Out-of-state or private school · up to 5 yr
Out-of-state or private school teaching: up to 5 years, within 3 years of your first hire date, at full actuarial cost.
Handbook, p. 10, Out-of-State and Private School Teaching; R.I. Gen. Laws § 16-16-6.1Leave of absence · up to 4 yr
Official leave of absence: up to 4 years; return to work for at least a year first; buy within 3 years of the leave ending; full actuarial cost (Workers' Compensation leave counts toward vesting).
Handbook, p. 10, Official Leave of Absence; R.I. Gen. Laws § 16-16-5(a)Layoff · up to 1 yr
Official layoff: up to 1 year if you did not withdraw your contributions and returned without a termination; buy within 3 years of returning; full actuarial cost.
Handbook, p. 10, Official LayoffMilitary, before you joined · up to 4 yr
Military service before ERSRI membership: up to 4 years at 10% of your first full year of ERSRI earnings per year; interest-free if bought within your first 5 years of membership (entry after July 1, 1980).
Handbook, p. 10, Military Service Credit (prior to ERSRI membership); R.I. Gen. Laws § 16-16-7.1Active duty after June 30, 2005
Called to active duty after June 30, 2005: buy the missed time by paying the contributions you would have paid; return within a month of active duty ending. Counts toward vesting.
Handbook, p. 10, Military Service Credit (Active Duty during ERSRI membership after 6/30/2005)Town not in MERS
Service with a Rhode Island municipality not in MERS (if not used for that town's pension): within 3 years of first hire, full actuarial cost.
Handbook, p. 11, Credit for Service in a Non-Participating MunicipalityPaying back a refund
Restoring a refund: after a year back, repay the refund plus interest within 3 years of rehire; not in the 5-year limit; counts toward vesting.
Handbook, p. 11, Restoration of Service CreditThe basics
You can buy up to 5 years of service credit in total, only while you are an active member (not after you retire, leave or become inactive). Purchases of years before July 1, 2012 had to be made by June 30, 2015. Most purchases cost the full actuarial value, based on your current age and eligible retirement age. Pay by lump sum, payroll installments, or a rollover of pre-tax money; the method can't be changed later. Purchased service is not contributory and doesn't count toward vesting (except Workers' Compensation leave, active-duty military after June 30, 2005, and refund paybacks). Handbook, p. 9, Can I purchase service credits?; Handbook, p. 11, How do I purchase service credit?; R.I. Gen. Laws § 16-16-12(e)(5)-(6)
Service purchased on or after July 1, 2012 earns the RIRSA accrual rate. ERSRI RIRSA Guide (Jan. 2012), p. 8 The rates are on the benefit formula page. If you took a refund when you left, see leaving teaching for paying it back.
If you retire with an installment purchase in progress, ERSRI either pro-rates the credit or bills you for the rest. Handbook, p. 11, note 13
What the handbook says
- You can buy up to 5 years of service credit in total, only while you are an active member. You can't buy after you retire or leave.Handbook, p. 9, Can I purchase service credits?
- Out-of-state or private school teaching: up to 5 years, bought within 3 years of your first hire date, at full actuarial cost based on your age and eligible retirement age.Handbook, p. 10, Out-of-State and Private School Teaching
- Official leave of absence: up to 4 years, after a year back at work, within 3 years of the leave ending, at full actuarial cost. Official layoff: up to 1 year.Handbook, p. 10, Official Leave of Absence; Official Layoff
- Military service before you joined: up to 4 years, at 10% of your first full year of ERSRI pay for each year, interest-free if bought in your first 5 years of membership.Handbook, p. 10, Military Service Credit
- Purchased service adds to your pension but does not count toward vesting, except Workers' Compensation leave, active-duty military after June 30, 2005, and refund paybacks.Handbook, p. 9
- Pay by lump sum, payroll installments, or a pre-tax rollover. You can't switch methods later.Handbook, p. 11, How do I purchase service credit?
Questions
How much service can I buy from ERSRI?
Up to 5 years in total, and only while you are an active member. You can't buy after you retire or leave.
What does a purchased year add?
A year bought now earns the current accrual rate: 1% of your highest average salary (2% if you had 20+ years on June 30, 2012). It doesn't count toward vesting, except a few types.
How much does it cost?
Most purchases cost the full actuarial value, based on your age and your eligible retirement age. Military service before membership costs 10% of your first full year of ERSRI pay per year. ERSRI gives you the exact cost.
Source: ERSRI Membership and Retirement Handbook, 10th edition, June 2020 (with the 2024 Article 12 changes from the Treasurer's guide, July 1, 2024), pp. 9, 10, 11. Also: Rhode Island General Laws; ERSRI's guide to the Retirement Security Act, Jan. 2012. Last reviewed .