How much will it cost to buy service credit?
The cost is based on either your current gross annual salary or your final average salary, whichever is higher. KPERS and Correctional KPERS If you are under age 42, a year of service costs about 4 percent of your salary. After age 42, the actuarial cost increases significantly. Example $30,000 (salary) x 4% = $1,200 KPERS Service Purchase Facts KP&F If you are under age 37, a year of service costs about 7 percent of your salary. After age 37, the actuarial cost increases significantly. Example $45,000 (salary) x 7% = $3,150 KP&F Service Purchase Facts Judges If you are under age 45, a year of service costs about 6 percent of your salary. After age 45, the actuarial cost increases significantly.
A. If you are under 42 years old, one year of service costs about 4 percent of your gross annual salary. After age 42, the age actuarial cost increases each year. Q. How do I buy service credit? A. In order to buy service credit: • Employee contacts designated agent or the Retirement System to see if past service is eligible. • If service is eligible, designated agent or the Retirement System will tell employee which form to complete. • Employee completes an application to purchase service credit and gives it to his or her designated agent. • The designated agent completes the rest of the form and sends it to the Retirement System. • The Retirement System calculates the final cost and sends a letter to the designated agent to deliver to the employee. • The employee signs the necessary paperwork, arranges for payment and returns both to the Retirement System. • The Retirement System receives the money or payroll deduction commitment. • The Retirement System adds service credit to the em
