SB 26 allows for purchase of prior full-time temporary creditable service with GDCP for ERS members provided they were members of GDCP immediately prior to becoming members of ERS and so long as it is in accordance with 47-2-101 (47-2-99).

Requirements to establish such service include:

• The individual must
  • have 5 years of ERS membership;
  • be a contributing Member;
  • apply to the Board;
  • provide proof as deemed necessary by the Board;
  • authorize the transfer of available funds from their GDCP account;
  • pay the actuarial value of creditable service (after the transfer of available funds specified in the previous bullet).
• The amount is certified to the applicant.
• The Member can make a one-time payment within 90 days after certification or participate in a payment plan.

Payment Plan Rules

• Payments will be substantially equal and deducted from the Member’s earnable compensation. (Exception: If the implementation of the periodic payment module of the system is not available, Members can pay directly.)
• Payment period options were established by the Board and can be either 12, 24, 36, 48, 60 or 120 months in length.
• The payment period cannot be changed once elected.

Pay Off

• Prior to retirement the contributing Member can make a one-time payment of the full amount owed in order to receive the GDCP creditable service being purchased.
• Upon application for retirement the Member can make a one-time payment of the full amount owed in order to receive the GDCP creditable service being purchased.
• Upon retirement if the Member has not paid the full amount necessary to purchase all GDCP creditable service requested, the number of whole months of creditable service actually purchased to date will be awarded on a pro rata basis.
• Within 30 days of ceasing to be a Member for reasons other than death or retirement,
  • the Member can make a one-time payment of the full amount owed in order to receive the full GDCP creditable service being purchased, or
    • if vested, be awarded only as many months of GDCP creditable service on a pro rata basis actually purchased, or
    • if not vested, receive a refund of payments actually made and forfeit any service related to that refund.
• If eligible, a Member can reapply for purchase of GDCP creditable service.

Defaulting

• If within 30 days of defaulting by failing to make complete monthly payments in accordance with the payment schedule, the Member may:
  • make a one-time payment of the full amount owed in order to receive full GDCP creditable service being purchased, or
  • receive a refund of payment(s) actually made and forfeit the related GDCP purchased creditable service.
• If eligible, a Member can reapply for purchase of GDCP creditable service.