Purchasing Service Credit

Types of Purchasable Service Credit

Ohio Noncontributing Public Teaching Service

Section 3307.72, Revised Code

You may be eligible to purchase credit for days of regular or substitute teaching in Ohio public schools, universities and colleges.

Eligibility Requirements
The following is a list of the basic eligibility requirements:

• You must have service credit with STRS Ohio.

• Employer certification is required.

• There are no contributions on account for the service in any Ohio public retirement system.

• Service after July 1, 1978, as a graduate teaching assistant (GTA) in Ohio or out of state is purchasable only if STRS Ohio membership was established before the date the GTA service began.

Public University and College Employees
Employees of Ohio’s public universities and colleges who elect to participate in an alternative retirement plan are prohibited from claiming or purchasing service credit under any Ohio public retirement system for the periods the alternative retirement plan was in effect.

Maximum Credit
There is no limit to the amount of credit you can buy, except that total service credit cannot exceed one year in any STRS Ohio fiscal year. Service is limited to .34 of a year for each full year of graduate teaching assistant service.

Certification
To request a certification form for Ohio noncontributing public teaching service, contact STRS Ohio toll-free at 1-888-227-7877.

Cost
The cost is determined by:

• Multiplying the actual compensation for the service by the STRS Ohio contribution rate in effect at that time; then

• Multiplying by 8% annual compound interest (subject to change) from the beginning of the STRS Ohio fiscal year following the service to be purchased through the month of purchase.

There is no cost to the employer when you purchase credit for noncontributing employment that occurred before July 1, 1978. The employer will be billed for employer contributions and interest if you purchase service credit that began on or after July 1, 1978.

Example:
Assume a member earned $850 for 46 days of substitute teaching during the 1975-76 school year and no contributions were made to STRS Ohio.

To estimate the cost to purchase credit in this example for noncontributing Ohio public teaching service:

Step 1:  Using the table below, find the STRS Ohio member contribution rate in effect during the 1975-76 school year and multiply it by $850.

$850 x 8.0% = $68

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 34 years (1975 until 2009) and multiply it by the answer from Step 1.

13.69 x $68 = $931

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:  Divide the number of days of service by 180 to determine the amount of credit eligible for purchase.

46÷ 180 = .26

In this example, the cost to purchase .26 of a year of credit for noncontributing Ohio public teaching service in June 2009 is approximately $931.