PPS for Employers
Legislative updates to purchase of prior service (PPS) provisions became effective January 1, 2017.
Guidelines for Employers: VRS is phasing in new procedures for purchasing prior service through myVRS. Please bookmark this page and check back for updates.
Phase 1: January 1-29
- Employers will not be able to use myVRS Navigator to add prior service eligibility or to estimate or calculate cost while VRS updates systems to comply with the new legislation.
- PPS cost estimators on VRS website will be removed, as the calculations will be outdated.
- If an employee would like a quote for the cost to purchase service or would like to purchase eligible service listed in the employee's myVRS account via lump-sum payment, please direct the employee to call VRS toll-free at 1-888-827-3847. Note: Unless the purchase is urgent to accommodate a February 1, 2017, retirement date, VRS will process these purchase requests after January 30, 2017, estimating the cost based on the date of the employee's request to VRS.
Phase 2: January 30-March 31
- Following an update to myVRS Navigator in late January, employers will notice a new look for the Service Purchase tab in myVRS Navigator.
- Authorized employer roles will once again have access to assist members with:
- Adding eligibility for service. (Exceptions: Contact VRS to add disability service, sick leave, service not reported or pre-1988 service.)
- Selecting the service they wish to buy.
- Providing cost calculations, in most cases.
- Setting up purchase payment agreements.
- A new feature will allow you to set up lump-sum purchases for employees in myVRS Navigator.
- Please note: the Application for Purchase of Prior Service Credit (VRS-26) was updated January 1, 2017. Please download a new copy if you have an employee purchasing service.
- Cost letters will be replaced with online quotes available through myVRS Navigator.
- You may print the cost page for members for estimate purposes and advise that the cost increases over time. When the member is ready to commit, you can then set up the purchase in myVRS Navigator, verifying the final cost with the member, who must make a lump-sum payment or begin a purchase payment agreement within 90 days.
- Mail all lump-sum payments to: VRS, Attn: Control Department, P.O. Box 361, Richmond, VA 23218-0361. The check should be made payable to "Treasurer of Virginia/VRS" or "VRS." The check should reference the member's name and the agreement reference number, found on the Service Purchase Cost Quote-Lump Sum letter. The letter is viewable under the communications tab in myVRS Navigator after you generate the lump-sum agreement. (This letter is not mailed to the member.)
Phase 3: April and Beyond
- Following an update to myVRS in late March, members will be able to initiate the purchase of prior service online through their myVRS accounts.
- This self-service option will allow members to:
- View prior service in their account available for purchase.
- Select the type and amount of service to purchase.
- Choose the order in which to purchase service.
- Determine the cost to purchase.
- See the impact of purchasing service on their future retirement benefit.
- Evaluate the time it will take to recover the purchase cost in retirement.
- Members will make lump-sum payments directly to VRS.
- Members will print their cost quote and coordinate purchase payment agreements with their employers. Or, the employer can assist the member with viewing the quote and making a purchase decision.