You must carefully weigh your options when considering the purchase of retirement credit. There are situations where a purchase of retirement credit may be advantageous and other situations where it may be cost prohibitive, depending on your individual circumstance. The Retirement Systems Division makes available a retirement purchase estimator through ORBIT where you can obtain an estimate of the cost for many of the types of purchases before submitting your request for the actual cost to the Retirement Systems.
Service Credit Purchasing Procedure
The Retirement Systems Division strongly encourages you to obtain a purchase cost estimate through your personal ORBIT account if you wish to purchase service credit, unless you are interested in purchasing the following types of service that require individual calculations to be made by the Retirement System:
Follow the steps below to obtain an estimate on all other service purchases through ORBIT:
Note: If you are unsure of what to enter in any of the boxes, make your best effort.
The estimator will then provide a cost estimate for purchase. Print the estimate, attach it to the appropriate completed service purchase form and submit to the Retirement Systems Division.
Details and Forms
Information about retirement service purchases can be found in each systems' Retirement Handbook. Service Credit Purchasing forms also provide additional information.
Pre-tax money from an eligible retirement plan or IRA may be accepted via rollover or in-service plan-to-plan transfer in order to purchase creditable service in the Teachers’ and State Employees’ Retirement System, Local Governmental Employees’ Retirement System, Consolidated Judicial Retirement System, and Legislative Retirement System. For further information and instructions, please see Form 398, "Using a Distribution of Tax-Sheltered Savings to Purchase Retirement Credit."
It is recommended that members begin the rollover process at least 60 days before the expiration of the cost statement.
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