Benefits : Virginia Retirement System
The Commonwealth of Virginia requires all full-time State employees to participate in VRS, unless they are eligible and participate in the ORP. VRS is a "defined benefit" plan that provides benefits based on years of service, age, and average annual salary.
State legislation passed on March 15, 2010, has created two plans for VRS members. House Bill 1189 and Senate Bill 232 are referred to as Plan 2 and the current provisions as Plan 1. All current UVa Wise employees in the VRS are in Plan 1 and this legislation does not affect them.
New employees who begin work after July 1, 2010 will be in Plan 2. This legislation also affects "rehired" members. Rehired members are those who take a refund of the funds in their member contribution account or optional retirement plan account from a previous position and return to covered employment with no service credit.
Virginia Retirement System (VRS) Plan Summary
| Effective July 1, 2010 | VRS Plan 1 (Members hired before July 1, 2010 who have not taken a refund) | VRS Plan 2 (Members hired on or after July 1, 2010) |
| Average final compensation | Average of the employee's 36 highest consecutive months of credible compensation | Average of the employee's 60 highest consecutive months of credible compensation |
| 5 percent member contribution | Employer contributes 5 percent of the employee's compensation each month to his or her member contribution account | State employees contribute the 5 percent member contribution |
| Normal retirement age |
VRS: Age 65 VaLORS (Law Enforcement) Hazardous Duty Members; Age 60 |
VRS: Normal Social Security retirement age VaLORS: Same |
| Earliest unreduced retirement eligibility |
VRS: Age 65 with at least five years of service credit or age 50 with at least 30 years of service credit VaLORS (Law Enforcement) Hazardous Duty Members: Age 60 with at least five years of service credit or age 50 with at least 25 years of service credit |
VRS: Normal Social Security retirement age with at least five years of service credit or age 60 with age and service equaling 90 VaLORS: Same
|
| Earliest reduced retirement eligibility |
VRS: Age 55 with at least five years of service credit or age 50 with at least 10 years of service credit VaLORS (Law Enforcement) Hazardous Duty Members: Age 50 with at least five years of service credit |
VRS: Age 60 with at least five years of service credit VaLORS: Same |
| Cost-of-Living Adjustment (COLA) (effective July 1 following the first full calendar year after retirement) | Matches first 3 percent increase in the Consumer Price Index-Urban and one-half of the remaining increase up to a maximum of 5 percent, when provided | Matches first 2 percent increase in the Consumer Price Index-Urban and one-half of the remaining increase up to a maximum of 6 percent, when provided |
