SFERS will allow you to voluntarily purchase service for time previously worked or lost under certain conditions as a way to potentially enhance your retirement benefit. Purchased service can increase your total credited service, however, it does not give you retroactive membership. Therefore, your membership date will not change. You may voluntarily purchase service under the following conditions:
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Purchasable service is presented under “Summary of SFERS Service Purchase Opportunities” on your Annual Member Statement that is mailed to you in August each year.
To initiate a pre-tax agreement to purchase Prior or Redeposited Plan Service, log in to mySFERS and select the “Service Purchase” tab. The years of service available for purchase and the cost to purchase that service will be displayed.
An appointment is not required if you are purchasing service by check, tax-deferred rollover, or transfer from another tax-qualified plan.
To purchase Unpaid Parental Leave, Public, Military, or Union Representative Service, you will need to verify the service is eligible for purchase. Under the “Service Purchase” tab, select the box for the applicable service type to complete and submit a Service Purchase Request Form.
You may purchase service any time prior to your effective retirement date.
Account Shortage
If you are a miscellaneous member who elected to pay retirement contributions at a reduced rate rather than at the 7.5% or 8.0% base rate, you may have an account shortage. The “missing contributions” is the difference between the actual rate you paid and the set base rate, plus interest.
You may repay an account shortage in full, or in part at any time before retirement. If you do not repay all of the shortage, your retirement benefit will be reduced by the actuarial equivalence of the shortage.
Gilmore Debt
In the state of California, a public employee’s retirement benefit is regarded as community property and is therefore, considered when property is divided in the event of marital/domestic partnership dissolution (divorce). If you divorce before retirement, under community property laws, a former spouse/domestic partner may be eligible to receive a share of your retirement benefit when you first become eligible for retirement, even if you do not retire.
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To initiate an agreement to repay an account shortage, log in to mySFERS and select the “Service Purchase” tab. An appointment is not required if you are paying an account shortage by check.
For detailed information regarding service purchases, refer to the SFERS Service Purchase Fact Sheet.