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 > Plan 1 State Employees Now Pay 5% Contribution

Plan 1 State Employees Now Pay 5% Contribution

Effective June 25, 2011, state employees in VRS Plan 1 received a 5 percent salary increase and began paying the 5 percent member contribution on a pre-tax salary reduction basis. This change is in the 2011 Appropriations Act passed during the recent General Assembly session. Employees will see the changes reflected in their July 15 pay record.

The provision excludes Plan 1 state elected officials and judges, ORP participants, VRS Plan 2 members and wage employees. It also excludes Plan 1 and Plan 2 employees in local government positions reimbursed by the Compensation Board (these positions include constitutional officers such as treasurers, commissioners of revenue, commonwealth attorneys and sheriffs).

The 5 percent salary increase will have the following impact on Plan 1 state employees' VRS benefits:

State employees who use Payline will see an additional deduction box in their pay record labeled "VRS Retirement." The labeling of this deduction may vary among non-CIPPS reporting employers and on printed checks. Check with your payroll office for details.

For more information, see the Department of Human Resource Management (DHRM) Frequently Asked Questions.

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