Regardless of when payroll deduction begins, final payment cannot be made any later than August. According to ERS, payments cannot cross over fiscal years because interest is refigured at the beginning of the fiscal year. Furthermore, the Optional Plans of Purchase form is only valid for one fiscal year. The employee is responsible for requesting a new cost estimate to renew the service credit payroll deduction for the following fiscal year. Each month the payroll deduction is reported to ERS and placed in a non-interest bearing account.
Interest accrues once the contribution and service are credited to an account.
When the total amount received equals the cost of one year of service, or the cost of the total purchase if less than a year, the contribution is transferred to the member's account. ERS notifies an employee only when service is credited to the membership account. A statement of the status of repurchase showing the amount paid and remaining balance is not sent to participating employees at the end of the fiscal year. A member must reinstate all eligible withdrawn service if more than one account has been withdrawn. Military service includes both voluntary active duty and duty rendered during the school years in which the military draft was in effect.