Bottom line
Certify purchasable service before deciding whether to buy it. STRS Ohio can price the exact credit type, and some purchases use 100% liability cost, whole-year increments and strict payment timing near retirement.Key facts
- 1 year is the maximum total service credit that can be recorded for a single STRS Ohio fiscal year.
- 5 years is the combined maximum for specified military and teaching/public-service purchase categories described by STRS Ohio.
- 3 months after the retirement effective date is the outer purchase window when certification and a valid cost statement were completed before retirement.
Certification comes before the purchase decision
STRS Ohio lists many potentially purchasable categories, including military service, interrupted teaching due to military duty, teaching and public service, certain Ohio public service, pregnancy or adoption absences, leaves, restored withdrawn service, waived service and school-board service. The first step is certification, not payment. The member obtains the appropriate certification form, has an official record keeper verify the service and sends the completed form to STRS Ohio so the system can determine eligibility and issue a current cost statement.
Certifying service does not obligate the member to purchase it. That distinction is valuable because old employment records can become difficult to obtain even when retirement is years away. Once STRS Ohio confirms that service is purchasable, the member can compare the current price with the projected effect on retirement eligibility or benefit amount. Concurrent service is generally not purchasable in a way that creates more than one total year of credit in the same STRS Ohio fiscal year.
The price depends on the credit category, and some purchases use full liability cost
STRS Ohio does not use one flat dollar price per service year. Some categories are calculated at 100% of the additional actuarial liability created by the purchase. For those purchases, the current system guidance says the calculation uses the higher of prior-year earnings, final average salary or the state minimum salary, multiplied by a factor based on age and service credit. Credit calculated at 100% liability cost generally must be purchased in whole-year increments, making timing and retirement age meaningful cost variables.
Regular military service under Ohio Revised Code §§3307.75 and 3307.751 is one example where STRS Ohio describes a maximum of five years across specified military and teaching/public-service categories, with at least one year of STRS Ohio service required for each year purchased. Other Ohio public service can follow different limits. A member should not assume that a five-year military maximum, a two-year pregnancy/adoption limit or an unlimited category can be transferred from one purchase type to another.
Retirement creates a hard operational deadline for completing the transaction
Near retirement, the purchase process becomes time-sensitive. STRS Ohio states that credit may generally be purchased up to three months after the retirement date but before the final benefit determination when certification forms have already been received and a cost statement was issued before retirement. Waiting until after the retirement application is filed can delay finalization and partial payments. A member who expects a purchase to create eligibility should therefore request certification and a fresh cost statement well before the intended effective date.
Payment options can include a check, eligible pretax rollover or direct transfer, employer tax-deferred payment and, for some credit types, payroll deduction. Current leaves are handled differently: STRS Ohio says deposits can be made through the employer during the year of the leave, with payment due by June 30 of that fiscal year. The useful comparison is not simply purchase price versus added pension. It is purchase price, eligibility effect, benefit increase, health-care effect and the opportunity cost of the funds used.
Certify the service first and price it second
STRS Ohio allows DB members to certify many kinds of potentially purchasable service, including military service, teaching and public service, certain other Ohio public service, leaves, restored withdrawn credit, waived service and school-board service. Certification is an evidence step: an official record keeper confirms the employment or leave and STRS Ohio determines whether the credit is legally purchasable.
Starting with certification protects options without committing money. Older military, out-of-state or leave records can take time to locate, while STRS Ohio can update most cost statements after service is certified. The system also caps total credit at one year for a single fiscal year when service overlaps.
| Step | Purpose |
|---|---|
| Request certification form | Identify the correct credit category |
| Official record keeper certifies service | Establish dates and eligible service |
| STRS Ohio issues cost statement | Confirm purchasable amount and current price |
| Member chooses payment method | Complete purchase only if it meets the retirement goal |
Understand 100% liability cost before comparing a purchase with retirement value
Some STRS Ohio credit types are priced at 100% of the additional actuarial liability created by the purchase. Current guidance says the calculation uses the higher of prior-year earnings, final average salary or the state minimum salary and applies a factor based on age and service credit. Those purchases generally must be made in whole-year increments.
Military credit illustrates why category rules matter. STRS Ohio describes a combined maximum of five years for specified military and teaching/public-service purchase categories and requires at least one year of STRS Ohio service for each year purchased under the military rule. Other Ohio public service can have no comparable overall-year cap beyond the rule that total credit cannot exceed one year in a fiscal year.
| Credit type | Illustrative rule |
|---|---|
| Regular military service | Five-year combined maximum across specified categories |
| Other Ohio public service | No category-wide cap stated; one-year-per-fiscal-year total still matters |
| Pregnancy/adoption absence before July 1982 | Separate statutory eligibility and combined limits |
| 100% liability-cost credit | Whole-year purchase and actuarial cost rules |
Finish certification and pricing before the retirement clock runs out
STRS Ohio permits some service-credit purchases up to three months after the retirement effective date, but only when the required certification was received and a cost statement was issued before retirement, and the purchase must be completed before the final benefit determination. A late purchase can delay final benefit processing and partial payments.
Payment can be made through several methods depending on the credit type, including check, eligible pretax rollover or direct transfer, employer tax-deferred payment and payroll deduction. Current leaves are a special case: deposits through the employer for the year of the leave must reach STRS Ohio by June 30 of that fiscal year.
| Timing | Action |
|---|---|
| Before retirement | Certification received and cost statement issued |
| Up to 3 months after retirement | Complete eligible purchase before final benefit determination |
| Current leave | Employer deposit due by June 30 of the fiscal year |
Before you make a decision
- Identify the exact statutory service-credit category.
- Request certification while old employment records are still available.
- Obtain a current STRS Ohio cost statement before deciding to purchase.
- Compare the purchase with retirement eligibility, benefit and health-care effects.
- Complete required certification and cost-statement steps before the retirement effective date.
Frequently asked questions
What kinds of service can I buy through STRS Ohio?
STRS Ohio lists multiple categories, including military service, certain teaching and public service, other Ohio public service, pregnancy or adoption absences, leaves, restored withdrawn credit, waived service and school-board service. Eligibility and cost differ by category, so use the certification form that matches the actual prior service.
Does certifying service mean I have to buy it?
No. STRS Ohio states that certification does not obligate a member to purchase the credit. Certification lets the system verify the eligible amount and provide a cost statement. This is useful when old records may be hard to obtain or when the member wants to compare cost with the estimated retirement effect before committing funds.
What does 100% liability cost mean for service credit?
For designated credit types, the member pays the full additional actuarial liability created by the purchase. STRS Ohio uses earnings and a factor based on age and service credit in the calculation, and these purchases generally must be made in whole-year increments. The resulting price can be much higher than a simple contribution refund.
How much military service credit can I buy?
STRS Ohio describes a maximum of five years across specified military and teaching/public-service categories, with at least one year of STRS Ohio service required for each year purchased under the military rule. Other service-credit categories use different limits, so the five-year figure should not be treated as a universal purchase cap.
Can I buy service credit after my retirement date?
In some cases, yes. STRS Ohio says a purchase can be completed up to three months after the retirement date and before the final benefit determination when certification was received and a cost statement was issued before retirement. Because late purchases can delay finalization, members should complete certification and pricing well before retirement.
Official sources
Sources were reviewed on September 2, 2026. Rules and member records maintained by the retirement system control.
STRS Ohio — Purchasing Service CreditOfficial source ↗STRS Ohio — Purchasing Service Credit FAQOfficial 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.