The ASRS Service Purchase Program is a benefit that allows active members with previous qualifying service to purchase past service time. There are 5 types of qualifying service, with the most common being the purchase of Forfeited Service or the purchase of Other Public Service. While it can be costly, it can also be beneficial - potentially increasing your lifetime benefit and/or allow you to retire earlier than you planned.
On July 1, the ASRS will begin a new fiscal year – FY 2021-22. For members, this is always when your new contribution rates will go into effect. For the fiscal year starting July 1, the new total contribution rate (which includes pension benefits, health insurance benefits, and long term disability benefits) will be 12.41%, adjusted slightly from the current rate of 12.22%.
Obviously this is a complex question. The short answer is that your financial situation is unique to you, and you should proceed however is best for your situation. But how do you know “what’s best for me?” Let’s look at some basic information that may help point you in the right direction.
