- Pretax transfers
- The use of pretax moneys is an additional possible payment source only, not a substitute for the requirements that allow for the payment of an indebtedness or the purchase of service.
- Pretax payroll contributions
- Purchase of service by Additional Pretax Contributions is an irrevocable election.
- Pretax payment options
- In order to start this process, you must contact the Accounting Section of the Division of Retirement & Benefits. A person will be assigned to handle the details related to your particular situation. You and your employer can not independently initiate this process.
- Post-tax payments
- Payment(s) on an after-tax basis may be made directly to our Juneau office, or by arranging payroll deductions through your payroll office. Payments may continue after termination of employment, provided that you do not take a refund. Payments that are made with after tax monies are not eligible for IRA rollover or tax deferred status.
An indebtedness can be established on your Public Employees' Retirement System (PERS) account for several reasons.
- Qualified claimed service
- Deficient Contributions
Interest at the rate of 7 percent compounded semiannually of the unpaid balance will be added at the end of each month. Interest will continue to accrue until the indebtedness is paid in full or you retire, whichever occurs first.
If at retirement, you have an indebtedness that has not been paid to the PERS, your monthly retirement benefit will be actuarially reduced over your lifetime.