ADOPTED - APRIL 9, 2002
Agenda Item No. 7
Introduced by the Administrative Services/Personnel and Finance Committees of the:
INGHAM COUNTY BOARD OF COMMISSIONERS
RESOLUTION TO AMEND ITS POLICIES ON THE PURCHASE OF RETIREMENT SERVICE CREDIT
RESOLUTION #02-101
WHEREAS, Ingham County is a participating municipality in the Michigan Municipal Employees' Retirement System (MERS) as provided for in the MERS Plan Document; and
WHEREAS, the MERS Plan Document has eliminated military time purchases for those hired after June 30, 1997; and
WHEREAS, it is now permissible to purchase generic time, as well as prior service credit from other governmental employers; and
WHEREAS, the Ingham County Board of Commissioners acknowledges there will be a cost involved, determined by MERS, which must be totally borne by the employee requesting the purchase of service credit unless it is for the purchase of prior Ingham County service; and
WHEREAS, the MERS office will inform those employees interested in purchasing service credit of the eligibility requirements and of the total cost, and the employee shall forward a copy to the Human Resources' Office.
THEREFORE BE IT RESOLVED, for each MERS Division having a MERS "F" benefit program in effect, then either Part 1 or Part 2 below shall apply. (1) Where purchase occurs before attaining applicable minimum credited service for "F" benefits, such service is not creditable for MERS retirement benefits until the minimum years of credited service for "F" benefits is reached. If service does not become creditable, then the employee payment portion may be refunded to the member, or applied to the purchase of any generic services that may be credited to the employee (see Purchasing Generic Service Section below) at an actuarial cost based upon immediate separation from County service. (2) Where purchase occurs after attaining minimum credited service for "F" benefits, such service is immediately creditable.
BE IT FURTHER RESOLVED, that purchase of prior Ingham County service credit shall be pursuant to the attached Purchasing Retirement Service Credit Policy and the MERS Plan Document.
BE IT FURTHER RESOLVED, that Resolution #86-293 (Resolution for Crediting Prior Service), Resolution #84-181 (Resolution for Crediting Military Service) and Resolution #97-156 (Resolution to Authorize the Purchase of Retirement Service Credit) are hereby rescinded.
BE IT FURTHER RESOLVED, that the County Clerk sends a certified copy of this resolution to MERS.
ADMINISTRATIVE SERVICES/PERSONNEL: Yeas: Swope, Lynch, De Leon, Celentino, Severino
Nays: None Absent: None Approved 4/2/02
FINANCE: Yeas: Grebner, Stid, Swope, Minter
Nays: None Absent: Hertel, Schafer, Krause Approved 4/3/02
PURCHASING RETIREMENT SERVICE CREDIT POLICY
ATTACHMENT
CREDITING MILITARY SERVICE:
1. Employees who were employed by the County of Ingham prior to June 30, 1997, may purchase up to five (5) years of military service if they entered the armed service during a time of war or national emergency, or were drafted into the armed service during a time of peace. They must have at least ten (10) years of credited service in the Michigan Municipal Employees' Retirement System.
2. The cost (both Employer and employee) including any actuarial costs, if any, must be totally borne by the employee requesting any such service granted.
3. The MERS retirement office will inform employees of the cost whenever military service is granted.
4. Employees must satisfy all requirements of the MERS Plan Document regarding military service buy back.
CREDITING PRIOR INGHAM COUNTY SERVICE:
1. Employees may purchase prior Ingham County service if they had a service break greater than five (5) years, but not greater than fifteen (15) years; and
2. Employees must have been re-employed with Ingham County for a minimum of five (5) continuous years.
3. Employees may buy back up to a maximum of ten (10) years of service credits in the following manner:
A. Credits to be purchased which when added to present credits equals ten (10) years or less of total service credits for the member shall be purchased according to the following percentages of the amounts (both Employer and employee) calculated by the MERS Actuary:
Years to Retirement After Per Cent of Total Cost
Purchase is Made to Member
0 to 4 0
5 to 9 10
10 to 14 30
15 to 19 60
20 plus 100
B. Credits to be purchased when added to present credits that exceed ten (10) years (only portion in excess of ten (10) years) of total service credits for the member shall be paid for by the member at 100% of cost (both Employer and employee) as determined by the MERS Actuary.
C. In either case, the employee must provide the County with a decision as to how benefits are to be paid, what options, if any are requested, and other pertinent data in a signed statement PRIOR to final approval by the County. Any requested change in benefits will be evaluated and recosted if necessary, at the employee's expense.
D. The employee must pay all costs charged to him/her, including any actuarial costs, if any, for buy back within ninety (90) days of written notification by the County.
3. The MERS Retirement office will inform employees of the cost.
4. Employees must satisfy all requirements of the MERS Plan Document regarding the purchase of prior Ingham County service.
CREDITING PRIOR GOVERNMENTAL SERVICE:
1. Employees may purchase prior governmental service credit if the employee has a lapse of employment between the other governmental service and employment with Ingham County of less than fifteen (15) years.
2. The cost (both Employer and employee) including any actuarial costs, if any, must be totally borne by the employee requesting any such service.
3. The MERS Retirement office will inform employees of the cost.
4. Employees must satisfy all requirements of the MERS Plan Document regarding the purchase of prior governmental service.
PURCHASING GENERIC SERVICE:
1. Employees may purchase up to five (5) years of generic time. This time can be purchased at any time but cannot be used to satisfy vesting requirements.
2. The cost (both Employer and employee) including any actuarial costs, if any, must be totally borne by the employee requesting any such service.
3. The MERS Retirement office will inform employees of the cost.
4. Employees must satisfy all requirements of the MERS Plan Document regarding the purchase of prior generic service.