Documentation and Payment Methods
In accordance with P.A. 03-232, effective October 1, 2004, a member can purchase additional credited service prior to the time of retirement or at the time benefits commence. If an active employee dies after attaining eligibility to receive an immediate retirement benefit and has designated his/her spouse as his/her primary beneficiary, the surviving spouse can purchase additional credited service in accordance with the laws and regulations in effect at the time of the member’s death.
It is your responsibility to fully document additional credited service on the appropriate forms listed on the Purchasable Service Credit page. All documentation must be complete and approved by the Connecticut Teachers’ Retirement System prior to the purchase of your additional service credit.
Payment for additional credited service must be completed in full by the due date with a lump sum payment. Once you have estimated the cost of your additional service credit and accumulated sufficient funds to complete the purchase in full you should write to this office for an invoice using the Request to Purchase Service Credit form.
Effective January 1, 2010, your pre 1989 1% supplemental account (if applicable) can be used towards the purchase of service credit at any time during your career.
If you have made contributions to the Teachers’ Retirement System above and beyond the mandatory contributions, these contributions are posted to your voluntary account. Your voluntary account is available to use to purchase your additional service credit at anytime during your career.
If you elect to use any portion of your pre 1989 1% supplemental account or your voluntary account towards the purchase of service credit the unused portion (if any) will be subject to a mandatory refund or rollover at the time of the service purchase.
In accordance with Section 415(n)(3)(A) of the Internal Revenue Code, as revised from time to time, a member may purchase permissive service credit in the Connecticut Teachers’ Retirement System using funds from:
403(b) Annuity or 403(b) Custodial Account
I.R.C. 457 Deferred Compensation Plan
I.R.C. 401(a) Qualified Plan
I.R.C. 401(k) Profit Sharing Plan
I.R.C. 408 non-Roth IRA (Pre-Tax only)
This activity may take place at any time provided you have received an invoice for the service credit.