Adding service credit to your TCRS record

Short answer: once you're vested, you can add out-of-state public school teaching to TCRS, but it counts only toward qualifying for a full benefit, not in the formula. Service after June 30, 2000 costs 10% of your pay for that period plus interest. Military, withdrawn and other service can be added too. Out-of-state years matter most if you'd otherwise retire early: the Legacy full benefit comes at 60 or with 30 years (which plan?). See also one more year, or try an early-retirement example in the calculator.

What you can add

Creditable service is membership service plus other credited public service (Tennessee state, higher education, public school teaching, or full-time service with a participating local government). Members may establish previously withdrawn service, military service that interrupted public employment, wartime military service (T.C.A. 8-34-605), peacetime military service Oct. 15, 1940 to May 7, 1975, interrupting educational leave, and unused accumulated sick leave at retirement. Some is free; some requires contributions and interest, payable by check, rollover (including from the State 401(k)), or sometimes installments. Legacy Member Guide p. 4, Creditable Service; Hybrid Member Guide p. 5, Creditable Service

Out-of-state teaching

Vested state employees and K-12 teachers may buy credit for full-time public school teaching (or state employment) in another state, or overseas U.S. Department of Defense teaching. It counts only toward eligibility for service retirement, not in the benefit formula. It cannot exceed in-state service, cannot be credited in another system, and only the years needed to reach service retirement can be bought (example: Legacy member with 29 TCRS years and 4 Mississippi years is invoiced for 1 year). Cost: service on or before June 30, 2000 = employee + employer contributions at TCRS rates then in effect plus compound interest; after June 30, 2000 = 10% of earnable compensation for the period plus compound interest. Paid in a lump sum (rollovers from 401(k), 457(b), 403(b), 401(a) or IRA allowed). Out-of-state service does not count toward retiree insurance premium tiers. Private-school teaching does not qualify. Purchasing Out-of-State Service p. 2-4

TCRS's example: a Legacy member with 29 Tennessee years and 4 years in Mississippi needs one more year for 30, so TCRS bills 1 year. Purchasing Out-of-State Service p. 3

Because it only helps you qualify, out-of-state service matters most if you'd otherwise retire early.

From the sources

• You may be able to add service for withdrawn service, certain military service, educational leave and unused sick leave at retirement. Some is free, some costs contributions plus interest, payable by check or rollover (including from the State 401(k)).Legacy Member Guide p. 4, Creditable Service
• Vested teachers can buy out-of-state public school service, but only to qualify for unreduced retirement sooner; it doesn't raise the benefit. TCRS invoices only the years you need (29 Tennessee years plus 4 Mississippi years means paying for 1).Purchasing Out-of-State Service p. 2-3
• Out-of-state service after June 30, 2000 costs 10% of your pay for that period plus compound interest; earlier service costs the employee and employer contributions that would have been due, plus interest.Purchasing Out-of-State Service p. 3

Questions