DRS Service Credit Purchase Before Retirement

Why Service Credit Matters

Each additional month of service credit raises the benefit under your plan's formula, subject to plan-specific limits; Plan 1 standard calculations have a 30-year service cap. The formula is straightforward — Service Credit Years × AFC × multiplier (2% for Plans 1 and 2, 1% for Plan 3). Purchasing optional service credit before you retire can raise the first variable in that equation.

The hard deadline: all service credit purchases and restoration payments must be completed in full before your effective retirement date. Once that date passes, the opportunity closes permanently. DRS will not process a purchase retroactively.

Types of Purchasable Credit

Restored withdrawn contributions. If you previously left Washington public employment and withdrew your employee contributions from DRS, you can restore that service credit by repaying the withdrawn amount plus interest. This is common among members who left the state for a few years and returned to public service.

Military service credit. Interruptive military service may qualify for optional service credit. Request a cost calculation from DRS to determine whether your service qualifies and what it would cost.

Prior uncredited public service. Periods of qualifying public employment in Washington that were not reported to DRS — or service in another Washington public retirement system that is not already reflected in your record — may be purchasable depending on the system and the dates involved.

Funding a Purchase with DCP or 403(b) Funds

You can fund a service credit purchase through a direct trustee-to-trustee transfer from your 457 Deferred Compensation Program account or a 403(b) account. This avoids triggering a taxable distribution — the funds move directly from one retirement vehicle into the DRS purchase without touching your bank account.

The process requires coordination between your DCP/403(b) plan administrator and DRS. Trustee-to-trustee transfers take time to process — sometimes weeks. If you wait until your final month of employment to initiate the transfer, it may not clear before your retirement date, and the purchase fails.

How to Get a Cost Calculation

Contact DRS to request a service credit purchase cost calculation. DRS will determine how many additional months of credit are available, the actuarial cost and the payment options. Some purchases can be made through installment payments while you are still employed, but any remaining balance must be paid in full by retirement.

Review the cost calculation against the benefit increase it produces. Adding 12 months of service credit at a 2% multiplier for someone with an AFC of $6,000/month adds roughly $120/month to the pension for life. Whether the purchase price is worth that depends on the specific cost DRS calculates and how many years you expect to collect the benefit.

The Dual Membership Path

Members with service credit in multiple DRS systems — PERS, TRS, SERS, LEOFF Plan 2 — can establish dual membership under the Washington Portability Act. This combines service credit across systems to meet age and vesting thresholds, and allows using the highest base salary earned in any system for the AFC calculation in all of them. If you have worked in more than one DRS system, establishing dual membership before retirement can significantly affect both eligibility and benefit amounts.

Get the complete Washington DRS Retirement Guide for the service credit purchase timeline, DCP transfer instructions, and dual membership eligibility rules.

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