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Key Topics
- Enhancing Your Benefit
- Applying
- Eligible Types of Service
- Figuring Your Costs
- Payment Methods
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Figuring Your Costs
Within three years of becoming eligible to purchase prior service credit, the cost will be based on 5 percent of your compensation at the time of your purchase or your average final compensation, whichever is higher. After three years, you will pay a higher actuarial equivalent cost.
Cost Comparison
Figure your cost at 5 percent:
- Multiply your current annual compensation or average final compensation by 0.05.
- Divide the result by 12. That gives you the cost to purchase one month of service.
- Multiply that cost by the total number of months you wish to purchase. That's your total cost at 5 percent.
Now go to the Actuarial Equivalent Estimator to find out what the cost would be if you apply after three years of becoming eligible.
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