Purchase of creditable service
Seattle Mun. Code § 4.36.567
in effect4.36.567 - Purchase of creditable service
A. Redeposit of creditable service for eligible employees reentering City service who had previously withdrawn contributions as provided for in Section 4.36.665.
1. Except as provided in subsection 4.36.567.D, any member or former member who reenters City service may redeposit in the retirement fund an amount equal to that which the member or former member previously withdrew therefrom, or some part thereof, plus compound interest, at the actuarial assumed rate of investment return, which would have accumulated on the amount, as determined by the Board, between the date of last termination of membership and the date of redeposit. Within two years after re-entry into City service, a former member must redeposit the entire sum determined to be due to purchase all, or part of, their former creditable service, or sign and file with the Board a redeposit contract in accord with subsection 4.36.567.C in order to reestablish all or part of the former creditable service. In the event such redeposit is made by a member, the City shall reinstate all or that part of the former creditable service purchased by the member.
2. Except as provided in subsection 4.36.567.D, if a member otherwise eligible to make a redeposit or enter a redeposit contract does not do so as provided above in subsection 4.36.567.A.1 within two years from reentry into City service, the member may purchase all, or some part of, the member's former creditable service by redepositing the amount withdrawn as follows:
a. Determination of applicable interest rates. The interest rate for each year since the date of withdrawal of contributions shall be the greater of the rate the retirement fund has earned, net of fees, as reported by the Retirement System's Investment Performance Consultant, or the interest rate equivalent to the actuarial assumed rate of investment return at the time of executing the redeposit contract.
b. Calculation of "accumulated contributions." For purposes of determining a member's accumulated contributions pursuant to Section 4.36.030, only a portion of the total amount deposited shall be considered. The portion to be considered as the member's accumulated contributions shall be only the amount previously withdrawn as the member's contributions including interest, plus interest calculated at the actuarial assumed rate of investment return.
c. Withdrawal of contributions limited. The total amount deposited for the purchase of said former creditable service will be available for withdrawal by the member only if the member terminates employment with the City and withdraws his or her total accumulated contributions prior to retirement or dies and benefits are not payable under subsections 4.36.680.B and 4.36.680.C. In the event such redeposit is made by a member, the member's rate of contribution shall be as determined under Section 4.36.540, and the City shall reinstate all, or that part of, the former creditable service purchased by the member.
B. Purchase of creditable service
1. Unless otherwise stated, members allowed to purchase creditable service pursuant to Chapter 4.36 shall pay, as a single lump sum payment at the time of retirement, the actuarial present value of the resulting increase in their benefit as provided in this subsection 4.36.567.B.1.
a. The actuarial present value shall be calculated by the Retirement Board using the current actuarial assumptions as approved by the Retirement Board.
b. For purposes of determining the member's accumulated contributions pursuant to Section 4.36.030, only a portion of the total amount deposited shall be considered. The portion to be considered as the member's accumulated contributions shall be calculated at the employee's current hourly rate times the current contribution rate times the number of hours to be purchased.
c. If a member elects to pay at resignation from City service, the actuarial present value will be estimated at the time of resignation and adjusted at retirement for factors existing at the time of retirement, if necessary, according to rules established by the Retirement Board.
d. In the event such payment is made by a member, the City shall consider such City service previously rendered as creditable service for the member.
2. Unless otherwise stated, the purchase price for the purchase of creditable service must be paid in full to the retirement fund prior to the time of resignation from City service or retirement, whichever occurs first.
C. Redeposit and purchase contracts. These terms and conditions govern redeposit contracts for reentering City officers and employees, deposit contracts of officers and employees joining the system under subsections 4.36.525.C, 4.36.525.E, and 4.36.525.F and the purchase of creditable service for past City service.
1. The unpaid balance shall accrue interest at the assumption rate established by the Board for actuarial purposes and in effect at the time the redeposit agreement is signed;
2. The redeposit must be completed within ten years from the date of the member's re-entry into City service;
3. After deducting any immediate redeposit, the balance shall be payable in approximately equal installments every pay period, computed by amortizing interest over the contract term, unless the Board by rule authorizes redeposit in installments of equal payments of principal with interest computed on declining balances;
4. Installment payments shall be deducted from the member's pay during each pay period; and
5. Redeposit agreements shall be subject to the approval of the Board. The Board of Administration in its discretion may include supplemental terms and conditions by rule or by approving a form of agreement on the following subjects, among others:
a. A minimum installment payment per pay period;
b. The deferral of a redeposit of an installment during a member's layoff, military leave, or other approved leave, with catch-up redeposits upon the member's resumption of pay status;
c. Allocation of payments between interest and principal;
d. Appropriate arrangements in the event of a member's suspension or separation from City service, including the making of set-offs, acceleration of payments, continuation of payments from other sources during the interim, or adjusting creditable service being purchased on a pro-rata basis;
e. Other terms and conditions as the Board may deem appropriate.
D. No redeposit or repurchase rights for periods of service forfeited under subsection 4.36.525.K. Notwithstanding anything to the contrary in this Chapter 4.36, a member who has made an election under subsection 4.36.525.K to join Plan 2 shall not retain any rights to redeposit contributions or to purchase or repurchase service credit for any of the member's contributions or service credit earned prior to the election to join Plan 2, nor shall such a member otherwise be eligible restore any creditable service or membership status under Plan 1.
(Ord. 125109, § 24, 2016; Ord. 124574, § 24, 2014.)
Source: City of Seattle, Seattle Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/wa/seattle/codes/municipal_code?nodeId=TIT4PE_CH4.36CIEMRESY_4.36.567PUCRSEFetched: 11/1/2026