Purchase and Redeposit of Service Credit

Service credit is one of the three factors used in computing a retirement allowance. Current law permits members to receive additional service credit only under specific authorized circumstances. You may be eligible to add service credit to your account if you had prior public service, or had withdrawn contributions, by purchasing or redepositing service credit. Purchases and redeposits are governed by different government code sections. There is no provision to purchase credit which is not authorized in the law (for example, to just buy credit because additional credit is needed or desired.) Service purchases and redeposits must be completed prior to your effective date of retirement.

Service credit that can be purchased and or redeposited include:

• Previously withdrawn contributions
• Eligible sick leave without pay (covered by SDI)
• County service prior to membership (i.e. the first period of service prior to membership, part-time service, or service in a position not eligible for retirement contributions)
• Prior public service
• Military Time

Redeposits of prior withdrawn contributions

Tier Changes under Marin Decision.

Eligibility:

Certain Tier II members who qualify under the Marin decision may have their Tier I status reinstated. This decision only affects ACERA Tier II members who were in Tier I, at one point but then terminated their membership, withdrew all of their Tier I contributions, and later re-entered the retirement system after July 1, 1983 as a Tier II member. In order to have Tier I benefits reinstated, eligible members must:

• Apply for Aquilino Tier Restoration
• Complete a redeposit of the withdrawn Tier I contributions including interest
• Convert and pay the cost to convert all Tier II contributions to Tier I

Aquilino Tier I Restoration Applications are available (click HERE) or for more information on the Aquilino, contact ACERA.

Service Purchases

Purchasable service credit includes credit for a prior period of County service which was ineligible for membership such as:

• Days prior to membership
• Part-time, temporary, intermittent (seasonal), or project positions
• State Disability

Additionally, if you previously worked for a public agency where there was no pension plan or had withdrawn retirement service credit for time worked with a public agency, you may be eligible to purchase that service time. You must be ineligible for a retirement benefit from any of these agencies except military reserve, to purchase this type of service credit (known as prior/other public service).

• Federal Government, including military service (only for those hired on or before August 10, 1972)
• Alameda County and any city within Alameda County
• Any County in the State of California, including San Luis Obispo & San Francisco
• Any public school district in Alameda County
• East Bay Municipal Utility District (EBMUD)
• Port of Oakland
• State of California

Please note that purchases of prior/other public service may not be used to meet the minimum qualifications for regular service retirement, or for service and non-service connected disability. The cost for purchasing prior/other public service is often very expensive as it includes both employer and employee contributions and interest.

Redeposit and Service Purchase Payment Options

1. Lump sum payment;
2. Biweekly payroll deductions for a period not to exceed five (5) years, depending upon the type of service purchased or
3. Combination of lump sum payment and biweekly payroll deductions

All purchases, or redeposits must be completed prior to filing for retirement. Redeposits and purchase payments through payroll deductions are on a tax-deferred basis, lump sum payments are taken on a post-tax basis. For certain types of service credit purchases, and for redeposits, no service is credited unless the payment is completed in full.

Contributions received for redeposit and service purchase contract payments are in addition to your normal biweekly retirement contribution deductions.

Requesting Redeposits and/or Purchase Calculations

- Last Modified: 02 / 23 / 2001