Years of Service Issue Due to Differing Contract Years

The Trustees have determined that there may be an issue with credited service and contributions for schools/participants who change contract years. Problems can occur when schools change their contract year or when individuals transfer to a school having a different contract year than their previous school. This is only an issue for service after September 1, 1992, when the Plan became a final average earnings plan. Prior to that, the plan was a career average plan and the issue of differing contract years did not pose a problem.

The Trustees have mapped out the various scenarios where problems can occur and determined the appropriate solutions.

The objective in determining a solution is that the number of months of service should equal the number of months of salary for which contributions are made by the participant.

Full Issue: No. 164 - May 29, 2007

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