What PSERS service can you buy?
Active, contributing PSERS members can buy school service (a refund you took, uncredited full- or part-time work, approved leaves, activated military) and some non-school service (other military, out-of-state school service and a few others). Apply as early as you can: the last chance is your last paid day.
- While you are an active, contributing member you can buy certain service, such as refunded service, uncredited school service, approved leaves, military service and out-of-state school service. Apply before your last paid day.Handbook pp. 16-17; Exit Counseling 2025-2026, PDF p. 12
- For T-E, T-F, T-G and T-H, most non-school purchases and non-qualifying part-time service cost the full actuarial cost, and PSERS recalculates the cost at retirement so you can still back out.Handbook p. 17
Rules for particular kinds of service
- An approved leave (sabbatical, professional study, exchange teacher, collective bargaining, activated military or special sick leave) must be granted by your employer and approved by the school board, with the approval in the board minutes. You can buy it only if you didn't contribute while on leave.Handbook p. 16, Approved Leaves of Absence
- Time on Workers' Compensation can be bought only if you were on an approved Special Sick Leave, which is limited to one year.Handbook p. 16, Types of Service Eligible for Purchase
- Non-qualifying part-time service has a deadline: T-E, T-F, T-G and T-H members (and T-C/T-D members not active on July 1, 2011 who return) have one year from PSERS's notification to apply, on form PSRS-100.Handbook p. 17, Applying to Purchase Non-Qualifying Part-Time Service
How you pay
- If PSERS approves your purchase, it credits the service right away, sets up a debt for the balance and sends a Statement of Amount Due. Interest of 4% a year, compounded annually, starts on any balance still unpaid after 90 days.Handbook pp. 16-17
- You can pay with a lump sum within 90 days of the bill, payroll deductions (if your employer offers them), a rollover from an IRA, 401(a), 401(k), 403(b) or governmental 457(b) plan, or the Purchase of Service Debt Plan.Handbook p. 17, Methods of Payment
- The Purchase of Service Debt Plan (an actuarial reduction) lets you pay at retirement by placing a debt against your account's Present Value. PSERS says adding the service usually still raises your monthly benefit, especially in Class T-C or T-D.Handbook p. 17, Purchase of Service (POS) Debt Plan
- Some purchases can be rescinded. Your Statement of Amount Due says if yours can; you must tell PSERS in writing within 90 days of the statement date.Handbook p. 17, Methods of Payment
The Debt Plan takes the cost out of your account's Present Value, a figure you'll also see in PSERS's estimate of your payment options. Ask PSERS for the cost and the new monthly amount side by side before you commit.
The full list
Active, contributing members may apply to purchase eligible service (return of refund, former uncredited full-time or part-time service, approved leaves, activated military, county board service; non-school: intervening and non-intervening military, out-of-state school, pre-11/1/1978 maternity, U.S. Government education service, county nurse, county board (commissioners), Cadet Nurse Corps). Apply while active; deadline is your last paid day. Interest accrues at 4% on unpaid balances beyond 90 days. Payment: lump sum within 90 days, payroll deduction (employer's discretion), rollover, or the Purchase of Service Debt Plan (actuarial reduction at retirement). For T-E, T-F, T-G and T-H, NQPT and most non-school purchases cost the full actuarial cost and are recalculated at retirement with a chance to rescind. Purchases by T-G/T-H apply only to the DB component. NQPT applications: one year from PSERS notification (T-E to T-H, and T-C/T-D not active on July 1, 2011). Handbook pp. 16-17, Purchasing Eligible Service Credit; Exit Counseling 2025-26, PDF pp. 10, 12
What one bought year adds
At a $60,000 final average salary, one more year of service adds this to your yearly pension at normal retirement:
| Class | Multiplier | Per year | Per month |
|---|---|---|---|
| T-C | 2% | $1,200 | $100 |
| T-D | 2.5% | $1,500 | $125 |
| T-E | 2% | $1,200 | $100 |
| T-F | 2.5% | $1,500 | $125 |
| T-G | 1.25% | $750 | $63 |
| T-H | 1% | $600 | $50 |
A bought year counts like a worked year in the PSERS formula, and it can bring normal retirement closer, which shrinks any early cut.
Our arithmetic with the formula. In T-D, non-school service is credited at 2%. Compare this with the cost PSERS quotes you. Handbook p. 14, About Your DB Plan; p. 21, Retirement Calculation; Exit Counseling 2025-26, PDF p. 4, Basic Retirement Formula
Questions
What service can I buy from PSERS?
While you are an active, contributing member you can buy certain service, such as refunded service, uncredited school service, approved leaves, military service and out-of-state school service. Apply before your last paid day.
When is the deadline to buy PSERS service?
You must apply while you're an active, contributing member. The deadline is your last paid day.
Do I have to pay for a service purchase up front?
No. PSERS sends a Statement of Amount Due with payment choices: a lump sum, payroll deductions if your employer offers them, a rollover, or the Purchase of Service Debt Plan, which takes the cost out of your account's value at retirement.
Related: what one more year of work adds and which class you're in.
Source: PSERS Active Member Handbook, Current pa.gov edition (PDF revised Sept. 2023), pp. 14-17, 21. Also: Retirement Exit Counseling 2025-2026, PDF pp. 4-5, 10, 12. Also: Let's Talk About PSERS Death Benefits (Mar. 2025), p. 1. Last reviewed .