Chapter 3: Service Credit

PERS Education Service Credit

Rules

The following section explains how PERS Education members earn service credit while working in eligible positions. If you have questions, contact PERS Retirement Services.

Note: For the purposes of granting service credit in all periods described below, the school year is September 1 through August 31.

September 1, 1991, and After

Plan 1

A PERS Plan 1 member working for an educational employer earns 12 months of service credit if all three of the following requirements are met. The member must:

• be employed in an eligible position;
• earn compensation in nine months of the school year; and
• be compensated for 630 hours or more.

A member cannot earn service credit for months before employment in an eligible position. For example, a member who meets the criteria for a full year of service credit but is not employed in an eligible position until October can receive only eleven months of service credit that year.

A PERS Plan 1 member in an eligible position who does not meet the criteria for yearly service credit earns monthly service credit.

• When compensation is earned for 70 hours or more in a month, the member earns one month of service credit.
• When compensation is earned for less than 70 hours, the member earns 1/4 month of service credit.

Plan 2 or Plan 3

A PERS Plan 2 or Plan 3 member working for an educational employer earns 12 months of service credit if all three of the following requirements are met. The member must:

• be employed in an eligible position;
• earn compensation in nine months of the school year; and
• be compensated for 810 hours or more.

A member cannot earn service credit for months before employment in an eligible position. For example, a member who meets the criteria for a full year of service credit but is not employed in an eligible position until October can receive only eleven months of service credit that year.

If the member works as a substitute, refer to the New Hire Pyramid for key information about Substitutes.

A PERS Plan 2 or Plan 3 member who does not meet the criteria to earn a full year of service credit earns 1/2 year (six months) of service credit if the member is:

• employed in an eligible position;
• compensated in nine months of the school year; and
• compensated for at least 630 hours but less than 810 hours.

A Plan 2 or Plan 3 member in an eligible position who does not meet the criteria to earn a full year or 1/2 year of service credit earns monthly service credit as follows:

• A member compensated for 90 hours or more in a month earns one month of service credit.
• A member compensated for at least 70 hours but less than 90 hours in a month earns 1/2 month of service credit.
• A member compensated for less than 70 hours in a month earns 1/4 month of service credit.

A member cannot earn service credit for months before employment in an eligible position. For example, a member who meets the criteria for a full year of service credit but is not employed in an eligible position until October can receive only eleven months of service credit that year.

If the member works as a substitute, refer to the New Hire Pyramid for key information about Substitutes.

September 1, 1990, through August 31, 1991

Plan 1

During the period from September 1, 1990, through August 31, 1991, a PERS Plan 1 member working for an educational employer earned 12 months of service credit if the member was:

• employed in an eligible position;
• compensated in nine months of the school year; and
• compensated for 630 hours or more in the school year.

A PERS Plan 1 member in an eligible position who did not meet the requirements to earn a full year of service credit earned service credit on a monthly basis as follows:

• A member compensated for 70 hours or more in a month earned one month of service credit.
• A member compensated for less than 70 hours in a month did not receive service credit for that month.

A member cannot earn service credit for months before employment in an eligible position. For example, a member who meets the criteria for a full year of service credit but is not employed in an eligible position until October can receive only eleven months of service credit that year.

Plan 2 or Plan 3

During the period from September 1, 1990, through August 31, 1991, a PERS Plan 2 or Plan 3 member working for an educational employer earned 12 months of service credit if the member was:

• employed in an eligible position;
• compensated in nine months of the school year; and
• compensated for 810 hours or more in the school year.

A PERS Plan 2 or Plan 3 member in an eligible position who did not meet the requirements to earn a full year of service credit earned service credit on a monthly basis as follows:

• A member compensated for 90 hours or more in a month earned one month of service credit.
• A member compensated for less than 90 hours in a month did not earn service credit for that month.

A member cannot earn service credit for months before employment in an eligible position. For example, a member who meets the criteria for a full year of service credit but is not employed in an eligible position until October can receive only eleven months of service credit that year.

Prior to September 1, 1990

Plan 1

Before September 1, 1990, a PERS Plan 1 member working for an educational employer earned 12 months of service credit if the member:

• was employed in an eligible position,
• was continuously employed for nine months, and
• earned service credit in at least nine calendar months of the contract or school year. (A member earned service credit when compensated for at least 70 hours of employment in a month.)

A PERS Plan 1 member in an eligible position who did not meet the requirements to earn a full year of service credit earned service credit on a monthly basis as follows:

• A member compensated for 70 hours or more in a month earned one month of service credit.
• A member compensated for less than 70 hours in a month did not receive service credit for that month.

Note: Before September 1, 1990, there were some exceptions to the service credit rules. Refer to the section " Exceptions... " for information about:

• school district employees who fell below 70 hours a month between September 1, 1983, and August 31, 1990;
• employees with a contract year other than September 1 through August 31.

Plan 2 or Plan 3

Before September 1, 1990, a PERS Plan 2 member working for an educational employer earned 12 months of service credit if the member:

• was employed in an eligible position;
• was continuously employed for nine months; and
• earned service credit in at least 9 calendar months of the contract or school year. (Members earned service credit if they received compensation for at least 90 hours of employment in a month.)

A PERS Plan 2 or Plan 3 member in an eligible position who did not meet the requirements to earn a full year of service credit earned service credit on a monthly basis as follows:

• A member compensated for 90 hours or more in a month earned one month of service credit.
• A member compensated for less than 90 hours in a month did not earn service credit for that month.

Note: Before September 1, 1990, there were some exceptions to the service credit rules. Refer to the section " Exceptions... " for information about:

• school district employees who fell below 90 hours a month between September 1, 1983, and August 31, 1990;
• employees with a contract year other than September 1 through August 31.