Tennessee · TCRS · Buying service

Adding service credit to your TCRS record

More service can mean a bigger pension or an earlier full benefit. Some service is free, some you pay for, and out-of-state service counts only toward eligibility.

Short answer: once you're vested, you can add out-of-state public school teaching to TCRS, but it counts only toward qualifying for a full benefit, not in the formula. Service after June 30, 2000 costs 10% of your pay for that period plus interest. Military, withdrawn and other service can be added too. Out-of-state years matter most if you'd otherwise retire early: the Legacy full benefit comes at 60 or with 30 years (which plan?). See also one more year, or try an early-retirement example in the calculator.

What you can add

Creditable service is membership service plus other credited public service (Tennessee state, higher education, public school teaching, or full-time service with a participating local government). Members may establish previously withdrawn service, military service that interrupted public employment, wartime military service (T.C.A. 8-34-605), peacetime military service Oct. 15, 1940 to May 7, 1975, interrupting educational leave, and unused accumulated sick leave at retirement. Some is free; some requires contributions and interest, payable by check, rollover (including from the State 401(k)), or sometimes installments. Legacy Member Guide p. 4, Creditable Service; Hybrid Member Guide p. 5, Creditable Service

Out-of-state teaching

Vested state employees and K-12 teachers may buy credit for full-time public school teaching (or state employment) in another state, or overseas U.S. Department of Defense teaching. It counts only toward eligibility for service retirement, not in the benefit formula. It cannot exceed in-state service, cannot be credited in another system, and only the years needed to reach service retirement can be bought (example: Legacy member with 29 TCRS years and 4 Mississippi years is invoiced for 1 year). Cost: service on or before June 30, 2000 = employee + employer contributions at TCRS rates then in effect plus compound interest; after June 30, 2000 = 10% of earnable compensation for the period plus compound interest. Paid in a lump sum (rollovers from 401(k), 457(b), 403(b), 401(a) or IRA allowed). Out-of-state service does not count toward retiree insurance premium tiers. Private-school teaching does not qualify. Purchasing Out-of-State Service p. 2-4

TCRS's example: a Legacy member with 29 Tennessee years and 4 years in Mississippi needs one more year for 30, so TCRS bills 1 year. Purchasing Out-of-State Service p. 3

Because it only helps you qualify, out-of-state service matters most if you'd otherwise retire early.

From the sources

Questions

Can I buy out-of-state teaching service in TCRS?

Yes, once you're vested, for full-time public school teaching in another state. It counts only toward qualifying for a full benefit sooner, not in the formula, and TCRS bills only the years you need. TCRS's example: 29 Tennessee years and 4 Mississippi years: billed for 1 year.

How much does out-of-state service cost?

Service after June 30, 2000 costs 10% of your pay for that period plus compound interest. Earlier service costs the employee and employer contributions at the rates then in effect, plus compound interest.

Source: TCRS Legacy Retirement Plan for Teachers Member Guide and Hybrid Retirement Plan for State Employees and Teachers Member Guide, Legacy 12/2024; Hybrid revised 07/2024, Legacy Member Guide p. 4; Hybrid Member Guide p. 5. Also: Purchasing Out-of-State Service pp. 2-3, 2-4, 3. Last reviewed .