The cost varies depending on your tier and the type of service credit you are purchasing. In certain cases, service credit may not require purchase.

If you are a Tier III or IV member, the cost to purchase service credit reflects the Qualified Pension Plan (QPP) contributions that you would have made had the service been performed as a TRS member. If you are covered under the basic retirement plan, your QPP contribution rate is generally 3%; if you are covered under the Age 55 Retirement Program, your contribution rate is generally 4.85%.

If you are a Tier VI member, the cost to purchase service credit is 6% of the salary you earned during the time the service was performed.

For most service credit purchases, 5% annual interest is applied to the cost; this represents the interest that would have accrued on your contributions had you been contributing at the time the service was performed. Interest is generally calculated from the date(s) your service was performed to the date your payment is due.

Note: For Tier I and II members, there may be no cost for optional service credit. However, this depends on the type of service (e.g., for Tier I members, there is a cost for outside teaching service, determined through actuarial calculations).