Periods of active duty in the United States military, up to the time the member was first eligible for a discharge that is not dishonorable, count as creditable service at no cost to the member if he or she was a teacher or State employee when he or she entered the military, did not receive a refund, and the member returned to TSERS employment under one of the following circumstances:

• Within two years after his or her earliest discharge date
• Any time after his or her discharge and completed at least 10 additional years of service as a contributing member

A TSERS employer is required to pay the employer and employee contributions to TSERS for the full period that a member was in active military duty if the employee was a TSERS member immediately prior to the active-duty military service and returns to TSERS membership service within two years after the military discharge date.

In order for the Retirement Systems Division to grant free military service credit, the member should complete Form 462 (Purchasing Retirement System Credit or Requesting Free Credit for Military Service), attach a copy of his or her military discharge papers (Form DD 214) and send them together to the Retirement Systems Division.

The employer should also send a letter to the Retirement Systems Division stating the last date the member worked prior to the military service and the date the member returned to work after the military service.