You can finance the purchase of service credit through monthly cash payments of up to 120 payments or through payroll deductions if your employer offers this option. If you’d like to make your purchase through payroll deductions, ask your employer if this option is available and what the tax basis for deductions is. If you sign up for tax-deferred payments, you cannot change the payment method.
The amount to finance the purchase of service credit or redeposit depends on how much service credit you want to purchase, your contract basis (10-, 11- and 12-month contract base) and the interest charged for the finance.
The interest charged for the finance is set at a rate established annually by the Teachers’ Retirement Board.
Your estimate using this calculator uses that rate. That rate will be locked in for the life of your finance period.
Additionally, if you are already financing a purchase or redeposit, you cannot refinance your purchase or redeposit.
If you would like to initiate a service credit purchase, follow the instructions online at: Financing the purchase of service credit or a redeposit. After we receive the completed form and verify your eligibility for the purchase, we will send you a billing statement
listing the amount due and the cost to finance. If you agree to the terms of the billing statement, sign and send it to your employer
within 35 days of the date on the original billing invoice. If you want to change the initial payment terms of your deductions, contact us. Do not send money to CalSTRS.
The calculation provided by this website finance calculator is:
- For estimation purposes only.
- Based on the information you provide.
- Not binding upon you or CalSTRS.
To find out the actual costs, contact us for a billing statement. Do not send payments to us based on the estimate. We will return any payments we receive without an official billing statement.
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