Charters and Public School Academies
Governmental Accounting Standards Board (GASB)
Charters and Public School Academies
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From time to time, the school employer will pay for an employee's purchase of service credit. This can be due to a grievance settlement, retirement incentive, or for other reasons. Whatever the reason, employers are able to make the purchase payment. However, it is the employee who must contact ORS to request a current member billing statement. The employee should then bring the billing statement to the school employer.
Payments can be made either pretax or post-tax. However, the TDP plan is the only way a reporting unit can make a pretax purchase. Neither the pretax nor post-tax payment is considered as reportable compensation for retirement purposes. However, the IRS considers the payment taxable income. See sections 8.01.02: Tax-deferred payment (TDP) program and 8.01.03: Post-tax employer payment for service credit purchase by an employer for further information on purchases made by an employer.
Last updated: 04/11/2012