Retirement Benefits

Purchase Service Credit Now

Have More Money in Retirement

Purchasing service credit may help secure your financial future. Your service retirement benefit under CalPERS is based on your total years of service credit (earned and purchased), your final compensation, and your benefit factor, which is determined by your age at retirement and retirement formula.

The more service credit you have at retirement, the higher your monthly retirement allowance might be. Just look at the following example comparing retirement allowances with and without purchased service credit.

It may cost less if you purchase service credit early in your career. Purchasing service credit early on also gives you more accurate retirement estimates for planning your future, and you may be able to retire sooner. However, you should consider your options before you purchase service credit to determine if it is worth the cost.

Learn about all service credit types, eligibility, cost methodology, and how to estimate your cost and benefit increase by visiting our Service Credit page on our website.

You can also find detailed information in our two service credit publications: A Guide to Your Service Credit Purchase Options (PUB 12) (PDF) and A Guide to Your Military Service Credit Options (PUB 15) (PDF). These publications, along with all the necessary forms, are available on our website under Forms & Publications.

Table comparing retirement allowances with and without purchased service credit broken down by Years of Earned Service Credit; Years of Purchased Service Credit; Total Service Credit; Benefit Factor; Final Compensation and Unmodified Allowance. Categories are Member A and Member B