Is Purchasing Service Credit Right for You?
As you plan for your retirement, you may be exploring how to increase your monthly retirement benefit or retire earlier. Purchasing service credit may be a way you can strengthen and secure your financial future.
By logging in to your online PERA account through the Member login/registration page, you have access to many tools that can help you determine if purchasing service credit is right for you. The tools include:
- Monthly Retirement Benefit calculator to see how purchasing service credit might affect your estimated benefit and retirement date.
- Cost to Purchase calculator to estimate the cost of purchasing service credit for employment not covered by PERA and determine the amount of service credit you can buy.
- Cost to Reinstate calculator to estimate the cost to purchase service credit based on a refunded PERA account.
- Service Credit Purchase Application to begin the purchasing service credit process.
You can also check on the status of your service credit payments through your online PERA account. Access your Purchase Service Credit Agreement details, payment history, and amount paid to date.
The cost to purchase service credit varies depending on your age at the time of purchase, when your PERA membership began, and which division you are in. For more information, check out the Purchasing Service Credit booklet.
Purchasing Process:
- Determine if you are eligible to purchase service credit and how much service credit you are able purchase.
- Submit a Service Credit Purchase Application (can be submitted through your online PERA account or by mail) and documentation of the salary you received during employment.
- PERA will review and evaluate your application to make sure you are eligible to purchase the amount of service credit you provided on your application.
- Once you receive your purchase agreement, you can make a lump sum payment or set up monthly payment installments by the due date listed on your purchase agreement.
- Prior to leaving or retiring from PERA-covered employment, you must complete all payments for any service credit purchase.
If you are interested in purchasing service credit, but still have more questions, please register for one of our Purchasing Service Credit webinars or call PERA’s Customer Service at 800-759-7372.
