CalPERS Service Credit Purchase: Military Time, Airtime, and Deadlines

Why Service Credit Purchases Matter

Every year of service credit multiplied by your age factor increases your monthly CalPERS pension for life. If you have gaps in your service history — military leave, a break where you withdrew contributions, or qualifying public service before you joined CalPERS — purchasing that credit fills the gap and raises your benefit permanently.

The cost of a service credit purchase is calculated by CalPERS actuaries based on your age, salary, and how much credit you are buying. You can pay by lump sum or through payroll deductions while still working. Either way, the purchase must be completed before you retire.

Active Purchase Categories

Redeposit of Withdrawn Contributions

If you previously worked for a CalPERS-covered employer, left, and withdrew your contributions, you can redeposit those contributions to restore the service credit you earned during that period. This is the most common service credit purchase.

CalPERS calculates the cost and provides an estimate upon request. The amount is specific to your service and account history.

Redepositing restores service credit from the period you previously worked. A member who worked five years for a city, withdrew contributions, and later joined a state agency can ask CalPERS whether those five years are eligible for redeposit.

Military Service Credit

Military service is an eligible CalPERS service credit purchase category. Eligibility and the amount available depend on CalPERS rules and your circumstances; ask CalPERS for a cost estimate and confirmation of the service you can purchase.

The purchase cost depends on your age, salary, and how much service credit you are buying. CalPERS can confirm the eligibility and credit available for your service.

To initiate a military service credit purchase, request a cost estimate from CalPERS and ask which records it needs to verify your service. The purchase can be paid by lump sum or payroll deduction.

Service Prior to Membership (SPM)

If you worked for a CalPERS-covered employer before becoming a CalPERS member — for example, part-time work that did not qualify for membership under the rules at the time — you may be eligible to purchase that service. The employer must have been a CalPERS-contracting agency during the period in question.

SPM purchases are employer-contract dependent. Not all employers contract for SPM credit. Check with CalPERS or your employer's HR department to determine eligibility.

Leave of Absence Credit

If you had an approved leave of absence, ask CalPERS whether that period qualifies for a service credit purchase and whether your employer's contract affects eligibility.

Airtime: No Longer Available

"Airtime" was the informal name for purchasing non-qualified service credit that did not correspond to a qualifying employment or leave period.

PEPRA eliminated airtime purchases. No new airtime purchases are available; active purchase options require a qualifying basis.

Members who search for "buying airtime CalPERS" will find outdated articles describing the option as current. It is not. Current purchase categories include redeposit of withdrawn contributions, military service, and Service Prior to Membership.

The Deadline

All service credit purchase elections must be formally submitted to CalPERS, and payment plans must be established, before your effective retirement date. Under California Government Code Section 21050, purchases elected after January 1, 2020, must be paid in full before the retirement date.

You can submit a retirement application and initiate a purchase during the same pre-retirement period, but the purchase request and required payoff must be completed before the effective retirement date.

If you are paying by payroll deduction, your final deduction is taken from your last paycheck. Any remaining balance must be paid as a lump sum before retirement. CalPERS will calculate the payoff amount and send you an invoice.

The practical implication: start the service credit purchase process 6 to 12 months before your planned retirement date. Request the cost estimate, evaluate whether the purchase makes financial sense (the cost versus the lifetime increase in monthly benefit), and begin payment while you are still on active payroll.

The CalPERS Service Retirement Guide includes a Service Credit Purchase Decision Tracker worksheet that walks through the cost-benefit analysis for each purchase type and tracks deadlines against your retirement timeline.

See more California guides →