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- PPS cost estimators on VRS website will be removed, as the calculations will be outdated.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.
- 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.
- You will print the quote from myVRS Navigator and provide to the employee as documentation of the employee's commitment to provide a lump-sum payment or begin a purchase payment agreement within 90 days.
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.