Washington Administrative Code
Title 415 - Retirement Systems, Department of
Chapter 415-112 - Teachers' retirement system
SERVICE CREDIT
Section 415-112-292 - May I purchase TRS Plan 2 or Plan 3 service credit for public education experience gained by teaching out-of-state or for the federal government?

(1) Do I qualify to purchase TRS service credit for public education experience outside of the state of Washington? You are eligible to purchase service credit under this section if you meet all the following requirements at the time of purchase:

(2) Do I qualify to purchase public education experience service credit if I am a substitute teacher? You may purchase service credit under this section if your employer is currently reporting you as an active substitute teacher and you meet the requirements in subsection (1)(b) through (f) of this section.

(3) If I purchase TRS service credit for public education experience, how may it be used? The service credit you purchase under this section will be treated the same as service credit you earn in TRS. It will be used in the calculation of your retirement allowance, to qualify for retirement or early retirement, and to meet the Plan 3 ten-year vesting requirement.

(4) What is the cost of the service credit? You must pay the actuarial value of the resulting increase in your retirement allowance. The following formula is used to calculate the cost:

Total Cost = Part 1 Cost + Part 2 Cost

Part 1: Annual Average Salary x Service Credit Years to Purchase x Factor 1

Part 2: Annual Average Salary x Current Service Credit Years x (Factor 1 Factor 2)

Factor 1 takes into consideration your current age and service credit, including the service credit you are purchasing.

Factor 2 takes into consideration your current age and service credit, excluding the service credit you are purchasing.

Example of Cost to Purchase Service Credit:

TRS Plan 2 member, age 45, with 15 years of service credit and 5 years to be purchased for public education experience.

Part 1:

* Annual Average Salary: $40,000

* Years to Purchase: 5

* Factor 1: 0.1756*

Part 2:

* Annual Average Salary: $40,000

* Current Service Credit Years: 15

* Factor 2: 0.1494*

Total Cost to Purchase Service Credit:

$40,000 (Annual Average Salary) x 5 (Years To Purchase) x 0.1756 (Factor 1) = $35,120

$40,000 (Annual Average Salary) x 15 (Current Service Credit) x (0.1756 - 0.1494) (Factor 1 - Factor 2) = $15,720

Total Cost = $50,840 (Part 1 + Part 2)

*Factors used are for illustration purposes in this example only as actuarial factors change periodically.

(5) How much TRS service credit may I purchase for out-of-state or federal public education experience? If you meet the requirements in this section, you may purchase up to seven years (eighty-four months) of TRS service credit. You may purchase service credit in one-month increments but may not purchase a partial month of service credit.

(6) May I purchase some service credit now and some at a later date? No, you may not purchase some service credit now and some at a later date. You have one opportunity to purchase service credit under this section. You may purchase service credit from more than one retirement system provided you purchase it at the same time.

(7) How do I purchase the service credit? To purchase TRS Plan 2 or Plan 3 service credit for out-of-state or federal public education experience, you must do the following:

(8) Do I need to give up my right to a benefit from my previous retirement system for the service credit I purchase in TRS? No, you do not need to give up your right to a benefit from your previous retirement system for the service credit you purchase in TRS. At the time you purchase TRS service credit, you only need to prove that you are not currently receiving a benefit from your previous system and that you are not currently eligible for an unreduced benefit. Your previous retirement system will be required to verify this information on your application.

(9) May I purchase public education experience service credit to add to my TRS service credit and also use out-of-state teaching service credit to qualify for early retirement? Yes, you may purchase public education experience to add to your TRS service credit and/or use out-of-state teaching to qualify for early retirement. However, you may not use the same out-of-state service for both programs. Please see WAC 415-112-295. For example, if you have seven years of eligible out-of-state service credit, you may purchase five years to increase your TRS service credit and use the remaining two years to qualify for early retirement.