Buying Indiana TRF service: airtime and more

Airtime

Once vested, buy up to 1 year of 'airtime' for every 5 years of earned service, in 1/12-year steps; lump sum or annual payments over 5 years with interest. Cost depends on age, service and salary. Hybrid Handbook p. 22, Purchase 'Airtime' Service Credit (Examples)

• 15 years earned: up to 3 years of airtime, 18 in all.
• 6 years in TRF plus 4 in PERF: up to 2 years.

Other service you can buy

You must be in a covered position with at least 10 years to purchase; 1 year for each 5 years of covered employment; IRC 415 limits apply. Purchased service counts in the formula but not for vesting. Out-of-state, private school (accredited Indiana), substitute and military (up to 2 years) service may be bought at actuarial cost. Cost quotes are valid 30 days. Refunded with interest if you leave before you can retire and withdraw your DC. Hybrid Handbook pp. 19-22, §4.7

Members before July 1, 1981 with out-of-state service before then may add up to 8 years at no cost after 10 years of Indiana teaching. Hybrid Handbook p. 15, Out of State Service Credit

What a year adds

$550 a year ($45.83 a month) on a $50,000 final average. INPRS gives the cost; its quote is good for 30 days. Hybrid Handbook p. 29, §7 Pension Benefits; p. 30, §7.4 Table 1 Pension Benefit Calculation Worksheet Example; Hybrid Handbook pp. 19-22, §4.7

From the sources

• Once you have 10 years, you can buy 1 year of 'airtime' for every 5 years you've earned, in monthly steps. With 15 years you could buy 3, for 18 in all. Cost depends on your age, service and pay, and you can pay over 5 years with interest.Hybrid Handbook p. 15; p. 22, Purchase 'Airtime' Service Credit
• You can also buy out-of-state, accredited Indiana private school, substitute and up to 2 years of military service at actuarial cost. Purchased service raises your pension but doesn't count toward the 10 years for vesting.Hybrid Handbook pp. 19-22, §4.7

Questions