2023 Laws of Puerto Rico › TITLE EIGHTEEN - Education (§§ 1 — 3510-3520) › PART I - Public Schools (§§ 1 — 596d) › Chapter 18C - Commonwealth of Puerto Rico Teacher’s Retirement System Act (§§ 393 — 399d) › Subchapter III - Provisions applicable to all System Participants (§§ 395 — 395q) › § 395e - Credit for uncredited services

(a) Subject to the provisions of subsection (b) of this section, the following services may be credited for purposes of computing the years of service; provided, that such services have been rendered on or before July 31, 2014 and credit is requested on or before July 31, 2014.
(1) Any participant who had his/her individual contributions plus the corresponding interests reimbursed and has reentered service, or any participant whose contributions have been used to cover any debt he/she may have had with the System, may request credit for such years before July 31, 2014. In order to request credit for uncredited services, the participant must have worked at least one (1) year, prior to the request and pay the contributions withdrawn or the debt applied, plus the interests thereon.
(2) The time served by any teacher in any teacher or service organization duly recognized by law; or in the private schools of the Commonwealth of Puerto Rico whose study plan has been approved by the Department of Education and/or the Puerto Rico Council on General Education and that are subject to supervision and inspection by said Department or Council, shall be computed for the purposes of the provisions of this chapter, as if said services had been rendered in public schools, provided that said teachers request it in writing to the System; provided further that they make the corresponding individual and employer contributions. The System shall establish the rules it deems necessary to collect such amounts. Such time shall be computed provided that the teacher makes the contributions based on the salary earned during such period, plus the interests determined by the System in order to receive credit for such years of service.
(3) The time served by a System participant in any agency, instrumentality, or public corporation of the Government, municipality, municipal consortium, the Commonwealth Vocational, Technical and High Skills Education Board, or the office of the Veterans Health Administration, or in any agency of the Government of the United States located in Puerto Rico, for a period during which no deduction whatsoever was made for the System, nor for any other retirement system, shall be computed for the purposes of the provisions of this chapter, as if said services had been rendered in public schools, provided that said System participants request it in writing to the System; provided, further, that they meet the requirements established in this chapter for payment thereof.
(4) The time that any teacher serves or had served in the public schools of another state or territory of the United States in any position including assistant counselor or assistant teacher shall be computed for the purposes of the provisions of this chapter. Said time may be computed provided that the teacher makes the employer and the individual contributions based on the salary earned, plus the interest the System may determine to credit said years of service.
(5) The time served by any teacher as school principal in any municipality of Puerto Rico shall be computed, for purposes of the provisions of this chapter, as if the services had been rendered in the public schools, provided that said teacher requests it in writing to the System; provided, further, that said teacher makes the individual contribution he/she would have made during such period based on the salary earned during his/her tenure as school principal.
(6) The time served by any teacher of the Department of Education performing teaching or administrative work related to the teaching profession outside of Puerto Rico through a leave granted for such purposes by the Puerto Rico Department of Education, shall be computed for purposes of the provisions of this chapter, as if the services had been rendered in the public schools of Puerto Rico, provided that said teacher requests it in writing to the System if he/she returns to render services at the Department of Education; provided, further, that said teacher makes the individual contribution based on the salary earned, plus the employer contribution based on the same salary, plus the compound interest from the date on which said teacher returned to service to the date on which he/she requests credit therefor.
(7) The time served by any teacher after 1960, at a day care center for children under the Head Start program where no fees are paid for the care and services rendered, nor operated by any church or nonprofit entity or private corporation, shall be computed, for purposes of the provisions of this chapter, as if the services had been rendered in the public schools, provided said teacher makes the individual contribution on the basis of the salaries earned, plus the corresponding employer’s contribution and interests.
(8) Any System participant who had previously rendered services in the Government, its instrumentalities, departments, agencies, or any other government entity, whose services were not credited in any of the Retirement Systems in effect in Puerto Rico for public service employees, for being unable to contribute to said systems because of the job classification, may obtain credit for said services by contributing to the System the individual and employer contributions, plus the corresponding interests. Such services could have been rendered in regular, transitory, emergency, irregular, substitute positions or in any other classification to the Government of Puerto Rico, its agencies, instrumentalities, or other government entity.
(9) System participants who, in order to develop professionally, were granted a leave of absence with or without pay, or scholarship, shall be entitled to have the leave of absence period credited, provided that they contribute a sum equal to the individual and employer contribution plus interests; provided, further, that they have approved, during each year of leave, at least twelve (12) credit hours in a recognized university. In the case of participants whose records in the Department of Education do not show that they were granted such leave of absence, it shall suffice that the teacher furnishes official evidence from the University where the participant attended to improve professionally, stating that such participant improved professionally in the field of education, insofar as the System has evidence that such participant was in active service before and after enjoying such leave.
(10) All System participants shall obtain credit for purposes of this chapter for the period of military service rendered in the United States Armed Forces during any armed conflict, if the participant was honorably discharged from such military service. If the military service was rendered during peacetime, the participant shall obtain credit for a maximum of five (5) years. Credit shall also be obtained, regardless of any other military creditable service under this clause, for time served on active duty by a member of the reserve corps or the Puerto Rico National Guard, who had been called to active duty or transferred from the reserve to active duty in the United States Armed Forces during any wartime or peacetime, from the time he/she was called or transferred to the date on which the call, order, or transfer was rendered ineffective. In order to have this time credited, the participant shall make the corresponding contributions to the System based on the salary earned while rendering services in the Armed Forces or the salary earned upon his/her return to government service, if services were rendered during peacetime. The participant shall also make the corresponding employer contribution determined by the System.
(11) If the participant served in any branch of the Armed Forces of the United States of America, and was honorably discharged, the time allotted to pursue a program of study for veterans under a state or federal plan for veterans shall be creditable insofar as it does not constitute a double accreditation. If the participant was a member of the System and availed him/herself of a leave without pay to pursue such program of study, the participant shall only pay the corresponding individual contribution based on the salary that such participant was earning at the time of the leave without pay, or the salary earned upon his/her return to public service, whichever is lower. The government employer that granted such leave without pay to pursue a program of study shall pay the contribution determined by the System, plus the interests thereon. If the participant was not a member of the System, he/she shall pay the corresponding individual and employer contributions based on the salary earned when he/she enrolled in the System or the salary earned at the time he/she requested the accreditation, whichever is lower.
(b) Requirements.—
(1) To obtain credit for the services mentioned in subsection (a) of this section, participants must be in active service and request it in writing to the System on or before July 31, 2014, except as otherwise provided in clause (6) of this subsection.
(2) Participants shall furnish a certification issued by the entity where the services were rendered, attesting to the time served in said entity, the position held, and the monthly salary earned, if applicable.
(3) The participant shall pay the corresponding contributions, which shall be determined based on the salary established in this section and the individual and employer contribution rate in effect as of the date on which the services were rendered, plus the compound interest which shall be nine point five percent (9.5%) annually.
(4) The payment for these uncredited services may be made in a one-time payment, by deductions or partial monthly payments which shall not exceed eighty-four (84) installments, while the participant is in active service. Credit for years of service shall be granted when the owed amount is paid in full. If the participant separates from service without having paid the owed amount in full, said participant may withdraw all the contributions made therefor or request a credit for the years of services corresponding to the payments made as of the effective date of the separation from service.
(5) In the case of military service in the Armed Forces or the pursue of a program of study totally or partially paid by the Department of Veteran’s Affairs, formerly known as the Veteran’s Administration, the participant shall submit to the System the Certificate of Release of Discharge from Active Duty or its equivalent in order to obtain credit for the services rendered on or before July 31, 2014. The interest rate to be paid shall be based on a simple six percent (6%)-annual interest based on the lower of the salary earned upon entering public service or the salary earned upon enlisting in active service in the Armed Forces, or the date of separation from service or of discharge.
(6) The provisions of § 737(e) of Title 29, known as the “Bill of Rights of the Puerto Rican Veteran for the 21st Century”, shall continue to apply to System participants who are veterans, solely with regard to services rendered until July 31, 2014. However, there shall be no deadline for veterans to apply for service credit, for services rendered on or before July 31, 2014.
(7) Any Defined Contribution Program participant who, on or after August 1, 2014 is on a military leave for being in active duty in the Armed Forces of the United States of America and is not required to make mandatory contributions under this chapter, may make voluntary contributions to his/her account in the Defined Contribution Program for the period during which he/she was on military leave. There shall be no deadline for service members to make such voluntary contributions. These contributions shall be credited to the Defined Contribution Account of such Defined Contribution Program participant. The Executive Director shall establish the manner in which these participants may make voluntary contributions to their Defined Contribution Program accounts.
(8) The System may grant a special personal loan to any participant who applies for retirement in order to pay uncredited services. This special personal loan may not be renewed and shall include the corresponding interests. The granting of these special personal loans shall be subject to the rules and conditions established by the System through regulations; provided, that the interest to be charged shall not exceed nine point five percent (9.5%). Uncredited services paid with a special personal loan shall be recognized and credited as soon as the System grants the loan.
(9) Notwithstanding the foregoing, both the applicant’s individual contribution and interests, as well as the employer contribution and interests shall be paid, in whole or in part, additionally and voluntarily, by the applicant, the labor union or organization of which he/she is a member, or by third-parties, but it shall not waive the tax liability of the person who made the payment gratuitously, or of the beneficiary, when payment has been made for value.
History —Dec. 24, 2013, No. 160, § 3.6.