Nebraska Administrative Code
Topic - PUBLIC EMPLOYEES RETIREMENT SYSTEMS
Title 303 - PUBLIC EMPLOYEES RETIREMENT BOARD
Chapter 15 - PURCHASE OF SERVICE CREDIT
Section 303-15-003 - Repayment of Refund (School Plan Members Only)
Universal Citation: 303 NE Admin Rules and Regs ch 15 ยง 003
Current through March 20, 2024
003.01 General Provisions
003.01(a) Except as otherwise provided in
this Section 003, all general provisions in Section 002 and methods of
purchasing service as defined in Section 007 in this regulation will apply to
the restoration of relinquished creditable service by repayment of a
refund.
003.01(b) From and after
April 17, 2014, the cost of repaying a refund with respect to a member of the
School Retirement System will be an amount equal to the member contributions
for the years of relinquished creditable service being repurchased plus
interest in an amount equal to the actuarial assumed rate of return on such
amount to the date of repayment. A member must be a contributing member after
reemployment in order to repay a refund.
003.01(c) Refunded service must be purchased
from oldest fiscal year to newest fiscal year and the member must purchase the
exact amount of creditable service earned in each fiscal year. Fiscal years
where creditable service was not earned will not be included in the repayment
of a refund.
003.01(d) Before the
repayment of a refund will be processed by NPERS, the member's service must be
verified.
003.02 Initiating a Refund Inquiry
003.02(a) From and
after reemployment, a contributing member may initiate a request for the
repayment of a refund by making a verbal or written inquiry to NPERS (a "refund
inquiry"). NPERS will respond to refund inquiries in the order received,
provided that priority may be given to refund inquiries from members who are
within one year of retirement. NPERS' response times with respect to refund
inquiries will depend on the volume of inquiries, availability of agency
resources, staffing levels and competing agency priorities.
003.02(b) In response to a refund inquiry,
NPERS will calculate an estimated cost for the amount of relinquished
creditable service the member proposes to restore by repayment of a refund (a
"cost estimate"). NPERS will deliver the cost estimate to the member via first
class mail or other reliable means. In addition to the cost estimate, NPERS'
response to the refund inquiry will also include an application for purchase of
refunded service, method of payment form, rollover form and/or such other
documentation as may be necessary.
003.03 Filing and Processing of an Application Purchase of Refunded Service
003.03(a)(i) If the member wishes to proceed
with the repayment of a refund after receiving a cost estimate, the member must
deliver a valid and complete application for purchase of refunded service to
NPERS prior to the applicable date set forth in Section 002.08 hereof. If the
member responds to the cost estimate by delivering to NPERS something other
than a valid and complete application, NPERS will inform the member in writing
of the deficiency in the application.
003.03(a)(ii) For purposes of this Chapter
15, "valid and complete application" means the delivery by a member to NPERS of
a completed application for purchase of refunded service, completed method of
payment form and (if required) a completed rollover form, including all
signatures and any attachments necessary for NPERS to complete the processing
of such application.
003.03(b)
NPERS will process valid and complete applications for purchase of refunded
service in the order received, provided that priority may be given to
applications from members who are within one year of retirement. NPERS'
response times with respect to valid and complete applications for purchase of
refunded service will vary, depending on the volume of applications,
availability of agency resources, staffing levels and competing agency
priorities. It is the member's responsibility to deliver a valid and completed
application to NPERS within a sufficient time to permit processing of the
application and completion of payment by before expiration of timeframes set
forth in Section 002.08 hereof.
003.03(c) After determining that the member
has submitted a valid and complete application for purchase of refunded
service, including all necessary signatures, NPERS will calculate and send to
the member, via first class mail, a written report of the actual cost for the
relinquished creditable service to be restored by the member (an "actual cost
report.").
003.04 Payment For Restoration Of Relinquished Creditable Service
003.04(a) A member's payment for the
restoration of relinquished creditable service may be made via a lump sum
direct payment to NPERS, installment payments, irrevocable payroll deduction
authorization, cash rollover or trustee-to-trustee transfer.
003.04(b)(i) If repayment of a refund is to
be made via lump sum direct payment, rollover or trustee-to-trustee transfer,
full payment must be received by NPERS on or before the payment date set forth
in the related actual cost report, which date shall be no later than the
applicable date set forth in Section 002.08(a)hereof. Failure by the member to
make full payment by the required date will result in recalculation of the
amount due or termination of the member's application for purchase of refunded
service. Subject to Section 002.08(a)hereof, NPERS may, in its sole discretion,
permit a grace period beyond the payment date set forth in the actual cost
report, under appropriate circumstances based on the volume of pending
inquiries and applications, availability of agency resources, staffing levels
and competing agency priorities.
003.04(b)(ii) If the repayment of a refund is
to be made via consecutive installment payments or irrevocable payroll
deduction authorization, such payments must be made in compliance with the
schedule set forth in the actual cost report and all required payments must be
received by NPERS on or before the earlier of the applicable date set forth in
Section
002.08(a)hereof.
Failure by the member to make each payment in compliance with the schedule set
forth in the actual cost report will result in termination of the member's
application for purchase of refunded service. Subject to Section
002.08(a)hereof,
NPERS may, in its sole discretion, permit a grace period with respect to such
payment schedule under appropriate circumstances based on the volume of pending
inquiries and applications, availability of agency resources, staffing levels
and competing agency priorities.
003.05 One Time Election
Each member of the School Employees Retirement System shall be permitted to submit only one application for purchase of refunded service on or after April 17, 2014.
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