What you can buy
With Board approval a member may buy service and include it in creditable service: out-of-state or approved-school teaching (not if vested elsewhere for it), years of opting out of VSTRS, uncredited Vermont teaching in a System school, State or municipal service (not if vested elsewhere), and, after 15 years of teaching, up to five years of prior military, Peace Corps, VISTA or AmeriCorps service. The cost is a single payment at regular interest large enough to fund an annuity of 1-2/3% or 2% (whichever § 1937 applies) of AFC per year bought. Total purchases are capped at 10 years (military credit excluded). Payment may be spread over up to five years. A member who retires before finishing gets pro rata credit. 16 V.S.A. § 1944(b)(8), (11)-(13), (15)-(17)
Five more years after 25
A member with at least 25 years of creditable service may buy up to five additional years of service. The cost funds an annuity of 1-2/3% of AFC per year bought for grandfathered members, or 1-2/3% up to 20 years and 2% after for others. An employer that must buy service under a contract may pay in four annual installments with interest. 16 V.S.A. § 1937(i)
Raising old Group B service
A Group C member may buy up the Group B service before July 1, 1990 from 1.25% to the Group C rate (statute: 1-2/3%) of AFC by a single payment at regular interest. 16 V.S.A. § 1944(b)(14)
Restoring refunded service
A teacher who rejoins after ceasing to be a member may get prior service credit by depositing the member contributions and the State contributions that would have been paid, with interest. 16 V.S.A. § 1953
From Act 131 (2026): a member elected president of the exclusive bargaining representative, and released full time, may get creditable service for that year if the organization pays the required amount by June 30. 16 V.S.A. § 1944(b)(12)(B); Act 131 (2026) act summary, p. 1 (Secs. 21-22)
VSTRS doesn't publish what buying a year of service costs.
We explain the rules and show what a year adds to your benefit, not the price.
16 V.S.A. § 1944(b)What the sources say
- You can buy credit for some past service, including teaching out of state or in an approved school, years you opted out, uncredited Vermont teaching, Vermont state or municipal service, and (after 15 years) up to 5 years of military, Peace Corps, VISTA or AmeriCorps service. Total purchases are capped at 10 years.16 V.S.A. § 1944(b)(8), (11)-(13), (15), (17)
- With at least 25 years of service you can buy up to 5 more years. The cost covers the extra benefit at regular interest, and you can pay over up to 5 years.16 V.S.A. § 1937(i); 16 V.S.A. § 1944(b)(16)
- Former Group B members can raise their service before July 1990 from the 1.25% rate to the Group C rate by paying for the difference.16 V.S.A. § 1944(b)(14)
- If you bought service with after-tax money, that part of your benefit is not taxed again.Group C #2 handout, p. 2
Bought years are creditable service, which is what the benefit formula multiplies and what the early and unreduced retirement rules test. To weigh a purchase against simply working longer, see what one more year adds, and try both in the calculator.
Questions
What service can I buy in VSTRS?
Out-of-state or approved-school teaching, years you opted out, uncredited Vermont teaching, Vermont state or municipal service, and (after 15 years) up to 5 years of military, Peace Corps, VISTA or AmeriCorps service, with Board approval.
What does one bought year add?
About 1.67% of your average final compensation a year (2% for Group C #2 years past 20), up to your group's maximum.
Source: VSTRS Eligibility for Retirement: Group C #2 handout (Office of the State Treasurer), undated (PDF of Sept. 21, 2012), with 16 V.S.A. chapter 55 as of the 2026 session, p. 2; Act 131 (2026) p. 1; 16 V.S.A. §§ 1937, 1944, 1953. Last reviewed .