§ 35.094. PURCHASE OF ADDITIONAL CREDITED SERVICE FOR PRIOR MILITARY OR GOVERNMENT EMPLOYMENT.

A participant with at least five (5) years of credited service based on City employment who has not entered the DROP may purchase up to three (3) additional years of credited service, in full years and tenths of a year, at any time before retirement for a like period of previous full-time employment with the Federal government, including military service, or any State, county, or city government other than the City of Delray Beach; provided the participant has paid into the plan the full actuarial cost of such credited service as determined by the plan actuary. A participant purchasing such additional credited service must pay the full cost of any actuarial calculations required, and must provide proof of the prior government employment to the City. No additional service credit will be allowed if the participant is receiving or will receive any other retirement benefit based on the prior government service. Payment for the purchase of credited service for prior government employment pursuant to this Section must be made in full prior to entering the DROP or separation from City employment, whichever occurs earlier. In the event full payment is not made prior to such date, the participant shall receive only the amount of credited service, as determined by the actuary, for which the payment made, excluding interest, is the full actuarial cost. Payment for the purchase of credited service pursuant to this subsection may be made using any one or a combination of the following options:

1.

[Cash Payment.] Cash lump sum payment.

2.

[Direct Transfer, Rollover.] Direct transfer or rollover of an eligible rollover distribution from a qualified plan, in accordance with Sec. 35.097(L).

3.

Time Payment Plan. Under this option the participant may elect to pay any remaining balance due for the purchase of credited service through payroll deduction on a time payment plan over a period of not more than five (5) years, as approved by the Retirement Committee. Interest on such payments shall be paid based on the assumed rate of return of the plan, and the credited service purchased shall not be credited until all installments are paid. Payments deducted from an employee's pay shall be designated as employer contributions pursuant to Section 414(h) of the Internal Revenue Code.

(Ord. No. 56-02, § 1, passed 1/7/03; Ord. No. 45-17 , § 3, passed 12/5/17)

Editor's note

Sec. 35.094 previously was reserved and carried a history note consisting of the following: Code 1980, § 18-83; Ord. No. 67-84, passed 9/25/84; and Am. Ord. No. 78-93, passed 12/7/93.