How to Buy Back Service Credit in NYSLRS: Military, Prior Public Service & Cost

Types of Service Credit You Can Purchase

NYSLRS allows members to request credit for qualifying periods of service. Common categories include:

Military service credit under RSSL Article 20 may be available for eligible active military duty. Eligibility and whether payment is due depend on the service and plan; ask NYSLRS to review your record.

Prior public service credit may cover earlier New York public employment or a prior public retirement system membership that qualifies for transfer or reinstatement. If you previously withdrew contributions, ask NYSLRS what repayment or reinstatement rules apply to your record.

Transferred memberships may apply when you move between eligible New York public retirement systems. Ask NYSLRS whether your prior service can be transferred and whether any payment is required.

What Service Credit Buybacks Cost

The cost and payment terms depend on the type of credit and your record. Request a formal NYSLRS estimate for the service you want to purchase or transfer; do not rely on a general salary-based formula or an example from another member.

The Retirement Deadline You Cannot Miss

Submit requests to purchase or transfer service credit before your official retirement date. Mandatory purchase accounts must be paid in full before retirement; an unpaid mandatory balance causes a permanent actuarial reduction. For other unpaid purchases, NYSLRS grants credit only for the portion paid or applies the applicable reduction.

If you're on a payroll deduction plan and approaching retirement, contact NYSLRS for an up-to-date payoff amount and payment instructions. Leave enough time before retirement for the payment to post; don't rely on the final payroll cycle to clear the balance in time.

How to Start the Process

Review your service history in Retirement Online and ask NYSLRS whether any uncredited public service, military service, or prior membership can be purchased, transferred, or reinstated. Request an official cost estimate and submit the request before your retirement date so there is time to resolve eligibility and payment questions.

Is Buying Back Credit Worth It?

Run the numbers before committing. Additional service credit increases your monthly pension through two mechanisms: a higher service multiplier in the benefit formula, and potentially pushing you past a milestone that reduces or eliminates an early retirement penalty.

Compare NYSLRS's purchase estimate with an updated benefit estimate that includes the additional service credit. The value depends on your tier, service total, benefit formula, and retirement date, so use your own figures rather than a general breakeven estimate.

The NYSLRS Retirement Guide includes a service credit tracker worksheet that helps you inventory purchasable periods, estimate the cost, and calculate whether the investment pays off against your specific retirement timeline.

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