Normal cost: buy back what you missed
- Redeposit of withdrawn TPS/EPS service
- Qualifying leave of absence (personal illness, birth or adoption, temporary assignment with another governmental employer, study)
- Missed membership service
Pay the member contributions that would have been paid plus 5% interest compounded annually to the date of payment. ACPS Handbook p. 10, Normal Cost; pp. 2-3, Qualifying Leave of Absence
Full cost: other service, just before you retire
You can buy these kinds of service: out-of-state public school; federal government; nonpublic school; political subdivision; postsecondary teacher; the State; public school teacher; Baltimore City teacher leave on or before Dec. 31, 1970.
Only within the 12 months before retirement; cost is the additional reserves needed to fund the added benefit. Up to 10 years (5 for postsecondary teaching); at least one month. ACPS Handbook pp. 10-11, Full Cost; RCPB Handbook pp. 10-11
Purchases can be paid with rollovers from a traditional IRA, 401(a)/401(k), 403(a), 403(b) or governmental 457(b) plan; IRC §415 may limit purchases. ACPS Handbook p. 11, Rollover Purchases
Military service
Up to 5 years of credit for military service. Service before enrollment needs 10 years of creditable service earned through employment; service that interrupted membership has no service requirement if you return to a participating employer within one year of discharge. Guard/Reserve: 4 months per full year (50+ points), up to 36 months; active duty training: 1 month per 28 days. ACPS Handbook pp. 8-10, Military Service Credit; RCPB Handbook pp. 8-10
Service from another Maryland system
Service in another SRPS system or another Maryland governmental defined benefit plan can transfer with continuous employment if you apply and move the contributions within one year of joining the TPS (a waiver may be possible within four years). ACPS Handbook pp. 7-8, Previous Service Earned in Another System
Unused sick leave
If you retire within 30 days after leaving employment, one month of creditable service for each 22 days of verified unused sick leave, plus one more month if 11 or more days remain. At most 15 days per year of membership count. It raises the benefit but never counts toward eligibility, and is not used for a vested allowance. ACPS Handbook pp. 11-12, Unused Sick Leave; RCPB Handbook pp. 11-12
| Sick days | Months | Years of service |
|---|---|---|
| 100 | 5 | 0.5 |
| 150 | 7 | 0.7 |
| 220 | 10 | 1 |
| 300 | 14 | 1.4 |
| 500 | 17 | 1.7 |
Our examples, using the rule above for a member with 25 years of membership (so up to 375 days can count). 10 months of service = 1 year.
We count each month of sick leave credit as one-tenth of a year.
What we use: months / 10 years.
The printed conversion chart (p. 12) matches the 22-day rule through 187-208 days = 9 months, then prints '1 Year' for 209-230, 231-252 and 253-274 days and 11-19 for 275-472 days; see conflicts `sick-leave-chart`. ACPS Handbook pp. 11-12, Unused Sick Leave; RCPB Handbook pp. 11-12
Part-time service
Full-time members earn one month of creditable service for each month employed. Part-time creditable service = hours worked (no overtime) / standard hours x 10 months. You must earn eligibility service in a fiscal year before earning creditable service for it. ACPS Handbook pp. 6-7, Creditable Service; RCPB Handbook pp. 6-7
What the handbooks say
- You can buy back withdrawn service, approved unpaid leave (illness, birth or adoption, study, temporary government assignment) and missed service at 'normal cost': the contributions you'd have paid plus 5% interest compounded yearly.ACPS Handbook p. 10, Normal Cost
- Within 12 months before retiring you can buy up to 10 years (5 for postsecondary teaching) of out-of-state public school, federal, nonpublic school or other listed service at 'full cost' (the added reserves needed to pay for it).ACPS Handbook pp. 10-11, Full Cost
- Up to 5 years of military service can be credited; service before you joined needs 10 years of creditable service first.ACPS Handbook pp. 8-9, Eligibility for Military Service Credit
- Unused sick leave adds creditable service if you retire within 30 days of leaving: one month per 22 days, plus a month if 11 or more days are left over, counting at most 15 days per year of membership.ACPS Handbook p. 11, Unused Sick Leave
- Check with SRAThe sick leave chart in the handbooks doesn't match the 22-day rule above 208 days.ACPS Handbook p. 12, Unused Sick Leave Conversion ChartChart rows for 209+ days are inconsistent; we use the written rule.
Questions
What does buying service cost?
It depends on the type. "Normal cost" service (withdrawn service, approved leave, missed service) costs the contributions you'd have paid plus 5% interest a year. "Full cost" service costs whatever it takes to fund the added pension.
When can I buy full-cost service?
Only in the 12 months before you retire, up to 10 years (5 for postsecondary teaching).
Does unused sick leave count?
Yes, if you retire within 30 days of leaving work. Each 22 days adds a month of creditable service. It raises your check but doesn't help you qualify to retire sooner.
Can I use a 403(b) or 457(b) to pay?
Yes. You can roll over money from a traditional IRA, 401(a)/401(k), 403(a), 403(b) or governmental 457(b) plan.
Source: SRPS Benefits Handbooks: Teachers' Pension System (Alternate Contributory Pension Selection; Reformed Contributory Pension Benefit), Revised April 2021, ACPS Handbook pp. 2, 3, 6, 7, 8, 9, 10, 11, 12; RCPB Handbook pp. 6, 7, 8, 9, 10, 11, 12. Last reviewed .