TRS Texas Service Credit Purchase — Military, Out-of-State, Withdrawn, and Substitute

Why Service Credit Matters

Every year of credited service in TRS directly increases your monthly pension. The formula is 2.3% × total credited years × final average salary. Adding even two years of purchased credit to a $55,000 average salary means an extra $2,530 per year — roughly $211 more per month, for life.

Service credit also counts toward your eligibility threshold. If you're sitting at age 54 with 24 years of service (Rule of 80 = 78), purchasing 2 years of eligible service could move you to 80. You would still need to meet your tier's minimum-age rules; Tiers 3–6 have age floors.

Types You Can Purchase

Withdrawn service: If you previously worked for a TRS-covered employer, withdrew your contributions when you left, and later returned to TRS-covered employment, you may be able to buy back that forfeited service. TRS determines the purchase amount under its rules and provides an official cost letter.

Military service: Active-duty U.S. military service may be purchasable as TRS credit. You need your DD-214 and must meet TRS's specific military service credit rules.

Out-of-state public school service: Teaching in another state's public school system can sometimes be purchased as TRS credit. The rules vary depending on whether you participated in that state's retirement system.

Substitute teaching: Unreported substitute teaching days for a TRS-covered employer may qualify as purchasable service. This requires your former employer to verify the work occurred.

Unreported TRS service: Occasionally, employment for a TRS-covered employer goes unreported due to administrative errors. You'll need your former employer's payroll records to verify and correct the gap.

The Process

Start by requesting a service credit review through MyTRS or during a TRS retirement counseling session. TRS will audit your work history and identify any gaps or purchasable periods. For each eligible type of service, TRS provides a cost letter showing the exact dollar amount required to purchase the credit.

The available payment methods depend on the type of service being purchased. Use TRS's cost letter and confirm the accepted payment method with TRS before sending funds.

The Deadline Is Absolute

All service credit purchases must be paid in full before your retirement effective date. Not "in process." Not "payment plan started." Paid. In. Full.

If you file Form TRS 31 with a retirement effective date of August 31 and your service credit payment clears on September 2, that credit does not count toward your benefit calculation or your eligibility threshold under TRS's requirement that payment be completed before the effective date.

This is why the 12-month countdown matters. Identifying purchasable credit at month 12, getting cost letters at month 9, and completing payment by month 6 gives you a comfortable buffer. Starting the process at month 3 risks missing the deadline entirely.

ERS and ORP Transfers

ERS to TRS transfer: If you worked for a Texas state agency covered by the Employees Retirement System (ERS) and now work for a TRS-covered employer, you may transfer that service credit to TRS using Form TRS 528. The transfer must be completed before retirement.

ORP to TRS: If you chose the Optional Retirement Program (ORP) at a higher education institution and later moved to a TRS-covered K-12 position, the transfer rules are specific and limited. Contact TRS directly for current ORP-to-TRS conversion eligibility.

Sick Leave Credit

Unused state sick leave can also be converted to TRS service credit at retirement under TRS rules. Your employer certifies the unused balance on Form TRS 587. This is a leave certification rather than a service-credit purchase, and it requires coordination with your district HR office to ensure the certification is filed correctly and on time.

The Texas TRS Retirement Guide covers the full service credit audit process, including how to identify gaps in your record and the exact forms for each type of purchase and transfer.

See more Texas guides →