Missouri · PSRS · Buying service credit

Buying PSRS service: what it costs, when it pays back

More service means a bigger benefit and, sometimes, an earlier full retirement. PSRS lets you buy or reinstate several kinds of service.

Missouri specificsShort answer: you can buy or reinstate several kinds of service with PSRS, including refunded service, unpaid leave, military service and other public school work. Each year costs the current total contribution rate (29% for 2026-2027) × your highest salary, and adds 2.5% of your salary average to your monthly benefit through the formula. Extra years can also bring full retirement sooner. Try it in the calculator with and without the years, or compare one more year of work.

What you can buy

Reinstatement of refunded service; unpaid sick or workers' comp leave (current or previous two years); USERRA military (up to 5 years); paid leave (50%+ salary, current year); supplemental service (up to 0.5 year, within five years of eligibility); Social Security-covered employment (must be vested); forfeited PEERS service; maternity/paternity leave (up to 1 year per event); non-covered school employment; non-federal public employment; active military; 1991-2003 part-time certificated work; vo-tech experience (up to 2 years); not-for-profit educational work; reciprocity transfers and Missouri educational recognition of service. Handbook pp. 28-32, Reinstatements, Purchases and Service Transfers

Rules

Most purchases need one year of earned service; purchased service (not reinstatements) can't exceed earned service at termination; payment must be complete before retirement or you get proportional service; applications can't be canceled. Handbook p. 30, Rules for Purchasing Service; p. 26, Vested Membership

What it costs

Cost per year = current total contribution rate (employee + employer) x highest annual salary on record; recalculated every October 1. Handbook p. 29, Basic Purchase Cost Calculation

PSRS's example29% × $55,080 highest salary = $15,973 for one year ($15,973.20 before PSRS rounds). Handbook p. 29, Basic Purchase Cost Calculation

How long it takes to pay back

How long it takes to pay back (Missouri PSRS)
Monthly benefit without the purchase$3,213
Monthly benefit with it$3,328
Added each month$115
Cost$15,973
Months of benefits to pay back139 (11.6 years)
Handbook p. 33, Purchase Cost Recovery Time (Example)

This simple payback ignores COLAs and investment returns. It can also help to buy service that moves you to normal retirement or the 2.55% factor. See one more year.

Service in other Missouri systems

Reciprocity transfers move service between PSRS and: Kansas City Employees' Retirement System, MPERS, LAGERS, MOSERS, PEERS, KCPSRS. Missouri educational recognition of service counts vested service across PSRS, PEERS, KCPSRS, PSRSSTL toward eligibility. Handbook pp. 31-32, Reciprocity Transfer; Missouri Educational Recognition of Service

What the handbook says

Questions

How much does it cost to buy PSRS service?

For most purchases, the total contribution rate (29% for 2026-2027) times your highest salary on record, for each year. On $55,080 that's $15,973 a year.

Is it worth it?

PSRS's example: $15,973 for a year that adds $115 a month takes about 139 months (11.6 years) of benefits to pay back.

When should I buy?

The cost is recalculated every October 1, so buying sooner is usually cheaper. All payments must be finished before you retire.

Try your numbers with more years →

Source: PSRS Member Handbook, 2026-2027 (as of September 2026), pp. 26, 28, 29, 30, 31, 32, 33. Last reviewed .