PSP: Steps to Purchase Public Service

The Department will soon be accepting PSP applications. The process will be as follows:

1. Obtain a cost estimate using the PSP Calculator.
   
   
2. If service with a public employer is being purchased, an Application to Purchase Public Service is required to verify service with the prior public employer. If military time is being purchased, an Application to Purchase Military Service must be submitted along with a "Form DD-214, Report of Separation".
   
   
3. Once the service is verified, LAFPP staff will calculate the cost of the certified service time based on information obtained from the member, such as expected retirement date, number of survivors, etc. Members will select their method(s) of payment and staff will process the purchase accordingly.
   
   Lump sum payments and/or transfers from Deferred Compensation can currently be processed on a manual basis. Contracts for payroll deduction cannot be processed at this time.
   
   Please note: The time required to verify service is ideally 30 - 90 days. However it may take longer depending on how quickly the public agency responds to LAFPP's request for information.
   
   
4. A "true-up" or recalculation of the cost for the purchased service will be made prior to the date of retirement on a service pension or date of DROP entry and under the following circumstances:
   
   
   • An advance purchase was made 180 days or more prior to the actual date of retirement on a service pension or DROP entry; or,
   • If the retirement or DROP entry date differs from that specified at the time of purchase; or,
   • If there is a change in the number of known eligible survivors from that specified at the time of purchase; or,
   • In the event the pension base differs from that estimated at the time of purchase.
     
     If the trued up cost is less than the amount the member has paid, including assumed investment earnings, the difference can be refunded or be used to purchase additional eligible service.
     
     If the trued up cost exceeds what the member has paid, including assumed investment earnings, it will be possible to make a lump sum payment prior to retirement to complete the purchase or receive pro-rated service based on the amount already paid.
     
     In the event the pension base should change after a purchase has been finalized, the years of service purchased will be adjusted, not the monthly benefit.
     
     
5. Service time will be added to the member's record upon completing payment.

If you have any questions, please call the Active Member Services Section at (213) 978-4522 or (800) 787-2489, ext. 84522.