Payments For Refunded Service
002.09 For purposes of this regulation, employment shall mean an employee's first date of compensated service provided to a covered employer. Reemployment shall mean being rehired and once again becoming a contributing member of the School Retirement System after having previously terminated employment with a covered employer.
002.10 In order to purchase service credit, the member must file a detailed application to purchase service on a form prescribed by NPERS, before payments will be accepted. To allow sufficient processing time the application must be received by NPERS at least sixty (60) days before the member experiences a termination of employment. NPERS may waive this requirement in its sole discretion under appropriate circumstances based on the volume of pending inquiries and applications, availability of agency resources, staffing levels and competing agency priorities.
002.11 In no case shall service credit be granted until all payments for the purchase of that service have been completed, except as specifically provided under Title 303.
002.12 Code shall mean the Internal Revenue Code, as amended
002.13 Code section 415 defined contribution limits shall apply to all after-tax payments made for purchases of service except for payments to repay original, mandatory contributions withdrawn for service years.
