VRS Handbook for Members - Virginia Retirement System

Retirement
Benefit-Unreduced
Under the VRS Plan 1, you are eligible for an unreduced benefit at age 65 with at least five years of service credit
or at age 50 with at least 30 years of service credit.
Retirement Date
The effective date of retirement is the first of the month.
Retirement
Multiplier
The retirement benefit under the VRS Plan 1 is based on a multiplier of 1.7 percent.
Rollover
A rollover is a contribution of a pre-tax lump-sum payment, such as a refund or a Partial Lump-Sum Option
Payment (PLOP), to an Individual Retirement Account (IRA) or another qualified plan. A rollover allows you to
defer income taxes until you withdraw the money from your plan.
Service Credit
Service credit is credit for service earned as a VRS defined benefit member. Members earn service credit for each
month they are reported in a covered position. Service credit also may include credit for prior service a member
may have purchased or additional service credit granted by an employer. Service credit is one of the factors used
to calculate the VRS retirement benefit and determine eligibility for retiree benefits.
Service Retirement
Service retirement is another term for regular retirement.
Survivor Option
The Survivor Option is one of the benefit payout options available at retirement. Under the Survivor Option, you
elect to continue a monthly benefit to a survivor upon your death. This option reduces your monthly benefit. You
can name any living person as your survivor; you also can name more than one survivor.
Vesting
You become vested when you have at least five years (60 months) of service credit. Vesting is the minimum
length of service needed to qualify for a retirement benefit, if you meet the age and service requirements for your
plan, or to receive any contributions made by your employer to your member contribution account after July 1,
2010 should you leave covered employment and request a refund.
83 | CH 15 • VIRGINIA RETIREMENT SYSTEM Plan 1