The primary way to obtain service credit is by working in a regular full-time position and making mandatory contributions to the system. However, if you qualify, you can establish additional service credit by purchasing it. You can even pay for the purchase by rolling in money from certain types of other retirement plans including the City’s Deferred Compensation plan. There are several ways that you may be able to purchase service credit, as described in the information below.

Effective January 1, 2024, the following  service purchase options can only be made at the time of retirement. COAERS will provide you with the costs and options to make this purchase during the retirement process.

• Non-contributing Service
• Military Service
• Supplementary Service Credit
• Sick Leave

Prior Service

If you left the City and withdrew your money, you can reinstate your service credit through purchase of your prior service if you are reemployed with the City or currently working for a proportionate employer. This can be purchased at any time.

Non-contributing Service

You can purchase service credit representing certain employment periods with the City in which you would not have made COAERS contributions. Some examples include:

• You worked for the City in a temporary or part-time position
• You were on an approved leave of absence
• You were on Workers’ Compensation leave due to an on-the-job injury

In addition, up to six months of non-contributing service can be purchased for probationary period employment for those who were hired prior to October 1, 1995, but were not still employed by the City on October 1, 1995. If you were an active contributory member of COAERS on October 1, 1995, you were given credit for this period at no charge to you.

Prior Military Service

You can purchase a minimum of 90 days and up to 48 months of service for full-time, active duty that you completed in the Armed Forces of the United States prior to working for the City. Prior military service can only be purchased at retirement. COAERS will provide you with the costs and options to make this purchase during the retirement process.

Military Service Leave of Absence (USERRA)

You can purchase service credit if you had to leave your City job to perform military duty and chose not to continue making retirement contributions while you were deployed.

When you return, depending on your length of service prior to your military assignment, you generally have between 14 and 90 days to return to your City job. Once you are back, you must purchase your military service within five years of returning.
 

Sick Leave

At retirement, you may convert unused sick leave hours to service credit. A sick leave purchase does not make you eligible to retire any sooner, but it will increase your monthly benefit payment. Unused sick leave hours eligible for cash payment may not be converted to service credit.

You should start the conversion process 30 to 60 days before your retirement date. You must convert your sick time in 80-hour pay period increments. Your cost to convert sick leave hours to service credit will be determined based upon your current contribution rate at the time of retirement.

Supplementary Service Credit

You can purchase up to 60 months of additional service credit at retirement. COAERS will provide you with the costs and options to make this purchase during the retirement process.

• Group A – Supplementary Service Credit will increase your monthly benefit payment and will also count toward your retirement eligibility.
• Group B – Supplementary Service Credit will increase your monthly benefit payment but will not count toward your retirement eligibility.

You may be required to purchase prior service before you can purchase supplementary service credit. Members who have less than 5 years of service can make a supplementary service purchase but only by rolling funds into COAERS from a 457 or 403(b) retirement plan.