Purchasing Service Credit
Types of Purchasable Service CreditRestoration or Transfer of Service Credit Between STRS Ohio & Other
Ohio Retirement Systems
Section 3307.761 and 3307.763, Revised Code
STRS Ohio members who are members of the Cincinnati Retirement System,
Ohio Police & Fire Pension Fund, or Highway Patrol Retirement System
may restore or transfer credit between the other systems and STRS Ohio.
Eligibility Requirements
-
You are a member of another Ohio retirement system or STRS Ohio and are
not receiving a pension or any type of benefit; and
-
You are a member of another Ohio retirement system or STRS Ohio, are not
contributing to that system, and have accumulated contributions (at least
1.50 years of contributing service for restorations) in STRS Ohio; or
-
You are a former member of another Ohio retirement system and have withdrawn
contributions from another Ohio retirement system.
Maximum Credit
The maximum credit you can buy is the total earned credit and
purchased military credit that was withdrawn and can be used to increase your
benefit. Total service credit cannot exceed one year in any STRS Ohio fiscal
year.
Certification
Call STRS Ohio toll-free at 1-888-227-7877 or send
an e-mail to ContactUs@strsoh.org to request a cost statement. Please note
that e-mail submissions on this site are unsecured, so only include your name
and the last four digits of your Social Security number with your message. Upon
request, a certification form will be mailed to you for purchasing STRS Ohio
credit for service withdrawn from another Ohio retirement system, or to transfer
inactive service.
Since information must be obtained from another retirement system, please allow
eight weeks to receive a cost statement.
Cost
There is no cost to the member in the event of a transfer. If you have not withdrawn
your account, you may elect to have the credit transferred directly from the
other Ohio retirement system to STRS Ohio. Once the member contributions and
interest are transferred, the credit will be posted to the account. For more
information about transferring your account, call STRS Ohio.
If the account was refunded, the cost to restore is based on the amount refunded
by the other Ohio retirement system, plus 8% annual compound interest (subject
to change) from the date of the refund through the month of purchase.
Example:
Assume a member withdrew 6.00 years of credit from another Ohio retirement system
on March 23, 1992, receiving a refund payment of $14,574.
To estimate the cost to purchase 6.00 years of credit withdrawn from the other
Ohio retirement system:
Using the table below, find the 8% annual compound interest factor for 18 years
(1992 until 2010) and multiply it by $14,574.
4.00 x $14,574 = $58,296
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 |
In this example, the cost to purchase 6.00 years of withdrawn credit from the
other Ohio retirement system is approximately $58,296 in February 2010.
