New Jersey · TPAF · Buying service credit

Buy TPAF years, raise your pension

You can buy credit for some service that wasn't covered, like temporary jobs, leaves, out-of-state teaching or military time. Each year bought adds 1/55 (Tiers 1-3) or 1/60 (Tiers 4-5) of salary to your pension.

What it costs

Purchase factor for your nearest age when the NJDPB receives the application x the higher of current annual salary or highest fiscal-year salary x years purchased. Military service before enrollment and U.S. Government service cost double (the member pays the full cost). Guidebook pp. 14-17, Purchasing Service Credit; Purchase Rate Chart p. 16

What a bought year is worth depends on your tier and the pension formula. One caution for retiree health: out-of-state or U.S. government service bought after Nov. 1, 2008 doesn't count toward the 25 years for employer-paid coverage (see retiree health). Guidebook pp. 14-15; Fact Sheet #11 p. 3

The guidebook's exampleAge 45, $60,000 salary, 1.5 years: 0.048761 × $60,000 × 1.5 = $4,388.49. At full cost (military before enrollment, U.S. Government service): $8,776.98. Guidebook p. 16, Estimating the Cost of a Purchase

What you can buy, and limits

Out-of-State, U.S. Government and Military (before enrollment) service: up to 10 years combined (veterans up to 5 more years of wartime military service, 15 total). Leave without pay: up to 2 years for personal illness, 3 months for personal reasons. Out-of-State and U.S. Government service bought after Nov. 1, 2008 can't be used to qualify for employer-paid retiree health benefits. Guidebook pp. 14-17, Purchasing Service Credit; Purchase Rate Chart p. 16

How to pay

Lump sum, payroll deductions (minimum one-half of the normal contribution rate, up to 10 years, with interest at the assumed rate of return), a down payment plus deductions, or a rollover from a 401(a)/401(k), 403(a), 403(b), governmental 457(b) or pre-tax IRA (not a Roth or Coverdell). Guidebook pp. 14-17, Purchasing Service Credit; Purchase Rate Chart p. 16

Purchase rate chart

Factor for your age nearest your birthday when the NJDPB gets your application.

Purchase rate chart (New Jersey TPAF)
AgeFactor
200.031379
210.031759
220.032158
230.032578
240.033018
250.033480
260.033964
270.034471
280.035002
290.035558
300.036139
310.036748
320.037384
330.038048
340.038743
350.039469
360.040227
370.041019
380.041847
390.042711
400.043613
410.044555
420.045539
430.046567
440.047640
450.048761
Purchase rate chart (New Jersey TPAF)
AgeFactor
460.049932
470.051155
480.052433
490.053768
500.055163
510.056620
520.058144
530.059737
540.061403
550.063145
560.064967
570.066873
580.068868
590.070956
600.073142
610.072021
620.070853
630.069637
640.068380
650.067083
660.065746
670.064376
680.062973
690.061545
70 & older0.060100

Guidebook pp. 14-17, Purchasing Service Credit; Purchase Rate Chart p. 16

What the NJDPB says

Questions

How much does it cost to buy TPAF service credit?

Purchase factor for your nearest age when the NJDPB receives the application x the higher of current annual salary or highest fiscal-year salary x years purchased. Military service before enrollment and U.S. Government service cost double (the member pays the full cost). Example from the guidebook: age 45, $60,000 salary, 1.5 years costs $4,388.49 ($8,776.98 at full cost).

What service can I buy?

Out-of-State, U.S. Government and Military (before enrollment) service: up to 10 years combined (veterans up to 5 more years of wartime military service, 15 total). Leave without pay: up to 2 years for personal illness, 3 months for personal reasons. Out-of-State and U.S. Government service bought after Nov. 1, 2008 can't be used to qualify for employer-paid retiree health benefits.

How can I pay?

Lump sum, payroll deductions (minimum one-half of the normal contribution rate, up to 10 years, with interest at the assumed rate of return), a down payment plus deductions, or a rollover from a 401(a)/401(k), 403(a), 403(b), governmental 457(b) or pre-tax IRA (not a Roth or Coverdell).

See what extra years would add →

Source: TPAF Member Guidebook, July 2026 (SP-0733-0726), pp. 14-17. Last reviewed .