What is the difference between Voluntary Contributions and a Service Purchase Contract?
Voluntary Contributions are contributions that the member may elect to have deducted from his or her salary over and above the mandatory 8.25% contributions (7% Regular and 1.25% Health). Voluntary contributions are submitted on an after-tax basis and may be initiated, changed or terminated by the member at any time. There is no minimum or maximum amount that can be deducted.
Service Purchase Contract Contributions are generally used to repay contributions that were previously refunded and to restore credited service. The terms of the Service Purchase Agreement, including the amount to be repaid, the number of years to complete the payment and the monthly amount are established between the member and TRB. The member must complete and provide you with a copy of TRB Form 70 Authorization For Extra Retirement Deductions. This form indicates the date on which deductions are to be initiated, the monthly amount and the final date of payment.