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Service Credit --Quicklinks-- Calculating Retirement Retirement Benefits Benefit Options Preparing for Retirement Earned Service Credit Leave of Absence Membership Contributions Refund Information Pension Payments Disability Retirement Disability Benefits Employment after Retirement Return to Work Program Contractors $15.000 or FTE Rule Reemployment of Retirees Community Property Rights Dividing Benefits Divorce NM Health Care Authority Cost of Living Adjustment Retirement Eligibility Deferred Retirement Rule of 75 Allowed Service Effective Retirement Date Reciprocity ERA/PERA Options before Retirement Alternative Retirement Plan Sabbatical Leave

Allowed service credit is included in the computation of the member’s retirement benefit and is also included in determining retirement eligibility in the “25 and Out” retirement provision. It is not included in determining eligibility for retirement under the “Rule of 75”.

Five years of allowed service credit may be purchased and credited to a member’s account under the Educational Retirement Act. The member and former employer are required to provide verification of the allowed service credit sought. The form to purchase out-of-state service and private school or BIA service are available on this web site.

The cost to purchase allowed service is based on actuarial cost. This cost ranges from approximately 18% of current full time earnings to as much as 68% of current full time earnings for each year of service purchased. Contact your nearest ERA office for an estimate of your cost for allowed service time.

Purchasable Allowed Service

The following options describe the allowed service that may be purchased into your ERA retirement:

(1) Out-of-state Employment in a public or accredited private school or institution of higher learning in a state or territory of the United States.

(2) US Military Dependents School

(3) Federal Educational Service in New Mexico

(4) New Mexico Private School Experience: The school must be accredited by the State Department of Education or an accreditation agency approved by the state.

(5) Military Service: The cost to purchase each year of active military service is 10.5% of the member’s annual New Mexico salary for all years of covered employment.

Members engaged in the United States Military or the Commissioned Corps of the Public Health Service may purchase up to five years of allowed service credit for such service. The member must have received an honorable discharge in order to qualify. This buy-in provision is available to members within three years following the initial date of employment or re-employment. The member must provide a copy of their DD-214 or other type of military discharge notice.

Members who leave covered employment immediately prior to entering into active military service and reenter covered employment within 18 months of discharge may receive up to five years of service credit for the time spent in active duty. There is no cost for this service.

Under the provisions of the ERA, a member may purchase a maximum of five years of allowed service credit in each category or in any combination thereof. When any single category or combination of categories is combined with military service, the maximum allowable is ten years.

Members may purchase allowed service in two ways:

1. Members may make a lump-sum payment to the ERB, or
2. Members may roll-over or transfer retirement contributions from one plan to another. The Educational Retirement Board may accept rollovers to the extent allowed by the IRS. This provision will let a member transfer their funds from another retirement plan like ours, which is a 401(a) plan, a tax sheltered annuity 403(b) plan, or an IRA.

Allowed service credit is included in the computation of the member’s retirement benefit and is also included in determining retirement eligibility in the “25 and Out” retirement provision; but is not included in determining retirement eligibility under the “Rule of 75”.