Buy Up to Five Years of Military Time Into the State Pension
A vested member of the PERS Defined Benefit tiers — first hired before 1 July 2006 — who was honorably discharged from active service may buy up to five years of pension credit. Retirees, deferred vested members and surviving spouses may claim it too. It increases the benefit calculation but not retirement eligibility. Anyone first hired after 30 June 1986 who already draws a federal military retirement for the same service is excluded, though retired Guard and Reserve members may still claim.
Verified August 27, 2026
What this benefit is
A vested member of the PERS Defined Benefit tiers — first hired before 1 July 2006 — who was honorably discharged from active service may buy up to five years of pension credit. Retirees, deferred vested members and surviving spouses may claim it too. It increases the benefit calculation but not retirement eligibility. Anyone first hired after 30 June 1986 who already draws a federal military retirement for the same service is excluded, though retired Guard and Reserve members may still claim.
What it's worth: Up to five years of PERS credit, bought at 8.5% of vesting-year salary per year with 7% interest accruing
- This is the Defined Benefit tiers I to III only — members first hired before 1 July 2006. Later hires are outside it.
- You must be vested, meaning five paid-up years.
- The five-year cap is combined across PERS and TRS, so time bought in one reduces what is left in the other.
- The credit increases the monthly benefit CALCULATION but not retirement eligibility. It does not let you retire earlier.
- Cost is 8.5% of annualised vesting-year salary per year claimed, for members first eligible after 31 December 1986, with 7% interest accruing. Buying later costs more.
- Members first hired after 30 June 1986 who are retired from regular military service with a federal benefit for the same service are excluded. Retired Guard and Reserve members may still claim.
- Merchant Marine service between December 1941 and 30 September 1945, and certain State Department Vietnam-era service, also qualify.
- Surviving spouses of members who served may be eligible to claim the credit.
- A member called to active duty from PERS employment who returns within 90 days claims that period without contributions at all.
- It is claimed on form 02-1895.
Who is entitled to it
- You are the veteran, or the surviving spouse of one.
- You are in Alaska's state retirement system.
- You were discharged honorably.
- Your home is in Alaska.
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
- 1Confirm your tier first. This is Defined Benefit tiers I to III, meaning first hired before 1 July 2006 — if you were hired later this is not available.
- 2Check you are vested: five paid-up years.
- 3Ask the Division of Retirement and Benefits for a cost quotation on form 02-1895, with your DD-214.
- 4Buy earlier rather than later. Interest accrues at 7%, so the same years cost more every year you wait.
- 5If you already draw a federal military retirement for the same service and were first hired after 30 June 1986, you are excluded — but ask anyway if your retirement is from the Guard or Reserve, which is treated differently.
- 6A surviving spouse should ask in their own right rather than assuming the option died with the member.
- Form
- Form 02-1895
- File with
- Alaska Division of Retirement and Benefits
- Documents you will need
- dd214
- No renewal
- Once granted it does not need renewing.
Sources
- authority · published policyAlaska Division of Retirement and Benefits — PERS military service credit
- operating · published policyAlaska Office of Veterans Affairs
This finder provides an informational match, not a government eligibility determination. The responsible agency decides your application.