- Once you are vested by service and have a retirement application on file, you can buy service credit at retirement, in quarter-year steps. Buying service can raise your benefit or remove an early-retirement reduction. Before you retire, IPERS can give you a cost estimate.Member Handbook (2025), p. 31, Purchasing Service Credits
- You can buy back refunded IPERS service and buy leaves of absence (up to a year each), active-duty military service and other U.S. public employment. You can also buy up to 20 quarters of "air time" if you have at least 20 quarters of covered wages.Member Handbook (2025), pp. 31-33
- Some service is free if you ask for it: up to 12 weeks of FMLA leave, unpaid leave that began before July 1, 1998, and qualifying military service.Member Handbook (2025), p. 34, Free Service Credit
- You can use money from a 401(a), IRA, 403(b) or governmental 457(b) to buy IPERS service. Rollovers and buy-backs aren't subject to the federal yearly limit on purchases.Member Handbook (2025), pp. 33-34, Using Rollover Money to Purchase Service
- An official cost quote has an expiration date, and your payment must be postmarked by it. Asking for a quote doesn't commit you to buy. Allow IPERS four to six weeks to process the application.Member Handbook (2025), p. 33, How to Purchase Service at Retirement
- If you took a refund for service earned after July 4, 1953, you can buy it back. If you're eligible for a regular active-duty military pension, you can buy at most 20 quarters of military service.Member Handbook (2025), p. 32, IPERS Buy-Back; Veteran's Credit Buy-In
The rules in full
At retirement, a member vested by service with a retirement application on file can buy service credit not earned, in quarter-year steps. Qualified purchases include leave of absence/workers' compensation (up to 1 year per leave), refunded IPERS service (buy-back), active-duty military (veteran's credit), other U.S. public employment, and optional-coverage employment. Nonqualified service ("air time") needs at least 20 quarters of covered wages and is limited to 20 quarters. Purchases go in the order buy-up, buy-back with cost credit, buy-back, buy-in. A federal annual limit applies ($69,000 in 2024) except for buy-backs and rollovers. Member Handbook (2025), pp. 31-34, Purchasing Service Credits
Free credit can be requested for up to 12 weeks of FMLA leave, unpaid leave that began before July 1, 1998, and qualifying military service. Member Handbook (2025), pp. 31-34, Purchasing Service Credits
Cost is actuarial; IPERS gives a basic cost estimate before retirement and an official cost quote once a retirement application is on file. Member Handbook (2025), pp. 31-34, Purchasing Service Credits
What one more year adds
On a $60,000 average salary, at normal retirement age. Our engine on IPERS's multiplier table.
| Service | Multiplier | Adds a month | Adds a year |
|---|---|---|---|
| 20 to 21 years | +2% | $100 | $1,200 |
| 30 to 31 years | +1% | $50 | $600 |
As the handbook notes, buying service can also remove an early-retirement reduction. Weigh the cost against the gain with IPERS's official quote. See One more year? and The formula.
Common questions
When can I buy IPERS service credit?
At retirement, once you're vested by service and have a retirement application on file. You buy in quarter-year steps.
What does a bought year add?
The same as a worked year: 2% of your average salary a year up to 30 years, 1% from 31 to 35. On a $60,000 average salary that's $100 or $50 a month. IPERS quotes the cost.
Source: IPERS Member Handbook, Updated July 2025, pp. 31-34, 31-33, 33-34, 42. Also: Iowa Code § 97B.80C. Last reviewed .