OPERS Service Credit Purchase: Military, Refunded, and Out-of-State Credit

Every Year of Credit Directly Increases Your Pension

At 2.2%, each additional year of service credit adds 2.2% of your Final Average Salary to your annual pension allowance for the first 30 years in Groups A and B or first 35 years in Group C; the multiplier is 2.5% beyond those thresholds. On a $60,000 FAS, one year in the 2.2% tier adds $1,320 in annual retirement income, or about $110 per month, subject to your benefit calculation and any CBBC reduction. OPERS COLAs are calculated as a simple percentage of the initial base benefit. Compare the OPERS purchase quote with an estimate of the benefit impact; the result depends on your record.

There is a firm deadline: under OAC 145-1-38, OPERS requires service credit purchases to be paid in full before your effective retirement date.

Military Service Credit

OPERS allows members to purchase credit for qualifying military service. A DD-214 (Certificate of Release or Discharge from Active Duty) can verify the service period. Ask OPERS which periods qualify and request a purchase estimate for your record.

Restoring Refunded OPERS Credit

If you previously worked in Ohio public employment, left, and took a refund of your member contributions, that service credit may be eligible for restoration. Contact OPERS to confirm eligibility and get the current purchase estimate for your record.

Out-of-State Public Service

Some periods of public employment in other states may be purchasable as OPERS service credit, depending on the type of service. Not all out-of-state service qualifies.

Contact OPERS directly with the specifics of your out-of-state employment (employer name, dates, retirement system). They'll tell you whether it's purchasable and at what cost. Don't assume it qualifies based on general descriptions — the eligibility determination is case-specific.

Transferring Credit from SERS or STRS

If you hold non-concurrent service credit in other Ohio public retirement systems — the School Employees Retirement System (SERS) or the State Teachers Retirement System (STRS) — you can aggregate that credit at retirement under ORC 145.37. This isn't technically a purchase; it's a consolidation of credit you've already earned across systems.

The aggregated credit counts toward both eligibility (meeting the age-plus-service thresholds for your transition group) and benefit calculation. If the service was concurrent (you held positions in two systems during the same period), the credit can't be compounded, but concurrent salaries may be combined to determine your FAS.

Initiate this transfer well before your target retirement date. The inter-system coordination takes time, and any discrepancies between the systems' records need to be resolved before OPERS can finalize your benefit.

Payment Options for Purchases

OPERS offers two payment methods for service credit purchases:

• Lump sum: Pay the full amount in one payment from personal funds
• Payroll deduction: Post-tax deductions from your paycheck over a set period

Payroll deduction spreads the cost over time. If you use it, confirm with OPERS that the purchase will be paid in full before your effective retirement date; a partial balance does not satisfy that deadline.

If you're within 12 months of retirement and considering a service credit purchase, run the timeline carefully. Calculate whether payroll deductions will clear the balance before your target date. If not, a lump-sum payment — even if it means dipping into savings — may be the only way to complete the purchase in time.

Start the Audit at T-12

The OPERS Retirement Guide builds service credit auditing into the T-12 timeline for exactly this reason. At 12 months out, you have time to identify gaps, request purchase cost estimates, initiate payment plans if needed, and complete the purchase before the deadline closes. At T-3 months, you're racing a clock that doesn't pause. The guide's Service Credit Audit Checklist walks through every purchasable category with the documentation you'll need for each.

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