If you retire, then go back to work in a covered position with a VRS- participating employer, you will be rehired under the applicable retirement plan for your new position. Check with your employer.
Your Benefits
Upon reemployment in a covered position, your retirement benefits payments stop. You will resume earning service credit toward your next retirement. Your subsequent benefit calculation will include the additional service credit as well as any increase in your average final compensation . In many cases, that will result in a higher subsequent benefit than your current benefit amount. However, depending on your circumstances, your next benefit may actually be less.
Examples
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Any cost-of-living adjustments (COLAs) you are receiving with your current benefit will not resume when you retire again. As a result, your subsequent benefit may be less than what you are receiving now, especially if you have been receiving the COLA for several years. You will become eligible for a COLA effective July 1 of the second calendar year after your subsequent retirement date. The COLA will be calculated as if you are retiring for the first time.
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If you retired under a severance benefits program administered by VRS, you will lose any additional retirement credits used to calculate your current benefit upon subsequent retirement. This may affect whether or not your next benefit is less than your current benefit amount.
Life Insurance and Disability Coverage Upon Reemployment
Basic group life insurance
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If you have retiree coverage under the VRS Group Life Insurance Program and return to an employer that participates in the program, you will resume active member coverage for basic life insurance benefits. The amount of coverage will be based on your compensation upon reemployment or, if you have 20 or more years of service credit, your highest compensation as a covered employee.
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If you have retiree coverage and return to an employer that does not participate in the VRS Group Life Insurance Program, you will continue your retiree coverage at the level to which it had reduced before re-employment.
Optional group life insurance
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If you return to an employer that participates in the group life insurance program, you can apply for the Optional Group Life Insurance Program for yourself as well as a spouse or dependent children upon reemployment. You will pay the premiums.
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If you elected optional life insurance with your previous position and continued your coverage into retirement, this coverage will not continue if you return to covered employment with an employer that participates in the VRS Group Life Insurance Program. You must re-apply to have optional life coverage again as an active member. However, if you converted your previous coverage to an individual policy, you may continue your policy as well as re-apply for coverage as an active member.
Disability coverage
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If you return to covered employment with the Commonwealth of Virginia, you will be automatically enrolled in the Virginia Sickness and Disability Program (VSDP). You will be required to satisfy eligibility periods for non-work related disability coverage and certain income replacement levels. For program details, refer to the Virginia Sickness and Disability Program Handbook for State Employees .
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If you return to covered employment with a school division or a VRS-participating political subdivision, you will be eligible to be considered for disability retirement if you have a medical condition that prevents you from performing your job and is likely to be permanent. For program details, refer to the Disability Retirement Handbook for Members .
Deferred Compensation Plan
- If you return to state employment
You will be enrolled automatically in the Commonwealth of Virginia 457 Deferred Compensation Plan within 90 days of reemployment. If you are already enrolled, you may resume your contributions. You will be eligible for an employer cash match through the Virginia Cash Match Plan. The amount will be equal to 50% of your contributions, not to exceed $20 per pay period.
- If you return to a school division or a public college or university
You may be eligible to participate in a 403(b) plan as well as the Commonwealth's 457 Plan if offered by your employer, or resume your contributions if you already have an account with either or both plans. If you participate in both plans, you will receive one employer cash match per pay period. Contact your new employer's human resource office for more information.
- If you return to a VRS-participating political subdivision
If your employer participates in the Commonwealth's 457 Plan, you will be eligible to enroll or resume your contributions if you already have a 457 Plan account. You also may be eligible for a cash match. Contact your new employer's human resource office for more information.
Read more about the Commonwealth's 457 Plan.
More Information
If you are thinking of returning to covered employment, refer to your member handbook for more information about the provisions of the plan under which you will return. If you return to covered employment, your human resource office will assist you with active member benefit coverage. You also can contact VRS toll-free at 1-888-827-3847 for assistance.
