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Contribution refunds may be payable to the terminating member in either of the
following situations.
Post-1986 Excess Contributions (50% Rule)
A refund is payable to the terminated member if his or her pension contributions
for service from January 1, 1987, plus interest, is greater than 50% of the
commuted value of the deferred pension earned over the same period.
Pension contributions remitted to purchase credit for prior service with non-OPS
employers, and for special/educational leaves of absence are excluded for the
above calculation.
Pre-1987 Excess Contributions (100% Test)
Under the Pension Benefits Act, a member’s deferred pension or commuted
value for his or her pre-1987 service must be equal to or greater than the
member’s contributions for the pre-1987 period, plus interest.
If the contributions and interest for the pre-1987 period exceeds the commuted
value, the commuted value or deferred pension must be increased to equal the
pre-1987 contributions with interest.
Revised November 26, 2004
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