A "buy-back of time" is the purchase of eligible non-membership time with the Retirement System. Below you will find the different types of time available for purchase along with an explanation of the calculation.
PRIOR MEMBERSHIP
A current employee with prior retirement membership time may purchase that time at an amount equal to the total contributions refunded plus 8% compounded interest per year covering the time since the money was withdrawn. Partial buy-backs are not allowed.
NON-MEMBERSHIP TIME
A current employee with non-membership time may purchase that time at an amount equal to the amount they would have paid had they been a member of the System during the non-membership time plus 8% compounded interest per year on the contributions due. Non-membership time may be temporary time or probation time during which the employee did not pay into the System. Partial buy-backs are not allowed.
STATE OF ALABAMA EMPLOYMENT TIME
A Retirement System member with prior employment with the State of Alabama as a state employee or as an employee of the public education system under the State Board of Education or an institution of higher education may purchase up to four years of creditable service in the City System provided they have at least 10 years of contributing membership service credit, exclusive of military service credit. The time purchased must not have been used in the calculation of a benefit from any other public retirement system. The employee must buy any and all eligible time up to four years. The amount due will be equal to the sum of the employee and employers contributions as calculated on the employees’ salary and the employer’s actuarial rate effective the date of purchase.
MILITARY ACTIVATION
Employees with active Retirement System membership who are called up to military service are allowed to purchase the time they would have accrued had they been in active pay status during their military deployment at a cost equal to the amount they would have paid had they not been deployed. The time allowed for repayment is equal to three times the length of time the employee was gone, beginning at the date of reemployment, not to exceed five years. Contributions must be paid in a lump sum amount.
Official activation and discharge orders are necessary for this calculation.
