VRS Handbook for Members - Virginia Retirement System
VRS Handbook for Members - Virginia Retirement System
VRS Handbook for Members - Virginia Retirement System
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• If you are eligible <strong>for</strong> a Social Security Disability Insurance (SSDI) benefit, the<br />
<strong>VRS</strong> minimum guaranteed benefit will be equal to 50 percent of your average<br />
final compensation. You will receive the minimum guaranteed benefit or the<br />
full <strong>VRS</strong> <strong>for</strong>mula amount, whichever is higher, until the effective date of your<br />
eligibility <strong>for</strong> SSDI. <strong>VRS</strong> will then adjust your benefit to 33⅓ percent of your<br />
average final compensation; you will receive this amount if it is higher than<br />
the full <strong>VRS</strong> <strong>for</strong>mula amount. If applicable, this adjustment will be retroactive<br />
to your effective SSDI eligibility date and reflected in your <strong>VRS</strong> benefit.<br />
• If you are not eligible <strong>for</strong> a full Social Security benefit and your SSDI claim is<br />
denied, the <strong>VRS</strong> minimum guaranteed benefit will be equal to 50 percent of<br />
your average final compensation. You will receive the minimum guaranteed<br />
benefit or the full <strong>VRS</strong> <strong>for</strong>mula amount, whichever is higher. You must<br />
submit a copy of your SSDI denial letter or your letter appealing the denial<br />
with your <strong>VRS</strong> disability retirement application.<br />
What are Primary Social Security Benefits?<br />
The amount of the non-work related minimum guaranteed benefit or the work-related<br />
guaranteed benefit is adjusted by any primary Social Security benefits you are eligible to<br />
receive. A primary Social Security benefit is a full (normal) Social Security retirement benefit<br />
or a Social Security Disability Insurance (SSDI) benefit. If you are not eligible <strong>for</strong> full Social<br />
Security when you retire on <strong>VRS</strong> disability, even if you qualify <strong>for</strong> an early Social Security<br />
retirement benefit, you must apply <strong>for</strong> benefits under SSDI. A Social Security age chart is<br />
provided in Chapter 12-Receiving <strong>Retirement</strong> and Deferred Compensation Plan Payments.<br />
Coordinating Your Applications <strong>for</strong> SSDI and <strong>VRS</strong> Disability <strong>Retirement</strong><br />
Be sure to include a copy of the Receipt of Application, decision letter or online application<br />
confirmation you receive from the Social Security Administration with your <strong>VRS</strong> disability<br />
retirement application. If you do not provide this in<strong>for</strong>mation and your <strong>VRS</strong> disability<br />
retirement application is approved, <strong>VRS</strong> will be required to pay 33¹⁄ ³ percent of your average<br />
final compensation or the full <strong>VRS</strong> <strong>for</strong>mula amount, whichever is less. Note: If you apply <strong>for</strong><br />
SSDI be<strong>for</strong>e you leave your position, your SSDI application may be denied based on your<br />
current income. A denial of SSDI benefits will result in your receiving the lesser amount.<br />
Work-Related <strong>Retirement</strong> Disability Benefit<br />
If you suffer an occupational illness or injury on the job and the cause is<br />
determined to be compensable under the <strong>Virginia</strong> Workers’ Compensation Act,<br />
you may be eligible to retire on work-related disability. <strong>VRS</strong> does not determine<br />
whether your disability is work-related; you must file a claim under the act. If you<br />
41 | CH 7 • VIRGINIA RETIREMENT SYSTEM Plan 1
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