"How much does it cost to purchase service credit?"
We get this question a lot...
and you probably do, too.
Most purchases of service credit are actuarial cost purchases. Because these types of purchases are based on varying factors, such as a member's current salary and their total years of TRSL service credit, they must be calculated by an actuary and require a $200 nonrefundable fee for one cost calculation. Member requests for additional cost calculations made at the same time as the initial request will be $50 each.
As a rule of thumb, members are encouraged to purchase their eligible service credit early in their career, as the cost may be less expensive.
For most actuarial service purchases, the cost will be the greater of the following:
- the actuarial cost which completely offsets the increase in TRSL’s accrued liability that will result from the purchase of the credit OR
- the amount of total contributions (both employee and employer) that would have been paid if the employee had contributed to TRSL during the period of service to be purchased plus interest at the Board-approved rate.
TRSL can provide an estimate of the employee and employer contributions plus interest for certain actuarial service purchases (such as legal leaves of absence, out-of-state public school service, and U.S. dependent school teaching service), which will reflect the minimum purchase amount.
- This estimate will not be the official cost calculation.
- This estimate will only provide the member with minimum cost amounts so that he/she can decide whether to pay the actuary fee(s) to receive an official cost invoice.
