MEMORANDUM

 

To:                           PERS Liaison Officers

 

From:                     Patti Keyes

                                    Chief, Membership Division

 

Date:                      January 9, 2002

 

Re:                           Rollover Opportunities

 

Congress recently passed the Economic Growth and Tax Relief Reconciliation Act of 2001 (HR 1836) providing greatly enhanced retirement savings opportunities.  The Retirement Board began the process for adoption of policies to allow PERS members to take advantage of the provisions of this federal law. 

 

Individuals will be able to complete in-service direct transfer of monies from 403(b) and 457 plans as well as IRAs to purchase service, convert regular service to police/fire service, purchase prior service, purchase service based on 1979 affidavit certifications and repay previously withdrawn contributions.    

 

No transfer of monies will be allowed unless a rollover purchase of service or repayment of previously withdrawn contribution agreement between PERS and the member has been issued.  Agreements must be issued after January 1, 2002.  The transfer of monies cannot occur until the Retirement Board adopts policies to accept the monies.  We anticipate that this will occur January 16, 2002.  

 

The rollover agreement that is issued will be for single payment only.  Monthly payment options will not be offered.  When requesting the agreement, the member must identify either the total service credit to be purchased or the dollar amount of the funds to be transferred.  Due to volatility in the current market, if a dollar amount is identified, PERS will issue the agreement in an amount approximately 5 percent greater than the amount identified.  This will be done to facilitate potential discrepancies between the amount identified and the direct vendor check received by PERS.  Service credit will then be prorated to match the exact amount tendered.

 

Monies must be transferred directly to PERS.  Each rollover agreement that is issued will include a form that identifies the maximum rollover

amount.  Section 3 of this form must be completed to identify pre- and post-tax rollover amounts.  A completed Rollover Request for Service Credit Purchases form must accompany all payments.  A copy of the rollover form and information sheet is attached for your information.

 

Members who are interested in taking advantage of the rollover opportunities should contact our Membership Division to request estimate information or initiate a rollover agreement.

 

 

 

 

 

 

 

 

 

 

 

 

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