- You may be able to buy service for withdrawn accounts, leaves, military, out-of-state teaching, Peace Corps, Head Start and other service. Waiting can raise the cost or end eligibility.TRS 4 SPD pp. 11-12
- Purchases over $1,000 can be paid in installments of at least $50 a month for 12 to 60 months.KRS 161.597(3)-(4)
- TRS of Kentucky prepares estimates for possible purchases on request, with proper documentation. Whether you can buy a type of service depends on your employer type and account type.TRS 4 SPD p. 11, Service purchases
- No service credit is granted for service that has been or will be used for a benefit from another retirement system paid for in any part by public funds.TRS 4 SPD p. 11, Service purchases
- Purchases for retirement must be complete by your retirement date, so that TRS of Kentucky insurance starts at the same time and your annuity is paid without delay.TRS 4 SPD p. 16
- The 2011 plan description asks members buying military service, non-current leave or a reinstatement to contact TRS of Kentucky at least 90 days before the retirement date. Nothing can be bought after the retirement date.TRS 1-3 SPD (2011) p. 25, Purchasing Service Credit in Time to Improve Your Account
- You can pay for service by rolling over or transferring money from another eligible plan, within Internal Revenue Code limits.TRS 1-3 SPD (2011) p. 26, Rollovers and Transfers From Other Eligible Plans
- All purchase payments are reconciled at retirement: overpayments are refunded, and underpayments must be made up.TRS 1-3 SPD (2011) p. 26, Important Notice Regarding Service Credit Purchases
What you can buy
Purchases include reinstatement of withdrawn service, fractional service/balance of year, current and non-current leaves, military, out-of-state teaching, university service, Peace Corps, federal Head Start, mental health/mental retardation program service and non-qualified service. Delaying may lose eligibility or raise cost. Installment payments: total over $1,000, at least $50 a month for 12-60 months, by electronic transfer. TRS 4 SPD pp. 11-12, Service purchases; KRS 161.597
Reinstating a refunded account
A withdrawn account can be reinstated after at least one year back in a TRS-covered position by repaying the amount withdrawn plus interest. TRS 4 SPD p. 11; KRS 161.470(3)
Non-qualified service
Member with at least 20 years may purchase up to five years of non-qualified service at full actuarial cost. Check with TRS of Kentucky KRS 161.5465 (2023 Law Book, table of contents, p. 3; section on p. 52; text not reviewed)
What a year can be worth
For a TRS 3 school-district member on a $60,000 average, going from 26 to 27 years lifts every year from 2.3% to 2.5%: $35,880 to $40,500 a year (our engine). TRS 1-3 Service Retirement bulletin p. 2; TRS 4 Service Retirement bulletin p. 1 ('When a higher multiplier is attained, it applies to all years') Ask TRS of Kentucky for the cost before you decide; it isn't published.
Try it in the calculator by adding the years, or see the multiplier steps.
Questions
What service can I buy from TRS of Kentucky?
Purchases include reinstatement of withdrawn service, fractional service/balance of year, current and non-current leaves, military, out-of-state teaching, university service, Peace Corps, federal Head Start, mental health/mental retardation program service and non-qualified service. Delaying may lose eligibility or raise cost. Installment payments: total over $1,000, at least $50 a month for 12-60 months, by electronic transfer.
Can I pay in installments?
Installment payments: total over $1,000, at least $50 a month for 12-60 months, by electronic transfer.
Source: TRS Summary Plan Descriptions and Service Retirement bulletins, TRS 4 SPD January 2022; TRS 1-3 SPD 2011; Service Retirement bulletins March 2023, TRS 4 SPD pp. 11-12, 11, 16; TRS 1-3 Service Retirement bulletin p. 2; TRS 4 Service Retirement bulletin p. 1; TRS 1-3 SPD (2011) pp. 25, 26. Also: KRS 161.470, 161.597, 161.5465. Last reviewed .