With the passage of pension legislation last year, the cost of purchasing some types of service credit soon will increase to reflect their true cost to the Ohio Public Employees Retirement System. But our members can take advantage of a short window of opportunity to purchase these credits under the current pricing system.
Beginning back in 2006, OPERS asked the Ohio legislature to increase the price of some service credit purchases so that they more fairly represent the actuarial cost of the benefit. Before the pension legislation passed last year, the entire OPERS membership was subsidizing the cost of some of these service credit purchases, which are available to only some of our members.
That will no longer be the case going forward. However, members will be permitted to make service purchases at the current rates if they initiate the transaction by July 7. They will have until July 7, 2018, to complete the purchase before the cost will be recalculated.
OPERS offers 15 types of service purchases—some of which are already at full actuarial cost. Members may be eligible to buy service credit if they served in the military, on a school board, as a full-time elected official, or in other certain circumstances. After July 7, members will be required to pay the full actuarial cost for the following types of service purchases:
- Additional service credit: Elected and certain appointed officials are permitted to purchase an additional 35 percent service credit for every full-time year they serve. For instance, if they serve two 4-year terms, they may choose to purchase an additional 2.8 years (0.35 x 8). The pension bill allows the OPERS Board of Trustees to define “full time” for the purposes of eligibility to purchase the additional 35 percent credit.
- Exempted service: This is service for a period of time in which the member was exempted from paying into OPERS while working in a position in which OPERS coverage was offered. For example, a student employed by a university may choose to be exempted from membership.
- Out-of-state, federal or municipal service credit: This service credit is for public employment while working outside of Ohio or for the federal government or a municipal retirement system.
- Leave of absence I: Up to one year of credit may be purchased at any time for authorized leaves of absence or resignation due to pregnancy or adoption of a child. Interest is included in the cost of the purchase.
- Leave of absence II: This covers employer-approved leaves of absence. Members may buy service credit or contributing months and pay no interest if the purchase is completed within one year of the beginning of the leave.
- Prior elected service: This type applies to Ohio elected officials, who are not required to become OPERS members immediately after their election to public service. Rather, at a future date after membership is established, they can purchase credit for service they completed as an elected official that predates their membership in OPERS, provided they did not pay into Social Security.
To find out more about this service purchase window, members can refer to the Special Coverage section of the OPERS website, where we have published a service purchase notice. There also is additional information about service purchases for Bureau of Workers’ Compensation time and military time, and for elected officials denied salary increases. Please note that not all types of service purchases will count toward health care eligibility for members.
For the types of service credit purchases that do count toward health care eligibility, refer to the chart on page 15 of our Comprehensive Guide for Pension and Health Care Changes.
I am inquiring about purchasing service credit. My adjusted service date is August 1, 1972. (The actual date is November 1971. I terminated my employment with the County for almost nine months. I took out the earned pension at that time. I am considering retiring within a year. What would be the cost to buy back the four years or maybe two years? Is this a realistic idea at this time. Unfortunately, I was young and not aware that I could buy back time many, many, years ago.
Thank you.
Armatha,
We can’t give you a cost estimate through our blog. But our Member Services department can help you: 800-222-7377. You may also use our online estimator, available through your online account, to obtain an approximate cost to purchase the credit.
–Ohio PERS
I feel if your service credit was purchased prior to all this new legislation it should be grandfathered in towards healthcare! We purchased this credit service in good faith and are being discriminated against now. My service credit was purchased years ago. Now I can’t get healthcare, my husband, or my children can’t be on and I paid over $10,000 to help secure our future.
When will our current 2012 annual statements be ready?? Will they be mailed out, or can they only be viewed on line??
Dennis,
We will send out annual statements from mid-April through May.
–Ohio PERS
I see out of state listed, would this include out of state military – national guard?
Leila,
We need more information about the National Guard service to which you refer. Please contact us at 800-222-7377.
–Ohio PERS
Is there a cost calculator to compare the cost for purchasing 35% additional service time for pre July 7, 2013 vs post July 7, 2013?
Richard,
That calculator is “down” right now. We are working on restoring it.
–Ohio PERS
I served 6yrs with Ohio National Guard and 8yrs on my local school board,where do I go to start the proses of getting all my credits?I also served 7yrs on my county wide vocational school board while being on the local board,any credits there?I believe I paid into strs as a board member.Thankyou.
Henry,
Service credit forms are available on our website. Here is the link:
https://www.opers.org/forms/formorder-member.shtml#service
For more information, call 800-222-7377.
–Ohio PERS
i wish i could buy my time layed off. since it wasn’t my choice and now they are making me work 32 years
I have coached high school football in the past and have some SERS credit. Is their any way I can transfer it to OPERS? Also my wife was on school board before. Can I use her name to purchase any more sevice credit?
Don,
You will be able to transfer your SERS service credit at the time of your retirement, assuming that most of your service credit is with OPERS.
No, you can’t purchase service credit for time that someone else worked.
–Ohio PERS
Your newsletter informs of cost savings on service credits purchase payment option forms. Where do you get the forms?
Gregory,
You can find various OPERS forms, including forms for service credit, here:
https://www.opers.org/forms/formorder-member.shtml
–Ohio PERS
If I should decide to retire at 66 will I get a monthly payment ?I was sent a letter at one time that I could not retire with operas. So I ask why they were taking my money then and they said I could get it back. But how and when. also if I should die am I understanding it right that my beneficiary will not get all my money I have in opers.?.If not why and who gets it? Right now I am 62 and I do not have a year in with opers. I am more than likely going to work longer, but this has been on my mined .
Carrie,
We can’t address your concerns in this space, because there’s not enough information. Please contact our Member Services department at 800-222-7377.
–Ohio PERS
I am looking to buy back my PRS time and money from working at a public library. How much are the rates? Is this something that can be taken out of my paycheck or have to purchase lump sum?
Thank you
Jennifer,
You need to ask us to prepare a cost estimate for you. Call us at 800-222-7377, and we can help you do that.
–Ohio PERS