Updated October 21, 2026. Quick answer: The New Hampshire Retirement System lets a member buy several kinds of service credit, including previously withdrawn service, military service and some non-permanent employment. NHRS says the cost of most purchases is the full actuarial cost, that NHRS must approve the cost calculation first, and that service is not credited until the cost is paid in full. It also says some purchases do not count toward eligibility for service retirement, early retirement or the medical subsidy.
What this covers
NHRS has a Service Credit page. It says members earn creditable service “while they are contributing to NHRS through their NHRS-covered employment” and “may also be able to purchase service credit.” This page follows the purchase part of that page in order.
For the wider question of whether buying credit pays off, see whether buying service credit is worth it and the pension buyback calculator; the plan’s other choices are on New Hampshire NHRS retirement decisions.
Who it applies to
It applies to an NHRS member considering a purchase. NHRS says “Most service credit purchases must be made while the member is contributing to NHRS through NHRS-covered employment and prior to the member’s retirement.” Two kinds are exceptions: “Previously withdrawn service credit may be purchased anytime before retirement.” and “Employer enrollment oversight service credit may be purchased anytime either before or after retirement.” The statute sets a time limit on the oversight kind. Section 100-A:3, VI(e) says “A petition for prior service credit under subparagraph (d) shall be filed within 3 years after the end of the period for which prior service credit is requested”.
The types and rules, one by one
Each right-hand cell is a sentence from the NHRS Service Credit page.
| Topic | What NHRS says |
|---|---|
| Why it matters | “Creditable service (also referred to as “service credit”) is a key variable in determining a member’s New Hampshire Retirement System (NHRS) retirement benefit.” |
| Previously withdrawn service | “Members who terminate their NHRS-covered employment, withdraw their accumulated contributions (member contributions plus credited interest) and later return to NHRS-covered employment, may be entitled to reinstate their prior service credit of six months or more.” |
| Military service after joining | “a member may receive service credit for up to three years at no cost.” |
| Military service before joining | “members with at least 10 years of creditable service may purchase up to three years of military service for military duty served prior to becoming a member of NHRS.” Section 100-A:4, VI(a)(1) adds “A member on active status in the New Hampshire national guard or organized reserve may apply such service time on a ratio of 5 years active national guard or reserve service to one year of available additional creditable service under this paragraph”. |
| Non-permanent employment | “Members who were employed by an NHRS-participating employer for at least six months in a non-permanent, temporary, unclassified, or non-classified position prior to being enrolled in NHRS may be eligible to purchase service credit for that period of employment.” |
| Peace Corps or AmeriCorps | “may be eligible to purchase the lesser of (a) two years, (b) the member’s actual period of Peace Corps or AmeriCorps service or (c) five years minus the period of nonqualified service credit purchased.” The statute applies to a member “who has completed at least 5 years of membership service and who terminates his or her employment in order to enter directly into the Peace Corps or AmeriCorps”, and Section 100-A:4, VIII requires that the member again become employed, “provided he or she again becomes employed within a year after the termination of such service”. |
| Workers’ compensation | “may be eligible to receive up to one year of service credit at no cost.” |
| Cost of most purchases | “is the full actuarial cost for this service determined by the actuary based on methods and assumptions recommended by the actuary and approved by the NHRS Board of Trustees.” |
| Cost approval | “members may not make a service credit purchase without an approved cost calculation provided by NHRS.” |
| When service is credited | “Service is not credited until the cost is paid in full to NHRS.” |
What a purchase counts for
NHRS separates the pension calculation from eligibility. For the calculation it says “Service credit purchases are included in the creditable service component of a pension calculation.” It adds “Such purchases are not included in the average final compensation component”.
For eligibility it says “The purchase of military service for time served in the military prior to the commencement of employment in an NHRS-covered position cannot be applied toward eligibility for Service Retirement, Early Retirement, or the Medical Subsidy.” and “NHRS law specifically states that most service credit purchases made on or after August 11, 2003, cannot be applied toward eligibility for the Medical Subsidy.”
Paying for it
NHRS lists the payment options as “a payment made directly by the member with after-tax dollars and/or a trustee-to-trustee transfer from a section 403(b) tax-sheltered annuity and/or a section 457 governmental plan.” The page links a request form for cost calculations; use the current form on the NHRS site.
What to do and where to look
NHRS says “Cost calculations must be computed and approved by NHRS”, so no estimate on any website replaces the NHRS figure. The state tax treatment of the pension is on whether New Hampshire taxes pensions.
Edition
This page reads the NHRS web pages cited under Sources, as NHRS served them on 2026-10-21. Check the current page and your own membership group and tier on your NHRS account; NHRS’s text controls over this summary.
Common mistakes
- Planning a purchase after retirement. NHRS says most purchases “must be made while the member is contributing to NHRS”, with the two exceptions above.
- Buying military service to reach retirement eligibility sooner. NHRS says pre-employment military service “cannot be applied toward eligibility for Service Retirement, Early Retirement, or the Medical Subsidy.”
- Counting the credit before paying. NHRS says “Service is not credited until the cost is paid in full to NHRS.”
Related: New Hampshire NHRS retirement decisions, whether buying service credit is worth it, and the pension buyback calculator.
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Answer againSources
- New Hampshire Retirement System (NHRS), Service Credit: www.nhrs.org
- Related official page (not quoted): New Hampshire RSA 100-A:4, Creditable Service: gc.nh.gov
- Related official page (not quoted): New Hampshire RSA chapter 100-A, New Hampshire Retirement System, table of contents: gc.nh.gov
Read from the pension system handbooks linked above on October 21, 2026. General information, not tax advice. Your own facts decide the outcome, and a pension system or a qualified professional is the right place to confirm anything consequential.