Most optional service purchases have a direct relationship to certified teaching in the public schools, but there are certain exceptions such as military service and private school credit.

In all cases, you must submit the appropriate documentation to TRS to purchase the credit. We urge you to do so at the earliest possible opportunity to avoid disappointment. With the passage of time, records may become lost, destroyed, or much more difficult to obtain. Once reported to TRS and verified, the qualifying event is a permanent part of your record at TRS.

You are under no obligation to purchase optional service that you have reported to TRS.

When to purchase

Purchases of most service credit must be completed before you retire. The only exception is credit for pregnancies and adoptions.

In addition, federal tax laws do not permit your survivors to initiate or complete an optional service purchase or refund repayment after your death.

Cost

Your cost for out-of-system service, part-time teaching, unreported substitute teaching, homebound teaching, leave of absence, involuntary layoff, pregnancy leave, or adoption leave credit is equal to the amount that would have been required had the service been earned under TRS, plus interest, usually at the rate of 6 percent, from the date the contributions would have been due to the date payment is made. The costs for military service and private school are specified within their sections.

Out-of-system service

The following types of full-time, part-time or substitute public school teaching qualify as “out-of-system” service:

• other states, territories, or dependencies of the United States,
• Chicago public schools, and
• public common schools operated by the United States, such as a school on a military base.

In addition, employment by a public agency in professional speech correction or special education in Illinois, another state, territory, dependency of the United States qualifies.

The following types of service do not qualify because they were not performed in a public common school:

• colleges or universities, and
• military instructional centers.

Service requirements

Your out-of-system service must be followed by at least five years of creditable service earned with TRS, the Public School Teachers’ Pension and Retirement Fund of Chicago (CTRF), or the State Universities Retirement System (SURS). The out-of-system service cannot exceed two-fifths of your total creditable service with TRS at retirement. The overall maximum is 10 years.

Reporting

The member, school district, and retirement system must complete the Out-of-System Service Certification form using actual school records.

Part-time teaching

You may be eligible to purchase credit for part-time teaching if you worked part-time between July 1, 1969 and July 1, 1990. If you worked in a permanent and continuous position during the entire school term, you have already received credit. If your service was not permanent and continuous, you may purchase the credit.

Reporting

The member and the school district must complete the Part-time Service Certification form using actual school records.

Substitute and homebound teaching

Before July 1990, substitute teaching service was not covered by TRS. You may, however, purchase credit for this service. In addition, you may purchase credit for homebound instruction and tutoring service that was paid by a TRS employer.

Reporting

The member and the school district must complete the Substitute or Homebound Service Certification form using actual school records.

Leave of absence or involuntary layoff

You may purchase service credit for approved leaves of absence or involuntary layoffs.

A leave of absence is “approved” if:

• you did not resign;
• your employer promised renewed employment at the end of the leave; and
• your employer, through its board, officially approved your leave; or
• your leave qualifies under the federal Family and Medical Leave Act, as certified by your employer.

A layoff is involuntary if it is due to a reduction in force (RIF) authorized under the School Code. An involuntary leave does not include a dismissal for cause or other performance-related reasons.

To qualify, you must return to service under TRS or the State Universities Retirement System (SURS) after the leave or layoff for one year or the period of the leave/layoff, whichever is less.

Credit Maximum

You may purchase a maximum of three years for all leaves of absence, involuntary layoffs, and absences due to pregnancy or adoption.

Reporting

The member and the school district must complete the Leave of Absence Certification form using actual school records. For an involuntary layoff, a letter from the employer indicating the RIF must be received.

Since July 1, 2001, approved leaves of absence have been reported by your school district.

Pregnancy or adoption credit

You may purchase credit for periods of absence from a TRS-covered position due to pregnancy or adoption prior to July 1983.

To qualify, you must have returned to covered employment with either TRS or State Universities Retirement System (SURS) for one year or the period you were away from teaching due to pregnancy, whichever is less.

If you were retired when the law took effect in 1995, you are permitted one opportunity to purchase the credit. Although it is advantageous to purchase the credit as soon as possible, there is no deadline. Annuitants or members may purchase all or a portion of the credit to which they are entitled, but annuitants may make only one purchase.

Credit Maximum

You may purchase a maximum of three years for all leaves of absence, involuntary layoffs, and absences due to pregnancy or adoption.

Reporting

Send us a completed Pregnancy Service Certification or Adoption Service Certification form and all required supporting documentation.

Military service

You may purchase two types of military service:

• military service that immediately followed Illinois public school teaching, and
• military service that did not immediately follow Illinois public school teaching.

You may purchase up to five years of credit, but only two may be for service that did not immediately follow TRS-covered employment.

Military service immediately following teaching

If you were drafted or enlisted while teaching, you may be able to purchase up to five years of credit. This credit must be purchased before you retire. To qualify, your military service must have begun within 12 months of teaching service under TRS or the CTRF, the plan for Chicago teachers. Credit is granted for actual military service as well as for federally sponsored teacher training that followed your discharge from the military.

Reporting

Send us a copy of your U.S. Government Form DD-214 or its equivalent.

Cost

Your cost is equal to the contributions to TRS that would have been required had you continued teaching. Interest is charged, usually at the rate of 6 percent, from the date the contributions would have been due to the date payment is made.

Military service NOT immediately following teaching

If you were not teaching in a position covered by TRS or the CTRF at the time you joined the military, you may be eligible to purchase up to two years of credit for your military service.

Reporting

Send us a copy of your U.S. Government Form DD-214 or its equivalent.

Cost

The cost is based on the normal cost in effect on the date of application. This rate, which is determined by our actuaries each year, includes both employer and employee contribution costs. The rate is multiplied by the salary for your first year of teaching after military service.

The salary must be for a position that required mandatory contributions to TRS. Interest, usually at the rate of 6 percent, is added from the date of first membership in the system or when the contributions would have been due, whichever is later, until the balance is paid.

Obtaining a Form DD-214

Written requests for duplicate form DD-214, must be signed and mailed to:

National Personnel Records Center
(Military Personnel Records)
9700 Page Ave. St. Louis, MO 63132-5100

Private School Credit

The Illinois Pension Code allows a limited opportunity to purchase credit for service as a teacher or administrator in a recognized Illinois private school. Post-secondary institutions are not included. Retired members may not purchase this service. You must apply for this credit on or before August 1, 2012.

To qualify, you must have:

• been employed in a private school recognized by the Illinois State Board of Education,
• been certified as a teacher or administrator during the period of private school service,
• completed at least 10 years of contributing TRS service, and
• established at least one full-time salary following the private school service.

Credit Maximum

A maximum of two years of private school credit may be purchased. If you previously purchased two years of private school credit, you may not purchase additional private school credit.

Reporting

Send us a completed Recognized Illinois Non-public Service Certification form.

Cost

For each year of service credit purchased, the member must contribute the normal cost in effect on the date of the application. This rate, which is determined by our actuaries each year, includes both employer and employee contribution costs. The rate is multiplied by the salary for your first year of full-time employment in a TRS-covered position following the private school service. Interest, currently at the rate of 8.5 percent, begins on the first date of full-time TRS employment following the private school service and continues until the contribution is paid.

Service canceled by a refund

When you take a refund of your TRS contributions, your TRS membership ends and all creditable service is canceled. This service cannot be reinstated or used for calculating benefits until you:

• repay the entire refund with interest from the date the refund was made until the date you repay the refund; and
• complete one year of TRS creditable service following the refund, or
• complete two years of creditable service under a reciprocal retirement system.
  

Questions?

If you have questions, please contact us.

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