A new law gives employees the option to purchase service credit for up to five years of military service at the actuarially determined cost.
A 2019 law provides Public Employees Retirement Association (PERA) active members the option to actuarially purchase military service credit for one or more military leave periods, up to a maximum of five cumulative years.
This provision was included in First Special Session Chapter 8, article 2, sections 1-3. The authorizing law is Minnesota Statutes, section 353.0141. It took effect on July 1.
The cost of the purchase would be paid by the employee. However, the purchase of military service credit could increase the pension benefit to the employee. The leave periods include military service that occurred either before becoming a public employee or during PERA-covered public employment.
The purchase cost to the employee will be the full actuarially determined cost associated with the benefit increase. PERA will charge a $250 administrative fee for cost estimates that will ultimately apply toward the purchase cost if the employee decides to make the service credit purchase. The service credit purchased cannot be used in calculating a disability pension.