A leave of absence up to 4 years
A board-authorized sabbatical, maternity leave, exchange teaching, full-time association or bargaining-unit office, or leave for further study, up to four years. You must return to a NPERS School Plan employer within one year after the leave. Members employed by July 19, 1996 who have not changed employers and pay within three years of returning pay the missed employee and employer contributions plus interest; others pay the actuarial cost. Salary for the leave is not used in the FAMC.
School Handbook p. 25, Leave of Absence; Neb. Rev. Stat. §79-933.04, §79-933.06Out-of-state or Omaha Public Schools service up to 10 years
Public school service outside Nebraska or with Omaha Public Schools: limited to service forfeited, up to 10 years, and to your total Nebraska creditable service at termination. Proof of forfeiture is required. You pay the actuarial cost. That salary is not used in the FAMC.
School Handbook p. 26, Out of State/Omaha Public Schools Service; Neb. Rev. Stat. §79-933.03, §79-933.05Up to five years before you retire up to 5 years
Up to five years of service credit 'in contemplation of retirement'. You need five years of earned service (joined before July 1, 2014) or ten years (joined on or after July 1, 2014), not counting vesting credit, and a written agreement to retire within 12 months. You pay the actuarial cost before termination. If you don't retire within 12 months the purchase is cancelled and payments are returned without interest.
School Handbook p. 26, 12-Month Preretirement Service Purchase; Neb. Rev. Stat. §79-933.08Every year you buy goes into the benefit formula like a year you worked, and it can bring your Rule of 85 date closer. To compare, see what one more year adds, or try the calculator with and without the extra years.
Deadlines and payment
Start at least 12 months before termination; the application and method-of-payment forms must reach NPERS at least 60 days before your last day; payment is due by the due date or termination, whichever is earlier. School Handbook p. 27, Steps to Purchase Optional Service Credit
After-tax direct or installment payments, after-tax payroll deduction, rollovers from 401(a)/401(k), 403(a)/(b), 457(b) or IRA, or trustee-to-trustee transfer from a 457 plan. No personal checks. After-tax purchases are subject to IRC 415 limits (not refund repayments). School Handbook p. 27, Methods of Payment to the School Plan
Costs are actuarial and not published; NPERS's online optional-service estimator gives rough estimates. School Handbook p. 27, Step 2
Military service
Members reemployed after qualified (USERRA) military service may get vesting and service credit; for service on or after July 1, 2017 the employer pays the contributions. School Handbook p. 22, Military Service; Neb. Rev. Stat. §79-926(2)
Vesting credit (free, but only for vesting)
Within 180 days of hire you may apply for eligibility and vesting credit for years in another Nebraska governmental plan (IRC 414(d)). Vesting credit counts toward vesting and early-retirement eligibility, not toward the benefit amount. The deadline has no exceptions. School Handbook p. 16, Vesting Credit; Neb. Rev. Stat. §79-917; §79-934(6)
Took a refund and came back? Repaying it is a separate rule. Leaving: refund or pension
From the sources
- You can buy up to four years for a board-approved leave of absence. You can buy up to 10 years of out-of-state or Omaha Public Schools service you forfeited, but no more than your Nebraska service. You can also buy up to five years if you agree to retire within 12 months. That needs 5 years of earned service if you joined before July 1, 2014, or 10 years after.School Handbook pp. 25-26
- Purchases cost the actuarial value of the extra benefit. Start at least 12 months before you leave, and get the forms to NPERS at least 60 days before your last day. Pay in full before you terminate. You can pay with rollovers from 403(b), 457, 401(k) or IRA accounts.School Handbook p. 27
Questions
What does buying service cost?
The actuarial cost of the extra benefit. NPERS doesn't publish a price list; its online estimator gives rough figures.
When do I need to start?
At least 12 months before you leave, with the forms at NPERS at least 60 days before your last day.
Can I use my 403(b) or 457?
Yes. You can roll money in from a 403(b), 457(b), 401(k) or IRA, among other ways. Personal checks aren't accepted.
Source: Nebraska School Employees Retirement System Handbook, Revised 07/2026, pp. 12, 16, 22, 25, 25-26, 26, 27. Also: Neb. Rev. Stat. §§ 79-917, 79-926, 79-933.03, 79-933.04, 79-933.05, 79-933.06, 79-933.08, 79-934. Last reviewed .