Purchasing With a Plan-to-Plan Transfer
Sending ORS your plan-to-plan transfer certification form only alerts us of your intent. It is your responsibility to see that the funds are sent by your plan administrator.
A qualified plan-to-plan transfer is the process of moving money from a qualified (as defined by IRS) pretax investment account / retirement plan to another qualified plan without incurring taxes or penalties on the money being transferred.
This means you can "roll over" money from most pretax retirement accounts and use it to purchase service credit. A qualified plan includes a 401(a), 401(k), 403(b), 457, as well as conduit IRAs (Individual Retirement Accounts) from these sources. A traditional IRA cannot be used to purchase service credit. Your Deferred Compensation 401(k) and 457 plans are qualified retirement plans.
How to request a plan-to-plan transfer.
If you decide to purchase any or all of the service credit shown on your Member Billing Statement by transferring from a qualified plan, download a Qualified Plan-to-Plan Transfer Certification (R0158X) form.
This form includes detailed instructions on how to initiate a plan-to-plan transfer. Complete and return it to ORS so that we know the dollar amount you intend to transfer to purchase service credit. It is then your responsibility to arrange with your plan administrator to send the payment directly to ORS, following the instructions on the form.
All you need to do is send your plan administrator a copy of the transfer certification form along with a copy of your Member Billing Statement to initiate the transfer. The transfer usually takes 2-3 weeks and is sent directly to ORS.
Allow plenty of time.
Be sure to allow ample time for your plan administrator to transfer the funds. Some financial institutions take several weeks, or even months. It is important that we receive your payment before the due date on the Member Billing Statement. If the transfer arrives after the due date, you will have to request a new billing statement with a recalculated purchase cost. In addition, we must receive payment by your termination date. If payment is not received by then, your payment will be returned to you and service will not be credited.
When ORS receives your qualified plan-to-plan transfer payment, you'll be issued a receipt and your retirement account will be updated with your service credit purchase.
Plan-to-plan transfers are handled between ORS and the investment institution holding your funds (your plan administrator) acting on your request. Your personnel office should not be involved.
Plan-to-plan transfers must be for the exact purchase amount.
ORS will not accept an amount greater than the amount due on the Member Billing Statement(s).
Note: Some institutions require that accounts be liquidated in these situations. If this is the case, advise the company to send one check to ORS for the exact amount of the purchase. You can have the institution send any excess to an investment company of your choice or directly to you, however you will be responsible for any taxes and penalties. We encourage you to consult with the IRS or your tax advisor for specific tax implications.