Virginia Retirement System (VRS)
Full-time employees are covered under VRS. VRS has three benefit structures for members, Plan 1, Plan 2 and Hybrid.
- Plan 1 – VRS Plan 1 is a defined benefit plan. The retirement benefit is based on your age, creditable service and average final compensation at retirement using a formula. Employees whose membership date is before July 1, 2010 who were vested (had at least five years of service credit) as of January 1, 2013 are covered under the provisions of the VRS Plan 1.
- Plan 2 – VRS Plan 2 is a defined benefit plan. The retirement benefit is based on your age, creditable service and average final compensation at retirement using a formula. Employees whose membership date is July 1, 2010 or later, or their membership date is before July 1, 2010 and they were not vested (had less than five years of service credit) as of January 1, 2013, are covered under the provisions of the VRS Plan 2.
- Hybrid — The Hybrid Retirement Plan combines the features of a defined benefit plan and a defined contribution plan. The plan applies to most members hired on or after January 1, 2014, and to VRS Plan 1 and VRS Plan 2 members who were eligible to opt into the plan during a special election window (January 1 – April 30, 2014). The defined benefit is based on your age, creditable service and average final compensation at retirement using a formula. The benefit from the defined contribution plan depends on the contributions made to the plan and the investment performance of those contributions. In addition to the monthly benefit payment payable from the defined benefit plan at retirement, you may start receiving distributions from the balance in your defined contribution account, reflecting the contributions, investment gains or losses, and any required fees. This plan also includes a long-term and short-term disability policy provided by a private insurance carrier.
- VRS webpage www.varetire.org
