Service Credit Purchase Chart
| Type of Service Credit | Eligibility | Amount of service that can be purchased | Best time to purchase | What to submit | Cost | Deadlines |
|---|---|---|---|---|---|---|
| Withdrawn | Employed w/TRS covered employer in a TRS eligible position, or with a participating proportionate Texas retirement system | All eligible and creditable withdrawn/refunded service credit | As soon as first contribution is reported to TRS after reemployment | Request cost statement through MyTRS, Member Services, or via written request | Amount of original refund plus reinstatement fee of 8%, compounded annually, from the date of withdrawal to the date of redeposit | Complete purchase by your retirement date or by the last day of the month in which you submit a retirement application, whichever is later |
| Military | Minimum 5 years TRS membership credit | Up to 5 years of active military duty | As soon as eligibility is met. | Military Service Record or DD214 | If military service was prior to TRS membership, the cost is equal to the member contributions required on your full annual compensation for the first creditable year of membership service occurring after your military service was rendered.If you do not purchase all eligible military service credit as soon as you are eligible to do so, an additional fee of 8%, compounded annually, is charged for the service credit. | Complete purchase by your retirement date or by the last day of the month in which you submit a retirement application, whichever is later |
| Out of State | Minimum 5 years TRS membership credit. | Up to a maximum of 15 years, on a year for year basis, if the eligible out-of-state service is not currently maintained in another public retirement system. Up to a maximum of 5 years if the Out of State service is maintained in another public retirement system. | As soon as eligibility is met | TRS 224 or Teacher Service Record | actuarial present value, at the time of deposit, of the additional retirement benefits that are attributable to the increased service credit and/or compensation credit, based on actuarial tables adopted by the board of trustees. | Complete purchase by your retirement date or by the last day of the month in which you submit a retirement application, whichever is later |
| Substitute | Substituted at least 90 days in fiscal year. Can be met by substituting with multiple employers | No maximum, on a year for year basis | As soon as school year in which service was rendered is ended. | TRS 22S | actuarial present value, at the time of deposit, of the additional retirement benefits that are attributable to the increased service credit and/or compensation credit, based on actuarial tables adopted by the board of trustees. | must be verified within five years after the end of the school year in which the unreported service and/or substitute service was rendered and/or the compensation was paid. Complete purchase by your retirement date or by the last day of the month in which you submit a retirement application, whichever is later |
| Unreported | Performed eligible service or received eligible compensation that was not reported to TRS as such at the time service was rendered or compensation was paid. | No maximum, on a year for year basis | As soon as possible after service is rendered/compensation is received. | TRS 22I | actuarial present value, at the time of deposit, of the additional retirement benefits that are attributable to the increased service credit and/or compensation credit, based on actuarial tables adopted by the board of trustees. | must be verified within five years after the end of the school year in which the unreported service and/or substitute service was rendered and/or the compensation was paid. Complete purchase by your retirement date or by the last day of the month in which you submit a retirement application, whichever is later |
| Worker's Compensation | Receiving workers' compensation payments as temporary wage replacement pay | No maximum, on a year for year basis | As soon as impacted school year has ended. | TRS 22W | Actuarial present value, at the time of deposit, of the additional retirement benefits that are attributable to the increased service credit and/or compensation credit, based on actuarial tables adopted by the board of trustees. Non-actuarial: If compensation was issued in the current fiscal year or one fiscal year prior, cost is the member contribution amount on the compensation paid. | must be verified within five years after the end of the school year in which the unreported service and/or substitute service was rendered and/or the compensation was paid. Complete purchase by your retirement date or by the last day of the month in which you submit a retirement application, whichever is later |
| USERRA | Called to active duty while employed at TRS-covered employer, then return to, or apply for, re-employment with the same TRS-covered employer within 90 days of honorable discharge or release from active military service | Five+ years | Immediately upon re-employment, or application for re-employment, with the same TRS-covered employer after your military service | Military Service Record or DD214 | An amount equal to the member contributions you would have made if you had continued to be employed in the former TRS-covered position during the entire period of active duty | Must be purchased within the time period specified in federal law (generally, five years from the date of re-employment or application for re-employment); otherwise, the cost is subject to an additional fee. |
| Career/Technology Teacher | Minimum 5 years TRS membership credit Must be a certified career or technology teacher Must be entitled to salary step credit under Section 21.403(b) of the Texas Education Code | Two years | As soon as eligibility is met. | TRS 582 | actuarial present value, at the time of deposit, of the additional retirement benefits that are attributable to the increased service credit and/or compensation credit, based on actuarial tables adopted by the board of trustees. | Complete purchase by your retirement date or by the last day of the month in which you submit a retirement application, whichever is later |
| Developmental Leave | Minimum 5 years TRS membership credit. Must submit TRS215 Intent to take Developmental Leave prior to taking leave. Must have at least one year of membership service credit in TRS following the developmental leave. | Two years | Upon completion of the leave and your return to TRS-covered employment | TRS 215 | actuarial present value, at the time of deposit, of the additional retirement benefits that are attributable to the increased service credit and/or compensation credit, based on actuarial tables adopted by the board of trustees. | Complete purchase by your retirement date or by the last day of the month in which you submit a retirement application, whichever is later |
| Waiting Period | Began TRS covered employment between 9/1/2003-9/1/2005, did not work long enough in initial year to earn service credit. Purchasing waiting period time will equate to service credit for the year. | n/a | As soon as possible | Contact TRS for further instructions | Actuarial present value, at the time of deposit, of the additional retirement benefits that are attributable to the increased service credit and/or compensation credit, based on actuarial tables adopted by the board of trustees. | Complete purchase by your retirement date or by the last day of the month in which you submit a retirement application, whichever is later |
| State Sick Leave | Must be within 30 days of retirement date, must have at least 50 days/400 hours of unused state sick or personal leave | One year | May only be purchased when you are within 30 days of retirement. | TRS 587 | Actuarial present value, at the time of deposit, of the additional retirement benefits that are attributable to the increased service credit and/or compensation credit, based on actuarial tables adopted by the board of trustees. | Must pay the cost of the service credit to TRS no later than 90 days after the date TRS issues a cost statement. |
Paying for Service Credit
There are three basic ways to make payment for service credit purchases:
- Lump-sum payments using after-tax dollars (savings or checking account)
- Installment payments using after tax-dollars (Installment payment plan is not available for state sick leave and/or personal leave or USERRA service credit)
- Mail in coupons
- ACH debit of savings or checking account
- Payroll deduction by TRS Covered employer
- Rollovers from another qualified retirement plan using pretax dollars:
- Traditional IRA (not including Roth IRA or SIMPLE IRA)
- 401(a)
- 401(k)
- 403(a)
- 403(b)
- 457(b)
- SEP IRA