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taxable employer "pick-up contributions",5 and $162,412.78 of
taxable earnings in the form of interest. The earnings and
"pick-up contributions", which total $163,106.30, constitute the
taxable portion of the Transfer Refund.
If petitioner had not transferred to the Pension System but
rather had remained a member of the Retirement System, he would
have been entitled to retire at an appropriate age and receive a
normal service retirement benefit, including a regular monthly
annuity. He would not, however, have been entitled to receive a
Transfer Refund because a Transfer Refund is only payable to
those who elect to transfer from the Retirement System to the
Pension System.
As a result of transferring from the Retirement System to
the Pension System, petitioner became, and presently is, a member
of the Pension System. As a member of the Pension System,
petitioner will be entitled to receive a retirement benefit based
upon his salary and his creditable years of service, specifically
including those years of creditable service recognized under the
Retirement System. However, because petitioner received the
Transfer Refund on account of transferring from the Retirement
System to the Pension System, petitioner's monthly annuity will
be less than the monthly annuity that he would have received if
5 See sec. 414(h)(2).
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Last modified: May 25, 2011