Purchasing Service Credit

Types of Purchasable Service Credit

Non-Ohio-Valued Credit

Section 3307.741, Revised Code

Service purchased under Section 3307.741 does not have the same value as other purchased or earned credit. While this type of service can qualify you for retirement, it does not eliminate the reduction factor for early retirement.

Eligible Service (Full or Part Time) Includes:

• Civilian service with the U.S. government;

• Regular military service;

• Other public employment in another state, territory or possession of the United States or the District of Columbia;

• Teaching service in public schools in another state, territory or possession of the United States; and

• For STRS Ohio members with at least 10 years total service credit, private school teaching in the United States is also eligible.

Health care coverage implications:

• Members who buy this service and enroll in an STRS Ohio health care plan pay the full premium for health care coverage until they attain retirement eligibility without the use of this service.

• Once a member attains retirement eligibility without the use of this service, the premium for health care coverage is determined without including the non-Ohio-valued credit.

• STRS Ohio health care coverage is optional for members who are eligible for coverage.

• Members retiring Jan. 1, 2004, or later must have at least 15 years of service credit, not including the non-Ohio-valued credit, to have access to the STRS Ohio Health Care Program.

Note:  Members should talk with an STRS Ohio benefits counselor before buying this service. Call us toll-free at 1-888-227-7877.

The credit cannot be used to:

• Calculate service retirement or disability benefit amounts;

• Qualify you for disability retirement or disability allowance;

• Determine credit allowed under an employer-sponsored STRS Ohio retirement incentive plan;

• Qualify your beneficiary for monthly survivor benefits (unless such credit would complete the service credit required to qualify you for service retirement); or

• Qualify you for the STRS Ohio Health Care Program.

Credit purchased as non-Ohio-valued service credit can be used in the calculation of another retirement benefit. Before buying this credit, check with the other retirement program covering that service to determine its restrictions.

Certification for Non-Ohio-Valued Credit
To request a certification form for non-Ohio-valued credit, contact STRS Ohio toll-free at 1-888-227-7877.

Cost
The cost is based on one-half of the extra reserves required to fund the additional liability of the retirement benefit resulting from the service credit purchased.

• The member must retire within 90 days of purchasing the service.

• If the member does not retire within 90 days, the credit will be withdrawn and the money paid to purchase the service will be returned to the member.

• Payroll deduction is not available with this purchase.

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 and you can only purchase the amount of credit you need to achieve retirement eligibility.

An example of how to use non-Ohio-valued credit is shown below.

Example of How to Use Non-Ohio-Valued Credit

Service retirement eligibility:
Member’s age..............................................55
Service credit (Ohio-valued).......................24
Non-Ohio-valued credit (purchased)............1
Total service credit......................................25

In the above example, the service retirement benefit calculation is based on 24 years of service credit.

However, by buying service credit as non-Ohio-valued credit, this member is eligible to retire.