Are you in Plan 1? Do you have less than 5 years of service?
If you answered “yes” to both questions, your retirement plan provisions will change effective January 1, 2013 if you are not vested by this date. It may take longer to qualify for retirement, and your benefit may be less than it would be under your current plan provisions. You need five years (60 months) of service credit to be vested.
Prior service credit counts toward vesting. If you have prior service eligible for purchase that would bring you to 60 months of service credit by January 1, 2013, consider now whether or not to purchase this service. If you decide to purchase prior service to become vested by January 1, VRS strongly recommends you apply no later than November 1. VRS must receive payment no later than December 31, 2012. The following resources can help you decide:
VRS has prepared a Benefit Comparison that shows your projected retirement information based on your current plan provisions and the impact on your retirement if you are not vested by January 1, 2013. It also shows the number of months you need to become vested by January 1 and the estimated cost to purchase this amount of prior service. Your Benefit Comparison is available through myVRS. Log in or register for myVRS.
Important note: Between October 25 and November 5, myVRS will be unavailable while VRS makes system enhancements. If you need assistance during this period, contact your human resource office or call VRS toll free at 1-888-VARETIR (1-888-827-3847).
Benefit Changes 75kb provides an overview of the steps you should take now to decide whether or not to purchase prior service, information about purchasing prior service and an overview of the changes coming to your plan.
- Register for an upcoming webinar that will help guide you through the decision-making process.