Service Credit Payments

There are two types of service payments: Account Receivable (AR) and Unpaid Service (US).  US is optional and must be paid to the Fund while you are an active member and accrues 3% interest until paid in full.

  • Account Receivable (AR) service payments are the result of contributions for a period of time for which deductions were not withheld from your paycheck and not received by the Fund. These contributions are mandatory and accrue 3% interest until paid in full. AR service payments must be paid while you are an active employee.
  • Unpaid Service (US) service payments occur when you previously received a contribution refund from the Fund, or had service where contributions were not collected. These service payments are optional, accrue 3% interest until paid in full, and must be paid while you are an active employee.  You can choose to pay for all or part of this service. Service is granted in six-month increments.

Refund Repayment

An employee who has received a refund can re-establish service credit if he or she becomes a contributor to LABF or another fund under the Reciprocal Act. To re-establish service credit, you must complete at least two years of service with a reciprocal fund or at least 90 days of service with the City and also repay the refund with interest.

You are not required to re-establish service credit for the entire refunded period. You may elect to establish credit for only a fraction of the period in six months increments. Credit will be restored in the order in which service was earned.

Full or partial payment must be made while you are in service or within 90 days after withdrawal from City service. 

Past Service with the City or Board of Education

You can pay for creditable service with the City or Board of Education if it is not part of your current work record. Any payments for “past service” must be made while in City/Board service, or within 90 days after withdrawal from City/Board service, or while in reciprocal service. This service credit is utilized for all annuity and ordinary disability purposes. If you do not need to buy the entire period of past service, you may elect to establish credit for only a fraction of that service in six-month increments.

The amount payable for past service will be based upon your earliest service and will equal the amount of the contributions that would have been paid, plus the interest that accrued on those contributions.

If pension deductions were not taken from your salary, then the contributions plus interest, starting from the point that service was rendered must be paid in return for service credit. Service credit will not be granted until full payment for the chosen amount of service is paid

Service Outside the City or Retirement Board

Subject to certain limitations and restrictions, former Chicago Transit Authority service credit may be obtained. There are periods of military service or service with a local labor organization for which an employee may also establish service credit.


You may pay service payments in one lump sum, or by installments. Current federal law allows the transfer or rollover of your 457 deferred compensation plan assets for the purchase of past service credits.

Please contact our office for payment amounts before sending any funds. Our office requires specific forms to be completed and reviewed for acceptance prior to the rollover of funds.  

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