Arkansas · ATRS · Buying service

Buying Arkansas ATRS service credit

Members of the Arkansas Teacher Retirement System (ATRS) can buy some earlier service to retire sooner or raise their benefit.

Arkansas specificsEach purchased year counts toward when you can retire and in the formula at your multiplier (up to 2.15% of FAS a year), but not toward the 10 years of actual service some rules need, like the lump-sum death benefit. Reaching 28 years removes the early cut. Add bought years in the calculator's "how many you bought" box.

Who can buy: Vested with 5 years of ATRS service credit; not retired or in T-DROP; not drawing a benefit from another system for the same years.

Cost: Actuarial cost, paid in one lump sum (rollover, check, cashier's check or money order); the cost changes each July 1. Ask ATRS for a cost estimate.

What it counts for: Retirement eligibility, early retirement, T-DROP and the benefit amount; not vesting (except repay refund), the lump-sum death benefit or the stipend. Member Handbook p. 12, Free and Purchased Service Credit; pp. 42-44, Appendix B - Purchasable Service Credit; 24 CAR §§ 10-501 to 10-516; Actuarial valuation 2025 p. C-7, item 18 (actuarial cost since July 1, 2011)

Purchased service and repaid refunds are bought as contributory service. Member Handbook p. 43, Appendix B (Noncontributory to Contributory); Actuarial valuation 2025 p. C-7, item 16 (repurchase of refunded service is as contributory years)

What a year adds (our numbers)A bought contributory year adds 2.15% of your final average salary: on a $55,000 FAS, $1,183 a year, about $99 a month, for a member retiring with 10+ years.

What you can buy

What you can buy (Arkansas ATRS)
Type of serviceUp to
Domestic federal (schools on U.S. military bases)10 years
Federal retirement10 years
Military (active duty or reserve)5 years
Free military (entered 7/1/1937-6/30/1973 or during a federal draft) (free)5 years
National Guard5 years
Noncontributory to contributoryno set limit
Out-of-state15 years
Overseas / Peace Corps / VISTA10 years
Private school (certified) / Head Start15 years
Private school (noncertified)5 years
Repay refundno set limit
Sabbatical (on or after June 28, 1985)no set limit
Gap period (classroom teachers)5 years

Member Handbook p. 12, Free and Purchased Service Credit; pp. 42-44, Appendix B - Purchasable Service Credit; 24 CAR §§ 10-501 to 10-516; Actuarial valuation 2025 p. C-7, item 18 (actuarial cost since July 1, 2011)

Out-of-state and private school service can be bought only if no other system (other than Social Security) would pay a benefit for it. Member Handbook pp. 43-44, Appendix B

From the sources

Questions

Who can buy ATRS service credit?

Vested members (5 years of ATRS service) who aren't retired or in T-DROP.

How much does it cost?

The actuarial cost, which changes each July 1. You pay it in one lump sum. ATRS gives cost estimates.

Does bought service count toward vesting or the stipend?

No. It counts toward retirement, early retirement, T-DROP and the benefit amount, but not vesting (except repaying a refund), the 10-year lump-sum death benefit or the $50 stipend.

Source: ATRS Member Handbook, 2026-2027 school year (current as of July 2026), pp. 12, 26, 42, 42-44, 43, 43-44. Also: Actuarial valuation 2025 p. C-7; ATRS rules, 24 CAR §§ 10-501, 10-516. Last reviewed .