Service Credit

Answers to Your Questions About Retirement

Q	How does an employee qualify for service credit? (Z 15 05)
A	General eligibility requirements are: 20 years of age (18 for service before 1981) or older Employment by a participating denominational organization Required number of hours (usually 1000) or months (usually 6 full time) during the year Benefits are based on a maximum of 40 years of service credit Other more specific requirements and exceptions apply in certain situations.
Q	Is there some service that does not qualify for service credit? (Z 15)
A	Yes. Service of less that 1,000 hours or less than the equivalent of six months on a full-time salary basis during a particular calendar year is not recognized for service credit. Part-time service credit prior to January 1, 1981 does not count toward service credit. Service after December 31, 1999 does not count except in special circumstances.
Q	What is a break-in-service? (Z 15 05 6)
A	A break-in-service occurs when an employee is not paid for more than 500 hours (or 3 months on a full-time salary basis) during a calendar year.
Q	Does this mean that an employee can work part-time without receiving service credit and yet not have a break-in-service? (Z 10 5 28 & Z 15 05 5)
A	Yes. An employee who works less than 1,000 hours (or six months on a full-time salary basis) during a calendar year receives no service credit. However, as long as he/she is paid for more than one-quarter time (500+ hours or 3 months on a full-time salary basis) during that year, he/she will not incur a break-in-service for that particular year. Nevertheless, with only a few exceptions related to study leave, first year of employment or year of retirement, such a period of service (1-999 hours) will not count toward total service credit.
Q	How does a break-in-service affect an employee's eligibility? (Z 15 05 6)
A	If an employee who has less than 10 years of Service Credit has a break-in-service that exceeds his/her previous accrued service credit, previous service will be lost. Exceptions to this rule include: If the employee has accumulated 15 years of service credit before January 1, 1981, there is no break-in-service loss. If the employee was in full time service on October 1, 1979 and completes 15 years of service credit by the time he/she is admitted to the Retirement Plan there is no break-in-service loss. If the employee accrues a total of at least 25 years of service credit, including the years lost due to breaks-in-service, the lost years are recovered. Physicians, dentists and optometrists who have served at least three years as interdivision employees may add subsequent service credit without any penalty for breaks in service.
Q	How is service recorded? (Z 15 10)
A	Service records are maintained for all denominational employees. The current or most recent employer can provide a copy to employees on request. Each entry on the service record of an employee must be verified by an officer or the human resources director of the employing organization. This signature does not guarantee that such service will count toward eligibility for retirement benefits. It only verifies that the employee was employed during the period indicated. The service must also meet the criteria of the Retirement Plan polices. Final service credit validation is made by the Plan.
Q	Is service credit sometimes calculated differently for employees of educational institutions? (Z 15 15)
A	Yes. An educational employee may be paid for the school year only with no work assignment for the summer months. In such a case, a full year of service credit is granted for each full school year. A half year is granted for each full semester.
Q	What requirements do literature evangelists have to meet in order to earn service credit? (Z 15 25)
A	Regular literature evangelists are granted a full year of service credit for each calendar year that their records show a minimum of 1,680 hours (1,200 hours prior to 1981) and they submit the required weekly reports. If a literature evangelist completes 900 hours of service he/she is credited with 50% of a year of service credit, plus proportionate credit for hours between 900 and 1,680. Students who earn scholarships are not eligible for service credit.
Q	Is it possible for self-employed commission salesperson to earn service credit? (Z 15 65)
A	Salespersons working on a self-employment commission basis are not eligible for service credit.
Q	Does service credit for hospital employees count in the SDA Retirement Plan of the NAD? (Z 15 05 18)
A	Prior to January 1, 1992, service credit in the SDA Hospital Retirement Plan counted toward vesting and minimum service requirements in this plan.
Q	Does service credit for employees participating in the SDA Retirement Plan for Canadian employees count in the SDA Retirement Plan of the NAD? (Z 15 05 18)
A	Service through December 31, 2014 in the Canadian Plan counts for vesting and minimum service requirements in this plan, but the benefits for such service are paid by the Canadian Plan
Q	Does Graduate Study Leave count towards retirement benefits?
A	Yes, if the following criteria are met: The degree is an MDiv, BD, or doctoral. Return to or begin denominational employment within one year of degree award. The degree must actually be earned. The study leave is pre-2000. Graduate Study Leave does NOT count towards vesting. An MDiv counts for one year of service credit. A doctoral degree counts for up to two years of service credit.