Reminder: Service Purchase Costs Recalculate on Oct. 1

If you have an open, unpaid service purchase, PSRS/PEERS will recalculate the cost for the unpaid portion on Oct. 1. For most people, paying off the balance before the deadline results in cost savings.

Why Are Costs Recalculated?

The cost to purchase service is based on two key factors:

• Your highest annual salary on record
• The current combined (employer and employee) contribution rate for your system

Each Oct. 1, your cost is recalculated using these figures if you have an open, unpaid service purchase application. This ensures your purchase cost reflects the most current numbers.

What This Means for You

If your salary increases or contribution rates change, your service purchase cost may go up. Applying early in your career and paying off your purchase as soon as possible often results in a lower total cost.

You’ll receive a Service Purchase Application Recalculation Statement each October if you have an open balance. This statement outlines your updated cost and payment options.

Note: You can always decide not to complete an open purchase. If you have already made payments, you will receive proportional service based on the payments made. Refunds are not available.

Tools to Help

PSRS/PEERS offers helpful resources to guide your service purchases:

• All Members
  • Purchase Cost Recovery Calculator (available through Web Member Services). Use this tool to estimate how long it will take to recover your purchase cost through increased retirement benefits.
• PSRS Members
  • PSRS – Purchases and Reinstatements
  • PSRS Reinstating and Purchasing Service brochure (PDF)
• PEERS Members
  • PEERS - Purchases and Reinstatements
  • PEERS Reinstating and Purchasing Service brochure (PDF)

Have questions? Contact PSRS/PEERS at (800) 392-6848 for personalized assistance.