Retirement Information for Former TDC Members
S.B. 529 and purchasing full retirement credit in TRS
First expected deadline of APRIL 15 is quickly approaching
Teachers and other school employees who transferred from the Teachers Defined Contribution Retirement System (TDC) to the Teachers Retirement System (TRS) in 2008 and 2009 could STILL purchase full retirement credit in TRS if Gov. Tomblin signs Senate Bill 529, but the window of opportunity is small.
Those wishing to purchase the retirement credit MUST request a “signed verification of cost for service credit purchase form,” often referred to simply as a “cost,” from the state Consolidated Public Retirement Board on or before APRIL 15.
Here is a downloadable PDF copy of the form. You can mail or fax the form. Again, the CPRB MUST receive it on or before April 15.
Gov. Tomblin has signed the bill. The Consolidated Public Retirement Board issued a brief news release for those who might consider applying to purchase the retirement service credit.
Language in Senate Bill 529 indicates there may be differences in what interest rates people pay, and also differences in WHEN they must send in a 1.5 percent (plus interest) contribution to purchase retirement credit to the Consolidated Public Retirement Board.
Employees who transferred from TDC to TRS and want the retirement credit MUST pay a contribution by July 1 or 90 days after receiving a “cost” that is 1.5 percent of the member’s estimated total earnings while they were in TDC, as well as 4 percent annual interest that accumulated between their entry into TDC and June 30, 2009. Also, for those who want to purchase retirement credit, there will be an additional 7.5 percent annual interest charged for the six-year period between July 1, 2009, and July 1, 2015.
The bill also states that a member who transferred and provided to the CPRB a signed verification of cost for service credit purchase form by June 30, 2009, “but was unable to complete the purchase” of the 1.5 percent contribution, OR any member who did not request a verification of cost letter but attempted to purchase the 1.5 percent contribution and was “denied in writing by the board on or before December 31, 2009,” may still request that the CPRB recalculate the contribution on or before APRIL 15.
These members must pay the recalculated purchase amount by July 1, 2015 OR no later than 60 days after the postmarked date of a recalculation from the CPRB, whichever is later. This section of the bill also says that these members’ recalculated contribution “shall include the interest loss at the actuarial rate” of 7.5 percent. It makes no mention of the 4 percent annual interest rate from their entry into TDC through June 30, 2009.
We are waiting on more information and guidance from the CPRB and will update you accordingly. Keep checking www.wvea.org and our Facebook page, www.facebook.com/DedicatedTeachers for more information.