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Important News About Nonqualified Service Credit

The Governor recently signed legislation prohibiting the purchase of nonqualified service credit, or air time, effective January 1, 2013, as part of the California Public Employees’ Pension Reform Act of 2013.

All requests to purchase nonqualified service credit must be received by CalSTRS and date stamped by 5 p.m. on December 31, 2012. Requests received and date stamped after 5 p.m. will be denied.

No nonqualified bills will be recalculated after December 31, 2012. Once CalSTRS receives and verifies your completed request form, a billing statement will be sent to you with the exact cost to purchase additional service credit.

You do not need to complete the purchase prior to January 1, 2013.

You will be able to select from the normal payment plans based on your employment status.

There is no impact from this legislation on any other service credit purchases, including the ability to redeposit previously withdrawn contributions.

Additional Resources

  • Learn more about purchasing nonqualified service credit:
    • Purchase Additional Service Credit (CalSTRS publication)     (PDF; 1.5 MB)
    • Using myCalSTRS to complete the Purchase of Nonqualified Service Credit form provides immediate feedback on your eligibility and the amount of nonqualified service credit you can purchase. It also ensures your form is completed correctly, meaning more efficient processing.
  • Estimate the cost to purchase:
  • Learn more about the Pension Reform Act of 2013:

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