Purchase of Prior Service Through the Virginia Retirement System (VRS)

You may be able to purchase service from previous public employment, active duty military service, an eligible period of leave or VRS refunded service as service credit in your plan. Prior service credit counts toward the five years needed to become vested and eligibility for retirement and the health insurance credit.

To be eligible to purchase prior service, you must be an active VRS member. You are not eligible to purchase prior service if you are employed in a non-covered position, on a leave of absence without pay, a deferred member or retiree.

Applying to Purchase Prior Service

Register for or log into your myVRS account to review prior service in your record that is eligible for purchase. Using myVRS, you can:

• Select the type and amount of prior service to purchase.
• Choose the order in which you wish to purchase service.
• Calculate the cost to purchase service.
• See the impact of purchasing service on your future retirement benefit.
• Evaluate the time it will take to recover the purchase cost in retirement.

Your online myVRS account includes counseling tips to guide you through each step of the purchase process. Once you commit to the purchase online, you may make a lump-sum payment directly to VRS. Or, you can set up a purchase payment agreement by printing your cost estimate page and working with your employer. VRS must receive your lump-sum payment or employer-approved agreement within 90 days of your confirmation, or you must reapply. Please note that, generally, the cost to purchase service increases over time.

Eligibility for Service From Non-VRS-Participating Employers

In the following cases, the previous employer with which you earned the service will need to certify your prior service before you can complete the purchase:

• Active duty military service. A copy of your DD214 or a copy of your orders for National Guard Service may be required.
• Military leave (no cost). A copy of your DD214 or a copy of your orders for National Guard service may be required.
• Full-time federal service or other public service. If you participated in the federal retirement system or the retirement system of another public employer, you also must obtain certification from your previous retirement system that you are no longer eligible for a retirement benefit under that employer's plan or were not a participant in the employer's plan during your service. All defined benefit funds must be withdrawn from the previous retirement plan.

Eligibility for Service From VRS-Participating Employers

In the following cases, the previous VRS employer with which you earned the service will need to certify and enter your prior service eligibility in the VRS system before you can complete the purchase.

• VRS service refunded after 1988. (Note: If you have previous VRS service refunded before July 1, 1988, complete the Application for Purchase of Prior Service Credit (VRS-26) and send to VRS.)
• Non-covered service with a VRS-participating employer (Example: hours worked in a wage or adjunct role for a participating employer).
• Leave for the birth, adoption or death of a child.
• Educational leave.
• Family and Medical Leave Act (FMLA) leave for your own serious medical condition or that of your immediate family member, both as defined under FMLA, approved by your employer at the time of the leave.
• Service not reported.

More details can be found on the Virginia Retirement System’s website. If you need to certify prior service with Laurel Ridge Community College, please complete the VRS-26 Application for Purchase of Prior Service Credit and send that to Courtney Barnhart at cbarnhart@laurelridge.edu.