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Prior Service Cost and Eligibility Periods
Three-Year Eligibility Period
If you purchase prior service within three years of becoming eligible, your cost will be based on 5 percent of your compensation or average final compensation, whichever is higher. The exceptions are VRS refunded service and no-cost military leave (see below). If you purchase service through a payroll deduction or salary reduction contract, your cost will be based on your compensation, even if your average final compensation is higher. See Payment Methods.
Your eligibility period begins upon employment in a covered position or following an eligible period of leave. If you do not purchase your prior service and leave your job, you will remain eligible to purchase it if you return to covered employment. However, your eligibility period will still be in effect. If you accrue eligible prior service after leaving covered employment and then return to covered employment, the eligibility period for this service will begin upon reemployment.
After the Three-Year Eligibility Period
If you have not formally arranged with VRS to purchase prior service within three years of becoming eligible, your cost will be based on an actuarial equivalent rate. Actuarial equivalent cost is how much money is needed in today’s dollars to fund the increase in your future retirement benefit or earlier retirement eligibility date resulting from purchasing prior service.
VRS Refunded Service
If you left covered employment and took a refund of your member contributions and interest, you can purchase some or all of the VRS service represented by the refund. The cost basis will be 5 percent of your compensation or average final compensation, depending on the payment method you choose. If you have not purchased refunded service within three years of your rehire date, your cost rate will still be 5 percent, but you will be required to use a lump-sum payment. For more information, see Leaving Employment.
No-Cost Military Leave
You may receive service credit at no cost for each occurrence of leave from a covered position for active duty military service. You can apply at any time provided you are not dishonorably discharged, return to covered employment within one year of discharge and do not take a refund of your member contributions and interest. If you take a refund, you must purchase your refunded service if you would like to receive service credit for military leave at no cost.
Prior Service Cost Estimates
Estimate your cost to purchase prior service.
If you have prior service you have not formally arranged to purchase, you can use the myVRS Benefit Estimator to create an estimate based on this service credit and one without the additional service credit to see if the increase in your benefit is worth the cost to purchase the prior service. Log in or create a myVRS member account.
