VRS Handbook for Members - Virginia Retirement System

When Does the Eligibility Period Begin?
Your eligibility period begins upon employment in a VRS-covered position or returning from 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. Exception: If you go on active duty military leave and return to
covered employment, your eligibility period will be extended by the amount of time you were
on military leave.
Note that if you accrue eligible prior service after leaving covered employment and then return
to covered employment, your eligibility period to purchase this service will begin upon your
re-hire date.
VRS Refunded Service
If you leave covered employment and take a refund of your member contributions
and interest, your membership and eligibility for any future benefits will be
cancelled. If you return to covered employment, you will be rehired under
Plan 2. You will be eligible to purchase up to the full amount of the service
represented by the refund as credit in Plan 2. The cost rate will be 5 percent of
your compensation or average final compensation at the time of your purchase,
whichever is higher or depending on the payment method you choose.
If you do not purchase your 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 lumpsum
payment. You do not have to purchase all of your refunded service at the
same time as long as you purchase more than one month with each payment.
For more information about refunds, see Chapter 10-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.
25 | CH 4 • VIRGINIA RETIREMENT SYSTEM Plan 1