Buying NMERB service credit: what counts, and for what

• You can buy back service you refunded: repay the refund plus interest, by lump sum or rollover, before you retire. No payment plans.Member Handbook 2025, pp. 10-11, Withdrawn Service Credit
• You can buy up to five years of military service and up to five years of other education service (public schools or colleges anywhere in the U.S., military dependents' schools, federal education programs in NM, accredited NM private schools), ten years in all. Military service costs five years' average salary times the current employee plus employer rates, per year. Other service costs its actuarial value.Member Handbook 2025, pp. 7-8, Allowed Service Credit; NMSA 1978, §22-11-34 as amended by SB 75 (2025)
• With five years of service you can turn unused sick leave into up to one year of earned service credit. 38 to 82 days of leave buy one quarter; 83, 128 and 173 days buy two, three and four quarters. At most six days per year of service count. You pay the actuarial cost in one lump sum.Member Handbook 2025, p. 7; NMSA 1978, §22-11-34.1; NMERB web page Service Credit

Allowed service credit

Up to 5 years in each group and 10 in total. Member Handbook 2025, pp. 7-8, Allowed Service Credit

• Military: U.S. military or Commissioned Corps of the Public Health Service, honorably discharged (DD-214); purchasable after five years of NMERB employment. Cost per year = average NMERB salary of the 5 years before the purchase x (current employee + employer rates). Payment within 90 days of being told the cost; the employer-rate part is not refundable. Member Handbook 2025, pp. 7-8, Allowed Service Credit; NMSA 1978, §22-11-34(A)(3) as amended by SB 75 (2025)
• Other education service: Accredited public school or higher-education institution anywhere in the U.S.; U.S. military dependents' school; federal educational program in New Mexico; accredited private school or institution in New Mexico. Former employer must verify. Cost = actuarial value (reflects service and current earnings). Must be currently employed by an NMERB employer. Member Handbook 2025, p. 8; NMSA 1978, §22-11-34(A)(4), (B) as amended by SB 75 (2025)

Allowed service counts in the benefit but does not change your retirement eligibility date (except Tier 1 '25 and Out'). Member Handbook 2025, pp. 7-8, Allowed Service Credit Lump sum, rollover/transfer from a 401(a), 403(b) or IRA, or both. No payment plans. Member Handbook 2025, p. 8, Payment The rules it doesn't move are on early retirement.

In Tiers 1-3 each year you buy adds 2.35% of your final average salary: $1,410 a year on a $60,000 average (our illustration; see the formula). Member Handbook 2025, p. 6, Defined Benefit Plan; p. 16, Calculating Retirement Benefits

USERRA military leave from an NMERB job is credited free if you return within eighteen months of honorable discharge. Member Handbook 2025, p. 9, Military Service; NMSA 1978, §22-11-34(A)(2)

Unused sick leave

From July 1, 2020, active members with five years of contributory employment may buy up to one year (four quarters) of earned service credit with their own unused, unpaid sick leave, at most six days per year of contributory employment. Cost is the actuarial present value; single lump sum within 90 days of the quote; nonrefundable. Member Handbook 2025, p. 7, Purchase of Earned Service Credit based on Accumulated Sick Leave; NMERB web page Service Credit

At most 6 days for each year of contributory service; you need 5 years. Member Handbook 2025, p. 7, Purchase of Earned Service Credit based on Accumulated Sick Leave; NMERB web page Service Credit

Buying back refunded service

Withdrawn service may be reinstated (all or part) by repaying the amount withdrawn plus interest at the rate set by NMERB, by lump sum and/or rollover; no payment plans; not after retirement. Member Handbook 2025, pp. 10-11, Withdrawn Service Credit; NMSA 1978, §22-11-33(C) (See leaving: refund or wait?)

Enter bought service under "More details" in the calculator.

Questions