Virginia Retirement System (General)

What type of plan is VRS?
Who is covered under the Virginia Retirement System?
What are the advantages of participating in a defined benefit plan such as VRS?
Can I take a loan on my VRS retirement fund?
What is the Member Benefit Profile?

1. What type of plan is VRS?

VRS is a defined benefit plan under Section 401(a) of the Internal Revenue Code. This means that VRS will pay each eligible member a fixed benefit upon retirement. The amount of the benefit is based on the member's years of service, age at retirement and the average of 36 consecutive months of highest compensation. After retirement the benefit is adjusted for inflation.

2. Who is covered under the Virginia Retirement System?

VRS is a multiple employer public pension fund, covering employees of more than 700 state agencies, public school boards and local governments. VRS also covers the State Police Officers' Retirement System (SPORS), the Judicial Retirement System (JRS) and the Virginia Law Officers' Retirement System (VaLORS). VRS membership currently totals 403,000 active and retired public employees.

3. What are the advantages of participating in a defined benefit plan such as VRS?

The employer assumes the investment risk. Because the benefit is based on a formula, it is possible to calculate what the benefit will be in retirement. By law, eligible members are guaranteed a benefit for life, with inflation protection after retirement through Cost of Living Adjustments (COLAs).

4. Can I take a loan on my VRS retirement fund?

No, the Code of Virginia does not permit anyone to borrow against VRS retirement funds.

5. What is the Member Benefit Profile?

VRS sends these statements to employers in September for distribution to members. The Member Benefit Profile is an annual statement giving:

the amount in your retirement account,
the amount of your life insurance, and
the estimated amount of benefit you will receive at retirement based on your current annual compensation and years of service.