Buying TRS of Texas service credit: what counts, and what a year adds
You may be able to buy service credit for time that didn't count, like out-of-state teaching, military service or a refunded account. Here's each type, its limits and deadlines, and what an extra year is worth.
10 types of service credit the handbook says you may buy
+2.3% of your salary average, per year, for each added year
2 mo after you retire, at most, to finish paying
Who can buy service credit
If you're working in a TRS-covered job and contributing, you can build, reinstate, buy and transfer eligible service credit (Handbook p. 8).
If you've left, but still have a TRS account, you're an "active noncontributing" member. You can reinstate withdrawn service and, in limited cases, buy special service credit (p. 8). If you're no longer a TRS member, you may still be able to reinstate withdrawn service if you belong to another Texas system in the Proportionate Retirement Program (p. 16). See leaving teaching.
Federal tax law limits how much you can put into TRS voluntarily in a plan year (Sept. 1 to Aug. 31). TRS tells you the limit when you ask for a cost statement (pp. 15, 18).
The 10 types, one by one
Actuarial cost = marked "actuarial cost" in TRS's Ready to Retire presentation (slide 5). Other = not marked. Neither source publishes prices.
Withdrawn (reinstated) service
Other
Who
Anyone who refunded a TRS account. Refunding cancels all TRS service credit and membership; reinstating buys it back.
Limit
The service you refunded.
Note
Members of another Proportionate Retirement Program system may also be able to reinstate, even if they aren't TRS members now.
Handbook p. 8, 16, 39
Unreported service or pay
Actuarial cost
Who
Eligible service or pay that should have been reported to TRS but wasn't.
Limit
Must be verified with TRS within five years after the end of the school year it was earned or paid. Anything before Sept. 1, 2011 had to be verified by Aug. 31, 2016.
Note
A technology error by your employer for the current or latest school year can be fixed at no extra cost (only the member contributions) if you tell your employer and TRS in writing by May 31 of the following year.
Handbook p. 14, 16
Substitute service
Actuarial cost
Who
Substitute work of at least 90 workdays in a school year.
Limit
Must be verified to TRS by the end of the fifth school year after the work.
Note
Substitute work isn't TRS membership service, so it only counts if you buy it.
Handbook p. 4, 16
Out-of-state public school service
Actuarial cost
Who
Members with at least 5 years of TRS service credit who worked in a public school system or college in another state.
Limit
One year for each year of TRS service, up to 15 years. Service still held in another public retirement system is 'nonqualified': 5 years total.
Handbook p. 17
Developmental leave (unpaid)
Actuarial cost
Who
Unpaid leave your TRS-covered employer approved in advance for study, research, travel or another purpose that improves your professional skills.
Limit
Up to 2 years.
Handbook p. 17
Military service
Other
Who
Members with at least 5 years of TRS service credit, for active-duty federal military service in the U.S. armed forces.
Limit
Up to 5 years, bought one year at a time, in the order you served.
Handbook p. 17
USERRA military leave
Other
Who
You left TRS-covered work for active military duty and were reemployed (or applied) with the same employer.
Limit
The period of duty. You can't also get regular military credit for the same time.
Note
Can't be paid in installments.
Handbook p. 17, 18
State sick or personal leave
Actuarial cost
Who
Eligible on your last day of work before retirement, with 50 days or 400 hours of unused state sick or personal leave, built up at no more than 5 days a year.
Limit
One year.
Note
Can't be used to become eligible to retire. Can't be paid in installments. You have 90 days from the TRS cost statement to pay.
Handbook p. 15, 17, 18
Work experience (career and technology teachers)
Actuarial cost
Who
Certified career or technology education teachers with at least 5 years of service credit.
Limit
One or two years.
Handbook p. 17
Membership waiting period
Actuarial cost
Who
You started with a TRS-covered employer on or after Sept. 1, 2003 but before Sept. 1, 2005, and weren't already a member. Those members had a 90-day wait before joining.
Limit
The 90-day waiting period.
Handbook p. 18
How the cost is set
TRS figures the price and gives you a cost statement. We don't show prices, because neither the handbook nor TRS's presentation publishes how each type is priced.
Seven types are marked "actuarial cost" in TRS's presentation: out-of-state, state sick or personal leave, substitute, developmental leave, unreported service or pay, work experience, and the membership waiting period (Ready to Retire slide 5).
Withdrawn, military and USERRA credit aren't marked that way. The sources don't say how those are priced.
The cost "generally increases over time." TRS suggests you consider buying when you're first eligible (Handbook p. 15).
Unreported service or pay from the current or most recent school year, missed because of an employer technology error, can be fixed for just the member contributions if you report it in writing by May 31 of the next year (p. 14).
Ways to pay
A lump sum with after-tax money, such as from savings or checking.
Installments with after-tax money (not for state sick or personal leave, or USERRA).
A rollover of pre-tax money from another eligible retirement plan, or a direct transfer from a governmental 403(b) or 457(b) plan.
Handbook p. 18.
Deadlines: it must be paid before you retire
To count in your pension: finish within 2 calendar months of your retirement date, or of the last day of the month you apply, whichever is later. It must also be done before TRS sends your first payment (Handbook p. 15).
If you need it to be eligible to retire: it must be paid by your retirement date (p. 15).
State sick or personal leave: 90 days from the date TRS issues the cost statement. You can get one 30-day extension if you pay with a rollover or a direct transfer from a governmental 403(b) or 457(b) (p. 15).
Disability retirement: by the retirement date, the end of the month you apply, or within 30 days of TRS's approval letter, whichever is later (p. 15).
Death before retirement: credit you haven't bought doesn't count toward active-member death benefits. Your beneficiary can pay off an installment purchase you started, in a lump sum (p. 15).
Verification deadlines: unreported service or pay must be verified within five years after the end of the school year it was earned or paid (p. 14). Substitute service must be verified by the end of the fifth school year after it (p. 16).
Start earlyTRS's own advice: plan purchases well before your retirement date, because of eligibility rules, yearly contribution limits and deadlines (Handbook p. 15).
What one extra year adds
Monthly standard annuity added by one more year of service, once you qualify for a full (unreduced) benefit. Computed with this site's calculator engine. The formula is 2.3% × salary average ÷ 12 (Handbook p. 32).
What one extra year adds (TRS Texas)
Salary average
Added per month
Added per year
Over 20 years
$45,000
+$86
+$1,035
+$20,700
$55,000
+$105
+$1,265
+$25,300
$65,000
+$125
+$1,495
+$29,900
$75,000
+$144
+$1,725
+$34,500
Before taxes and health premiums. "Over 20 years" is simple multiplication: no COLAs, no investment return. If you retire with an early-age reduction, the added amount is reduced too, and the extra year can also change the reduction itself. Compare these numbers with the cost TRS quotes you.
When a year gets you to the Rule of 80
The biggest jump comes when one more year makes your age plus service reach 80 and removes an early-age cut. These made-up members each buy one year. Same $60,000 average, retiring June 1, 2026.
Tier 2, age 56, 23 years
Tier 2 · 56 + 23 = 79, one short of the Rule of 80. Tier 2 has no minimum age for the Rule of 80, so one more year removes the cut entirely.
As is 49% cut$1,349/mo
With 1 bought year full$2,760/mo
+$1,411 a month
Tier 3, age 60, 19 years
Tier 3 · 60 + 19 = 79. Tier 3 needs the Rule of 80 and age 60 for a full benefit. This member is already 60, so one more year meets both.
As is 33% cut$1,464/mo
With 1 bought year full$2,300/mo
+$836 a month
Monthly standard annuity, before taxes and premiums. Reduction from 34 TAC §29.11 tables, used by the calculator. Your tier decides the minimum age that goes with the Rule of 80: none for Tiers 1-2, 60 for Tiers 3-4, 62 for Tiers 5-6 (Handbook pp. 26-31). See the Rule of 80 guide.
Before you count on it
State sick or personal leave can't be used to become eligible to retire (Handbook p. 17).
If you need the credit to be eligible, it must be paid by your retirement date, not later (p. 15).
TRS-Care counts purchased credit differently. Your 10-year minimum can include up to 5 years of military credit but no other purchased credit. For the age-plus-service-80 or 30-year test, all purchased credit counts (p. 53). See TRS-Care.
Purchased credit only counted toward the 2014 five-year test (which decides some tiers) if it was paid in full by Aug. 31, 2014 (p. 24).
ERS transfers and Proportionate Retirement
TRS and ERS. Eligible members can move service between TRS and the Employees Retirement System of Texas. The transfer follows the rules of the system receiving it. It happens only when you retire or when a pre-retirement death benefit becomes payable. Members already retired under either system can't transfer. ERS cash balance members can't either (Handbook p. 18). TRS's presentation adds that you need at least 3 years of active TRS service to bring ERS service to TRS, and 36 months of ERS service to send TRS service to ERS (Ready to Retire slide 7).
Proportionate Retirement. If you have service in more than one Texas public system (such as ERS, TMRS or TCDRS), you may be able to combine it to qualify for a TRS service retirement. If you retire after Sept. 1, 2016, it can also count when TRS sets an early-age reduction. Your TRS benefit is still figured on TRS service and salary only. Combined credit can't be used for TRS-Care (Handbook p. 39) or PLSO (pp. 26-31). Find out your rights before you withdraw an account in any of these systems (p. 39).
Not in our sources yetHow TRS prices each type, what "actuarial cost" means in practice, and how withdrawn, military and USERRA credit are priced. The TRS Service Credit brochure covers these, but we haven't reviewed it yet (Handbook p. 15 points to it). Ask TRS for a cost statement.
Check before you decideThis page summarizes TRS's published rules. It isn't financial or tax advice. TRS decides what you can buy and quotes the real cost. Your MyTRS account or a TRS cost statement has the official numbers.
Questions
What kinds of TRS service credit can I buy?
The handbook lists ten: withdrawn (refunded) service, unreported service or pay, substitute service, out-of-state public school service, unpaid developmental leave, military service, USERRA military leave, state sick or personal leave, work experience for career and technology teachers, and the 2003-2005 membership waiting period. Each has its own rules. (Handbook pp. 15-18)
How much does it cost to buy a year of TRS service credit?
TRS figures the cost and sends you a cost statement. Our sources don't publish prices. TRS's Ready to Retire presentation marks seven types as 'actuarial cost'. The handbook says the cost generally goes up over time, so it pays to look early. (Handbook p. 15; Ready to Retire slide 5)
How much does one more year of service add to my TRS pension?
Each year adds 2.3% of your salary average to your yearly pension. On a $60,000 average, that's $1,380 a year, or $115 a month, once you qualify for a full benefit. (Handbook p. 32)
When do I have to finish paying for service credit?
To count it at retirement, finish within 2 calendar months of your retirement date or the end of the month you apply, whichever is later, and before your first annuity payment. If you need the credit to become eligible to retire, it must be paid by your retirement date. State sick or personal leave has its own 90-day deadline. (Handbook p. 15)
Can buying service credit get me to the Rule of 80 sooner?
It can. Purchased credit counts as service, and if you need it to become eligible, you must finish paying by your retirement date. The exception is state sick or personal leave, which can't be used to become eligible. Your tier may also have a minimum age. (Handbook pp. 15, 17, 26-31)
Does purchased service count for TRS-Care?
Partly. TRS-Care needs at least 10 years of TRS service, and only up to 5 years of purchased military credit can count toward those 10. For the Rule of 80 or 30-year test, all purchased credit counts. (Handbook p. 53)
Can I move my ERS service to TRS?
Eligible members can transfer service between TRS and ERS, but only when they retire or when a pre-retirement death benefit becomes payable. ERS cash balance (Group 4) members can't. TRS's presentation says you need at least 3 years of TRS service to bring ERS service to TRS. (Handbook p. 18; Ready to Retire slide 7)
Source: TRS Benefits Handbook, September 2025, pp. 4, 8, 14-18, 24, 26-32, 39, 53. Cost types and ERS transfer minimums: TRS K-12 Ready to Retire presentation (FY27), slides 5 and 7. Last reviewed .