Service Purchase

All TDCJ employees contributing to the Employees Retirement System of Texas (ERS) are eligible to purchase from ERS previously refunded service, waiting period service, eligible military service, or Additional Service Credit (ASC).

Purchase Options

Purchases can be made with a lump sum payment, or by transfer of funds from a Texa$aver account. Purchase of refunded services is subject to interest charges of 10% per year. No interest is charged if eligible military service is purchased in the first year of State employment. Employees are eligible to purchase waiting period service occurring subsequent to September 1, 2004 with a lump sum payment. Payroll deduction is not available for purchase of any type service.

Additional Service Credit (ASC)

ASC provides additional service credit to increase years of service and provide a higher lifetime annuity, and is available to TDCJ employees with 10 years of actual service. Eligible employees may purchase up to three years of additional service credit in yearly increments.

Purchase Additional Service Credit by using:

rollovers from your Texa$aver 401(k) or 457 Plans,
rollovers from other qualified plans or IRAs, or
lump sum payments.

If participating in Benefit Replacement Pay (BRP), you may wish to wait until BRP ends before you purchase ASC.

Page updated: 12/07/2011