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Purchase of Prior Service
Hired or Rehired On or After July 1, 2010?
Would you like to increase your retirement benefit or perhaps even retire earlier? If you are an active member, you may be eligible to purchase qualifying prior service credit.
Apply Early
The best time to apply is when you first become employed in a VRS-covered position or return from a qualifying period of leave. The earlier you apply to purchase prior service credit, the lower your cost will be:
- If you apply within three years of becoming eligible, your cost will be based on 5 percent of your compensation at the time of your purchase or your average final compensation, whichever is higher. If you decide to purchase service through payroll deduction, your cost will be based on your compensation at time of purchase even if your average final compensation is higher. After the three-year eligibility period, your cost will be based on a higher actuarial equivalent rate.
- The longer you wait to purchase service, the higher your compensation will be, which will also drive up the cost.
VRS Refunded Service
If you received a refund for previous employment in a VRS-covered position, you may purchase this service at 5 percent of your compensation at the time of your purchase. If you wait until after your three-year eligibility period, your cost will be at the 5-percent rate but you must make your purchase with a lump-sum payment.
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