Service Credit

Members accrue service credit through employment with an ATRS Covered Employer.

An active (working) or inactive member of ATRS may be eligible to purchase service. Please Note: To purchase Federal Retirement service or your non-contributory years, a member must be active (working). For more information on purchasing service or Free Military, see Purchasing Service Credit and Free Military Service Credit below.

Service Credit is accrued as follows:

Service established prior to July 1, 2011 is credited in the following manner:

  • 0-29 days = 0
  • 30-59 days = 1/4 year
  • 60-89 days = 1/2 year
  • 90-119 days = 3/4 year
  • 120 or more days = 1 year

Service established after July 1, 2011, is credited in the following manner:

  • 0-39 days = 0
  • 40-79 days = 1/4 year
  • 80-119 days = 1/2 year
  • 120-159 days = 3/4 year
  • 160 or more days = 1 year

 

Purchasing Service Credit

Purchase of service means paying for periods of employment that have not been counted as service with ATRS. Since your retirement benefit is based in part on the amount of service credit posted to your account at the time of retirement, it may be beneficial, if eligible, to purchase additional service credit.

An active (working) or inactive member of ATRS may be eligible to purchase service. Certain limitations apply depending on the type of service you purchase.

Types of Service that Can be Purchased:

    • Certain Out-of-State (up to 15 years) and Overseas Service (up to 10 years)
    • *Private School Service (up to 15 years)
    • *Private School Service Classified (up to 5 years)
    • Sabbatical Leave Service
    • Domestic Federal Service
    • Federal Retirement Service (Must be an active member to purchase)
    • Arkansas National Guard Service
    • Noncontributory to Contributory Service (Must be an active member to purchase)
    • Arkansas Service not previously established
    • Active Military Service in the U.S. Armed Forces (Military service credit may not be purchased until all eligibility requirements are met and cannot be used for vesting purposes.)
    • Arkansas service cancelled by a refund of contributions
    • Gap Service (Must have left your position as a classroom teacher and returned as a classroom teacher. Must accrue at least one-half year of service after returning.  Other conditions may apply.)

                   * Service in private schools or colleges may be established with ATRS if rendered in a school or agency recognized by the Arkansas Department of                       Education or recognized by the ATRS Board of Trustees as an educationally-related entity.

PLEASE NOTE:

  • Service rendered in one Arkansas state supported retirement system may not be established or purchased in another Arkansas state supported retirement system.
  • Purchased out-of-state, domestic federal, overseas, private school, sabbatical leave, National Guard, military service or gap service may not be used for vesting purposes in ATRS.

 

Cost of Purchased Service

The cost to purchase service is based on the type of service you are eligible to purchase. The actuarial formula is based on the type of service, member's age, salary (only Arkansas salaries will be used), and years of service at the time of purchase.

Payment of Purchased Service

ATRS does not accept partial payments toward the purchase of service credit. Because the cost is actuarial based, the account must be paid-in-full at the time of the purchase by the methods listed below. Service credit will not be established until the account is paid in full.

You will be eligible to submit the following types of payment or, any combination thereof:

  • After-tax Payment
  • Cash
  • Personal Check
  • Money Order
  • Cashier Check
  • Pre-tax Payment
  • Rollover from any of the following:
        • 401(a) Qualified Retirement Plans
        • 401(k) Profit Sharing Plans and Stock Bonus Plans
        • 403(b) Tax-Sheltered Annuities (TSA)
        • 408(a) Individual Retirement Account
        • 408(e) IRA Annuity
        • 457 Deferred Compensation Plan

Any rollover from a reciprocal system will cancel reciprocal service credit and the reciprocal service cannot be re-established (purchased) in our system.

ATRS Counselors can provide a cost estimate for the service you're interested in purchasing, determine eligibility, and provide the necessary forms to begin the purchasing process. Contact ATRS at 501-682-1517, 1-800-666-2877, or info@artrs.gov to visit with a Retirement Counselor.

 

Free Military

An active member may be eligible for up to 5 years of Free Military Service Credit once they meet all of the following requirements:

  • Was drafted into the United States Armed Forces during any period that a federal military draft was in effect.
  • Received an honorable discharge from the United States Armed Forces
  • Completed 5 years of actual service with ATRS

If you have questions, or to find out if you are eligible for Free Military Service Credit, contact ATRS at 501-682-1517, 1-800-666-2877, or info@artrs.gov to visit with a Retirement Counselor.