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grundmc1
New Member

What does Past-service contributions for service after 1989 mean?

 
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What does Past-service contributions for service after 1989 mean?

Thank you for your question.

Past-service refers to the period of employment before which the employee participated in a pension plan. This period may prevent the employee from benefits which existed before they participated in the plan. These contributions are a means of purchasing past-service in exchange of past of periods of missed pensionable service. Purchasing past service enables a person to maximize retirement income and provide additional financial security.