Purchasing Service Credit
Types of Purchasable Service Credit
Absence Due to Pregnancy
Section 3307.771, Revised Code
You may purchase STRS Ohio service credit for either a resignation due to
pregnancy or adoption of a child, or a leave of absence due to pregnancy or
adoption of a child, that began before July 1, 1982.
Eligibility Requirements
Below is a list of the basic eligibility requirements:
-
The resignation or leave must have begun before July 1, 1982, and you must
have been regularly employed in an STRS Ohio-covered position at the time.
-
You were pregnant or in the process of adopting a child at the time the
resignation or leave began.
-
The leave or resignation was from an STRS Ohio employer, not from an out-of-state
employer.
-
You established at least one year of STRS Ohio contributing service credit
after the leave or resignation.
Maximum Credit
The total service credit purchased under this section, and all other previous
open windows for absences and resignations due to pregnancy, may not exceed a
combined total of two years.
Certification
To request a certification form for this service, contact STRS Ohio toll-free
at 1-888-227-7877.
Cost
The cost to purchase credit is determined by:
-
Multiplying the contract or full-time equivalent earnings for the first
STRS Ohio employment following the resignation or leave period by the member’s
contribution rate in effect when the resignation or leave began; then
-
Multiplying by 8% annual compound interest (subject to change) from the
date the absence or leave ended through the month of purchase; then
-
Multiplying by the number of years eligible for purchase.
Example:
Assume a member earned .52 of a year of STRS Ohio service credit for teaching
94 days during the 1977-78 school year, then resigned due to pregnancy on Jan.
15, 1978. The member returned to full-time STRS Ohio-covered teaching service
on Aug. 28, 1979, at an annual salary of $10,400.
To estimate the cost to purchase 1.48 years of credit for an absence due to
pregnancy:
Step 1: Using the table below, find the STRS Ohio member
contribution rate in effect during the 1977-78 school year and multiply it by
$10,400.
$10,400 x 8.5% = $884
Member Contribution Rate &
Salary Base |
| 9/1/1920–8/31/1945 |
4.0% up to first $2,000 |
| 9/1/1945–8/31/1951 |
5.0% up to first $3,000 |
| 9/1/1951–8/31/1959 |
6.0% of total compensation |
| 9/1/1959–6/30/1968 |
7.0% of total compensation |
| 7/1/1968–12/31/1973 |
7.8% of total compensation |
| 1/1/1974–6/30/1977 |
8.0% of total compensation |
| 7/1/1977–12/31/1983 |
8.5% of total compensation |
| 1/1/1984–6/30/1988 |
8.75% of total compensation |
| 7/1/1988–6/30/1990 |
8.77% of total compensation |
| 7/1/1990–6/30/1994 |
9.25% of total compensation |
| 7/1/1994–6/30/2003 |
9.30% of total compensation |
| 7/1/2003–Present |
10.0% of total compensation |
Step 2: Using the table below, find the 8% annual compound
interest factor for 30 years (1979 until 2009) and multiply it by the answer
from Step 1.
10.06 x $884 = $8,893
Annual Compound Interest Factors
by Years |
| Years |
4% |
8% |
| 1 |
1.04 |
1.08 |
| 2 |
1.08 |
1.17 |
| 3 |
1.12 |
1.26 |
| 4 |
1.17 |
1.36 |
| 5 |
1.22 |
1.47 |
| 6 |
1.27 |
1.59 |
| 7 |
1.32 |
1.71 |
| 8 |
1.37 |
1.85 |
| 9 |
1.42 |
2.00 |
| 10 |
1.48 |
2.16 |
| 11 |
1.54 |
2.33 |
| 12 |
1.60 |
2.52 |
| 13 |
1.67 |
2.72 |
| 14 |
1.73 |
2.94 |
| 15 |
1.80 |
3.17 |
| 16 |
1.87 |
3.43 |
| 17 |
1.95 |
3.70 |
| 18 |
2.03 |
4.00 |
| 19 |
2.11 |
4.32 |
| 20 |
2.19 |
4.66 |
| 21 |
2.28 |
5.03 |
| 22 |
2.37 |
5.44 |
| 23 |
2.46 |
5.87 |
| 24 |
2.56 |
6.34 |
| 25 |
2.67 |
6.85 |
| 26 |
2.77 |
7.40 |
| 27 |
2.88 |
7.99 |
| 28 |
3.00 |
8.63 |
| 29 |
3.12 |
9.32 |
| 30 |
3.24 |
10.06 |
| 31 |
3.37 |
10.87 |
| 32 |
3.51 |
11.74 |
| 33 |
3.65 |
12.68 |
| 34 |
3.79 |
13.69 |
| 35 |
3.95 |
14.79 |
Step 3: Multiply the number of years of purchasable credit by the answer
from Step 2.
1.48 x $8,893 = $13,162
In this example, the cost to purchase 1.48 years of credit in June 2009 for
an absence due to pregnancy is approximately $13,162.
