Service Purchase Payroll Deduction Agreements

By Ryan Guerra, Senior Benefit Advisor, Member Services Division

The Service Purchase Program allows active members of the ASRS, as well as members who are receiving benefits under the ASRS Long Term Disability Plan, to purchase past service time under specific qualified categories. Purchasing additional service credit may increase your lifetime monthly benefit and/or qualify you for retirement at an earlier date.

The ASRS offers a convenient way for members to pay for any service credit they may purchase under our Service Purchase option through a Payroll Deduction Agreement (PDA).

Here are some quick PDA reminders:

    •       The PDA agreement is an agreement between the member and the ASRS.
    •             If the member has any questions about their PDA, the employer should advise the employee to contact the ASRS.
    •             Once an employer receives the PDA from the ASRS, the employer is responsible for implementing the agreement.
    •            The employer cannot alter the terms of the PDA agreement, nor can the employee.  A PDA is irrevocable once it is signed by the employee.

For Schools and University employers:

    •             An employee’s PDA must continue through the fiscal year.
    • If you have an employee that has a balance of contract and will receive several payments over the summer, you must deduct the PDA from all payments.
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