If you are approaching retirement with unused state sick or personal leave, you may have an opportunity to increase your Texas TRS pension. But the additional service credit is not free, and accumulating enough leave does not automatically make the purchase a good financial decision.
The useful question is: What would you pay, what would your monthly pension gain, and how would the purchase affect the money you keep available for retirement?
This guide focuses on purchasing service credit through unused state leave. It does not cover every type of TRS service-credit purchase or repeat the broader rules about when Texas teachers can retire.
Quick answer
Eligible members can purchase one year of Texas TRS service credit at retirement when they have at least 50 days or 400 hours of qualifying unused state sick and/or personal leave. They must also have at least 10 years of actual service credit with TRS-covered employers. No more than five days per year count toward the leave requirement.
The price is based on the actuarial value of the additional benefit, rather than a fixed fee for every teacher. This credit increases the benefit calculation; it cannot establish eligibility to retire.
Sources: TRS state leave eligibility and TRS Benefits Handbook.
Before deciding, obtain an official purchase quote and pension estimates with and without the year. A comparison based on those figures is more useful than a rule such as “always buy extra service.”
Who qualifies for the unused-leave purchase?
Use this checklist before estimating whether the purchase is worthwhile.
| Requirement | What to verify |
|---|---|
| Actual TRS-covered service | At least 10 years of service credit for work actually performed with one or more covered employers |
| Qualifying leave balance | At least 50 days or 400 hours of unused state sick and/or personal leave |
| Annual accumulation limit | No more than five days per year count toward certification |
| Retirement from a covered employer | The purchase is made at retirement from a Texas public education employer |
| Maximum credit | One year, even if your eligible leave balance is larger |
Source: TRS Service Credit brochure, printed page 12.
Takeaway: a large leave balance alone does not settle eligibility. Ask your employer to confirm the state-leave portion and TRS to confirm your service record.
State leave and local leave are different
A district's leave system may show several balances. Do not add them together for this purchase without checking the categories.
TRS excludes locally granted leave from the certification. Your employer verifies the unused state sick/personal leave; TRS does not calculate that balance for you.
TRS also explains that members are not exchanging leave days for a year of credit. Having sufficient qualifying days creates an opportunity to pay for the year. Any employer payment for unused leave is a separate policy question.
See TRS employer guidance for completing TRS 587.
Can sick leave help you reach the Rule of 80?
This type of purchased credit cannot be used to establish retirement eligibility. Do not use it as the missing year that makes you eligible to retire.
For example, someone planning a retirement date should first confirm that they qualify without this leave purchase. Only then should they compare how purchasing the year affects the pension amount.
That distinction separates two questions:
- Am I eligible to retire on this date?
- Would purchasing eligible leave credit increase the benefit payable at that retirement?
The TRS Benefits Handbook, printed page 17, states the eligibility restriction. For the first question, see our Texas teacher retirement at 55 and Rule of 80 guide.
How much does buying the year cost?
There is no universal price in dollars. TRS calculates the actuarial present value of the additional benefit using its applicable rates and tables. Your quote, rather than another teacher's purchase price, is the number to use.
The MyTRS benefit calculator can provide an estimate of the cost. For the actual purchase, the completed leave certification leads to a TRS cost statement.
If local policy permits, the retiring employer may reimburse part or all of the purchase cost. The TRS brochure says the employer cannot pay TRS directly for this credit. Ask for written confirmation of any reimbursement amount and conditions before including it in your budget.
Source: TRS Service Credit brochure, printed page 12.
When comparing the quote with your savings, separate the price from the funding source. A purchase funded from a retirement account still uses assets that otherwise could support future spending.
How much could your pension increase?
For an unreduced standard annuity, the TRS formula uses service credit, the applicable highest-salary average, and the statutory 2.3% multiplier. Depending on the tier, the salary average is based on the highest three or five annual salaries.
For one additional year, the simplified increase is:
Annual standard-annuity increase = applicable average annual salary × 0.023
Monthly increase = annual increase ÷ 12
Source: TRS Benefits Handbook, printed page 32.
This is a starting point. It assumes an unreduced standard annuity, unchanged salary average, and no other applicable limits or adjustments. Early-retirement reductions, an optional annuity, or a PLSO election can change the payment. Compare official estimates using the same retirement date and payment option.
Worked example: a $65,000 salary average
Assume a member already qualifies for unreduced retirement, uses an applicable average annual salary of $65,000, and compares 25 years with 26 years after the eligible purchase.
| Item | Without the purchase | With the purchase |
|---|---|---|
| Service used in this illustration | 25 years | 26 years |
| Standard-annuity percentage | 25 × 2.3% = 57.5% | 26 × 2.3% = 59.8% |
| Gross annual standard annuity | $65,000 × 57.5% = $37,375 | $65,000 × 59.8% = $38,870 |
The illustrative increase is $1,495 annually, or approximately $124.58 monthly. The monthly amount is rounded; calculations below use the unrounded annual increase.
These are our calculations using the published formula, not a TRS quote or a promise of the amount a particular member will receive.
Takeaway: compare the added payment with the purchase price. The extra year represents a 2.3-percentage-point increase in this example's salary-based calculation, not a 2.3% increase in every member's existing pension.
A simple break-even comparison
Suppose, purely for illustration, the purchase quote is $18,000 and the annual increase is the example's $1,495.
Simple break-even years = purchase cost ÷ additional gross annual pension
$18,000 ÷ $1,495 = approximately 12.04 years
The additional monthly payments would cumulatively exceed the cost after the 145th payment, assuming the same monthly increase continues throughout. This is a nominal gross-payment comparison, not a present-value calculation or an investment return.
How the quote changes the result
The following prices are hypothetical. They are not TRS price ranges, averages, or estimates of what teachers commonly pay.
| Hypothetical purchase price | Additional gross annual pension | Simple break-even period |
|---|---|---|
| $12,000 | $1,495 | About 8.03 years |
| $18,000 | $1,495 | About 12.04 years |
| $24,000 | $1,495 | About 16.05 years |
The comparison excludes taxes, investment returns on money retained, inflation, survivor payments, benefit changes, and any reimbursement. It assumes payments continue long enough to reach the stated point.
Takeaway: two members expecting a similar pension increase can reach different decisions if their quotes or household finances differ.
Why break-even does not decide the purchase for you
An earlier break-even point may look attractive, but it does not make the expense affordable. An extra monthly payment may be valuable while the initial cost still leaves too little cash for emergencies.
Consider the comparison from both sides:
- If you buy, how much accessible money remains for healthcare, housing, repairs, and unexpected expenses?
- If you keep the money, how will you manage it and fund retirement spending without the additional pension income?
- Does your household need a survivor payment option, and what is the actual increase under that option?
- Are you comparing pretax retirement funds with gross pension payments, or mixing amounts with different tax treatment?
For optional annuity considerations, see our Texas TRS death benefits and survivor options guide. Use that chosen option in both official estimates.
TRS 587 and the purchase deadlines
The relevant document is TRS 587: Certification of Unused State Sick and/or Personal Leave.
The form must be certified by the reporting official at your current Texas public education employer. TRS will not accept it more than 30 days before your effective retirement date. The purchase payment must be received in full no later than 90 days after TRS issues the cost statement.
Those are different clocks: the first concerns acceptance of the certification; the second concerns payment after billing. Do not assume the payment deadline is 90 days after your last working day.
The handbook permits a requested one-time 30-day extension for completion using an eligible rollover or qualifying trustee-to-trustee transfer. Obtain confirmation from TRS instead of assuming an extension is automatic. See TRS Benefits Handbook, printed page 15.
The service-credit brochure also says TRS will not begin retirement annuity payments until the purchase payment is received in full. Include potential payment timing in your cash planning.
How can you pay for the purchase?
| Route | What to check before committing |
|---|---|
| Lump-sum payment from savings | Whether the remaining cash reserve is sufficient |
| Eligible rollover from another retirement plan | Whether the distributing plan permits the transaction and the funds qualify |
| Qualifying trustee-to-trustee transfer | Whether your governmental 403(b) or governmental 457(b) plan can complete the transfer under applicable rules |
| TRS installment plan | Not available for this state sick/personal leave purchase |
Source: TRS Service Credit Purchase Chart.
For retirement-account funding, obtain the required TRS paperwork before moving funds. TRS 551 must be approved before funds are accepted as an eligible transaction. The source plan or custodian must determine whether its funds are eligible; TRS cannot make that determination for the source account.
Follow TRS 611: Information on Rollover or Transfer of Funds to TRS. Do not assume every IRA or every balance within a workplace account qualifies, or withdraw cash first without checking the consequences and deadlines.
A practical decision checklist
Before approving the purchase, collect these items together:
- Certified leave balance: state leave separated from local leave.
- Official purchase cost: the amount, statement date, and payment deadline.
- Two comparable pension estimates: same retirement date and annuity option, with and without the year.
- Funding instructions: approved account route and expected completion time, if relevant.
- Cash-reserve plan: what remains available after payment.
- Employer reimbursement confirmation: only if a policy actually applies to you.
Buying deserves consideration when the additional income fits your long-term budget and the initial cost does not undermine your reserves. Keeping the money deserves consideration when flexibility is more valuable or the purchase would consume cash you expect to need soon.
These are planning considerations, not TRS recommendations or a substitute for an individualized comparison.
Frequently asked questions
Does TRS automatically convert unused sick leave into pension credit?
No. Qualifying leave allows eligible members to purchase a year at retirement. Certification and payment are required.
Can local district leave count toward the 50 days?
No. TRS 587 specifically excludes locally granted leave. Ask your employer to identify the qualifying state-leave balance.
Can 100 days buy two years?
No. This type of purchase is limited to one year. A larger balance does not multiply that limit.
Can I buy the year well before retirement?
This purchase is tied to retirement. You can plan ahead, but TRS does not accept the certification more than 30 days before the effective retirement date.
Is unused-leave credit the same as PLSO?
No. The leave purchase pays for an additional year of benefit-calculation credit. The Texas TRS Partial Lump Sum Option provides eligible retirees an upfront distribution with a reduced continuing pension.
Before you decide
Write your official quote beside the actual monthly increase under your chosen payment option. Calculate the simple gross break-even period, then check what the purchase would leave in accessible savings.
The best comparison answers both questions: Does the added income justify the price for my situation, and can I comfortably fund the purchase now?
Official sources
Sources reviewed October 3, 2026. Linked documents have different revision dates; obtain current application and payment instructions from TRS before acting.
- TRS — State Sick and/or Personal Leave Service Credit: qualifying service, leave threshold, and one-year limit.
- TRS — Service Credit Purchase Chart: payment methods, exclusions, and timing overview.
- TRS — Completing the TRS 587 Certification: employer certification, local-leave exclusion, and distinction from leave payouts.
- TRS — Certification of Unused State Sick and/or Personal Leave, TRS 587: certification requirements and deadlines.
- TRS — Service Credit brochure: printed page 12 covers the leave purchase, individualized cost, and possible employer reimbursement.
- TRS — Benefits Handbook: printed pages 15–18 cover service purchases; printed page 32 explains the standard-annuity formula.
- TRS — Information on Rollover or Transfer of Funds to TRS, TRS 611: eligibility checks and required transaction paperwork.
Editorial note: Written by Sergii Ponomarenko. The financial examples are original illustrations using the published TRS formula; all purchase prices are hypothetical. This educational guide does not provide an individual pension quote, tax recommendation, or investment recommendation. TRS determines eligibility, cost, and benefits. See our methodology.
