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Omaha School Employees' Retirement Systems
Frequently Asked Questions
Frequently Asked
Questions about Benefits
Frequently Asked Questions about Death Before and After Retirement
Frequently Asked Questions about Contribution & Withdrawal
Frequently Asked Questions about Service Purchases
Questions about Benefits
When can I retire?
What will my OSERS benefit be?
When do I need to give notice for retirement?
When am I vested?
When will I receive my first benefit payment?
What are the options for taking my retirement benefit? Does it stop when I die?
Is my benefit taxable?
Will my OSERS benefit affect my Social Security benefit?
Will partial years count toward retirement?
When will I reach Rule of 85?
When will I receive COLAs?
What are the limitations on Employment After Retirement?
Can I retain my health insurance after I retire? If so, for how long?
What will be withheld from my benefit payment?
Q. When can I retire?
A. You are eligible to retire and receive reduced benefits at or following age 55 if you have at least 10 years of credit (5 of which must be with Omaha Public Schools). You are eligible for unreduced retirement benefits as follows:
- at or following age 65 with at least 5 years of credit
- at or following age 62 with at least 10 years of credit
- at or following age 55 when your age plus service equals or exceeds 85.
Q. What will my OSERS benefit be?
A. Your benefits are calculated using the following formulas:
OMAHA
Q. When do I need to give notice for retirement?
A. You must submit notice of your prospective retirement to the Office of the Superintendent of Schools and the Office of the Executive Director of the Omaha School Employees' Retirement System, no less than 60 days prior to the effective date of retirement. This is to facilitate the presentation of the application to the Board of Education and authorizing the Retirement System staff to process the application within the time requirements.
Q. When am I vested?
A. Vesting establishes a right to a future retirement benefit without additional service. You will be vested in OSERS as soon as you acquire five years of creditable service with Omaha Public Schools. Once vested, you may cease covered employment at any age, hold your membership by leaving your contributions with the Retirement System, and claim a monthly lifetime retirement benefit when you meet minimum eligibility requirements. Your benefit will be figured under the formula in effect when you end employment. You may, of course, request a refund of your contributions and earned interest after termination of service but before retirement payments start. By doing so you give up your vested status and your right to a monthly benefit based on the credit established before the refund.
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Q. When will I receive my first benefit payment?
A. Your first retirement payment will be issued the third of the month following the month in which your retirement becomes effective. For example, if your effective retirement date is July 1, and all your records are complete, your first retirement payment will be issued on August 3rd. Subsequent payments will be issued on the third day of each month.
Q. What are the options for taking my retirement benefit? Does it stop when I die?
A. Before the first Omaha School Employees' Retirement System benefit payment is made, you must elect the monthly annuity payment option desired. In the event of your death before 60 monthly payments (options A, C, D, E or F) or 120 monthly payments (option B) have been made, the monthly payments will be continued to your designated beneficiary(ies) or if no beneficiary(ies) has been named, to your estate, until the appropriate total number of monthly payments have been made.
Option A (Five Years Certain plus Lifetime to the Retiree) This option pays the largest monthly benefit to the retiree, payable for the retiree’s entire lifetime. In the event of the retiree’s death before 60 monthly payments have been made, the monthly payments will be continued to the retiree’s beneficiary(ies) or estate until the remainder of the guaranteed 60 monthly payments have been made.
Beneficiary designation: You may name any individual or other legal entity to receive the remaining payments. The designation may be changed at any time.
Advantage: Since this option provides the largest retiree benefit, it is often the appropriate choice for a member with no dependents or for a member whose beneficiary would have adequate income from other sources after the retiree's death.
Disadvantage: Monthly payments end with the month of the retiree's death or after the 60th payment, whichever occurs last. No beneficiary protection is provided after the first 60 payments.
Option B (Ten Years Certain plus Lifetime to the Retiree) This option pays the second largest monthly benefit to the retiree, payable for the retiree’s entire lifetime. In the event of the retiree’s death before 120 monthly payments have been made, the monthly payments will be continued to the retiree’s beneficiary(ies) or estate until the remainder of the guaranteed 120 monthly payments have been made.
Beneficiary designation: You may name any individual or other legal entity to receive the remaining payments. The designation may be changed at any time.
Advantage: Since this option provides a longer guaranteed payment period in the event of the recipient's death, it is an appropriate choice for a single member with dependents still in college or high school.
Disadvantage: Monthly payments end with the month of the retiree's death or after the 120th payment, whichever occurs last. No beneficiary protection is provided after the first 120 payments.
The following Joint and Survivor annuity options are available. A spouse (regardless of age) is eligible to receive any one of the following Joint and Survivor annuity options. If the designated joint annuitant is not the retiree's spouse then availability of some of the following Joint and Survivor annuity options is limited subject to the age limitations imposed by Internal Revenue Service regulations : for purposes of Option C, Option D, and Option F, a joint annuitant’s adjusted age is the attained age of the joint annuitant plus the number of years, if any, by which the retiree’s age is younger than age seventy.
Option C (100% Joint and Survivor) This option provides monthly annuity payments for the remaining lifetimes of both the retiree and the joint annuitant. The amount of the annuity is reduced from the Five Years Certain amount to provide for the two-lifetime payment period. At the death of the retiree, if the joint annuitant is still living, the joint annuitant will receive the same amount of monthly annuity for her/his remaining lifetime. You may use this option for either a spouse or a non-spouse joint annuitant. However, if the joint annuitant is not your spouse, IRS regulations will only permit use of this option if the adjusted age (see definition above Option C) of the non-spouse joint annuitant is no more than 10 years younger than the attained age of the member in any calendar year.
Option D (75% Joint and Survivor) This option provides monthly annuity payments for the remaining lifetimes of both the retiree and the joint annuitant. The amount of the annuity is reduced from the Five Years Certain amount to provide for the two-lifetime payment period. At the death of the retiree, if the joint annuitant is still living, the joint annuitant will receive 75% of the amount of the previous monthly annuity for his/her remaining lifetime. You may use this option for either a spouse or a non-spouse joint annuitant. However, if the joint annuitant is not your spouse, IRS regulations will only permit use of this option if the adjusted age (see definition above Option C) of the non-spouse joint annuitant is no more than 19 years younger than the attained age of the member in any calendar year.
Option E (50% Joint and Survivor) This option provides monthly annuity payments for the remaining lifetimes of both the retiree and the joint annuitant. The amount of the annuity is reduced from the Five Years Certain amount to provide for the two-lifetime payment period. At the death of the retiree, if the joint annuitant is still living, the joint annuitant will receive 50% of the amount of the previous monthly annuity for his/her remaining lifetime. You may use this option for either a spouse or a non-spouse joint annuitant. No IRS imposed age limitation regulations restrict use of this option.
Option F ("Pop-up" Joint and Survivor) This option provides monthly annuity payments for the remaining lifetimes of both the retiree and the joint annuitant. The amount of the annuity is reduced from the Five Years Certain amount to provide for the two-lifetime payment period. At the death of the joint annuitant, if the retiree is still living, the retiree will receive a monthly annuity in an amount equal to the Five Years Certain annuity for the remainder of her/his lifetime. You may use this option for either a spouse or a non-spouse joint annuitant. However, if the joint annuitant is not your spouse, IRS regulations will only permit use of this option if the adjusted age (see definition above Option C) of the non-spouse joint annuitant is no more than 10 years younger than the attained age of the member in any calendar year.
Beneficiary designation: You may name one person as your joint annuitant - a spouse, a child, a parent or any other individual (subject to the IRS age restrictions mentioned earlier). That designation may not be changed. If you and your named joint annuitant were to both die before receiving 60 total monthly payments, the remainder of the 60 monthly payments would be made to the individual, trust or other legal entity you had named on the designation of beneficiary card or to the estate if no beneficiary is designated.
Advantage: These options provide income to the retiree and the named joint annuitant for life.
Disadvantage: The retiree benefit reduction required to pay for the joint annuitant coverage reduces monthly income for the retiree’s lifetime.
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Q. Is my benefit taxable?
A. Under the Internal Revenue Code, retirement benefits are taxable beginning with the first payment. If you made retirement system contributions before January 1, 1985, those contributions were income taxed before they were placed in the retirement fund. This amount is termed your "investment in contract". Therefore a small portion of each benefit payment would be excluded from income tax and considered a return of your previously taxed "investment in contract". If you purchased any service credit with previously income taxed money, those amounts would be treated as indicated above. Retirement system contributions following January 1, 1985, service credit purchases paid with tax-deferred funds, and all interest credited to your account will be taxable, whether received as a retirement benefit, a withdrawal of account funds, or a death benefit. During January of each year following retirement you will receive a 1099R in order to complete your income tax forms. The 1099R will inform you of the amount of your benefit that must be included as taxable income when filing your tax returns, the amount of your benefit on which income taxes were previously paid and the amount of income taxes that have been withheld. The amount of your benefits excluded from additional taxes is a partial return of your "investment in contract". When these excluded amounts equal your entire "investment in contract", then all further payments are fully taxable.
Federal Income Tax - At retirement you can determine the amount of Federal income tax withholding you want by filing a W-4P with the Compensation and Benefits Office of the Omaha Public Schools. You may change your withholding status at any time by sending a new W-4P to the Compensation and Benefits Office.
State Income Tax - OSERS retirement benefits paid to Nebraska residents are subject to Nebraska state income tax. According to the Nebraska Department of Revenue, OSERS benefits paid to retirees who are not Nebraska residents are not subject to Nebraska state income tax (please verify this information with your own tax professional). At retirement you can determine the amount of Nebraska income tax withholding you want by filing a Withholding Form for State of Nebraska Individual Income Taxes with the Compensation and Benefits Office of the Omaha Public Schools. You may change your withholding amounts at any time by sending a new Withholding Form for State of Nebraska Individual Income Taxes to the Compensation and Benefits Office. Please be advised that the retirement staff is not qualified to offer individual tax advice or information. Questions concerning taxes should be directed to a tax professional or to the appropriate taxing agency.
Q. Will my OSERS benefit affect my Social Security benefit?
A. OSERS benefits and Social Security or Railroad Retirement pension eligibility will have no affect on each other. You may contact the Social Security Administration by calling 1-800-772-1213.
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Q. Will partial years count toward retirement?
A. Yes! Before September 1, 2005, creditable service was accumulated in accordance with the negotiated agreements for each of the various employment contracts. If you had worked enough days to acquire one-half year of service credit, that time was included in your service record. Beginning September 1, 2005, a creditable year of service is defined for all members of the Retirement System as 1,000 or more hours of compensated service within a fiscal year. If you perform less than 1,000 hours of compensated service, one-tenth of a year of creditable service will be included in your service record for each 100 hours of compensated service. All time earned, whether full years or fractional years, is used in the benefit calculations.
Q. When will I reach Rule of 85?
A. You will reach Rule of 85 when you have any combination of age and creditable service that equals 85. One-half year of service can be combined with one-half year of age to also reach the Rule of 85 (i.e. 55 ½ years of age added to 29 ½ years of service equal 85). Retirement under the Rule of 85, as well as all other forms of early retirement, requires the retiree to have reached at least 55 years of age.
Q. When will I receive COLAs?
A. On January 3rd of each year a general cost of living adjustment will be made to each retirement benefit being paid. This general COLA will be 1 ½ percent of the Omaha retirement benefit, not to exceed the increase in the consumer price index over the preceding year. If the consumer price index has increased more than 1 ½ percent and if the Board of Trustees determines that a supplemental COLA is prudent and actuarially permissible, then upon recommendation of the Board of Trustees, the Board of Education may authorize a supplemental COLA payment. Again, this supplemental COLA cannot exceed the increase in the consumer price index. In addition to the general COLA, which is paid to both members and beneficiaries, a medical cost of living adjustment is paid, but only to members who have been retired 10 years or more. On October 3rd of each year, these retired members will be paid a medical COLA using the following formula:
A. Years of Retirement System Service Credit (how may years did you make retirement system contributions) divided by 20 (number cannot be larger than 1)
B. Multiply the product of Step A by the number of years the member has been retired C. Multiply the product of Step B by $10
Q. What are the limitations on Employment After Retirement?
A. The Retirement System has no restrictions on employment after retirement, for employers other than Omaha Public Schools. Re-employment with the Omaha Public Schools may occur after at least a 30 day break in service and may be restricted or limited for certificated members participating in the Early Leaving Incentive program. Social Security has earning restrictions for those members receiving Social Security benefits before their full Social Security retirement age. Please call the Social Security Administration at 1-800-772-1213 for complete details.
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Q. Can I retain my health insurance after I retire? If so, for how long?
A. While members frequently ask the Retirement System about their health care options upon retirement, the Retirement System has no role in administering health insurance for retirees. Detailed questions concerning your health insurance options should be directed to the Omaha Public Schools Compensation and Benefits Office at 557-2119. When members retire from employment with Omaha Public Schools, thus losing their health insurance benefits, in most instances the Educators Health Alliance permits them to purchase group insurance similar to what they were being provided as an active employee. For more information, you can access their web site at: http://www.educatorshealthalliance.org
Q. What will be withheld from my benefit payment?
A. At your direction, both Federal income tax and Nebraska income tax can be withheld from your benefit payment. Please see the question titled "Is My Benefit Taxable" for more details.
Questions about Death Before and After Retirement
Where does my money in the Omaha School Employees' Retirement System go when I die?
When should I fill out a new beneficiary card?
Q. Where does my money in the Omaha School Employees' Retirement System go when I die?
A. If you die while still an active employee, there are two alternatives. If you have less than 20 years of creditable service in the Retirement System, your contributions plus interest will be refunded to your beneficiary(ies). If no beneficiary card is on file in the Retirement Office, the refund is paid to your estate. If you have 20 or more years of creditable service in the Retirement System and have elected as your sole primary beneficiary your spouse (of any age) or any other individual whose attained age at the time of your death is no more than 10 years less than your attained age at death, that one beneficiary is automatically provided with a choice of a pre-retirement survivor's lifetime annuity benefit or the refund of contributions and interest.
If you die after you have begun receiving your retirement benefits the payment option you chose at retirement governs the amount of the after death benefits and to whom they will be paid. Please refer to the answer to the question "What are the options for taking my retirement benefit? Does it stop when I die?" for more details.
Q. When should I fill out a new beneficiary card?
A. It is very important for the Retirement System to have current and accurate information on your beneficiaries. Address changes and deaths can delay payment of benefits. You may review your beneficiary designations each year by carefully reviewing your annual member statement, normally mailed in November of each year. Look to see whether beneficiaries are listed in their correct category, either primary or secondary, and whether addresses are still accurate. If any of the information is incorrect, please download and complete a new beneficiary card by using the Publications and Forms feature of this web site or by calling the retirement office at 557-2102.
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Questions About Contributions & Withdrawals
- How much are my contributions to OSERS?
- Can I withdraw part or all of my contributions?
- Can I borrow from my account?
- Do I have to withdraw my funds if I end full-time employment with OPS?
- Can my funds be rolled into an Individual Retirement Account (IRA)?
- What happens to the matched (school board) contributions?
- Can I contribute even though I'm not a full-time employee with OPS?
- When will my refund check be issued?
- Can I reacquire my previous OPS service years if I return to full-time OPS employment?
- What happens to my account if I die?
Q. How much are my contributions to OSERS?
A. The current contribution rate for all active members of the Retirement System is 6.3% of your gross payroll paid through Omaha Public Schools.
Q. Can I withdraw part or all of my contributions?
A. According to Nebraska State Statutes, all full-time employees of Omaha Public Schools must be members of the Retirement System. If you leave the employment of Omaha Public Schools before retirement, you are eligible to withdraw all of your retirement system contributions plus credited interest and forfeit all of your OSERS benefits. If you are granted a leave of absence, you are still classified as a full-time employee and therefore are not eligible to withdraw your retirement system monies. The law does not permit partial withdrawals.
Q. Can I borrow from my account?
A. The law does not permit loans.
Q. Do I have to withdraw my funds if I end full-time employment with OPS?
A. The answer to this question depends on whether you have worked for Omaha Public Schools for at least 5 years and therefore have become vested in your retirement benefits. If you leave full-time OPS employment before you are vested, you have the right to request a refund of your contributions and interest. If you do not make that request, the Internal Revenue Service requires that we roll over your contributions and interest to an Individual Retirement Account in your name. Please see the question "Can my funds be rolled into an Individual Retirement Account (IRA)?" for more information on refunds and roll overs. If you leave full-time OPS employment after you are vested, you may leave your contributions with the system and, when you meet retirement eligibility requirements, request a monthly lifetime retirement benefit. Your benefit will be calculated under the formula in effect when you left full-time employment with OPS. You may, of course, request a refund or roll over of your contributions at any time before retirement payments start, and give up your right to a monthly lifetime benefit.
Q. Can my funds be rolled into an Individual Retirement Account (IRA)? What are the penalties/tax consequences for withdrawing my funds?
A. If you leave full-time employment with Omaha Public Schools, all tax-deferred contributions (those deducted from your wages after January 1, 1985), all service purchases paid with tax deferred rollovers and tax deferred payroll deductions, and all interest credited to your account would be eligible to be rolled into an Individual Retirement Account. Any contribution on which taxes have already been paid (those deducted from your wages before January 1, 1985 and any service purchases paid with after tax dollars) cannot be rolled into an Individual Retirement Account. If you choose not to roll the tax-deferred portion of your refund into an IRA or other eligible retirement plan, federal law requires OSERS to withhold 20% of your refund for federal income taxes. If you withdraw your money before you reach age 59½ a 10% federal tax penalty may apply when you file your tax return, in addition to the ordinary income tax owed. Certain exemptions to this rule apply so as with all tax matters consult your tax professional for advice.
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Q. What happens to the matched (school board) contributions?
A. The School Board's matching contributions are not remitted specifically for you, are not credited to your account, and are not refundable to you, your beneficiary or the School Board. The School Board's contributions are placed in the Retirement Fund to help pay monthly lifetime benefits to retirees and to the beneficiaries of deceased members.
Q. Can I contribute even though I'm not a full-time employee with OPS?
A. NO. Contributions can only be received from and service credit can only be granted to full-time employees of the Omaha Public Schools.
Q. When will my refund check be issued?
A. Refunds from the Retirement System are made after approval is granted at each Board of Education meeting. The Board of Education normally meets during the evening on the first and third Monday of every month. Refunds checks are processed for mailing on the next business day following the meetings.
Q. Can I reacquire my previous OPS service years if I return to full-time OPS employment?
A. Upon reemployment, credit for past service in the Omaha Public Schools that has been previously refunded to you can be purchased (Buy-Back). In accordance with State statute, the purchase must be fully completed within five years of the date of re-employment. To reacquire this previous OPS service credit, all contributions and interest that were refunded at the time of resignation must be repaid to the system. Interest is charged on that amount for the period the money was out of the Retirement System. Repayments may be made in a lump sum or in equal installments over a period of up to five years from the date of re-employment. Additional interest is charged on installment payments. The decision and arrangements concerning repayment should be made as soon as possible following the effective date of re-employment. Please use the Purchase of Refunded OPS Service Calculator for an estimate of the cost to reacquire previous OPS service or contact the Retirement Office by using the Contact Us feature of this web site or by calling 557-2104.
Q. What happens to my account if I die?
A. If you die while still an active employee, there are two alternatives. If you have less than 20 years of creditable service in the Retirement System, your contributions plus interest will be refunded to your beneficiary(ies). If no beneficiary card is on file in the Retirement Office, the refund is paid to your estate. If you have 20 or more years of creditable service in the Retirement System and have elected as your sole primary beneficiary your spouse (of any age) or any other individual whose attained age at the time of your death is no more than 10 years less than your attained age at death, that one beneficiary is automatically provided with a choice of a pre-retirement survivor's lifetime annuity benefit or the refund of contributions and interest.
If you die after you have begun receiving your retirement benefits the payment option you chose at retirement governs the amount of the after death benefits and to whom they will be paid. Please refer to the answer to the question "What are the options for taking my retirement benefit? Does it stop when I die?" for more details.
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Questions about Service Purchases
- Can I purchase credit from my employment at another public school district?
- Can I reacquire my previous OPS service years if I return to full-time OPS employment?
- How do you calculate the cost of my previous service purchases?
- May I roll funds from an IRA to OSERS?
- May I make payments over time?
- What is the current interest rate charged when I pay for my service purchases over time?
- How soon does a service purchase have to be paid?
- Can I purchase partial years?
- Can I purchase service if I have not previously worked for a public school district or if I have allowed the window of opportunity for purchasing previous service to close?
Q. Can I purchase credit from my employment at another public school district?
A. Up to ten years of previous creditable service in another public school system or Educational Service Unit may be purchased at the time of initial employment by Omaha Public Schools, so long as that service is not used in the calculation of any other retirement or disability benefit having been paid, being paid, or payable in the future. This would include full-time service that gave rise to membership in the Nebraska School Employees Retirement System. In the computation of a member’s retirement benefits, the number of years of “buy-in” service cannot be greater than the number of years of Omaha Public Schools service. In accordance with State statute, the purchase must be fully completed within five years of the date of employment. The amount of the "buy-in" is calculated based on the salary received at the other public school (if that salary can be verified, otherwise the current salary of the employee in the Omaha School District) and the Omaha School Employees' Retirement System contribution rates in effect for those years of service. Interest is charged on that amount for the period of the years of service through the date of "buy-in". Payments can be made in a lump sum or in equal installments over a period of up to five years from the date of employment. Additional interest is charged on installment payments. The decision concerning the "buy-in" and arrangements for paying for the "buy-in" should be made as soon as possible following employment. If the employee has more than ten years of membership in a retirement system elsewhere, it is suggested the employee investigate deferred retirement possibilities in that system before withdrawing his/her contributions from that system. Visit the Purchase of Previous Public School Service Calculator for an unofficial estimate, or to obtain an official calculation contact the Retirement Office by using the Contact Us feature of this web site or by calling 557-2104.
Q. Can I reacquire my previous OPS service years if I return to full-time OPS employment?
A. Upon reemployment, credit for past service in the Omaha Public Schools that has been previously refunded to you can be purchased (Buy-Back). In accordance with State statute, the purchase must be fully completed within five years of the date of re-employment. To reacquire this previous OPS service credit, all contributions and interest that were refunded at the time of resignation must be repaid to the system. Interest is charged on that amount for the period the money was out of the Retirement System. Repayments may be made in a lump sum or in equal installments over a period of up to five years from the date of re-employment. Additional interest is charged on installment payments. The decision and arrangements concerning repayment should be made as soon as possible following the effective date of re-employment. Please use the Purchase of Refunded OPS Service Calculator for an estimate of the cost to reacquire previous OPS service or contact the Retirement Office by using the Contact Us feature of this web site or by calling 557-2104.
Q. How do you calculate the cost of my previous service purchases?
A. In order to Buy Back OPS time or Buy-In Outside service you must pay the amount you did contribute or would have contributed based on the salary you actually earned during the period you elect to purchase (salary earned for the years being purchased times the contribution rate for those specific years), plus interest for the period of time the money would have been invested by the retirement system.
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Q. May I roll funds from an IRA to OSERS?
A. OSERS can accept certain tax-deferred rollovers in payment of most service purchases if the money is an eligible rollover distribution from plans permitted under the Internal Revenue Code. Generally, this includes distributions from other public retirement systems that are qualified plans under the tax code, IRA’s, 401(k)’s and 403(b)’s.
Q. May I make payments over time?
A. Payments can be made in a lump sum or in equal installments over a period of up to five years from the date of employment. Additional interest is charged on installment payments (currently the rate is 7% per annum).
Q. What is the current interest rate charged when I pay for my service purchases over time?
A. The current rate of interest is 7% per annum. This rate is set annually by the Board of Trustees.
Q. How soon does a service purchase have to be paid?
A. The buy-in of outside service, the buy-back of previous OPS service and purchase of leave of absence time must be completed no later than 60 months following the full-time employment or re-employment date. Payment may be made at any time during the prescribed period, but full payment must be made before retirement. If the purchase is completed within the allowable period, all payments made will be credited to your account. If full payment is not made within that period, proportional credit will be granted. You may not receive full credit on an incomplete purchase.
Q. Can I purchase partial years?
A. You may purchase credit in increments of one-tenth year.
Q. Can I purchase service if I have not previously worked for a public school district or if I have allowed the window of opportunity for purchasing previous service to close?
A. A full-time member of the retirement system who has completed 5 or more years of Omaha Public School service may purchase up to five years of service credit at any time prior to retirement. The member does not need to have any previous non-Omaha Public Schools work to qualify for this purchase. In accordance with State statute, payment for the purchase must be fully completed within five years of the date of initiating the purchase. The cost to purchase additional years of service is the present value of the added benefits that are anticipated to be provided as a result of the service purchase. This calculation is based on the members salary (including actuarial assumptions for salary increases), the date the member would become eligible for unreduced retirement benefits, and the members life expectancy (using current actuarial tables). To help defray the cost to purchase the actuarial computer program needed to make this calculation, a $25.00 charge is assessed to each member requesting an all-purpose buy-in calculation. To obtain an official calculation contact the Retirement Office by using the Contact Us feature of this web site or by calling 557-2104.
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Frequently Asked Questions about Death Before and After Retirement
Frequently Asked Questions about Contribution & Withdrawal
Frequently Asked Questions about Service Purchases
Questions about Benefits
When can I retire?
What will my OSERS benefit be?
When do I need to give notice for retirement?
When am I vested?
When will I receive my first benefit payment?
What are the options for taking my retirement benefit? Does it stop when I die?
Is my benefit taxable?
Will my OSERS benefit affect my Social Security benefit?
Will partial years count toward retirement?
When will I reach Rule of 85?
When will I receive COLAs?
What are the limitations on Employment After Retirement?
Can I retain my health insurance after I retire? If so, for how long?
What will be withheld from my benefit payment?
Q. When can I retire?
A. You are eligible to retire and receive reduced benefits at or following age 55 if you have at least 10 years of credit (5 of which must be with Omaha Public Schools). You are eligible for unreduced retirement benefits as follows:
- at or following age 65 with at least 5 years of credit
- at or following age 62 with at least 10 years of credit
- at or following age 55 when your age plus service equals or exceeds 85.
Q. What will my OSERS benefit be?
A. Your benefits are calculated using the following formulas:
OMAHA
- Multiply your years of retirement system credit by 2%
- Multiply this number by the average your highest three year's Omaha Public Schools income
- Divide this annual Omaha benefit by 12 to obtain the monthly Omaha benefit
- If you are not age 62 or if you have not yet reached the Rule of 85, your Omaha benefits will be reduced for early retirement.
- Multiply your years of retirement system credit by $3.50
- If you are not age 65, your State benefits will be reduced for early retirement.
Q. When do I need to give notice for retirement?
A. You must submit notice of your prospective retirement to the Office of the Superintendent of Schools and the Office of the Executive Director of the Omaha School Employees' Retirement System, no less than 60 days prior to the effective date of retirement. This is to facilitate the presentation of the application to the Board of Education and authorizing the Retirement System staff to process the application within the time requirements.
Q. When am I vested?
A. Vesting establishes a right to a future retirement benefit without additional service. You will be vested in OSERS as soon as you acquire five years of creditable service with Omaha Public Schools. Once vested, you may cease covered employment at any age, hold your membership by leaving your contributions with the Retirement System, and claim a monthly lifetime retirement benefit when you meet minimum eligibility requirements. Your benefit will be figured under the formula in effect when you end employment. You may, of course, request a refund of your contributions and earned interest after termination of service but before retirement payments start. By doing so you give up your vested status and your right to a monthly benefit based on the credit established before the refund.
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Q. When will I receive my first benefit payment?
A. Your first retirement payment will be issued the third of the month following the month in which your retirement becomes effective. For example, if your effective retirement date is July 1, and all your records are complete, your first retirement payment will be issued on August 3rd. Subsequent payments will be issued on the third day of each month.
Q. What are the options for taking my retirement benefit? Does it stop when I die?
A. Before the first Omaha School Employees' Retirement System benefit payment is made, you must elect the monthly annuity payment option desired. In the event of your death before 60 monthly payments (options A, C, D, E or F) or 120 monthly payments (option B) have been made, the monthly payments will be continued to your designated beneficiary(ies) or if no beneficiary(ies) has been named, to your estate, until the appropriate total number of monthly payments have been made.
Option A (Five Years Certain plus Lifetime to the Retiree) This option pays the largest monthly benefit to the retiree, payable for the retiree’s entire lifetime. In the event of the retiree’s death before 60 monthly payments have been made, the monthly payments will be continued to the retiree’s beneficiary(ies) or estate until the remainder of the guaranteed 60 monthly payments have been made.
Beneficiary designation: You may name any individual or other legal entity to receive the remaining payments. The designation may be changed at any time.
Advantage: Since this option provides the largest retiree benefit, it is often the appropriate choice for a member with no dependents or for a member whose beneficiary would have adequate income from other sources after the retiree's death.
Disadvantage: Monthly payments end with the month of the retiree's death or after the 60th payment, whichever occurs last. No beneficiary protection is provided after the first 60 payments.
Option B (Ten Years Certain plus Lifetime to the Retiree) This option pays the second largest monthly benefit to the retiree, payable for the retiree’s entire lifetime. In the event of the retiree’s death before 120 monthly payments have been made, the monthly payments will be continued to the retiree’s beneficiary(ies) or estate until the remainder of the guaranteed 120 monthly payments have been made.
Beneficiary designation: You may name any individual or other legal entity to receive the remaining payments. The designation may be changed at any time.
Advantage: Since this option provides a longer guaranteed payment period in the event of the recipient's death, it is an appropriate choice for a single member with dependents still in college or high school.
Disadvantage: Monthly payments end with the month of the retiree's death or after the 120th payment, whichever occurs last. No beneficiary protection is provided after the first 120 payments.
The following Joint and Survivor annuity options are available. A spouse (regardless of age) is eligible to receive any one of the following Joint and Survivor annuity options. If the designated joint annuitant is not the retiree's spouse then availability of some of the following Joint and Survivor annuity options is limited subject to the age limitations imposed by Internal Revenue Service regulations : for purposes of Option C, Option D, and Option F, a joint annuitant’s adjusted age is the attained age of the joint annuitant plus the number of years, if any, by which the retiree’s age is younger than age seventy.
Option C (100% Joint and Survivor) This option provides monthly annuity payments for the remaining lifetimes of both the retiree and the joint annuitant. The amount of the annuity is reduced from the Five Years Certain amount to provide for the two-lifetime payment period. At the death of the retiree, if the joint annuitant is still living, the joint annuitant will receive the same amount of monthly annuity for her/his remaining lifetime. You may use this option for either a spouse or a non-spouse joint annuitant. However, if the joint annuitant is not your spouse, IRS regulations will only permit use of this option if the adjusted age (see definition above Option C) of the non-spouse joint annuitant is no more than 10 years younger than the attained age of the member in any calendar year.
Option D (75% Joint and Survivor) This option provides monthly annuity payments for the remaining lifetimes of both the retiree and the joint annuitant. The amount of the annuity is reduced from the Five Years Certain amount to provide for the two-lifetime payment period. At the death of the retiree, if the joint annuitant is still living, the joint annuitant will receive 75% of the amount of the previous monthly annuity for his/her remaining lifetime. You may use this option for either a spouse or a non-spouse joint annuitant. However, if the joint annuitant is not your spouse, IRS regulations will only permit use of this option if the adjusted age (see definition above Option C) of the non-spouse joint annuitant is no more than 19 years younger than the attained age of the member in any calendar year.
Option E (50% Joint and Survivor) This option provides monthly annuity payments for the remaining lifetimes of both the retiree and the joint annuitant. The amount of the annuity is reduced from the Five Years Certain amount to provide for the two-lifetime payment period. At the death of the retiree, if the joint annuitant is still living, the joint annuitant will receive 50% of the amount of the previous monthly annuity for his/her remaining lifetime. You may use this option for either a spouse or a non-spouse joint annuitant. No IRS imposed age limitation regulations restrict use of this option.
Option F ("Pop-up" Joint and Survivor) This option provides monthly annuity payments for the remaining lifetimes of both the retiree and the joint annuitant. The amount of the annuity is reduced from the Five Years Certain amount to provide for the two-lifetime payment period. At the death of the joint annuitant, if the retiree is still living, the retiree will receive a monthly annuity in an amount equal to the Five Years Certain annuity for the remainder of her/his lifetime. You may use this option for either a spouse or a non-spouse joint annuitant. However, if the joint annuitant is not your spouse, IRS regulations will only permit use of this option if the adjusted age (see definition above Option C) of the non-spouse joint annuitant is no more than 10 years younger than the attained age of the member in any calendar year.
Beneficiary designation: You may name one person as your joint annuitant - a spouse, a child, a parent or any other individual (subject to the IRS age restrictions mentioned earlier). That designation may not be changed. If you and your named joint annuitant were to both die before receiving 60 total monthly payments, the remainder of the 60 monthly payments would be made to the individual, trust or other legal entity you had named on the designation of beneficiary card or to the estate if no beneficiary is designated.
Advantage: These options provide income to the retiree and the named joint annuitant for life.
Disadvantage: The retiree benefit reduction required to pay for the joint annuitant coverage reduces monthly income for the retiree’s lifetime.
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Q. Is my benefit taxable?
A. Under the Internal Revenue Code, retirement benefits are taxable beginning with the first payment. If you made retirement system contributions before January 1, 1985, those contributions were income taxed before they were placed in the retirement fund. This amount is termed your "investment in contract". Therefore a small portion of each benefit payment would be excluded from income tax and considered a return of your previously taxed "investment in contract". If you purchased any service credit with previously income taxed money, those amounts would be treated as indicated above. Retirement system contributions following January 1, 1985, service credit purchases paid with tax-deferred funds, and all interest credited to your account will be taxable, whether received as a retirement benefit, a withdrawal of account funds, or a death benefit. During January of each year following retirement you will receive a 1099R in order to complete your income tax forms. The 1099R will inform you of the amount of your benefit that must be included as taxable income when filing your tax returns, the amount of your benefit on which income taxes were previously paid and the amount of income taxes that have been withheld. The amount of your benefits excluded from additional taxes is a partial return of your "investment in contract". When these excluded amounts equal your entire "investment in contract", then all further payments are fully taxable.
Federal Income Tax - At retirement you can determine the amount of Federal income tax withholding you want by filing a W-4P with the Compensation and Benefits Office of the Omaha Public Schools. You may change your withholding status at any time by sending a new W-4P to the Compensation and Benefits Office.
State Income Tax - OSERS retirement benefits paid to Nebraska residents are subject to Nebraska state income tax. According to the Nebraska Department of Revenue, OSERS benefits paid to retirees who are not Nebraska residents are not subject to Nebraska state income tax (please verify this information with your own tax professional). At retirement you can determine the amount of Nebraska income tax withholding you want by filing a Withholding Form for State of Nebraska Individual Income Taxes with the Compensation and Benefits Office of the Omaha Public Schools. You may change your withholding amounts at any time by sending a new Withholding Form for State of Nebraska Individual Income Taxes to the Compensation and Benefits Office. Please be advised that the retirement staff is not qualified to offer individual tax advice or information. Questions concerning taxes should be directed to a tax professional or to the appropriate taxing agency.
Q. Will my OSERS benefit affect my Social Security benefit?
A. OSERS benefits and Social Security or Railroad Retirement pension eligibility will have no affect on each other. You may contact the Social Security Administration by calling 1-800-772-1213.
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Q. Will partial years count toward retirement?
A. Yes! Before September 1, 2005, creditable service was accumulated in accordance with the negotiated agreements for each of the various employment contracts. If you had worked enough days to acquire one-half year of service credit, that time was included in your service record. Beginning September 1, 2005, a creditable year of service is defined for all members of the Retirement System as 1,000 or more hours of compensated service within a fiscal year. If you perform less than 1,000 hours of compensated service, one-tenth of a year of creditable service will be included in your service record for each 100 hours of compensated service. All time earned, whether full years or fractional years, is used in the benefit calculations.
Q. When will I reach Rule of 85?
A. You will reach Rule of 85 when you have any combination of age and creditable service that equals 85. One-half year of service can be combined with one-half year of age to also reach the Rule of 85 (i.e. 55 ½ years of age added to 29 ½ years of service equal 85). Retirement under the Rule of 85, as well as all other forms of early retirement, requires the retiree to have reached at least 55 years of age.
Q. When will I receive COLAs?
A. On January 3rd of each year a general cost of living adjustment will be made to each retirement benefit being paid. This general COLA will be 1 ½ percent of the Omaha retirement benefit, not to exceed the increase in the consumer price index over the preceding year. If the consumer price index has increased more than 1 ½ percent and if the Board of Trustees determines that a supplemental COLA is prudent and actuarially permissible, then upon recommendation of the Board of Trustees, the Board of Education may authorize a supplemental COLA payment. Again, this supplemental COLA cannot exceed the increase in the consumer price index. In addition to the general COLA, which is paid to both members and beneficiaries, a medical cost of living adjustment is paid, but only to members who have been retired 10 years or more. On October 3rd of each year, these retired members will be paid a medical COLA using the following formula:
A. Years of Retirement System Service Credit (how may years did you make retirement system contributions) divided by 20 (number cannot be larger than 1)
B. Multiply the product of Step A by the number of years the member has been retired C. Multiply the product of Step B by $10
Q. What are the limitations on Employment After Retirement?
A. The Retirement System has no restrictions on employment after retirement, for employers other than Omaha Public Schools. Re-employment with the Omaha Public Schools may occur after at least a 30 day break in service and may be restricted or limited for certificated members participating in the Early Leaving Incentive program. Social Security has earning restrictions for those members receiving Social Security benefits before their full Social Security retirement age. Please call the Social Security Administration at 1-800-772-1213 for complete details.
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Q. Can I retain my health insurance after I retire? If so, for how long?
A. While members frequently ask the Retirement System about their health care options upon retirement, the Retirement System has no role in administering health insurance for retirees. Detailed questions concerning your health insurance options should be directed to the Omaha Public Schools Compensation and Benefits Office at 557-2119. When members retire from employment with Omaha Public Schools, thus losing their health insurance benefits, in most instances the Educators Health Alliance permits them to purchase group insurance similar to what they were being provided as an active employee. For more information, you can access their web site at: http://www.educatorshealthalliance.org
Q. What will be withheld from my benefit payment?
A. At your direction, both Federal income tax and Nebraska income tax can be withheld from your benefit payment. Please see the question titled "Is My Benefit Taxable" for more details.
Questions about Death Before and After Retirement
Where does my money in the Omaha School Employees' Retirement System go when I die?
When should I fill out a new beneficiary card?
Q. Where does my money in the Omaha School Employees' Retirement System go when I die?
A. If you die while still an active employee, there are two alternatives. If you have less than 20 years of creditable service in the Retirement System, your contributions plus interest will be refunded to your beneficiary(ies). If no beneficiary card is on file in the Retirement Office, the refund is paid to your estate. If you have 20 or more years of creditable service in the Retirement System and have elected as your sole primary beneficiary your spouse (of any age) or any other individual whose attained age at the time of your death is no more than 10 years less than your attained age at death, that one beneficiary is automatically provided with a choice of a pre-retirement survivor's lifetime annuity benefit or the refund of contributions and interest.
If you die after you have begun receiving your retirement benefits the payment option you chose at retirement governs the amount of the after death benefits and to whom they will be paid. Please refer to the answer to the question "What are the options for taking my retirement benefit? Does it stop when I die?" for more details.
Q. When should I fill out a new beneficiary card?
A. It is very important for the Retirement System to have current and accurate information on your beneficiaries. Address changes and deaths can delay payment of benefits. You may review your beneficiary designations each year by carefully reviewing your annual member statement, normally mailed in November of each year. Look to see whether beneficiaries are listed in their correct category, either primary or secondary, and whether addresses are still accurate. If any of the information is incorrect, please download and complete a new beneficiary card by using the Publications and Forms feature of this web site or by calling the retirement office at 557-2102.
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Questions About Contributions & Withdrawals
- How much are my contributions to OSERS?
- Can I withdraw part or all of my contributions?
- Can I borrow from my account?
- Do I have to withdraw my funds if I end full-time employment with OPS?
- Can my funds be rolled into an Individual Retirement Account (IRA)?
- What happens to the matched (school board) contributions?
- Can I contribute even though I'm not a full-time employee with OPS?
- When will my refund check be issued?
- Can I reacquire my previous OPS service years if I return to full-time OPS employment?
- What happens to my account if I die?
Q. How much are my contributions to OSERS?
A. The current contribution rate for all active members of the Retirement System is 6.3% of your gross payroll paid through Omaha Public Schools.
Q. Can I withdraw part or all of my contributions?
A. According to Nebraska State Statutes, all full-time employees of Omaha Public Schools must be members of the Retirement System. If you leave the employment of Omaha Public Schools before retirement, you are eligible to withdraw all of your retirement system contributions plus credited interest and forfeit all of your OSERS benefits. If you are granted a leave of absence, you are still classified as a full-time employee and therefore are not eligible to withdraw your retirement system monies. The law does not permit partial withdrawals.
Q. Can I borrow from my account?
A. The law does not permit loans.
Q. Do I have to withdraw my funds if I end full-time employment with OPS?
A. The answer to this question depends on whether you have worked for Omaha Public Schools for at least 5 years and therefore have become vested in your retirement benefits. If you leave full-time OPS employment before you are vested, you have the right to request a refund of your contributions and interest. If you do not make that request, the Internal Revenue Service requires that we roll over your contributions and interest to an Individual Retirement Account in your name. Please see the question "Can my funds be rolled into an Individual Retirement Account (IRA)?" for more information on refunds and roll overs. If you leave full-time OPS employment after you are vested, you may leave your contributions with the system and, when you meet retirement eligibility requirements, request a monthly lifetime retirement benefit. Your benefit will be calculated under the formula in effect when you left full-time employment with OPS. You may, of course, request a refund or roll over of your contributions at any time before retirement payments start, and give up your right to a monthly lifetime benefit.
Q. Can my funds be rolled into an Individual Retirement Account (IRA)? What are the penalties/tax consequences for withdrawing my funds?
A. If you leave full-time employment with Omaha Public Schools, all tax-deferred contributions (those deducted from your wages after January 1, 1985), all service purchases paid with tax deferred rollovers and tax deferred payroll deductions, and all interest credited to your account would be eligible to be rolled into an Individual Retirement Account. Any contribution on which taxes have already been paid (those deducted from your wages before January 1, 1985 and any service purchases paid with after tax dollars) cannot be rolled into an Individual Retirement Account. If you choose not to roll the tax-deferred portion of your refund into an IRA or other eligible retirement plan, federal law requires OSERS to withhold 20% of your refund for federal income taxes. If you withdraw your money before you reach age 59½ a 10% federal tax penalty may apply when you file your tax return, in addition to the ordinary income tax owed. Certain exemptions to this rule apply so as with all tax matters consult your tax professional for advice.
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Q. What happens to the matched (school board) contributions?
A. The School Board's matching contributions are not remitted specifically for you, are not credited to your account, and are not refundable to you, your beneficiary or the School Board. The School Board's contributions are placed in the Retirement Fund to help pay monthly lifetime benefits to retirees and to the beneficiaries of deceased members.
Q. Can I contribute even though I'm not a full-time employee with OPS?
A. NO. Contributions can only be received from and service credit can only be granted to full-time employees of the Omaha Public Schools.
Q. When will my refund check be issued?
A. Refunds from the Retirement System are made after approval is granted at each Board of Education meeting. The Board of Education normally meets during the evening on the first and third Monday of every month. Refunds checks are processed for mailing on the next business day following the meetings.
Q. Can I reacquire my previous OPS service years if I return to full-time OPS employment?
A. Upon reemployment, credit for past service in the Omaha Public Schools that has been previously refunded to you can be purchased (Buy-Back). In accordance with State statute, the purchase must be fully completed within five years of the date of re-employment. To reacquire this previous OPS service credit, all contributions and interest that were refunded at the time of resignation must be repaid to the system. Interest is charged on that amount for the period the money was out of the Retirement System. Repayments may be made in a lump sum or in equal installments over a period of up to five years from the date of re-employment. Additional interest is charged on installment payments. The decision and arrangements concerning repayment should be made as soon as possible following the effective date of re-employment. Please use the Purchase of Refunded OPS Service Calculator for an estimate of the cost to reacquire previous OPS service or contact the Retirement Office by using the Contact Us feature of this web site or by calling 557-2104.
Q. What happens to my account if I die?
A. If you die while still an active employee, there are two alternatives. If you have less than 20 years of creditable service in the Retirement System, your contributions plus interest will be refunded to your beneficiary(ies). If no beneficiary card is on file in the Retirement Office, the refund is paid to your estate. If you have 20 or more years of creditable service in the Retirement System and have elected as your sole primary beneficiary your spouse (of any age) or any other individual whose attained age at the time of your death is no more than 10 years less than your attained age at death, that one beneficiary is automatically provided with a choice of a pre-retirement survivor's lifetime annuity benefit or the refund of contributions and interest.
If you die after you have begun receiving your retirement benefits the payment option you chose at retirement governs the amount of the after death benefits and to whom they will be paid. Please refer to the answer to the question "What are the options for taking my retirement benefit? Does it stop when I die?" for more details.
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Questions about Service Purchases
- Can I purchase credit from my employment at another public school district?
- Can I reacquire my previous OPS service years if I return to full-time OPS employment?
- How do you calculate the cost of my previous service purchases?
- May I roll funds from an IRA to OSERS?
- May I make payments over time?
- What is the current interest rate charged when I pay for my service purchases over time?
- How soon does a service purchase have to be paid?
- Can I purchase partial years?
- Can I purchase service if I have not previously worked for a public school district or if I have allowed the window of opportunity for purchasing previous service to close?
Q. Can I purchase credit from my employment at another public school district?
A. Up to ten years of previous creditable service in another public school system or Educational Service Unit may be purchased at the time of initial employment by Omaha Public Schools, so long as that service is not used in the calculation of any other retirement or disability benefit having been paid, being paid, or payable in the future. This would include full-time service that gave rise to membership in the Nebraska School Employees Retirement System. In the computation of a member’s retirement benefits, the number of years of “buy-in” service cannot be greater than the number of years of Omaha Public Schools service. In accordance with State statute, the purchase must be fully completed within five years of the date of employment. The amount of the "buy-in" is calculated based on the salary received at the other public school (if that salary can be verified, otherwise the current salary of the employee in the Omaha School District) and the Omaha School Employees' Retirement System contribution rates in effect for those years of service. Interest is charged on that amount for the period of the years of service through the date of "buy-in". Payments can be made in a lump sum or in equal installments over a period of up to five years from the date of employment. Additional interest is charged on installment payments. The decision concerning the "buy-in" and arrangements for paying for the "buy-in" should be made as soon as possible following employment. If the employee has more than ten years of membership in a retirement system elsewhere, it is suggested the employee investigate deferred retirement possibilities in that system before withdrawing his/her contributions from that system. Visit the Purchase of Previous Public School Service Calculator for an unofficial estimate, or to obtain an official calculation contact the Retirement Office by using the Contact Us feature of this web site or by calling 557-2104.
Q. Can I reacquire my previous OPS service years if I return to full-time OPS employment?
A. Upon reemployment, credit for past service in the Omaha Public Schools that has been previously refunded to you can be purchased (Buy-Back). In accordance with State statute, the purchase must be fully completed within five years of the date of re-employment. To reacquire this previous OPS service credit, all contributions and interest that were refunded at the time of resignation must be repaid to the system. Interest is charged on that amount for the period the money was out of the Retirement System. Repayments may be made in a lump sum or in equal installments over a period of up to five years from the date of re-employment. Additional interest is charged on installment payments. The decision and arrangements concerning repayment should be made as soon as possible following the effective date of re-employment. Please use the Purchase of Refunded OPS Service Calculator for an estimate of the cost to reacquire previous OPS service or contact the Retirement Office by using the Contact Us feature of this web site or by calling 557-2104.
Q. How do you calculate the cost of my previous service purchases?
A. In order to Buy Back OPS time or Buy-In Outside service you must pay the amount you did contribute or would have contributed based on the salary you actually earned during the period you elect to purchase (salary earned for the years being purchased times the contribution rate for those specific years), plus interest for the period of time the money would have been invested by the retirement system.
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Q. May I roll funds from an IRA to OSERS?
A. OSERS can accept certain tax-deferred rollovers in payment of most service purchases if the money is an eligible rollover distribution from plans permitted under the Internal Revenue Code. Generally, this includes distributions from other public retirement systems that are qualified plans under the tax code, IRA’s, 401(k)’s and 403(b)’s.
Q. May I make payments over time?
A. Payments can be made in a lump sum or in equal installments over a period of up to five years from the date of employment. Additional interest is charged on installment payments (currently the rate is 7% per annum).
Q. What is the current interest rate charged when I pay for my service purchases over time?
A. The current rate of interest is 7% per annum. This rate is set annually by the Board of Trustees.
Q. How soon does a service purchase have to be paid?
A. The buy-in of outside service, the buy-back of previous OPS service and purchase of leave of absence time must be completed no later than 60 months following the full-time employment or re-employment date. Payment may be made at any time during the prescribed period, but full payment must be made before retirement. If the purchase is completed within the allowable period, all payments made will be credited to your account. If full payment is not made within that period, proportional credit will be granted. You may not receive full credit on an incomplete purchase.
Q. Can I purchase partial years?
A. You may purchase credit in increments of one-tenth year.
Q. Can I purchase service if I have not previously worked for a public school district or if I have allowed the window of opportunity for purchasing previous service to close?
A. A full-time member of the retirement system who has completed 5 or more years of Omaha Public School service may purchase up to five years of service credit at any time prior to retirement. The member does not need to have any previous non-Omaha Public Schools work to qualify for this purchase. In accordance with State statute, payment for the purchase must be fully completed within five years of the date of initiating the purchase. The cost to purchase additional years of service is the present value of the added benefits that are anticipated to be provided as a result of the service purchase. This calculation is based on the members salary (including actuarial assumptions for salary increases), the date the member would become eligible for unreduced retirement benefits, and the members life expectancy (using current actuarial tables). To help defray the cost to purchase the actuarial computer program needed to make this calculation, a $25.00 charge is assessed to each member requesting an all-purpose buy-in calculation. To obtain an official calculation contact the Retirement Office by using the Contact Us feature of this web site or by calling 557-2104.
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