Section 303-15-003 - Repayment of Refund (School Plan Members Only)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 Inquiry003.02(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.
303 Neb. Admin. Code, ch. 15, § 003