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Who can purchase foreign school service credit?

California Education Code, Section 22827, allows members who retired between June 1, 2007 - December 31, 2007 to purchase foreign school service credit. To be eligible, service must have been performed as an employee of an educational institution that:

  • Is located outside of the United States and its territories
  • Receives a portion of its funding from any foreign or domestic public source
  • Provides a level of education comparable to kindergarten though 12th grade

Time spent teaching in the Peace Corps is voluntary and not eligible for the purchase of foreign school service credit.

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What is the process to purchase foreign school service credit?

Submit an Out-of-State or Foreign School Service Credit Certification form for each former foreign retirement system or employer. This form is available online or by calling Member Services at 800-228-5453.

To ensure your eligibility to purchase foreign school service credit:

  • Return the required form to CalSTRS by June 30, 2009.
  • Make sure the form is complete.
  • Verify you are not receiving, or eligible to receive, a benefit for this service in another public retirement system, excluding social security.

CalSTRS must receive the completed form by June 30, 2009. The completed form must include proper certification from:

  • Your former retirement system
  • Former employer
  • Or both where applicable

Incomplete forms will not be accepted. Contact CalSTRS Service Credit Support if you have difficulty or delay in obtaining verification.

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How do I verify my foreign service performed in a school which was run by the U.S. Department of State?

Submit your Out-of-State or Foreign School Service Credit Certification form directly to the Department of Defense Education Activity (DoDEA). Call the DoDEA at 703-588-3987 for any questions.

DoDEA Human Resources Center
Records Mgmt Unit – 6th Floor
4040 North Fairfax Drive
Arlington, VA 22203-1634

Allow 10 – 14 days for processing.

If it has been more than a year since you performed your foreign school service, send your request to:

National Archives and Records Administration
National Personnel Records Center
(Civilian Personnel Records)
111 Winnebago Street
St. Louis, MO 63118

Verification must be received by CalSTRS no later than June 30, 2009.

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What is the cost to purchase foreign school service credit?

You may purchase all, or a portion, of your available foreign school service credit.

Cost is based on:

  • The permissive service credit contribution rate for your age at the time of your election. See page 6 of Purchase Additional Service Credit for rate information.
  • Your highest annual earnable salary during the last three years of creditable CalSTRS service.
  • The amount of service credit you purchase.

To estimate cost, use the Permissive Service Credit Calculator.

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What payment methods are offered?

Payments can be made by rollover of acceptable funds or by check. Only lump-sum payments are acceptable.

If payment is not submitted within 30 days of receiving the bill for this purchase, your request will be canceled. However, you may submit a new request anytime before June 30, 2009.

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How will a purchase of foreign school service credit affect the retirement benefit that I am currently receiving?

Purchasing service credit increases your monthly retirement allowance. Full payment is due before your retirement benefit reflects the service credit purchase. The adjustment is made retroactive to your effective retirement date.

Calculating your final compensation excludes the salary earned for foreign school service when determining the highest average annual compensation earnable.

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Will a purchase of foreign school service credit qualify for benefit enhancements?

If the additional service credit brings your total service credit to the number of years required, then the credit purchased qualifies for:

  • One-year final compensation
  • Longevity bonus
  • Career factor

Calculating your final compensation excludes the salary earned for foreign school service when determining the highest average annual compensation earnable.

CalSTRS adjusts your retirement allowance based on your purchase of additional service credit retroactive to your effective retirement date.

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Can the foreign school service credit be used to meet the eligibility requirements for disability benefits?

No. California Education Code, Section 22827, specifically precludes using the foreign school service credit to meet the eligibility requirements for disability benefits.

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Can I purchase other types of service credit?

No. You may only purchase foreign school service credit. All other types of service needed to be purchased prior to your retirement.

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