Buying Time

CONTRA COSTA COUNTY
EMPLOYEES' RETIREMENT ASSOCIATION

Eligible Service Credit Purchases Increase Your Retirement Benefit

Your pension is based on your age at retirement, your final average salary, and your total retirement service credit. The more years of retirement service credit you have, the greater your benefit.

You may be eligible to "buy" service time when you were not contributing to CCCERA, thus increasing your retirement benefit.

If you are considering a service credit purchase, a general rule to remember is:

Time during which you made contributions is NOT purchasable, whether you were a member of CCCERA, or other public retirement system, unless you withdrew your funds and no longer qualify to receive a benefit.

Members who are interested in purchasing service credit should request an estimate of the cost from the Retirement Office. You can make this request by phone, or fill out the application posted on this website and send it in. Most necessary information is available to CCCERA, but you may be asked later for documentation if you decide to enter into a contract to purchase service.

After a retirement counselor calculates your cost estimate, CCCERA will send you a letter explaining your options. At that time, you can make an appointment with your counselor to clarify any issues you may have, decide on the amount of time to purchase, make payment arrangements and sign a contract.

Below are some categories of purchasable time:

Time Prior to Membership with CCCERA: If you worked for a participating employer (special district) or Contra Costa County, and were not eligible for CCCERA membership, you may purchase service credit for the time you worked. Examples of ineligible positions are part-time (less that 20 hours per week), certain job classifications such as permanent intermittent, or temporary.

Medical Leave of Absence: CCCERA members returning to active service following an unpaid medical leave of absence, can purchase up to 12 consecutive months of time.

Military Leave: Time spent in military service may be purchased if you were a member of CCCERA when you (resigned or obtained a leave of absence) left to serve in the military, and returned to CCCERA membership within 90 days of your honorable discharge. If you served in the military prior to CCCERA membership, you may be able to purchased this time as public service time.

Public Service: If you were employed by a public service agency prior to your membership with CCCERA, you may be eligible to purchase this time with CCCERA, if your former public employer does not:
1. Offer reciprocity with CCCERA,
2. Accept redeposits of contributions that were refunded to you at time of termination from their plan,
3. You will not receive a retirement benefit from the agency.

Examples of public service agencies are the Federal government, other county or city governments in California, and special districts, such as water or sanitary districts.

How to Purchase Service Credit

Service credit purchases follow a complex set of laws and regulations established by the 1937 Act.
Generally, the costs to purchase service credit fall into two categories, depending on the type of eligible credit.

1. You must pay your contributions and interest that would have accrued during the time periods you are purchasing. OR
2. You must pay your contributions plus your employer's contributions and interest that would have accrued on both amounts.

Purchases can be made with post-tax dollars.

Your Payment Options

1. One lump sum payment for the full amount;
2. Monthly payroll deductions;
3. A combination lump sum "down payment," then monthly payroll deductions to complete the contract;
4. Fund transfer from another eligible retirement plan, such as a 457 plan.

The purchase contract term usually cannot exceed the length of time you are buying. (For example, conversions from Tier 2 service to Tier 3 are an exception.) And. . .
The maximum contract time for buying any amount of service is 5 years.

All payroll deduction service contracts must be paid in full by your retirement date, or date of termination. However. . .
You may be able to purchase service credit with an after-tax lump sum payment, up to 120 days after your retirement date.

Service credit is posted to your account immediately if your payment is a lump sum. When purchasing by monthly payroll deduction, service credit is posted to your account as you make payments. For more information on purchases and payment rules, see the Service Purchase Brochure available on this web site (link on Publications Page) or from the Retirement Office.

Post- Tax Payments