What you can buy (permissive service)
- Nonmember service
- Cash Balance Benefit Program service
- Child care center
- Native American school
- School for the deaf or blind
- Job Corps (up to two years)
- Peace Corps (up to two years)
- Uniformed service (USERRA; DD Form 214)
- Maternity or paternity leave (up to 24 months)
- FMLA or CFRA family medical leave (up to 12 work weeks in 12 months; not before Jan. 1, 1992)
- Fulbright leave
- Sabbatical leave
- California public university service
- Out-of-state or foreign school service (must give up benefits from that system)
Not eligible: Summer school or outgrowth assignments before July 1, 2002; service credited (or creditable) in another California public retirement system. Handbook p. 58, Ineligible service credit
The cost
- Handbook example, at 18.8%: $9,400
- Current rate table, at 19.7%: $9,850
The handbook's example says Anthony, a 31-year-old 2% at 62 member, pays 18.8% of his pay to buy one year: $9,400 on $50,000. The rate table on the next page shows 19.7% for age 31, which would be $9,850.
We use the table.
p. 60, Cost to purchase permissive service creditPermissive contribution rates (from July 1, 2024)
These rates went into effect on July 1, 2024, and may be adjusted periodically. Percent of your highest yearly compensation earnable, per year bought. row 73 applies to 73 and older. Handbook p. 61, Permissive service credit contribution rates
| Your age | CalSTRS 2% at 60 | CalSTRS 2% at 62 |
|---|---|---|
| Under 28 | 21.5% | 19.7% |
| 28 | 21.5% | 19.7% |
| 29 | 21.5% | 19.7% |
| 30 | 21.5% | 19.7% |
| 31 | 21.5% | 19.7% |
| 32 | 21.5% | 19.7% |
| 33 | 21.5% | 19.7% |
| 34 | 21.5% | 19.8% |
| 35 | 21.5% | 19.8% |
| 36 | 21.6% | 19.9% |
| 37 | 21.7% | 20% |
| 38 | 21.8% | 20.1% |
| 39 | 22% | 20.3% |
| 40 | 22.2% | 20.5% |
| 41 | 22.4% | 20.7% |
| 42 | 22.6% | 20.9% |
| 43 | 22.9% | 21.1% |
| 44 | 23.2% | 21.4% |
| 45 | 23.6% | 21.7% |
| 46 | 23.9% | 22.1% |
| 47 | 24.3% | 22.4% |
| 48 | 24.8% | 22.8% |
| 49 | 25.2% | 23.2% |
| 50 | 25.7% | 23.7% |
| 51 | 26.2% | 24.1% |
| 52 | 26.8% | 24.6% |
| 53 | 27.4% | 25.2% |
| 54 | 28% | 25.7% |
| 55 | 28.6% | 26.3% |
| 56 | 29.3% | 26.9% |
| 57 | 30% | 27.5% |
| 58 | 30.7% | 28.1% |
| 59 | 31.5% | 28.8% |
| 60 | 32.3% | 29.5% |
| 61 | 33.1% | 30.2% |
| 62 | 34% | 31% |
| 63 | 34.9% | 31.7% |
| 64 | 34.2% | 32.5% |
| 65 | 33.5% | 33.4% |
| 66 | 32.8% | 32.1% |
| 67 | 32% | 31.4% |
| 68 | 31.3% | 30.7% |
| 69 | 30.5% | 29.9% |
| 70 | 29.7% | 29.2% |
| 71 | 28.9% | 28.4% |
| 72 | 28% | 27.6% |
| 73 | 27.2% | 26.7% |
Paying for it
Lump sum, rollover from a qualified plan, or up to 120 monthly installments (at least $25 each except the last) with interest on the unpaid balance. Must be paid in full before retirement; payments are not accepted after you retire. Contact CalSTRS at least 90 days before retirement if paying near retirement, especially by rollover. Defined Benefit Supplement funds cannot be used. Handbook p. 62, Make the purchase
Is it worth it? Miriam's redeposit
In Miriam's example the handbook rounds 35.9 months to 3.00 years; it is closer to 2.99.
We show the months: 35.9.
p. 59, Approximate time to recover costsThe handbook doesn't say whether bought (permissive) service counts toward the 30 years for the career factor.
We count it.
p. 79, Career factorUnused sick leave
Accumulated days of unused sick leave / number of base days for full-time service = service credit granted. The base days are at least 175. Sick leave service credit cannot be used to meet eligibility requirements for service retirement. Handbook p. 56, Converting unused sick leave to service credit
What the handbook says
- There are two main types of purchase: redeposit (restoring service you refunded) and permissive service. Either one must be paid in full before your retirement date.p. 56, Purchasing service credit
- Permissive service cost = the contribution rate for your age and structure x years bought x your highest annual compensation earnable in your last three school years.p. 60, Cost to purchase permissive service credit
- Permissive contribution rates (effective July 1, 2024) start at 21.5% (2% at 60, through age 35) and 19.7% (2% at 62, through age 33), and peak at 34.9% at 63 (2% at 60) and 33.4% at 65 (2% at 62).p. 61, Permissive service credit contribution rates
- You can buy permissive credit for things like nonmember part-time or substitute work, maternity or paternity leave (up to 24 months), FMLA/CFRA leave, sabbaticals, uniformed service, Peace Corps or Job Corps (up to two years), and out-of-state or foreign public school teaching.p. 57, Permissive service
- Pay by lump sum, rollover, or up to 120 monthly installments (at least $25 each) with interest. CalSTRS doesn't accept payments after you retire.p. 62, Make the purchase
- For a rough payback time, divide the cost by the monthly benefit increase, then divide by 12.p. 61, Make an informed decision
- Example: Miriam paid $74,223 to restore 11 refunded years. Reaching 30 years raised her benefit from $2,660 to $4,730 a month (career factor and one-year final compensation), about 36 months to recover the cost.p. 59, Cost to redeposit service credit
- Unused sick leave converts to service credit at retirement: days of unused sick leave / base days for full-time service (at least 175). It can't be used to meet retirement eligibility.p. 56, Converting unused sick leave to service credit
- The earlier you buy service credit, the lower the cost.p. 16, Five years of service credit
Questions
How much does it cost to buy CalSTRS service credit?
For permissive service: the contribution rate for your age and benefit structure, times the years you buy, times your highest yearly compensation earnable in your last three years. The rate table is on this page. Redeposits (restoring a refund) cost the refund plus interest.
Is buying service credit worth it?
The handbook suggests a rough payback check: divide the cost by how much your monthly benefit goes up, then divide by 12. That's about how many years of retirement it takes to get the money back.
Source: CalSTRS Member Handbook, 2026 edition (Jan. 1, 2026 - June 30, 2027), pp. 16, 56, 57, 58, 59, 60, 61, 62. Last reviewed .