PERAC Memo #11 - 2003: Changes to the Military Service Credit Provision (G.L. c. 32, § 4(1)(h))

Changes to the Military Service Credit Provision (G.L. c. 32, § 4(1)(h))

Summary

This memo announces that Chapter 468 of the Acts of 2002 eliminates the prior ten-year creditable service requirement for purchasing military service credit under G.L. c. 32, § 4(1)(h), effective April 1, 2003; any member in service qualifying as a "veteran" may now purchase up to four years of military service credit regardless of tenure, with the definition of "veteran" unchanged. Boards must review new enrollment forms and existing member records to identify veterans—especially those with fewer than ten years of service—and notify all eligible members of this purchase option, giving them 180 days to decide, with certified mail or signed acknowledgment recommended as proof of notice.

Full Text

Memorandum # 11/2003

M E M O R A N D U M TO: All Retirement Boards FROM: Joseph E. Connarton, Executive Director RE: Changes to the Military Service Credit Provision (G.L. c. 32, § 4(1)(h))

DATE: February 24, 2003

Chapter 468 of the Acts of 2002 removes the ten-year creditable service requirement in order to purchase creditable service for military service. This Act also makes several changes to allow creditable service for certain service in the Peace Corps and educational collaboratives. Sections 1A, 1B and 2 only apply to teachers or members of the State Retirement System and are not discussed in this memorandum. This Act takes effect on April 1, 2003.

Section 1

This section removes the requirement of Chapter 71 of the Acts of 1996 (G.L. c. 32, § 4(1)(h)) that a member in service have ten years of creditable service in order to purchase military service credit. As of April 1, 2003, any member in service who qualifies as a “veteran” can purchase up
to four years of creditable service for his or her military service. All other provisions of Chapter 71, including the definition of “veteran,” remain the same.

Retirement boards must assure that all eligible new members and all eligible members with less than ten years of creditable service are notified of this option and given 180 days to determine whether or not to purchase this creditable service. This will require boards to carefully review new member enrollment forms and current members’ records to determine all members’ veterans’ status. Boards may wish to consider sending notices by certified mail or requiring members to sign an acknowledgement that they received the notice.

We trust the foregoing is of assistance. If you have further questions or concerns, please contact this office.