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> Member Frequently Asked Questions (FAQs)

FAQs - Plan 1

You are covered under the provisions of the VRS Plan 1 if your membership date is before July 1, 2010. You may be an active or deferred member. You are an active member if you are currently working in a covered position. You are a deferred member if you are not currently working in a covered position but have not withdrawn your funds and have service credit in VRS or have been maintaining an account balance in an optional retirement plan since before July 1, 2010. If you are a deferred member and return to covered employment, you will be rehired under Plan 1.

What is the Virginia Retirement System (VRS)?
What kind of plan is the VRS Plan 1?
What does "covered employment" mean?
When am I vested?
What is average final compensation?
What does "service" mean?
How is my retirement benefit funded?
How is my retirement benefit calculated?
How is my retirement benefit paid?
What if I leave my job before I am eligible to retire?
Am I eligible for a refund of retirement contributions?
When can I retire?
Is there a mandatory retirement age or mandatory distribution requirement?
How do I apply for retirement?
What is deferred retirement?
Am I eligible for enhanced hazardous duty coverage?
Does VRS offer a tax-deferred savings plan?
Does VRS offer a defined contribution plan?
Can I transfer previous public service, military service or leave to VRS?
Are my VRS funds or service portable?
Does VRS offer disability or long-term care insurance?
Do I have other VRS benefits besides retirement?
How do I designate or change my beneficiary?
What education and retirement planning resources does VRS offer?
Do I have access to my VRS record?
Can I give someone else access to my VRS record?
Where can I find more information about my benefits?

1. What is the Virginia Retirement System (VRS)?

The Virginia Retirement System (VRS) is an independent state agency that administers retirement and other benefits for members of VRS, the State Police Officers' Retirement System (SPORS), the Virginia Law Officers' Retirement System (VaLORS) and the Judicial Retirement System (JRS). Membership in the VRS Plan 1 is automatic with employment in a covered position. Members include full-time permanent, salaried state employees, public college and university faculty members, school division employees and employees of VRS-participating political subdivisions. Some part-time permanent, salaried state employees also are covered under VRS.

2. What kind of plan is the VRS Plan 1?

The VRS Plan 1 is a defined benefit plan. The defined benefit plan provides a monthly benefit based on your age, service credit and average final compensation at retirement. If you are an active member hired before July 1, 2010 or if you are a deferred member with service credit in VRS as of June 30, 2010, you are in Plan 1.

3. What does “covered employment” mean?

"Covered" means the position is eligible for VRS benefits or eligible for benefits under a Virginia optional retirement plan. Covered employment is a full-time permanent, salaried position with an employer that participates in the Virginia Retirement System (VRS). Participating employers include state agencies, public colleges and universities, local public school divisions and political subdivisions that have elected to offer VRS benefits to their employees. Some part-time permanent, salaried state positions also are covered under VRS.

Some VRS-participating employers hire employees in non-covered positions. “Non-covered” means the position is not eligible for VRS benefits. Non-covered positions usually are part time and paid on an hourly (wage) basis. Some full-time positions may be considered non-covered if they are temporary and paid on an hourly basis. Check with your human resource office if you are unsure of your employment status.

4. When am I vested?

You become vested in VRS when you have at least five years of service credit. Vesting is the minimum length of service needed to qualify for a future retirement benefit, if you meet the age and service requirements for your plan, or to receive any contributions made by your employer to your member contribution account after July 1, 2010 should you leave covered employment and request a refund.

5. What is average final compensation?

Average final compensation is the average of your 36 consecutive months of highest compensation as a covered employee. Average final compensation is one of the factors used to calculate your retirement benefit.

6. What does "service" mean?

Service refers to the time you spend in your job. You earn one month of service credit for each month you are working in a covered position. You also may be eligible to purchase prior public service or receive additional service credit granted by your employer. The total amount of your service credit is one of the factors used to determine your eligibility for retirement and calculate your benefit. It also counts toward eligibility for the health insurance credit.

7. How is my retirement benefit funded?

Your benefit is funded from your member contributions and interest, a separate contribution your employer makes to VRS and investment earnings. You or your employer on your behalf contributes 5 percent of your compensation to your member contribution account each month. Your account accrues 4 percent interest, which is compounded annually on the balance as of the previous June 30.

8. How is my retirement benefit calculated?

If you retire with an unreduced retirement benefit, the amount is based on a percentage of your average final compensation multiplied by your total years of service credit . The percentage is called a retirement multiplier. An early retirement reduction factor is applied to your unreduced benefit amount if you retire with a reduced retirement benefit. For more information, see the VRS Plan 1 .

9. How is my retirement benefit paid?

When you apply for retirement, you elect how you want to receive your benefit. There are four options: the Basic Benefit, Survivor Option, Partial Lump-Sum Option Payment (PLOP) and Advance Pension Option. The option you elect is irrevocable, meaning you cannot change it once you retire with the exception of the Survivor Option under some circumstances. For more information, see Benefit Payout Options.

When you retire, your benefit is paid first from the contributions and interest in your member contribution account. If you elect a PLOP, the lump sum also is paid from your member contribution account. Once these funds are paid out, your benefit is paid from employer contributions and investment earnings.

10. What if I leave my job before I am eligible to retire?

You can take a refund of your member contributions and interest in your member contribution account or leave your funds with VRS and become a deferred member under your current Plan 1. Taking a refund cancels your membership and eligibility for any future benefits. See next FAQ. If you take a refund and return to covered employment with no service credit in VRS, you will be rehired under the VRS Plan 2. For more information, see Leaving Employment.

11. Am I eligible for a refund of retirement contributions?

If you leave covered employment, you are eligible to request refund of your member contributions and interest. You must be vested to be eligible for a full refund of your member contribution account balance. If you request a refund and are not vested, you are eligible for any funds you have contributed to your account, plus accrued interest. You also are eligible for any contributions made by your employer before July 1, 2010 and the interest on these contributions. You are not eligible for a refund of any contributions made by your employer after July 1, 2010 or the interest on these contributions.

Refunds are effective no earlier than one full calendar month after you leave all employment with a VRS-participating employer, including non-covered employment. To request a refund, submit a Request for Refund (VRS-3) pdf icon 47kb to your human resource office. If it has been more than six months since you left your position, submit the form to VRS. Allow 45 to 60 days for your refund request to be processed.

Refunds of pre-tax contributions paid directly to you are subject to federal and state income taxes if you live in a state that taxes income. Before taking a refund, read the IRS 402(f) Special Tax Notice pdf icon 28.5kb. For more information, see Leaving Employment.

12. When can I retire?

If you are a covered state employee, teacher or political subdivision employee, you become eligible to retire with an unreduced benefit at age 65 with at least five years of service credit or age 50 with at least 30 years of service credit. You can retire as early as age 55 with at least five years of service credit or age 50 with at least 10 years of service credit.
If you are a member of the State Police Officers' Retirement System (SPORS), the Virginia Law Officers' Retirement System (VaLORS) or in a political subdivision position eligible for enhanced hazardous duty coverage, you become eligible to retire with an unreduced benefit at age 60 with at least five years of service credit or age 50 with at least 25 years of service credit. You can retire with a reduced benefit as early as age 50 with at least five years of service credit.
If you are a member of the Judicial Retirement System (JRS), you become eligible to retire with an unreduced benefit at age 65 with at least five years of service credit or age 60 with at least 30 years of service credit. You can retire as early as age 55 with at least five years of service credit.

For more information, see the VRS Plan 1.

13. Is there a mandatory retirement age or mandatory distribution requirement?

If you are a member of the State Police Officers’ Retirement System (SPORS), a political subdivision employee eligible for enhanced hazardous duty coverage or a member of the Judicial Retirement System (JRS), the mandatory retirement age is age 70. If you are a member of the Virginia Retirement System (VRS), the Virginia Law Officers’ Retirement System (VaLORS) or a VRS-covered sheriff, there is no mandatory retirement age.

If you are a deferred member eligible for a retirement benefit and have not applied for retirement by April 1 following the calendar year in which you turn age 70½, VRS will pay you a retirement benefit (Basic Benefit option), as required by law (see Benefit Payout Options).

14. How do I apply for retirement?

Submit the required service retirement forms, including the Application for Service Retirement (VRS-5) pdf icon 125kb and other required documents, to your human resource office at least 60 days, but not more than four months (120 days), before you want to retire. Your employer will certify your application and submit it to VRS. If you are submitting your application after 12 months from the date you left employment or if you are retiring after being on long-term disability through the Virginia Sickness and Disability Program (VSDP), submit your application to VRS. Retirement is effective on the first of the month. For more information, see Member Handbooks and Guides.

15. What is deferred retirement?

If you are eligible for retirement and leave your position, you can defer receiving your retirement benefit until a later date. You will be considered a deferred member. You also are a deferred member if you leave employment before you are eligible to retire and do not take a refund of your member contributions and interest in your member contribution account. If you are vested, you may be eligible for a future retirement benefit if you meet the age and service requirements for your plan.

16. Am I eligible for enhanced hazardous duty coverage?

You are eligible for enhanced hazardous duty coverage if you are a:

Member of the State Police Officers' Retirement System (SPORS)
Member of the Virginia Law Officers' Retirement System (VaLORS)
Full-time salaried, sworn sheriff, deputy sheriff, regional jail superintendent or regional jail officer
Full-time salaried, sworn local law enforcement officer, firefighter or emergency medical technician whose employer has elected to provide coverage for hazardous duty service

For more information about hazardous duty coverage, see the VRS Plan 1.

17. Does VRS offer a tax-deferred savings plan?

VRS offers the Commonwealth of Virginia 457 Deferred Compensation and Virginia Cash Match Plans, which allow you to save for retirement on a tax-deferred basis. You may be eligible to participate in the 457 Plan, the Virginia Cash Match Plan or another plan offered by your employer:

If you are a salaried state employee, you were enrolled automatically in the 457 Plan and Cash Match Plan upon employment. If you were hired before January 1, 2008 in an eligible state position, you had the option to participate in the 457 Plan. If you do not participate, you can enroll at any time. The cash match is $10 per pay period.
If you are a political subdivision employee, you may be eligible to participate in the 457 Plan or a separate 457(b) governmental plan your employer may offer. You also may be eligible for a cash match of $10 per pay period if your employer participates in the Virginia Cash Match Plan.
If you are a teacher, you may be eligible to participate in a 403(b) education plan sponsored by your employer. You also may be eligible for a cash match of $10 per pay period if your employer participates in the Virginia Cash Match Plan.
If you are an employee of a public college or university, you are eligible to participate in the 457 Plan, your employer's 403(b) plan or both plans with one $10 cash match per pay period. For more information, see Commonwealth of Virginia 457 Deferred Compensation Plan or contact your human resource office.

For more information, see Commonwealth of Virginia 457 Deferred Compensation Plan or contact your human resource office.

18. Does VRS offer a defined contribution plan?

VRS administers several defined contribution plans, including the Optional Retirement Plan for Political Appointees (ORPPA), the Optional Retirement Plan for School Superintendents (ORPSS) and the Optional Retirement Plan for Higher Education (ORPHE). Under a defined contribution plan, the benefit is based on the plan account balance, which includes contributions paid into the plan and investment earnings. Vesting in these plans is immediate. If you are eligible to participate in an optional retirement plan, you will choose either the optional retirement plan or the VRS defined benefit plan upon employment. This election is irrevocable. VRS also administers the Virginia Supplemental Retirement Plan (VSRP) for select school employees as a supplement to the VRS defined benefit plan.

19. Can I transfer previous public service, military service or leave to VRS?

You may be eligible to purchase time spent in previous public positions or on selected leaves of absence as credit in VRS:

If you have eligible prior public or federal service, active duty military service or VRS refunded service, you may be eligible to purchase this service as credit in VRS.
You may be eligible to transfer time spent on leave for active duty military service as credit in VRS at no cost to you.
If you were on approved educational leave or leave for the birth or adoption of a child while employed in a covered position, you may be eligible to purchase the time spent on this leave as credit in VRS.
If you worked for a non-VRS participating Virginia public employer with which VRS has a portability agreement, you may elect to transfer your retirement assets from your previous employer’s plan in order to purchase service credit in VRS. Your employer determines the amount that is eligible for transfer. VRS determines the amount of service credit the transferred assets will purchase in the VRS plan.
If you have any unused sick leave at retirement and are not covered under the Virginia Sickness and Disability Program (VSDP), you may be eligible to convert this leave to VRS service credit toward calculating your retirement benefit.

Prior public service credit counts toward vesting and eligibility for the health insurance credit. The cost basis depends on how soon you arrange to purchase prior service after becoming eligible. There also are limits on the amount of most types of prior service you can purchase. For more information, see Purchasing Prior Service.

20. Are my VRS funds or service portable?

Member contributions and service in the VRS defined benefit plan are not portable. However, if you take a position with a non-VRS participating public Virginia employer with which VRS has a portability agreement, you may elect to transfer your retirement assets in the VRS Plan in order to purchase service credit in the other employer's plan. VRS has portability agreements with the City of Charlottesville, City of Danville, City of Newport News, City of Norfolk, City of Richmond, City of Roanoke and County of Fairfax. These employers do not participate in VRS. VRS determines the amount that is eligible for transfer. The employer determines the amount of service credit the transferred assets will purchase in the employer's plan. If you are coming to a covered position from one of these employers, you may be eligible to buy the previous employer's service as credit to transfer to VRS. VRS will determine how much service your purchase will buy. For more information, see Purchasing Prior Service. If you have funds in a defined contribution plan administered by VRS, you may be eligible to transfer these funds to another qualified plan.

21. Does VRS offer disability or long-term care insurance?

If you are a state employee, you are eligible for sick leave, family and personal leave and non-work related and work-related disability coverage through the Virginia Sickness and Disability Program (VSDP). VSDP includes coverage under the VSDP Long Term Care Plan at no cost to you. Eligibility periods for non-work related disability coverage and income replacement levels vary depending on when you were hired.
If you are a teacher, political subdivision employee or a state employee hired before January 1, 1999 who did not elect VSDP coverage, you are eligible to apply for VRS disability retirement if you cannot perform your job because of a condition that is likely to be permanent.
If you are a state employee, you are eligible to enroll yourself and select family members in the Commonwealth of Virginia Voluntary Group Long Term Care Insurance Program. If you are a school division or political subdivision employee, you are eligible to enroll in the program if your employer has elected to offer it. Contact your human resource office for more information. Deferred members who have at least five years of service credit and retirees are eligible to enroll in the program regardless of their employer’s election.

22. Do I have other VRS benefits besides retirement?

If your employer participates in the VRS Group Life Insurance Program, you are covered under the Basic Group Life Insurance Program upon employment. You also may purchase additional coverage for yourself, your spouse and your dependent children through the Optional Group Life Insurance Program.
If you die while you are an active member, your beneficiary or spouse, minor child or parent may be eligible for a death-in-service benefit in addition to any life insurance benefits you have. The cause of death may be non-work related or work-related. For more information, see Losing a Loved One: Guide for Families 46kb.
If you retire with at least 15 years of service credit, you may be eligible for a health insurance credit. This is a tax-free benefit that assists with the portion of premiums you pay for single coverage under qualifying health plans. The credit is a dollar amount for each year of service credit set by the General Assembly and ends upon your death. If you retire on disability or are on long-term disability through the Virginia Sickness and Disability Program, you also are eligible for the health insurance credit.

23. How do I designate or change my beneficiary?

You can designate or change your beneficiary at any time while you are an active or deferred member or after you retire. You also can name more than one beneficiary as well as primary and contingent beneficiaries. Submit a Designation of Beneficiary (VRS-2) pdf icon 51kb to VRS. VRS is required by law to pay benefits according to the latest beneficiary designation in your VRS record. If you need to change your beneficiary, submit a new VRS-2 as soon as possible.

24. What member education and retirement planning resources does VRS offer?

VRS offers webinars and Retirement Education Seminars for members at all stages of their careers as well as Group Counseling Sessions for employees getting ready to retire. See Education and Group Counseling.
Through the secure myVRS online system, you have access to benefit estimating and retirement planning tools. You also can view information from your member record, including your earliest retirement dates and estimated benefit amounts. Log-in or create an account.
VRS counselors are ready to assist you through one-on-one counseling by phone or on site between 8:30 a.m. and 5 p.m., Monday through Friday. Call the Customer Counseling Center toll free at 1-888-VARETIR (1-888-827-3847) or visit VRS at 1200 East Main Street in downtown Richmond. On-site counseling is held on a first-come first-served basis. Get directions to VRS.
Member Handbooks and Guides offer details regarding your benefits as well as planning and applying for retirement.
457 Deferred Compensation Plan Regional Education Meetings 24kb review the basics of financial planning, investments and distribution options for the Commonwealth of Virginia 457 Deferred Compensation and Cash Match Plans.

25. Do I have access to my VRS record?

If you are an active or deferred member in VRS, SPORS or VaLORS, you can view your member information through the secure myVRS online system, including:

Your current member contribution account balance
Earliest unreduced and reduced retirement eligibility dates and estimated benefit amounts
Employment and compensation history
Group life insurance coverage, if applicable
Purchase of prior service information and eligibility, if applicable
Member Benefit Profile (MBP), your annual online benefits statement based on information your employer reports to VRS through June 30. If you are a deferred member and vested, you also receive an online MBP each year.

26. Can I give someone else access to my VRS record?

You can allow one or more individuals to speak to a VRS representative about your VRS benefits and account information by submitting an Authorization to Discuss VRS Account Information (VRS-900) pdf icon 28kbto VRS. This authorization does not allow the individual(s) to take actions on your behalf. If you would like someone to take actions on your behalf, you may prefer to submit a VRS Durable Power of Attorney (VRS-901) 43kb. In neither case will the individual(s) you designate have access to your myVRS online account.

27. Where can I find more information about my benefits?

In addition to the information on this site, you can find details about your benefits and member resources in the Member Handbooks and Guides. If you have a question about your benefits, you also can contact your human resource office or call VRS toll free at 1-888-VARETIR (1-888-827-3847).