Purchase of Service Credit

Public Employees' Retirement System (PERS) — Teachers' Pension and Annuity Fund (TPAF)
Police and Firemen's Retirement System (PFRS)

GENERAL INFORMATION ABOUT PURCHASING SERVICE CREDIT
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Online Purchase Application and Employer's Purchase Certification now available!

Since your retirement allowance is based in part on the amount of service credit posted to your account at the time of retirement, it may be beneficial for you to purchase additional service credit if you are eligible to do so. Only active members of the retirement system are permitted to purchase service credit. An active member is one who has made contributions to the retirement system within two years of his or her purchase request and who has not retired or withdrawn his or her contributions.

Before you apply to purchase additional service credit, please read the fact sheets listed below. These fact sheets contain all the information you need to know as you begin the process of purchasing service credit.

Fact Sheet #1, Purchasing Service Credit (PERS, TPAF & PFRS) — Infomation about the types of service available for purchase, a description of the purchase request and processing procedure, information about the various payment methods, and other important purchase related notes. All members should read this fact sheet before applying for a purchase of service credit.

Fact Sheet #2, Estimating the Cost of Purchasing Service Credit (PERS & TPAF) — Information and worksheets that members of the PERS and the TPAF can use to estimate the cost of a purchase of service credit.

Fact Sheet #3, Estimating the Cost of Purchasing Service Credit (PFRS) — Information and worksheets that members of the PFRS can use to estimate the cost of a purchase of service credit.

ONLINE PURCHASE CALCULATORS

To hear an estimate of the cost of purchasing service credit based upon current posted salary information, PERS, TPAF, and PFRS members should call the Automated Information System at (609) 777-1777.

APPLYING TO PURCHASE SERVICE CREDIT

Application to Purchase Service Credit (PDF, size 155k) — In order to purchase service credit, you must first obtain a quotation of the service credit you qualify to purchase and the cost to purchase that service. Apply online or submit the Application to Purchase Service Credit to the Division of Pensions and Benefits to begin the process ov verifying your eligibility to purchase service and obtaining a Purchase Cost Quotation Letter.

PAYING FOR YOUR PURCHASE OF SERVICE CREDIT

After you apply and are found eligible to purchase service credit, you will receive a Purchase Cost Quotation Letter listing the service credit you may purchase and the cost to purchase that service. If you agree to authorize the purchase, you may pay for your purchase of service credit with:

See the purchase fact sheets for more details on these payment methods.

DIRECT ROLLOVER/TRUSTEE-TO-TRUSTEE TRANSFER OF FUNDS
FOR THE PURCHASE OF SERVICE CREDIT

Members of the PERS, TPAF, or PFRS who are eligible to purchase additional service credit may elect to pay for their purchase by rolling over tax-deferred funds from another retirement plan. The procedures for a direct rollover or trustee-to-trustee transfer vary depending on the source of the funds and only certain types of distributions are eligible for rollover/transfer treatment. See the information in the Rollover/Transfer Request packet for detailed information.

You may also want to review the "Frequently Asked Questions" on our Purchase Rollover/Transfer Q&A page.

Rollover/Transfer Forms and Information

Rollover/Transfer Request for the Purchase of Service Credit Kit (PDF, size 140k) — Contains complete instructions along with the application for rolling-over or transferring funds from another qualified retirement plan for the purchase of service credit. Do not complete this rollover request unless you have already received a Purchase Cost Quotation Letter from the Division of Pensions and Benefits that indicates the type, amount, and cost of any service you are eligible to purchase.

Purchase Rollover/Transfer Q&A — "Frequently Asked Questions" about the rollover or transfer of funds for the purchase of service credit.

Letter of Acceptance (PDF, size 70k) — Confirms to your disbursing plan or financial institution that our plan is a qualified plan and we will accept a direct rollover or direct trustee-to-trustee transfer.