Service credit is an important factor in determining your retirement benefit. “Service credit” is based on the number of hours of compensated employment reported by your employer.
Your service credit years at retirement are calculated by dividing service credit months by 12.
Calculating service credit Suppose you were hired April 1, 2007, and worked full-time until February 23, 2027, when you retired. In your final month of employment you are compensated for 88 hours. Your service credit would be as follows:
| Period | Months |
|---|---|
| April 2007 — December 2007 | 9.0 |
| January 2008 — December 2026 | 228.0 |
| January and February 2027 | 1.5 |
| Total | 238.5 |
238.5 months ÷ 12 months = 19.88 years, or 19 years and 10.5 service credit months
You can combine your PSERS service credit with credit earned in other Washington state retirement systems in order to qualify for retirement.
For more information, see “What if I’ve previously been a member of another retirement system?”
Combined service credit Suppose you are an active PSERS Plan 2 member, age 53, and have seven PSERS Plan 2 service credit years. If you also have 13 service credit years in PERS Plan 2, you have a total of 20 service credit years — enough to be eligible to retire with a reduced benefit. See retiring at age 53, and calculating a dual member benefit.
You may be eligible to receive up to five years of service credit for military service by paying member contributions for the time spent in the military. You must complete payment of these contributions prior to retirement or five years from the time you resume employment, whichever comes first. To qualify you must have:
For more information, refer to the Military Service Credit publication for PSERS Plan 2 members.
Note: A member who becomes totally incapacitated for continued employment as a result of service in the uniformed services of the United States, or the surviving spouse or eligible children of a member who dies while serving in the uniformed services of the United States, may apply for interruptive military service credit. The member or eligible spouse or children would pay only the employee contributions. Contact DRS for more information.
You may earn service credit for an unpaid leave of absence authorized by your employer. Service credit for a leave of absence is limited to a maximum of two years during your working career.
To obtain service credit for unpaid leave, you must return to work in an eligible position for a PSERS-covered employer and pay both member and employer contributions, including interest for both, for the time on leave. Payment must be completed within five years of returning to service, or retirement, whichever comes first.
When you have five years of service credit, you have a “vested” right to a retirement benefit when you meet the plan’s age requirements. “Vesting” means you have earned the right to a future benefit, even if your covered employment ends. If you withdraw your contributions, you give up your right to retirement benefits.