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Retiring Under WTA

Are you:

A state employee covered under the Virginia Retirement System (VRS), State Police Officers’ Retirement System (SPORS) or Virginia Law Officers’ Retirement System (VaLORS);
Age 50 or older; and
Vested?

If so, you may be eligible to retire under the Workforce Transition Act (WTA). You can choose from the following options:

WTA cash severance benefit and retirement in lieu of the enhanced retirement credit; or
WTA retirement credit in lieu of the cash severance benefit.

If you participate in an optional retirement plan, defer your retirement or retire on disability, you are not eligible for the WTA enhanced retirement credit.

WTA Cash Severance Benefit and Retirement in Lieu of the Enhanced Retirement Credit

If you qualify for unreduced or reduced retirement at the time of your layoff, you may elect to take the WTA cash severance benefit and retire from covered employment in lieu of the enhanced retirement credit. You will continue to be covered for health and life insurance for up to 12 months from your layoff date.

You may retire at any time after your layoff date. To retain your eligibility for state retiree health insurance coverage, however, you must apply for retirement within 12 months of your layoff date.

When you retire, your life insurance coverage will change to retiree coverage. For more information, see Insurance in Retirement.

WTA Retirement Credit in Lieu of the Cash Severance Benefit

If you choose this WTA retirement option, the total value of your WTA severance payments, health insurance and group life insurance will be converted to credit toward your eligibility for an unreduced or reduced retirement benefit. If the addition of the WTA retirement credit does not qualify you for retirement, you will be eligible for the WTA cash severance benefit only and no retirement. See WTA Cash Severance Benefit.

The WTA retirement credit will be added to your age or service credit, or split between your age and service credit, whichever will result in a higher benefit. If you are eligible for an unreduced retirement at the time of your layoff, the WTA retirement credit will be added to your service credit only.

If you are a member of SPORS or VaLORS, the WTA retirement credit will count toward eligibility for the hazardous duty supplement. You need at least 20 years of hazardous duty service credit to qualify for the supplement. If you are a VaLORS member who is eligible for the 2 percent multiplier in lieu of the hazardous duty supplement, any WTA retirement credit applied to your service credit will count toward hazardous duty service.

The WTA retirement credit does not count toward:

Minimum age or vesting requirement to qualify for the WTA enhanced retirement benefit.
One, two or three years of active service beyond eligibility for an unreduced retirement required to qualify for the Partial Lump Sum Option Payment (PLOP).

Retirement Eligibility Requirements

VRS Members

Unreduced retirement: Age 65 with at least five years of service credit or as early as age 50 with at least 30 years of service credit.
Reduced retirement: Age 55 with at least five years of service credit or as early as age 50 with at least 10 years of service credit.

State Police Officers’ Retirement System and Virginia Law Officers’ Retirement System Members

Unreduced retirement: Age 60 with at least five years of service credit or as early as age 50 with at least 25 years of service credit.
Reduced retirement: Age 50 with at least five years of service credit.

Note: If you were not working in a covered position on June 30 and July 1, 2002, you must be credited with at least five years of service credit while covered under SPORS, VaLORS or an eligible local hazardous duty position to retire under these enhanced provisions.

Applying for WTA Retirement

Your employer will complete the Employer Certification of Involuntary Separation Under Workforce Transition Act of 1995 (VRS-11) 41kb and submit it to VRS with your Application for Service Retirement (VRS-5) 58kb and other forms and documents required to apply for retirement.

Working after Retirement

You may work for an employer that does not participate in VRS and continue to receive your retirement benefits. Covered employment is any full-time, salaried permanent position that provides VRS benefits. Some part-time permanent positions with state agencies and public colleges and universities also are covered under VRS.

If you return to VRS-covered employment or a position covered under an optional retirement plan, your retirement benefits will end and you will be considered an active employee. You will not be eligible to retire under WTA a second time, unless you are again involuntarily separated from state employment.

You and your employer should submit the Request for Termination of Monthly Benefit (VRS-7) 32kb to VRS immediately upon your re-employment to prevent overpayment of your monthly benefit.