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Buy Back Up to Four Years of Military Service in the State Retirement Systems

A member of the state Employees' or Teachers' Retirement System who left for the armed forces, did not withdraw their contributions, and returned to covered employment within a year of an honorable discharge may buy up to four years of retirement service credit. The price is 4% of average state compensation per year claimed, plus 8% compounded interest. Peace officers returning within six months may buy up to five years. Anyone already drawing military retirement pay is excluded.

Verified August 27, 2026

What this benefit is

A member of the state Employees' or Teachers' Retirement System who left for the armed forces, did not withdraw their contributions, and returned to covered employment within a year of an honorable discharge may buy up to four years of retirement service credit. The price is 4% of average state compensation per year claimed, plus 8% compounded interest. Peace officers returning within six months may buy up to five years. Anyone already drawing military retirement pay is excluded.

What it's worth: Up to four years of retirement service credit, bought at 4% of average state compensation per year plus 8% compounded interest

  • Up to FOUR years for members of the Employees' or Teachers' Retirement System. Peace officers returning within six months may buy up to FIVE, in the Peace Officers Annuity and Benefit Fund.
  • You must not have withdrawn your contributions when you left, and you must have returned to covered employment within one year of an honorable discharge — six months for peace officers.
  • The cost is 4% of average state compensation for each year claimed, plus 8% compounded interest. It is a purchase, not a grant.
  • No credit is available to someone already receiving military retirement benefits.
  • What it is worth depends on your pension formula and how long you draw the pension, which is why no figure is published. For most people it is worth far more than it costs.
  • There is no disability test.

Who is entitled to it

  • You served in the U.S. armed forces.
  • You are in one of Alabama's state retirement systems.
  • You were discharged honorably.
  • Your home is in Alabama.

Not sure whether that describes you?

Answer a few questions about this benefit specifically — we only ask what this one actually depends on, and we stop as soon as we know.

How to claim it

  1. 1Ask the Retirement Systems of Alabama for a service purchase quotation, with your DD Form 214.
  2. 2Check the return window first: within one year of discharge for ERS and TRS, within six months for peace officers. Missing it is the usual reason a claim fails.
  3. 3Confirm you did not withdraw your contributions when you left for service. Withdrawal ends this route.
  4. 4If you are already drawing military retirement pay, this is not available to you — check before paying for a quotation.
  5. 5Weigh the cost against the pension increase. The 8% compounded interest makes buying earlier much cheaper than buying later.
Form
RSA service purchase request
File with
Retirement Systems of Alabama
Documents you will need
dd214
No renewal
Once granted it does not need renewing.

Sources

This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.