Non-Qualifying Part-Time Service – What is It?

Non-Qualifying Part-Time Service (NQPT) is non-salaried part-time service in a Pennsylvania public school during a single school year that totaled fewer than 80 days (if hired on a per diem basis) or 500 hours (if hired on an hourly basis).  Most likely, this employment was never reported to PSERS, especially if the employment occurred prior to 2004.  

Notification of NQPT Application Deadlines

Starting in the late fall of 2011, persons who have been active contributing members of PSERS will receive a letter from PSERS notifying them of the deadline to apply to purchase non-qualifying part-time (NQPT) service credit.   These letters will be mailed over the course of a couple of months, so you may not receive the letter at the same time as your co-worker(s).   If your co-worker receives their letter and you do not, please be patient .   Contacting PSERS will not change the processing time for you to receive your letter.   New members of PSERS will receive notification with their PSERS Welcome packet.

There is no need to wait until you receive your letter to apply.   If you have not already applied to purchase this service credit, you should apply as soon as possible. You must apply while you are still an active contributing member of PSERS and prior to your deadline.

There Will Never Be Another Chance to Purchase NQPT Service!!

You will never have another opportunity to apply to purchase NQPT service.   If you are an active contributing member of PSERS, later terminate Pennsylvania public school employment and then return to Pennsylvania public school employment, employment of fewer than 80 days or 500 hours will automatically be qualified service. Your service would be credited from the first day or hour worked.  

If you pass this opportunity to purchase your existing NQPT service, terminate Pennsylvania public school employment and then return to Pennsylvania public school employment, you will not receive another window in which to apply.

Class T-C & Class T-D Member Application Deadlines

Class T-C and Class T-D members who were active members of PSERS on July 1, 2011, will have until June 30, 2014. You must apply to purchase NQPT service credit while you are still an active contributing member of PSERS and prior to your deadline. The letter you receive will specifically address your deadline, but you do not need to wait to receive your letter to apply.   You may do so prior to the receipt of your letter.

Those who are Class T-C and Class T-D members of PSERS who were not active contributing members on July 1, 2011, and return to an active contributing status with PSERS will have one year from the date of notification to apply to purchase NQPT.   PSERS will send a letter to you stating the deadline.   You must apply to purchase NQPT service credit while you are an active contributing member of PSERS and prior to the deadline stated in the letter. You do not need to wait to receive your letter to apply.   You may do so prior to the receipt of your letter.

Class T-E & Class T-F Member Application Deadlines

Class T-E and Class T-F members who became active members of PSERS on or after July 1, 2011, will have a one year window to apply to purchase NQPT service.  You must apply to purchase NQPT service credit while you are still an active contributing member of PSERS and prior to your deadline. Your deadline date to apply is contained within the Welcome to PSERS packet you receive. You do not need to wait to receive your letter to apply.   You may do so prior to the receipt of your letter.

Applying to Purchase NQPT Service

To apply, you and your employer(s) where the service was rendered must complete the Application to Purchase Credit for Part-Time Service (PSRS-100) (PDF). You may also contact PSERS to receive a copy of the form. 

PSERS considers your NQPT application to be filed when these conditions are met:

• You complete Sections A-D of the application.
  
• Your employer(s) where the service was rendered completes sections E and F.
  

School employers were not always required to retain records for NQPT service.  Therefore, employers may not have records available to complete your application(s).  In this situation, the burden of proof will be on you to provide to the appropriate employer(s) sufficient documentation of your NQPT service. School employers may use your documentation to help them complete Section E of the application(s). 

If the employer does not have records that certify this information, you may be able to help by providing to the employer one or more of the following:

• W-2s
  
• Social Security Certified Detailed Earnings Information
  
• Pay stubs
  
• Employer correspondence
  
• Time sheets
  
• Any other document(s) that provide evidence of your salary and service 
  

Do not send any of the above documents to PSERS.  Only your employer can certify your service.  If an employer cannot certify salary and service, then you will not be eligible to purchase credit for the service.

NQPT Employment Exempt from Purchase Eligibility

You may not purchase NQPT service if you:

• waived membership in PSERS during the school year(s) for which you would apply
  
• worked in a public school for an independent contractor, such as a company who supplied substitute teachers to the school
  
• worked as a graduate assistant, resident assistant, the position was part of a financial aid package (tuition waiver), the position was part of the student’s curriculum (received academic credit), the employment was available only to students
  
• worked for a private school, including colleges and parochial schools
  
• worked as a school crossing guard, tax collector, solicitor, doctor, dentist, consultant or psychologist
  

This list is not exhaustive.  There may be other positions that come into question.

Benefits of Purchasing Service Credits

There are important benefits to purchasing service.  Adding service credit to your account will help you to qualify earlier for a retirement benefit, reach eligibility earlier for a disability retirement benefit, and increase your death benefits.

Service credit is also one of the factors used to calculate your retirement benefit.  Therefore, the more service credit you have, the higher your monthly retirement benefit.

Receipt of Your Application and Receiving a Statement of Amount Due

You will receive an acknowledgement letter so you know your application(s) was received by PSERS. Receipt of the application(s) does not guarantee eligibility.

While there is no definitive time frame in which your application will be processed, Class T-E and Class T-F members will not have their application(s) processed prior to the expiration of the one year window. These applications are held to ensure that all the service is processed based on the proper membership class.

In general, purchase of service applications for members nearing retirement are processed in conjunction with their retirement benefits. All other applications will be completed as timely as possible.

Important: Once the employer submits your application, no interest will accrue from the date the application is received. Even though the application is not immediately processed, it is best to apply early, especially if you are considering making a lump sum payment.

The Cost to Purchase NQPT Service

If you are a Class T-C or Class T-D member, the cost is based on the salary received at the time the service was rendered.  You are responsible for paying the member contributions based on the salary, plus the statutory interest (4% compounded annually) from the first day you would have become a member of PSERS until the date PSERS receives the application.  

If you are a Class T-E or Class T-F member, the cost is based on your projected final average salary at normal retirement age and represents the full actuarial cost of the increase in your projected superannuation annuity caused by the additional purchased service credited to your account.

Payment Plans

If the service for which you apply is approved for purchase, you will receive a Statement of Amount Due.  The statement will contain all of your payment options.  With some exceptions, you have three different payment options:

Actuarial Debt Plan – This payment plan allows you to pay for your purchase after retirement by placing a debt against the equity in your future retirement plan.  A small portion of your monthly benefit payment is set aside each month to pay for the purchase.  This generally does not reduce the amount of the monthly benefit, because the service amount purchased offsets the amount of the payment in the calculation of the actual monthly benefit.

Lump Sum Payment – Some members may be given the option to pay in a lump sum.  The lump sum payment must be received within 90 days of the date of the Statement of Amount Due to avoid any additional interest.  This is true whether you make the payment by personal check, money order, or roll over funds from a conduit IRA.

Payroll Deduction – You must contact your employer to set up payroll deductions to pay for your purchase.  Part-time per diem and hourly employees may set up payroll deductions at the employers’ discretion.