Important News About Permissive Service Credit
New contribution rates beginning January 1, 2014
The Teachers’ Retirement Board recently voted to change how the cost of purchasing service credit is calculated. The contribution rate structure for permissive service credit will change from the current 10-year age group increments to 1-year increments.
Permissive service credit requests received January 1, 2014 and after will be calculated using the new 1-year structure. The purchase cost may increase or decrease based on a member’s age and the date their purchase request is received by CalSTRS.
For more information and a comparison of permissive service credit contribution rates before and after January 1, 2014, see the Five-Year Tiered and Single-Year Permissive Service Credit Purchase Rates agenda item discussed at the September 2013 Teachers’ Retirement Board meeting. A table with the new rates starts on page 5.
You may also contact us at 800-228-5453 for general information.Remember:
- Redeposits are not considered permissive service credit and will not be affected by this change.
- The rates will continue to be adjusted as they normally are on an annual basis as of July 1, using the 1-year increments.