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

 

VRS Website

VRS Handbook for Members