FAQ (Purchasing Service Credit)

Am I eligible to purchase credit?

STRS Ohio Defined Benefit Plan members may purchase credit for certain types of past employment and leaves of absence.

What types of credit are eligible for purchase?

How do I certify my purchasable service credit?

Obtain the appropriate certification form. Have the certification form completed by an official record keeper where the service was performed. Send an email to [email protected] with the completed certification form.

If the service is purchasable, an initial cost statement will be mailed to you verifying the amount of credit you are eligible to purchase and the current cost.

I am currently on a leave of absence, do I need a certification form?

No. You can complete deposits directly with your employer within the year in which the absence or leave occurs. Your employer is responsible for determining the amount of contributions owed to STRS Ohio for the leave. Payment must be received by STRS Ohio no later than June 30 of the same fiscal year in which the leave occurred.

How is the cost to purchase my credit calculated?

The cost to purchase your credit depends on the type of service being purchased. For more information, select the applicable purchasable service credit:

What does it mean when purchasable service credit is calculated at a 100% liability cost?

A cost estimate or statement will confirm whether or not your service is calculated at a 100% liability cost. This means you pay 100% of the liability that is created by the purchase of the additional credit. This credit must be purchased in whole-year increments. The cost calculation uses the higher of your prior year earnings, your final average salary, or the state minimum salary multiplied by a factor that is based on your age and years of service credit. To estimate your cost to purchase this type of service credit, check out our Purchasing Service Credit calculator.

What impact does purchasing service credit have on my benefits?

A purchase of service credit may impact your benefit in the following ways:

Increase your retirement benefit
Create retirement eligibility
Create health care eligibility
Lower monthly health care premiums

If I am approved to purchase service credit, am I obligated to buy it?

No. You are not obligated to purchase certified credit.

What are my payment options?

Depending on the type of purchasable service credit, the following options may be available to you:

Lump-sum purchase made by check
Lump-sum purchase made with pretax rollovers or direct transfer of funds
Lump-sum tax deferred payments from an employer
Payroll deduction through your STRS Ohio employer

How do I obtain a cost estimate or statement?

Call us at 888‑227‑7877 or send us an email.

I am receiving a disability benefit, am I eligible to purchase credit?

While receiving disability income from STRS Ohio, you may buy any certified purchasable service credit. Purchasing credit will not increase the disability benefit, but it may be used to calculate survivor benefits for a spouse or qualified beneficiary. It may also enhance any future service retirement benefits.

I am getting ready to retire, what is the deadline to purchase my credit?

You may purchase credit up to three months after your retirement date but before the final benefit determination if certification forms have been received and a cost statement for the purchase is issued before your retirement date.

I am ready to purchase service credit, what are my next steps?

Call us at 888‑227‑7877 or send us an email for an updated cost statement. If you plan on purchasing your credit via tax-deferred rollover or payroll deduction, be sure to let us know so the appropriate forms are sent.

What happens if the valid date of my cost statement has expired?

If you are going to purchase your credit, you must request an updated statement. The cost to buy your service will change and is only valid through the date on the statement.