If you are retiring under the Transitional Benefits Program and purchasing prior service, you must complete your purchase for the prior service credit to count toward your retirement benefit calculation. If you are purchasing service through a payroll contract, you have the following options:
- You can forfeit the remaining service.
- If you are purchasing service through an after-tax payroll deduction contract, you can purchase the remaining service in a lump sum before retirement. Send a letter indicating your intent to purchase the remaining service and your last day of employment to VRS at P.O. Box 2500, Richmond, VA 23218-2500. You will receive a cost letter from VRS with instructions about submitting payment.
- If you are purchasing service through a pretax salary reduction contract, you may be eligible to claim a hardship and purchase the remaining service in a lump sum with after-tax funds or suspend the contract, as provided under the Internal Revenue Code. To claim a hardship, send a letter to VRS indicating your intent to purchase the remaining service in a lump sum or request that the contract be suspended. Enclose a completed and signed Employer Certification of Involuntary Separation Under the Transitional Benefits Program (VRS-11B) certifying the involuntary separation with your letter.