PENSION BENEFITS REPORT
Purchasing Service Credit
During my time as the NJ State PBA Pension Services Coordinator, I have realized that it is important for our members to have a current MBOS account with your personal email address. MBOS is an acronym for Member Benefits Online System. With an active MBOS account, you can purchase service credit, edit your beneficiaries, confirm your service time in PFRS, apply for a pension loan and apply to retire. MBOS provides registered users access to a member’ s individual pension and health benefit account through the internet. I encourage all of our members to familiarize themselves with MBOS and the Division of Pensions and Benefits website.
One of the many calls we have received has been regarding the purchase of service credit. Since retirement benefits are based on service time one has accumulated during their career, it is extremely important to obtain the correct amount of time one has worked. An employee looking at options to purchase service credit gets one month of service credit for each month that member has made a full pension contribution. In addition, members whose employers report service and contributions biweekly will receive one pay period of service credit for each pay period a full pension contribution is made.
Some members may want to investigate the possibility of purchasing service credit so they can have more pensionable time in the PFRS system. If a member were going to purchase their eligible service time, that member would purchase the time at the current rate in which they applied for that time. In other words, the purchase of service credit is always going to be at the current rate the member is at— never at a cheaper rate or at the rate the member was at during the time that is being considered for purchase.
Members can purchase eligible service credit for time spent on authorized leaves of absence without pay for up to two years for personal illness, or up to three months for personal reasons. Eligible time that is considered personal illness includes maternity leave and child care leave. A leave of absence without pay in a New Jersey State – administered retirement system under a former membership may be eligible for purchase.
Members of PFRS who were laid off and were in good standing at the time of separation from employment, and who are rehired to a similar police position in the PFRS, may be eligible to purchase up to three years for the time period in which the member was laid off. The member must be an actively contributing member of PFRS to make this type of purchase.
Members may purchase all or part of the eligible service. If a member makes a partial purchase at his or her current rate and wants to buy the remaining time in the future, that purchase of the remaining time in the future would be at a higher rate because you would purchase that remaining time at your current rate.
If any of our members have any questions regarding this topic, please email pandreyev @ njspba. com or call 732-636- 8860. d
14 NEW JERSEY COPS ■ FEBRUARY 2017