How Can I Help Employees Determine Whether Purchasing Prior Service Is Right for Them?
Purchasing eligible prior service, such as previous military or federal government service, refunded VRS service and educational leave, can increase a member’s service credit. When questions come up, focus on the factors that can affect the decision.
Provide Counseling
Help employees consider:
- The effect on retirement. Purchasing service credit can increase a future retirement benefit or help someone reach certain eligibility milestones. The Purchase of Prior Service webpage provides an overview and short video.
- The cost. Employees can calculate their purchase cost in myVRS. They’ll see the potential effect on their future benefit and how long it may take to recover the cost in retirement. Payment options include a plan-to-plan transfer, payroll deduction or lump-sum payment.
- The timing. Most types of service can be purchased at a lower rate within two years of starting employment or returning from eligible leave. The cost generally increases after this window closes.
Assist With Next Steps
Members may initiate a purchase of prior service online through their myVRS accounts. Authorized employers can assist with the process in myVRS Navigator. Find current rate charts, job aids, training and additional guidance on the Purchase of Prior Service employer webpage.
