How Much Will a Past Sevice Purchase Cost?

In a nutshell, the cost of past service equals the difference between the value of your pension benefits today, before the purchase, versus what those benefits would be worth after the purchase.

The values reflect HOOPP's permanent Plan provisions.

Generally as your age, earnings, or years of contributory service increases, so will the cost of a past service purchase.

Typically, buying past service costs more than what you pay for your current service through payroll deductions. That's because your employer isn't allowed to contribute. You must pay for the total cost of a past service purchase. The cost of your current service is funded by your contributions, your employer's contributions, and the investment returns on those contributions.

To get an idea of what it costs to purchase past service, refer to the charts accessed by the links on the left.

If, after looking at the charts, you feel you can't afford to purchase all of your past service, you should understand that you're allowed to make a partial past service purchase. If you decide to purchase only some of your available past service, there are minimums to keep in mind.