VRS Plan Enrollment
What is VRS?
VRS stands for the Virginia Retirement System. VRS is an independent state agency that delivers retirement (pension) and other benefits to covered Virginia public sector employees.
How can I participate in VRS?
Loudoun County Public Schools full-time benefited employees are automatically enrolled in the Virginia Retirement System as a condition of their employment. All VRS-eligible employees contribute 5% of creditable compensation toward their VRS benefit each year. Deductions come out of 24 of employee's bi-weekly paychecks each year.
Are there different plans available through VRS?
Yes, VRS currently has three (3) plans: VRS Plan 1, VRS Plan 2 and VRS Hybrid Plan.
You will be automatically enrolled in one of these plans based on your date of hire and previous VRS status (if applicable).
How is it determined what plan I will be enrolled in?
The following criteria determines VRS plan placement:
Plan 1: An employee must have been hired or rehired before July 1, 2010, has at least five (5) years of service credit as of January 1, 2013 and has not taken a refund.
Plan 2: An employee must have been hired or rehired on or after July 1, 2010, does not have at least five (5) of service credit as of January 1, 2013 and has not taken a refund.
Hybrid Plan: Members hired on or after January 1, 2014 and have no previous service credit are eligible to participate.
Can I choose the retirement plan I want to enroll in?
No, you cannot choose your retirement plan. Your date of hire, position, and previous VRS status, if applicable, will determine the plan in which you are enrolled.
How does my retirement plan work?
Visit our VRS Retirement Plan webpages for basic information on each plan and links to VRS resources.
What other benefits does VRS offer?
The following are additional benefits that Loudoun County Public Schools has opted for employees. Click on the links for further information.
Applying For Retirement And Retirement Benefits
When am I eligible to retire?
Retirement eligibility is based on the VRS Plan in which you are a member. You may qualify for Unreduced (full) or Reduced (Early) retirement benefits.
VRS Plan Summary | VRS Plan 1 | VRS Plan 2 | Hybrid Retirement Plan |
|---|---|---|---|
Normal Retirement Age | VRS: Age 65 | VRS: Normal Social Security retirement age | -Defined Benefit is the same as VRS Plan 2 -Defined Contribution when you leave employment, is subject to restrictions |
Earliest unreduced retirement eligibility | VRS: Age 65 with at least five years of service credit or age 50 with at least 30 years of service credit | VRS: Normal Social Security retirement age with at least five years of service or when your age and service credit equal 90. Example: Age 60 with 30 years of service credit. | -Defined Benefit is the same as VRS Plan 2 -Defined Contribution when you leave employment is subject to restrictions |
Earliest reduced retirement eligibility | VRS: Age 55 with at least five years of service credit or age 50 with at least 10 years of service credit | VRS: Age 60 with at least five years of service credit | Defined Benefit is the same as VRS Plan 2 |
What is "vesting" and when am I vested in VRS?
Vesting is the minimum amount of service needed to qualify for a future retirement benefit when you meet the age and service requirements for your plan. An individual is vested in their VRS retirement plan when they have at least 5 years of service.
What is creditable service and how does it count towards my retirement?
Creditable service includes active service for each month members work in a covered position as well as credit for prior service they may purchase or additional service they may be granted. Creditable service counts toward vesting in Plan 1, Plan 2 and both components of the Hybrid Retirement Plan. Creditable service is used to determine members' eligibility for retirement and to calculate their retirement benefit in their defined benefit plan. It also counts towards qualifying for the retiree health insurance credit offered by VRS.
How is my retirement benefit calculated?
The amount of an unreduced retirement benefit is based on a percentage of your average final compensation multiplied by your total years of creditable service at retirement. The percentage is called a retirement multiplier. If you retire with a reduced benefit, VRS will apply an early retirement reduction factor to the benefit you would receive if you retired with an unreduced benefit.
Average Final Compensation:
VRS Plan 1: The average of your highest 36 months of salary.
VRS Plan 2 and Hybrid: The average of your highest 60 months of salary.
Retirement Multiplier:
VRS Plan 1: 1.7%
VRS Plan 2: 1.65%
VRS Hybrid Plan: 1%
Average Final Compensation x Retirement Multiplier x Number of Years of Creditable Service = Annual Basic Benefit Amount
How can I purchase credit for prior or additional service?
If you have service from previous public employment or certain periods of leave, you may be eligible to purchase this service as credit in your plan. Eligible types of prior service include:
Active duty military service
Full-time salaried federal or public service other than previous VRS service
Non-covered service with a VRS-participating employer
Approved leave for the birth or adoption of a child or approved educational leave
VRS refunded service
Workers' compensation leave
No-cost military leave
Non-ported service
Sick leave conversion at retirement if you are eligible
For more information and how to apply, see Purchase of Prior Service.
How do I apply for retirement?
The Applying for Retirement page of the Employee Health Wellness and Benefits website provides instructions.
Start by logging into your myVRS account to create retirement estimates and review benefit payout options.
Then, call VRS to talk to a VRS Member Counselor that will help you to understand your options and how to apply for VRS retirement.
Once you are ready, apply for VRS retirement online with VRS.
Then, submit your voluntary separation in Oracle Self Service
Complete any of the applicable LCPS paperwork.
How will my retirement benefit be paid to me?
VRS pays a monthly retirement benefit via direct deposit into the account of your choice. The amount of the payment is based on a formula and the benefit payout option you choose.
When you apply for retirement, you elect how you want to receive your benefit. There are four payout options: Basic Benefit, Survivor Option, Partial Lump-Sum Option Payment (PLOP) and Advance Pension Option. The option you elect is irrevocable, meaning you cannot change it once you retire with the exception of the Survivor Option under some circumstances. For more information, see website.
What benefits do I get when I retire?
VRS retirement benefits may include:
an annual cost-of-living adjustment (COLA)
group life insurance coverage
health insurance credit (retirees with 15+ years of service at retirement)
You may be eligible for other LCPS-provided retirement benefits such as retiree health insurance, a sick leave payout or a salary supplement. See Policy 7628 - Retirement Benefits for eligibility requirements and additional details.
What is the PLOP?
If you work at least one year beyond the date you are eligible for an unreduced retirement benefit, you may elect to receive a one-time Partial Lump-Sum Option Payment (PLOP). You may elect up to three times the amount of your annual Basic Benefit. The amount depends on how long you work beyond your eligibility for an unreduced retirement.
Partial Lump Sum Option (PLOP) Payment Amounts
Active Service Beyond Unreduced Retirement Eligibility Date | PLOP Amount | Example |
|---|---|---|
12 months | 1 x Annual Basic Benefit amount (1-year PLOP) | $26,928 |
24 months | 1 or 2 x Annual Basic Benefit amount (1-year or 2-year PLOP) | $26,928 or $53,856 |
36 months or more | 1, 2 or 3 x Annual Basic Benefit amount (1-year or 2-year or 3-year PLOP) | $26,928 or $53,856 or $80,784 |