If you are missing service and/or salary during your career, you may qualify to purchase the credit. Purchasing the credit is optional, but could result in a larger benefit with PERA. Two opportunities to purchase credit are provided below:
Repaying a PERA refund
If you were previously a PERA member who left public service and received a refund, you have the option to repay the refund plus interest to restore the lost credit with PERA.
During your career, you may take a leave from your public position covered by PERA. You may purchase missing contributions plus interest to restore the lost credit.
Types of leaves include:
- Authorized Leave (medical, FMLA, parental, personal, etc.)
- Workers’ Compensation Leave
- Military Leave
- Employer-Sponsored Leave (furlough, special leave, budgetary)
What is the purchase cost?
The member purchase amount for:
- Repaying a Refund. The amount of your original refund plus interest.
- Leave Purchase. Generally, the amount of your missing employee and employer contributions during the leave period, plus interest.
Interest is compounded based on rates specified by the Minnesota Legislature:
- 8.5 percent through June 30, 2015
- 8.0 percent July 1, 2015 – June 30, 2018
- 7.5 percent July 1, 2018 forward
You have two methods to provide payment to PERA:
- Personal check payable to “PERA”
- Direct Rollover from another qualified plan
The payment could be a combination of a personal check and a direct rollover. Or, the payment could be multiple direct rollovers from different qualified plans.