Pension Service Purchase
Purchasing Service Credit
In many WRS pension plans, currently employed, vested members have a one-time opportunity to purchase up to five years of service credit.* Vested members who were honorably discharged from the military service of the United States may elect to purchase service credit for each year of military service, up to a maximum of eight years total.
How it Benefits You
A service purchase increases your total “service credit,” which is used to determine your eligibility for retirement and the amount of your monthly benefit. In many plans, this additional credit can move you closer to your retirement date.
Calculating the Cost
Use the calculator below to obtain an unofficial estimate of the cost to purchase service. The cost is the “actuarial equivalent” of the benefit you will receive, based on your age, your plan’s benefit structure, and your Highest Average Salary (HAS). If you do not know your HAS, you may use your current annual gross salary for this estimate. Be sure to select your specific pension plan from the dropdown menu.
Payment Options
A service purchase must be made as a single lump-sum payment. You may pay with personal funds or through a tax-free direct rollover from another eligible retirement plan, such as a 401(k), 403(b), 401(a), 457(b), or a traditional IRA.
Next Steps
If you are interested in a purchase, contact WRS to request an official cost study and begin the application process. Please note that WRS cannot provide financial, tax, or legal advice; for such matters, you should consult with your own professional advisors.
Service Purchase Benefit Impact
Use the WRS benefit calculator to calculate your benefit with the years of service you will have before the purchase and then calculate again with the years of service you would have after the purchase.
Potential Future Value of Money
In making a service purchase, you would be buying a monthly benefit for life once you reach retirement age, giving up flexibility with the money you use to make the purchase, such as return potential, flexible distribution options, or a balance to leave to your heirs.
Many financial calculators can calculate the future value of money, including MoneyChimp’s Future Value Calculator. Not sponsored or maintained by the Wyoming Retirement System. WRS cannot be held responsible for calculation errors caused by the calculator or the user.
