Wednesday, January 25, 2017
Buying Back Service Credit Is Good For Your Pension.
A number of educators have failed to take advantage of a perk that can greatly enhance one's pension. That is to "buy back" pension credits for public service jobs that they once worked in New York State, County, City, Town, or Village. Moreover, for Military Veterans who were honorably discharged. they can receive up to 3 years of pension credit. under certain conditions. Finally, all substitute teaching and per diem jobs can also be bought back as service credit for a pension. TRS has a service credit brochure that explains it all.
Unfortunately, working in a private, parochial, most Charter schools, and private industry are not eligible for buying back service credit. Further, Federal and teaching in other States are also not eligible as well for service credit. On the other hand since pension contributions are optional for paraprofessionals. Many of the paras delayed or never joined the pension system. These paras should see if they can buy back the time that can greatly enhanced their pension at their retirement date. Chapter Leaders should canvas the school paras and inform them of their potential pension windfall.
Remember, all service credit "buy backs" are subject to the 3% employee contribution and if the teacher is part of the special 25/55 or 25/57 programs than it would be 4.85%. Still a great deal.
The bottom line, all educators should "buy back" any time they can and help them retire not only with a better pension but it gives one the option to retire earlier.