Frequently Asked Questions
Purchasing Additional Creditable Service
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Why are certain types of creditable service that can be purchased more expensive than other types?
State law specifies how the cost of each type of creditable service that may be purchased is calculated. The state and local system member employers have elected to participate in the cost to purchase military service during certain periods and under certain circumstances, and they have also elected to participate in the cost for repayment of previously withdrawn accounts. Most additional service purchases, however, must be paid for entirely by the member.
Are rollovers from other retirement plans accepted to purchase retirement service credit?
Effective January 1, 2003, pre-tax money from an eligible retirement plan or an eligible IRA may be accepted via rollover or in-service plan-to-plan transfer to purchase creditable service. For further information and instructions, please see Form 398, "Using a Distribution of Tax-Sheltered Savings to Purchase Retirement Credit."