Pension Buy In - Credited Service

[Zoraster]

I'm a contracted management employee whose organization has a buy in provision to the pension for any number of years with the organization and up to 5 years for service from other organizations. When I came in I was put under a defined contribution benefit. I've got about 4 years in and I recently renegotiated my contract to where I participate in the pension while also receiving my defined contribution; if I reach vesting after 10 years I turn over my 401 contributions back to the organization. As a part of the agreement, the organization buys my past service credits into the pension as a part of my compensation, the 4 years I've been here plus 3 years from a prior organization that would qualify per the pension rules. The actuary will have to calculate the cost of what that buy in would be.

My question is how should I setup the "buy in." If the amount is $50k can the organization just cut the pension a check or does it have to be routed through payroll? If it goes through payroll is the contribution made on a pretax basis? I'm protected with a gross up provision if it is post tax but that would balloon the payment for the organanization by 40%+ so I'm really hoping it doesn't have to be post tax. Any insight would be appreciated.

[SoCalActuary]

This sounds like a governmental plan. What do you mean about "turn over my 401 contributions"?

[Zoraster]

It is a government plan; a municipality. I'm basically receiving a 401a DC and a DB pension at the same time. If I leave the organization before I vest in the DB plan I just take my 401 DC. If I vest in the DB plan after 10 years I transfer half of what I received from the DC to the pension as basically an offset.