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CalPERS reviews options to purchase service credit and when they apply
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Summary
CalPERS described types of purchasable service credit — including prior nonmember service, redeposit of withdrawn contributions and military service — and said members should request cost estimates through myCalPERS.
CalPERS told early-career members they may be able to increase pensionable service credit by purchasing eligible service periods. Presenter Raquel Lozano outlined common purchase types: service prior to membership (for prior employment that did not qualify for membership), redeposit of previously withdrawn contributions to restore prior service, and military service (up to four years), noting that military purchase is available to state and school members by contract for public agencies.
Why it matters: Service credit directly affects pension calculations; purchasing eligible credit can raise a future pension amount. Lozano recommended members log in to myCalPERS, select the service credit purchase option under the retirement tab, answer eligibility questions and request cost estimates for available purchase types.
The presentation noted the general advice to purchase service credit early in a career, because earlier purchases often cost less and allow more time to pay before retirement. CalPERS referenced Publication 12 (service credit purchase options) and other online resources for details and asked members to consult publications and videos for guidance on specific purchase rules.
Lozano cautioned that employer contracting affects availability for certain purchase types and instructed members to review eligibility via the CalPERS website and their myCalPERS account.
