Timing matters when purchasing prior service

Maybe. Members of all tiers may receive credit for work prior to their date of membership that would have been creditable in a New York state public retirement system. This includes partial-year(s), part-time and substitute teaching. It may also include such work as a summer camp counselor for a town recreational program, a clerk for a public library or an office assistant in a county government department.

Prior service is New York state public service completed before your current date of membership in the Teachers’ Retirement System. While receiving credit for prior service does not change your date of membership or your tier — unless it is the result of a membership reinstatement or transfer — additional service credit can affect your eligibility for, and the calculation of, your benefits.

That’s a question you will have to answer for yourself. It is less expensive to purchase prior service credit earlier in your career.

The cost of prior service includes interest, which means the total cost increases over time. It is also dependent on tier. But no matter what tier you are in, pursuing prior service credit early in your career is almost always beneficial. Although prior service cannot change your date of membership, more service credited to your membership enables you to reach service milestones more quickly.

If you have a MyNYSTRS account, you can submit and track a prior service claim online. Once prior service is available for purchase, a member can use the pension estimate calculator on MyNYSTRS to compare estimates with and without purchasing the service credit. This could help you determine if it’s worth it. To discuss your particular situation, send a secure message through your MyNYSTRS account or call TRS at 800-348-7298.

For more info, check out the video “PSI: Prior Service Investigation” at nysut.cc/PSI.