Service Credit/Transfers/Purchases

Calculation of credit for service is based on each day of employment with the Office of State Police. You may not receive more than one year of service credit during any one calendar year.

 

To compute your retirement benefit, creditable service includes the years of service credit, credit for unused sick and annual leave, and any other service credit you may have purchased or transferred.

 

If you have credit in more than one state, parochial, or municipal retirement system in Louisiana, you may either apply for a reciprocal agreement or a transfer of the service credit. You must have at least six months of service credit in your current retirement system to apply for a reciprocal agreement or transfer of service.

 

Reciprocal Recognition of Service


The recognition of your service credit in one retirement system by another system and involves no cost to you.  Each system considers your service credit in the other system when determining your eligibility for regular retirement, disability retirement, and survivor benefits.  Each system keeps the contributions paid to it. When you retire, each system pays you a benefit based on your service credit and earnings in that system only. You must make written application for a reciprocal agreement.

 

Actuarial Transfer of Service


An actuarial transfer of service is the transfer of service from one retirement system to another. An actuarial transfer may involve a cost to you. The cost will be determined by the system’s actuary. You will be given two options once the actuary has determined the cost, (1) pay the difference between the amounts transferred and the actuarial cost of the transfer (if any), or (2) choose to take a reduction in service credit at no cost. The system you transfer into will pay your retirement benefits based on all of your service credit. The actuary’s fee for this calculation is $125. The fee must be submitted in advance. To begin the transfer process, you must make written application. You must be an active member to transfer service credit.

 

Although there may be additional costs for an actuarial transfer, the advantage is that your retirement benefit will be based on your current final average compensation for all service.  The retirement percentage factor used by the other system will be used to calculate your benefit for the transferred service (unless the transfer was completed prior to July 1, 2001 in which case LSPRS’s retirement percentage factor is used). At the time of the retirement, you will receive one monthly check.

 

Reverse Transfer of Service


This allows you to transfer all service you may have in your current retirement system to the system you last contributed to for the purpose of immediate retirement from the receiving system. This type of transfer may only be made one time and you must terminate employment immediately. If the transfer does not make you immediately eligible for retirement from the receiving system, you may not execute the transfer. The actuary will determine the cost(s) involved in the transfer(s). All costs must be paid in full prior to termination. You will then be ineligible for membership in the transferring system after the effective date of the transfer and there are certain limitations on your ability to contribute to the receiving system if you are re-employed in a position covered by that system.

 

Note:  You may repay a prior refund from another system in order to reestablish credit for a reciprocal agreement or a transfer. You must pay back the refunded contributions, plus interest, to the public system from which you withdrew. Once you repay the refund, the system reinstates your service credit. You may then apply for that credit through the options described above.

 

Purchase of Military Service


You may purchase up to four years of regular (full-time active duty) or non-regular (any state or federal military service for which retirement points are assigned) military service credit provided you have not received credit for the service in another public retirement system or the military retirement system and you are receiving a benefit from that system. Non-regular service includes state national guard, coast guard, or any reserve component. You must have received an honorable discharge to be eligible to purchase the credit.

 

Credit for regular service is based on one day of credit for each day of full-time active duty.  Credit for non-regular service is based on one day of credit for one retirement point (as determined by the military).

 

You may not use military service to meet the minimum eligibility requirements of any retirement of less than twenty years nor to meet the requirement of twenty full years of service.  Additionally you may not use military service to meet the eligibility requirements for disability or survivor’s benefits. The salary earned while in the military will not be used in computing your final average compensation. However, if the death of a member occurred on or after January 1, 2007 while performing military service, as defined in Sec. 414(u) of the Internal Revenue Code, eligibility for survivor benefits shall be determined as if the member had resumed employment and then terminated employment on account of death. In addition, the retirement system will credit the member’s qualified military service as service for vesting purposes and for eligibility computation purposes under certain federal law guidelines.

 

To apply for the purchase of military service, you must submit an application to LSPRS along with a copy of your DD214 or discharge papers indicating your retirement points, and a check for $125 to cover the actuary’s fee for performing the calculation. The purchase cost is determined by calculating the increase in the actuarial liability assumed by LSPRS. LSPRS staff will notify you upon receipt of the purchase cost from the actuary. The amount due may be paid in one lump sum or in installments not to exceed 36 months and as approved by the Board of Trustees. Any purchases of service must be completed prior to termination of employment.

 

Purchase of Full-Time State Service


You may purchase full-time state police service for which you have not received prior credit.  You must pay an amount equal to LSPRS’s increased actuarial liability attributable to your service. You must also provide certification of the dates of service and salary earned (either from agency personnel records or other acceptable documents). This information should be submitted to LSPRS along with a check in the amount of $125 to cover the actuarial fee for determining the cost. LSPRS does not grant credit until the actuarial cost is paid in full.

 

Purchase of Prior Law Enforcement Service Within the State Of Louisiana


If you were employed with a law enforcement agency within the State of Louisiana and that service is not credited in any retirement system, you may purchase that service in LSPRS. You must provide certification of the dates of service, name of agency, etc. Once verified by the employing agency, the information will be submitted to the actuary for cost calculation. You must submit your check for $125 to cover the actuary fee along with your initial application. You may pay this purchase cost in a lump sum or over a 36 month payment period.

 

Purchase of Federal or Out of State Law Enforcement Service


If you were employed on or before June 30, 2008 and have at least ten years of service credit, you are eligible to purchase federal law enforcement or out of state law enforcement service, provided this service is not creditable in any other public retirement or pension system, fund, or plan. You must complete the application and submit along with your check for $125 to cover the actuary fee. Upon verification of your service from the federal or out of state agency, the cost will be calculated. You may pay the cost in a lump sum or over a 36 month payment period.

 

Obtaining Credit For Service Denied Due to Administrative Error


You may obtain credit for state police service that was excluded because of an administrative error on the part of your employing agency (DPS). However, the error and requested correction must be reviewed and approved by the Executive Director or the Assistant Director. To obtain the credit, you must first pay the employee contributions at the current rate based on your earned compensation at the time the service was performed. You also must pay the interest on this amount compounded annually from the date of service until the date paid.

 

The employing agency where such credit was denied must pay LSPRS the higher of the actuarial cost of any additional benefits payable as a result of this extra credit less the  employee contributions or the current rate of employer contributions that should have been paid for the service credit.  This amount excludes your payment.

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