Bottom line
CalSTRS permissive service credit can restore certain past service or approved leave, but eligibility, cost and timing depend on the service type, age-based rate and official billing statement.Key facts
- CalSTRS permits purchases for specified service categories such as eligible nonmember work, approved leaves and certain out-of-state teaching
- The permissive service-credit cost uses the amount purchased, an age-based contribution rate and highest compensation earnable from the last three school years
- CalSTRS requires service-credit purchases to be completed before the retirement effective date
What permissive service credit is designed to restore
Permissive service credit is not a way to buy arbitrary extra pension years. CalSTRS limits purchases to recognized categories of prior service or approved leave. Current examples include certain substitute or part-time California public-school service before membership, qualifying employer-approved leaves, out-of-state or foreign public-school service, some California public-university teaching, certain active military service, and approved maternity, paternity, FMLA or CFRA leave.
Each category carries its own proof requirements, and some service cannot be purchased if it is already credited or available for credit in another public retirement system. CalSTRS also allows a member to purchase a portion rather than all of eligible permissive service. Start by identifying the exact service category, not by choosing a number of years you would like to add.
How CalSTRS calculates a permissive-service cost
CalSTRS describes the estimate as a two-step calculation. First, multiply the amount of service credit to be purchased by the contribution rate for the member’s age and benefit structure. Then multiply that result by the highest annual compensation earnable during the last three school years. The contribution-rate table can change each July 1, which makes the request date important when a member is near a new fiscal year.
For fiscal year 2026–27, the published rates still vary by age and by whether the member is under CalSTRS 2% at 60 or 2% at 62. For example, the table shows 21.50% versus 19.70% for members under age 28, while rates differ at later ages. Those percentages are not universal purchase prices; use the row matching the member’s age and structure.
| Age | 2% at 60 | 2% at 62 |
|---|---|---|
| Under 28 | 21.50% | 19.70% |
| 40 | 22.20% | 20.50% |
| 55 | 28.60% | 26.30% |
| 62 | 34.00% | 31.00% |
How to verify service and preserve the right rate
Gather employer records showing the service or leave dates and use the CalSTRS form that matches the category. Most purchases begin with the Redeposit or Purchase of Permissive Service Credit form, while out-of-state service and California public-university service have separate certifications. CalSTRS states that documentation delays from a former employer may be considered when the member can show proof of a timely request for the needed records.
If the goal is to use the current fiscal-year rate, CalSTRS says requests must be postmarked no later than June 30. That is a rate-preservation rule, not permission to finish after retirement. The purchase itself must still be completed before the retirement effective date. Ask CalSTRS for the actual billing statement and confirm both the rate date and retirement deadline on your account.
Which service categories need extra scrutiny
Some categories sound similar but are treated differently. Nonmember substitute or part-time service in California may qualify when it occurred before CalSTRS membership or between a refund and a later return to membership. Military service can qualify under different rules depending on whether it occurred before membership or during protected employment. Out-of-state service also requires confirmation that the same service is not already credited elsewhere.
Approved leave is another area where the label alone is insufficient. CalSTRS lists categories such as maternity or paternity leave, FMLA or CFRA leave, sabbatical and other qualifying employer-approved absences, but the member still needs the service-specific verification. Keep the employer approval, exact dates and compensation history together so CalSTRS can determine whether the period is creditable and how much service is available to buy.
| Category | First record to locate | Key question |
|---|---|---|
| Nonmember or substitute service | Employer service history | Was it CalSTRS-creditable work? |
| Approved leave | Employer leave approval | Does the leave type qualify? |
| Out-of-state school service | Prior-system certification | Is the service credited elsewhere? |
| Certain military service | Military record | Which CalSTRS military rule applies? |
Why the official billing statement matters more than an online estimate
CalSTRS provides a calculator for estimating permissive-service cost, but the system directs members to obtain an official billing statement before paying. The statement reflects the service CalSTRS approves, the applicable rate and the compensation information used in the calculation. An inactive member’s online estimate can also be less reliable because current employment data may not match the assumptions used by the calculator.
When reviewing the bill, compare the service amount, rate factor and compensation base with the underlying records. If you decide to buy a different amount after CalSTRS issues a statement, the contribution-rate page says returning the original statement within 35 days can preserve the original rate for a recalculated request. Requests after that window can be subject to the rate then in effect.
Financing choices do not remove the retirement deadline
CalSTRS allows qualifying purchases to be funded through methods that can include rollovers and payroll-deduction installments after any rollover portion is completed. The financing arrangement is a payment mechanism, not an extension of eligibility. A member who plans to retire while a purchase is still outstanding should confirm how the remaining balance must be handled so the service is fully credited in time.
The contribution-rate page specifically states that members retiring before a statement arrives must still have the purchase request to CalSTRS before retirement. Once the statement is issued, CalSTRS provides a payment window, but the service must be fully paid before the retirement effective date to be included. Recheck this timing if the retirement date moves forward.
Before you make a decision
- Identify the exact permissive-service category that matches the past work or leave.
- Collect employer, prior-system or military records supporting the dates and eligibility.
- Check the 2026–27 rate table for your age and CalSTRS benefit structure.
- Request an official billing statement rather than sending payment from an estimate.
- Compare the approved service amount and cost with the projected benefit effect.
- Complete payment before the retirement effective date and recheck timing if retirement changes.
Frequently asked questions
What kinds of service can I buy through CalSTRS?
CalSTRS lists specific permissive categories, including certain nonmember or substitute California service, approved leaves, some out-of-state or foreign school service, selected public-university teaching and certain military service. Eligibility depends on the underlying record, so verify the exact category before requesting a cost.
How is CalSTRS permissive service credit priced?
The published method multiplies the service amount by the contribution rate for your age and benefit structure, then by your highest annual compensation earnable during the last three school years. The result is an estimate; the official CalSTRS billing statement controls the amount due.
Do CalSTRS permissive service credit rates change every year?
They can. CalSTRS says rates may be adjusted each July 1 and publishes the applicable fiscal-year table. If timing near June 30 matters to your purchase, confirm the request date, supporting documentation and the rate CalSTRS will use before relying on an estimate.
Can I buy only part of the CalSTRS service I qualify for?
Yes. CalSTRS states that a member may purchase a portion rather than all of available permissive service. The better comparison is the official cost for the amount you are considering versus the projected benefit effect, while recognizing that the final retirement calculation comes from CalSTRS.
Can I finish a CalSTRS service credit purchase after retiring?
The service-credit page says payment must be completed before the effective date of retirement. Financing or a pending statement does not automatically extend that deadline. If retirement is close, confirm the status of the request and required payment date directly with CalSTRS.
Official sources
Sources were reviewed on September 1, 2026. Rules and member records maintained by the retirement system control.
CalSTRS — Service creditOfficial source ↗CalSTRS — Service credit contribution ratesOfficial source ↗CalSTRS — Financing a service-credit purchase or redepositOfficial source ↗This article provides general educational information. It is not a benefit determination or financial, tax, or legal advice. Confirm account-specific information with the retirement system.