Updated October 22, 2026. Quick answer: The ATRS Member Handbook says purchases are computed using a formula and must be paid in a lump sum, by rollover, personal check, cashier’s check or money order. Purchased service counts toward retirement eligibility and the benefit calculation, but not toward the 10-year lump-sum death benefit or the retirement benefit stipend, and not toward vesting except for service restored by repaying a refund.
What this covers
The Member Handbook has a section headed “Free and Purchased Service Credit” and an appendix headed Appendix B, Purchasable Service Credit. This page quotes from both. For the wider choices, see Arkansas ATRS retirement decisions and public pension retirement decisions. For whether a purchase pays off, see whether buying service credit is worth it and the pension buyback calculator.
How the cost works and how you pay
“All purchases are computed using a formula and must be paid in a lump-sum payment.” “Payment can be in the form of a rollover from a qualified retirement plan, or personal check, cashier’s check, or money order.” “The cost to purchase service credit changes at the beginning of a new fiscal year, or July 1.”
What purchased credit counts for
“You can use your purchased service credit to meet the eligibility requirements for Age and Service Retirement, early Age and Service Retirement, and participation in T-DROP.” “ATRS will also use your purchased service credit to calculate your monthly retirement benefit.”
It does not count for everything: “No, you cannot use purchased service credit or free military service credit to vest in ATRS.” “Additionally, purchased service credit and free military service credit DO NOT count toward the 10-year lump-sum death benefit or the retirement benefit stipend.”
The rules in Appendix B
The appendix lists the conditions: “Vested with 5 years of ATRS service credit, cannot be retired or participating in T-DROP;” “Cannot be drawing a benefit off of the years you wish to purchase from another retirement system or plan;” “Cannot use purchased service for vesting purposes (except repay refund), or toward 10-year LSDB and retirement benefit stipend;” and “Do not have to purchase all eligible years of service credit (except repay refund).” “Reach out to ATRS for a cost estimate to purchase service credit.”
Types of service and the maximum years
The handbook lists these types. Each row is the appendix’s own wording; the appendix lists more types than are shown here.
| Type | What the handbook says |
|---|---|
| Out of state | “This is service rendered in another state that would have been covered by ATRS if it had been performed in Arkansas. A member may purchase up to 15 years provided that no other system would pay a benefit to the member other than Social Security.” |
| Domestic federal (military base schools) | “This is service rendered as a teacher or administrator in any school or similar institution located on a military base or installation that is administered by the U.S. Department of Defense. A member may purchase up to 10 years.” |
| Federal retirement system | “This is service rendered in a federal government retirement system so long as no benefit is payable from the federal retirement system in which they had previously been a member. A member may purchase up to 10 years.” |
| Military | “This is service rendered as active duty in the Armed Forces of the United States or in one of the reserve components of the United States Armed Forces. A member may purchase up to 5 years.” |
| National Guard | “This is service rendered in one of the reserve components of the United States Armed Forces. A member may purchase up to 5 years.” |
| Gap period | “This is service for a leave of absence in which a classroom teacher leaves active employment for a period of time and then returns back to employment in a classroom. A member may purchase up to 5 years.” |
| Repay a refund | “This is the restoration of service credit earned in ATRS that was forfeited by the member when they received a refund of their contributions or a payment under the CASH program.” |
Free military credit
“You may be eligible to receive free military service credit if you served in United States Armed Forces during a period that a federal military draft was in effect.”
What the handbook does not say
The section prints no cost table and no worked example; the cost is a formula that ATRS runs for you. It does not say how many years of the maximums above a typical member qualifies for.
Edition
This page reads the Arkansas Teacher Retirement System (ATRS), Member Handbook, 2026-2027 school year, the file ATRS served on 2026-10-22. It describes ATRS, the system for Arkansas public school teachers and other covered education employees. Other Arkansas systems (APERS, LOPFI and the rest) have their own rules, and Arkansas law and your own member account control over this summary.
Common mistakes
- Buying credit to reach vesting. The handbook says “you cannot use purchased service credit or free military service credit to vest in ATRS.” Appendix B makes one exception for vesting: “except repay refund”.
- Waiting past July 1 without asking. The handbook says “The cost to purchase service credit changes at the beginning of a new fiscal year, or July 1.”
- Planning a purchase after retiring or entering T-DROP. The conditions say the member “cannot be retired or participating in T-DROP”.
Related: Arkansas ATRS retirement decisions, public pension retirement decisions, whether buying service credit is worth it, and pension buyback calculator.
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Answer againSources
- Arkansas Teacher Retirement System (ATRS), Member Handbook, 2026-2027 school year: www.artrs.gov
- Related official page (not quoted): Arkansas Teacher Retirement System, official site: www.artrs.gov
- Related official page (not quoted): IRS, Topic no. 413, Rollovers from retirement plans: www.irs.gov
Read from the pension system handbooks linked above on October 22, 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.