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HomeMy WebLinkAbout21 Service_Military Credit Purchase Policies TAB 21 SERVICE/MILITARY CREDIT PURCHASE POLICIES August 20, 2013 CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM BOARD OF TRUSTEES ADDITIONAL MILITARY SERVICE CREDIT PURCHASE POLICY 1, Purpose. The Lansing Police and Fire Retirement System Board of Trustees(the"Board")establishes the following Policy to provide for the determination of actuarial evaluation costs associated with the purchase of additional military service retirement credits pursuant to Section 294.02(h)(3) of the Lansing Codified Ordinances and in accordance with 1976 PA 276, as amended, MCL 3 8.5 81 et seq. Il. Policy. A. Police officer and firefighter members shall be eligible to receive additional military service retirement credits for periods of compulsory or non-compulsory military service as if the member had served the City during that period,provided that: (1) The member shall submit a written application, on a form approved and provided by the Board, to receive military service retirement credit for all or part of the period of military service. (2) With the submission of the application, the member shall pay the actuarial fee for the Board's actuary to calculate the cost of adding such military service time to the member's retirement service credit. The cost of adding such military service time shall be determined as follows: it is the amount equal to the annual contribution rate in effect at the time of such written application multiplied by the period of military service claimed together within interest calculated at a rate set by the Board from the date of the Applicant's membership through the date of his or her application submission. Costs determined by the Board's actuary shall be considered final and binding upon the City,the collective bargaining unit by which the member is represented and the affected member. (3) The member electing to exercise the right to receive additional military service retirement credits shall make full payment for the cost of such service credit elected no later than 60 days following receipt of the actuarial cost information. The member shall be solely responsible for the extra cost of adding such military service to his or her retirement service credit. (4) An eligible member who elects to purchase retirement service credits under Section 294.02(h)(3) and this Policy but who purchases less than the full two years of military service time, must again comply with all requirements of this Policy if such member decides to submit a subsequent application to receive credit for any remaining time. (5) In no case shall any member be credited with more than two years of City service for all such military service rendered by him or her. In case of doubt as to the period of such military service to be credited,the Board shall have final power to determine such period. (6) Military service shall be defined to include periods of voluntary or involuntary (under the Selective Service Act of 1940, as amended) induction into the Armed Forces of the United States of America. It shall also include the initial training period required to be a reserve member of the Armed Forces of the United States of America or the United States National Guard. However, it shall specifically exclude annual reserve training programs required of reservists or National Guard members. Policy adopted: January 15,2013 8674730.3 26005/1182 5 CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM BOARD OF TRUSTEES SERVICE CREDIT AND MILITARY TIME PURCHASE REVIEW POLICY I. Purpose. The Lansing Police and Fire Retirement System Board of Trustees (the "Board") establishes the following policy to provide a procedure for a review of the provisions of the Lansing Police and Fire Retirement System Ordinance (the "Ordinance") that pertain to a member's request to purchase service credits or military time. II. Policy. A. A member shall submit a written request to purchase service credits or military time to the Retirement Office on a form provided for that purpose. B. Upon receipt of a properly completed form, the Retirement Analyst shall forward it to the Board's legal advisor for review. C. Solely on behalf of the Board and the Lansing Police and Fire Retirement System, the Board's legal advisor shall ensure that the request to purchase service credits or military time as documented on the form complies with relevant Ordinance provisions. D. Upon completion of his/her review, the Board's legal advisor shall inform the Retirement Analyst. If the request does not comply with the Ordinance, the legal advisor shall provide the Retirement Analyst with a written opinion stating the reasons why the request may not be processed. E. The Lansing Retirement Office, the Lansing Police and Fire Retirement System Board of Trustees and/or any advisor to the Lansing Police and Fire Retirement System Board of Trustees may not, and shall not, provide tax advise or information to any City employee, member or retiree. City employees, members and retirees are obligated to confirm individual retirement and investment decisions with a tax and/or legal professional at their own expense. Policy adopted, April 12, 2011 6761905.2 260051)18235 CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM BOARD OF TRUSTEES Policy Providing Rules Governing Service Credit In accordance with Section 294.02(h)(1) of the Lansing Codified Ordinances, the Board of Trustees shall determine, by appropriate rules and regulations, the amount of service to be credited any member. Accordingly, in no case shall less than a fully compensated paycheck of 80-hours for employment service rendered by any member to the City of Lansing be credited as more than one month of service; nor shall less than 11 months of service rendered by a member in any calendar year be credited him or her as a year of service; nor shall more than one year of service be credited any member for all service rendered by him or her in any calendar year. Policy adopted: August 20, 2013, 9011884.2 260051118235