Service Credit
What Service Credit Means For Your Retirement
Service credit is one measure SERS uses to determine your eligibility for benefits and the amount you may receive in retirement. In simple terms, the more eligible service credit you earn, the more it can affect your future benefits. You earn service credit through your work in SERS-covered employment and, in some cases, by purchasing or restoring credit for other qualifying service.
Why Service Credit Matters
Since service credit directly affects your benefits, it’s important to understand how different types of service are counted.
Your total service credit helps determine:
- When you are eligible to retire or qualify for disability benefits
- The amount of your monthly retirement payment
- Whether you qualify for SERS’ health care coverage and your premium amount
- Survivor benefits for your dependents, including eligibility and coverage options
Service Credit That Counts Toward Health Care Eligibility
The following types of service credit may be used to determine eligibility for SERS’ health care coverage:
- Leave of absence
- Compulsory service
- Contributing service credit from another Ohio retirement system, including CRS, HPRS, OPERS, OP&F, and STRS (when not earned at the same time as SERS service credit)
- Earned or restored service credit
- Military service (free or interrupted)
- Optional service
- Pregnancy resignation
- School Board service
- Workers’ Compensation
Service Credit That Does NOT Count Toward Health Care Eligibility
Some types of service credit may be credited to your account but do not count toward SERS health care eligibility, including:
- Additional service credit purchased under OPERS by an elected or appointed official
- Exempted service
- Federal government service
- Military service other than free or interrupted
- Out-of-state service
- Private school or other school service
- Service purchased by a school employer under an Early Retirement Incentive Plan (ERI)
Types of Service Credit
SERS service credit generally falls into two main categories: earned service credit and purchasable service credit. In some situations, service credit may also be granted at no cost for specific qualifying circumstances, such as certain types of military service.
Earned Service Credit
Earned service credit is the service credit you accumulate through active employment in a SERS-covered position, or a position covered by another Ohio retirement system.
Purchasable Service Credit
Purchasable service credit is service you may be able to buy for prior qualifying employment, including certain public service, approved leaves, or other eligible work. In many cases, purchasing service credit can increase your total service time and affect your retirement eligibility or benefit amount.
Once you earn at least 1.50 years of contributing service credit, you may qualify to purchase additional service credit. If you are eligible, SERS will provide a statement outlining the cost of the service credit available to you.
You may purchase all or part of the eligible service credit by:
- Making one or more direct payments to SERS
- Using payroll deduction, if offered by your employer
- Rolling over funds from another qualified plan, such as another employer retirement plan IRC 401(a), IRA, 403(a) annuity, 403(b) plan, or a governmental Deferred Compensation Program (IRC 457)
Under a payroll deduction plan, payments are deducted based on your payroll cycle. Due to federal tax law, once you choose payroll deduction, that payment method cannot be changed until the full purchase is complete. All service credit purchases must be completed before you retire.
Need Help Determining Eligibility?
Service credit can be complex, and eligibility depends on your employment history and timing. Reviewing your account early can help you understand your options and avoid surprises.
Contact Us
We’re glad you’re a member of SERS. If you have questions about your retirement account or benefits, we are here to help.