40.285 Purchase of creditable service.
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40.285 Purchase of creditable service.
(1)General requirements.
(a)Deadline for purchase of creditable service. An application to purchase creditable service must be received by the department, on a form provided by the department, from an applicant who is a participating employee on the day that the department receives the application.
(b)Calculation of creditable service. Creditable service purchased under this section shall be calculated in an amount equal to the year and fractions of a year to the nearest one-hundredth of a year.
(c)Use of creditable service. Credit for service purchased under this section is added to a participant’s total creditable service, but may not be treated as service for a particular annual earnings period and does not confer any other rights or benefits.
(d)Applicability of Internal Revenue Code. The crediting of service under this section is subject to any applicable limit or requirement under the Internal Revenue Code.
(2)Conditions for the purchase of different types of creditable service.
(a)Forfeited service.
1. A participating employee may purchase creditable service forfeited in the manner specified in subd. 2. , subject to all of the following:
a. The participating employee must have at least 3 continuous years of creditable service at the time of application to purchase the creditable service.
b. The number of years that may be purchased may not be greater than the accumulated current creditable service of the participating employee at the date of application, excluding all creditable service purchased under this section or s. 40.02
(b), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
(e), 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
(i), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
(k), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.25
(6), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., or s. 40.25
(7), 1991, 1993, 1995, 1997, 1999, and 2001 stats., less the number of years of creditable service previously purchased under this paragraph or s. 40.25
(6), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats.
c. The participating employee pays to the fund an amount equal to the employee’s statutory contribution on earnings under s. 40.05
(a)for each year of forfeited service to be purchased, based upon the participating employee’s final average earnings, determined as if the employee had retired on the first day of the annual earnings period during which the department receives the application. The amount payable shall be paid in a lump sum payment, except as provided in sub.
(b), and no employer may pay any amount payable on behalf of a participating employee.
d. Upon receipt by the fund of the total payment required under this subdivision, the creditable service meeting the conditions and requirements of this paragraph shall be credited to the account of the participating employee making the payment.
2. Creditable service may be purchased under this paragraph if it was forfeited as a result of any of the following:
a. Payment of an amount under s. 40.25
(2).
b. The receipt of a separation or withdrawal benefit under the applicable laws and rules in effect prior to January 1, 1982.
c. Payment of an amount under s. 40.25
(2m), 1991, 1993, 1995, and 1997 stats.
3. Unless otherwise provided by the department by rule, a participating employee may not purchase creditable service under this paragraph more than 2 times in any calendar year.
(b)Other governmental service.
1. Each participating employee who has performed service as an employee of the federal government or a state or local governmental entity in the United States, other than a participating employer, that is located within or outside of this state, or each participating employee whose creditable service terminates on or after May 4, 1994, and who has performed service as an employee for an employer who was not at the time a participating employer but who subsequently became a participating employer, may receive creditable service for such service if all of the following occur:
a. The participating employee has at least 3 continuous years of creditable service at the time of application.
b. The number of years of creditable service applied for under this paragraph does not exceed the number of years of creditable service that the participating employee has at the date of application, excluding all creditable service purchased under this section or s. 40.02
(b), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
(e), 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
(i), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.02
(k), 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., s. 40.25
(6), 1981, 1983, 1985, 1987, 1989, 1991, 1993, 1995, 1997, 1999, and 2001 stats., or s. 40.25
(7), 1991, 1993, 1995, 1997, 1999, and 2001 stats., less the number of years of creditable service previously purchased under this paragraph or s. 40.25
(7), 1991, 1993, 1995, 1997, 1999, and 2001 stats.
c. At the time of application, the participating employee furnishes evidence of such service that is acceptable to the department.
d. Except as provided in sub.
(b), at the time of application, the participating employee pays to the department a lump sum equal to the present value of the creditable service applied for under this paragraph, in accordance with rates actuarially determined to be sufficient to fund the cost of the increased benefits that will result from granting the creditable service under this paragraph. The department shall by rule establish different rates for different categories of participating employees, based on factors recommended by the actuary.
e. If the participating employee is applying to receive creditable service for service in the U.S. armed forces or national guard, the participating employee must have been discharged from the U.S. armed forces or national guard under honorable or general conditions.
2. The creditable service granted under this paragraph shall be the same type of creditable service as the type that is granted to participants who are not executive participating employees, elected officials, or protective occupation participants.
3. A participating employee may apply to receive part or all of the creditable service that he or she is eligible to receive under this paragraph.
4. A participating employee may not receive creditable service under this paragraph for service that is used for the purpose of establishing entitlement to, or the amount of, any other benefit to be paid by any federal, state, or local government entity, except for the following:
a. A disability or OASDHI benefit.
b. A benefit under the retired pay for nonregular military service program under 10 USC 12731 to 12740 .
c. A benefit paid for service in the national guard.