|Joint and Survivor Benefits||
|Purchase of Service|
Purchase of Service
Active Members May Purchase Permissive Service Credits.
- Purchasing service credit will help you increase your Denver Employees Retirement Plan benefit by increasing the amount of service used in the calculation of your retirement benefit. If you were employed prior to September 1, 2004, your benefit calculation would be 2% of your average monthly salary (your highest consecutive 36 months of salary) multiplied by your years and months of service. If you were employed after September 1, 2004, your retirement benefit calculation would be 1.5% of your average monthly salary multiplied by years and months of service. If you were employed on or after July 1, 2011, your retirement benefit calculation would be 1.5% of your average monthly salary (your highest consecutive 60 months of salary) multiplied by years and months of service.The more service purchased, the more your benefit is increased.
- Members who have a minimum of five (5) years of credited service with the Plan may purchase, prior to termination of employment, subject to procedures by the Plan, unlimited prior governmental service credit and up to five years of non-governmental service credit. Any prior governmental service purchased must be verified by the member’s previous employer.
- Service may be purchased in periods of one or more months. The purchase may be made directly, or the member may roll over money from another qualified retirement plan. Direct payments to purchase is an after-tax contribution. The election to purchase service is irrevocable and the money used to purchase service is non-refundable.
- This purchase of service will be used only to calculate the member's retirement benefit and will not be used in the calculation of the Rule-of-75, Rule-of-85, or the Plan's health insurance premium reduction benefit.
The cost to purchase service credit will be based upon the member's age, earliest unreduced retirement age, average monthly salary (based on the highest 36 or 60 consecutive months' salary), and other actuarial factors.
Multiply your average monthly salary by the applicable percentage from the appropriate Purchase of Service Table below. You can estimate your average monthly salary by using your current monthly salary. (The Plan will be able to calculate this more accurately using your current payroll records.) To locate your purchase of service cost factor, locate your age along the left side of the table, then find where it intersects with your earliest retirement date. Multiply this percentage with your average monthly salary to determine the cost to purchase service for one month.
For members hired before July 1, 2011:
The Rule-of-75 (where age plus years of service equal 75 but retirement cannot start until age 55) may allow you to retire prior to age 65. (Your annual estimate provided by the Denver Employees Retirement Plan has the date the Rule-of-75 is met.) The additional purchased service cannot be used to reach the Rule-of-75.
For members hired on or after July 1, 2011:
The Rule-of-85 (where age plus years of service equal 85 but retirement cannot start until age 60) may allow you to retire prior to age 65. ( Your annual estimate provided by the Denver Employees Retirement Plan has the date the Rule-of-85 is met.) The additional purchased service cannot be used to reach the Rule-of-85.