Return Home

News

Service Purchase Costs to Increase

There are five service purchase credit options: *Uniform Leave of Absence (Military) *Pre-membership Military Service *Forfeited Service *Permissive Service *Cadet Service The factors used in calculating the cost to purchase credit for Pre-Membership Military and Permissive Service have been updated as of January 1, 2007 due to a change in the assumed mortality rates. The adjustment of these factors resulted in an increase of approximately 1-2% of the cost for you to purchase your Pre-Membership Military and Permissive Service. Factors for all service purchases will be adjusted again in September and in December 2007 when new legislation and the multiplier increase to 3.2% takes effect. This increase has yet to be determined. To avoid any increase in cost, you must purchase your service time prior to August 31, 2007. IRS rules allow the use of these direct fund rollovers from your tax deferred accounts to purchase service credit in your retirement program for eligible service credit. If you think you may be eligible to purchase any of these options, please contact Michelle Waller at the Pension Office at (512) 416-7672 for a quote and verification of eligibility.

site by white lion