What are my options if I leave VRS-covered employment before I’m eligible to retire?
Leave Your Account With VRS
If you leave covered employment and do not retire, you can leave your member contribution account balance with VRS.
You will continue earning 4% annual interest on your defined benefit contributions and you will keep your VRS service credit. If you are vested, you may be eligible for a future retirement benefit when you meet the age and service requirements for your plan.
When you return to work in a VRS-covered position, your contributions will restart and new service credit you earn will be added to your existing member record.
Covered employment is a full-time permanent, salaried position with an employer that participates in VRS or in an optional retirement plan. Some part-time permanent, salaried state positions are also covered under VRS.
Taking a Refund Cancels Your VRS Membership
You may take a refund of your defined benefit member contributions and interest upon leaving employment. However, doing so is an irrevocable election and cancels your VRS membership and eligibility for any future benefits. If you return to VRS-covered employment, you will be hired under the retirement plan in place for that position, which may not be the same plan you left.
Before You Decide
Check your member contribution account balance and view your other benefit information through myVRS. Knowing this information may help you weigh your options. Contact your human resource office or call VRS at 888-827-3847 for counseling assistance.
If you’re a member of the Hybrid Retirement Plan or have money in the Commonwealth of Virginia 457 Deferred Compensation Plan, you may choose to leave your retirement funds in your defined contribution account or take a distribution when you leave employment.
Keeping your money in your plan may provide you with potentially more cost-effective retirement opportunities than rolling your money into a traditional IRA. To learn more, view the Leaving Employment Guide for your plan at dcp.varetire.org.
