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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Taxes on refunds. If you have your refund paid directly to you, <strong>VRS</strong> will withhold<br />
federal taxes of 20 percent and, if you live in <strong>Virginia</strong>, state taxes of 4 percent.<br />
Any after-tax member contributions in your refund will not be taxed again.<br />
If you have your refund paid directly to you be<strong>for</strong>e age 59½, the Internal<br />
Revenue Service (IRS) may impose an additional 10 percent tax penalty <strong>for</strong> early<br />
withdrawal of member contributions; there are exceptions to this rule.<br />
You can defer taxes by rolling over your refund to an Individual <strong>Retirement</strong><br />
Account (IRA) or another qualified plan that accepts rollovers. For more<br />
in<strong>for</strong>mation, read the IRS 402(f) Special Tax Notice available at www.varetire.org;<br />
or contact a tax advisor or the IRS toll free at 1-800-829-1040 or www.irs.gov.<br />
Becoming a Deferred Member<br />
If you leave your member contributions with <strong>VRS</strong>, you will become a deferred<br />
member. If you are vested, you may be eligible <strong>for</strong> a future retirement benefit<br />
if you meet the age and service requirements <strong>for</strong> your plan. For in<strong>for</strong>mation on<br />
qualifying <strong>for</strong> retirement, see Chapter 2-Your <strong>Retirement</strong> Plan. If you return to<br />
covered employment, member contributions and the service credit you earn upon<br />
reemployment will be added to your member record.<br />
As a deferred member, you will remain eligible to request a refund of your<br />
member contributions and interest. You will receive a full or partial refund, as<br />
described on the previous page.<br />
Deferring retirement. If you have reached retirement eligibility when you leave<br />
covered employment, you can defer receiving a retirement benefit until a later<br />
date. If you decide to defer retirement, submit an Application <strong>for</strong> Service<br />
<strong>Retirement</strong> (<strong>VRS</strong>-5) to <strong>VRS</strong> at least 60 days, but not more than four months (120<br />
days), be<strong>for</strong>e the date you wish to retire. For more in<strong>for</strong>mation about applying <strong>for</strong><br />
retirement, see Chapter 11-Getting Ready to Retire.<br />
Be<strong>for</strong>e Leaving Your<br />
Position – If you are not<br />
taking a refund, submit a Name<br />
and Address Declaration <strong>for</strong><br />
Deferred <strong>Members</strong> (<strong>VRS</strong>-3A)<br />
to <strong>VRS</strong>. Use the <strong>VRS</strong>-3A to<br />
notify <strong>VRS</strong> of any future<br />
address changes. The <strong>for</strong>m is<br />
available at www.varetire.org.<br />
<strong>VRS</strong> communication. As a deferred member, you will have access to my<strong>VRS</strong> where<br />
you can view in<strong>for</strong>mation from your member record and plan <strong>for</strong> retirement<br />
online. If you are vested when you leave employment, you also will receive a<br />
Member Benefit Profile (MBP), your annual online benefits statement. You<br />
can view and print your MBP from my<strong>VRS</strong>. To log in or create a secure online<br />
account, select my<strong>VRS</strong> Access from www.varetire.org.<br />
Moving to Another Covered Position?<br />
If you move to another covered position, you will come under the plan provisions of the new<br />
position <strong>for</strong> retirement and other benefits. For more in<strong>for</strong>mation, refer to the current member<br />
handbooks available at www.varetire.org or contact your human resource office.<br />
55 | CH 10 • VIRGINIA RETIREMENT SYSTEM Plan 1
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