You can increase your benefit, but it comes at a cost. Check with us if it's right for you.
Service credits represent how long a member has worked. Employees automatically earn “participating” credit for the years they work in a KPERS-covered position. Purchasing additional service credit could help you vest your benefit faster, get more at retirement and possibly retire sooner.
Don't wait. Purchase costs are based on salary and age. Now is probably the most inexpensive time for you to buy.
Only active members may purchase service. Federal law may limit you if you are purchasing service with after-tax money. This limit applies only to after-tax contributions.
Check with your employer to see if your past public service qualifies. He or she will be able to help you start the purchase process.
KPERS 1
If you are under age 45, a year of service generally costs about 6% of your annual salary (or final average salary, whichever is higher). See example below. Each year after age 45, the actuarial cost increases significantly.
KPERS 1 Service Purchase Example - under age 45 | |
---|---|
Salary (or FAS) | Service purchase cost |
$30,000 | Salary x 6% = $1,800 |
$50,000 | Salary x 6% = $3,000 |
$70,000 | Salary x 6% = $4,200 |
KPERS 2
If you are under age 37, a year of service generally costs about 6% of your annual salary (or final average salary, whichever is higher). See following example. Each year after age 37, the actuarial cost increase significantly.
KPERS 2 Service Purchase Example - under age 37 | |
---|---|
Salary (or FAS) | Service purchase cost |
$30,000 | Salary x 6% = $1,800 |
$50,000 | Salary x 6% = $3,000 |
$70,000 | Salary x 6% = $4,200 |
Until July 1, 2009, non-school employees worked for one year in a covered position before becoming a KPERS member. Employees hired between July 1, 2008, and June 30, 2009 have a partial year of service. KPERS 1 members can purchase service credit for this time worked.
Payment Options:
Check with your employer to see if your past public service qualifies. He or she also will be able to help you start the purchase process.
If you are under age 37, a year of service generally costs about 7.15% of your annual salary (or final average salary, whichever is higher). See examples below. Each year after age 37, the actuarial cost increases significantly.
KP&F Service Purchase Example - Under Age 37 | |
---|---|
Salary (or FAS) | Service Purchase Cost |
$30,000 | Salary x 7.15% = $2,145 |
$50,000 | Salary x 7.15% = $3,575 |
$70,000 | Salary x 7.15% = $5,005 |
Using the above examples, a member retiring with full benefits would recover the original purchase price after 34 months. Any money after that would be value added to the lifetime benefit.
Benefit of Purchasing Service Credit | ||
---|---|---|
Final Average Salary | Each Additional Year of Service, Your Benefit Increases By ... | |
$30,000 | $63 per month | $750 per year |
$50,000 | $104 per month | $1,250 per year |
$70,000 | $146 per month | $1,750 per year |
Check with your employer to see if your past public service qualifies. He or she also will be able to help you start the purchase process.
District Magistrate Judges may increase or convert certain types of DMJ service.
If you are under age 45, a year of service generally costs about 6 percent of your annual salary (or final average salary, whichever is higher). See example below. Each year after age 45, the actuarial cost increases significantly.
KP&F Service Purchase Example - Under Age 37 | |
---|---|
Salary (or FAS) | Service Purchase Cost |
$30,000 | Salary x 7.15% = $2,145 |
$50,000 | Salary x 7.15% = $3,575 |
$70,000 | Salary x 7.15% = $5,005 |
Benefit of Purchasing Service Credit | ||
---|---|---|
Final Average Salary | Each Additional Year of Service, Your Benefit Increases By ... | |
$30,000 | $233 per month | $2,800 per year |
$50,000 | $291 per month | $3,500 per year |
$70,000 | $350 per month | $4,200 per year |