Section 411-406-3 - METHOD OF PAYMENT The member must designate which category of creditable service is to be purchased. A member purchasing creditable service through partial payments who is eligible to purchase creditable service in more than one category must complete payment for the first designated category before beginning payment on the next category.
A member may purchase creditable service by lump sum or through partial payments as follows:
1.Lump sum payment. By making a single lump sum payment to the Maine PERS at any time, subject to the provisions of subsection 3, of all principal and interest owed for all creditable service the member is eligible to purchase in any category of creditable service; or2.Partial PaymentsA.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.3.Time Limits Principal and interest payments for the purchase of creditable service must be made prior to the date the retirement allowance becomes effective, or credit will be granted for only the portion of time paid.
Payments may be made after the effective date of retirement provided that:
A. The member initiates a cost inquiry prior to retirement, but Maine PERS has not received sufficient information to verify the service prior to the effective date of retirement; andB. Payment is made within ten (10) business days of written notification to the member of the availability of the additional service. Maine PERS will adjust the amount of the retirement allowance as of the first day of the month following the date on which Maine PERS receives the payment. 1 For members purchasing creditable service through payroll deduction prior to the effective date of this rule, the minimum payroll deduction amount is $25.00 per month.
94- 411 C.M.R. ch. 406, § 3