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Purchase Service Contracts
Description of Benefit
Purchase of service allows active members to increase their retirement benefit amounts by adding additional service to their records.
Eligibility for Benefit
After-tax purchase of service contracts terminate after two months if payment is not received. Pre-tax purchase of service contracts freeze in an active status while on leave without pay; no payroll deductions can be made.
Benefits upon Return to VRS Employment
Members who were purchasing service on an after tax contract must reapply to purchase the remaining service. If the member was purchasing service on a pre-tax contract, deductions should resume immediately upon return to active employment in a VRS-covered position.
Employer Reporting Requirements
No 5% payments sent to VRS during Leave Without Pay (LWOP).
