VRS Offers New Retirement Option
Posted: December 21, 2013
In January 2014, the Virginia Retirement System (VRS) is introducing a new “hybrid” retirement plan that combines the features of the traditional VRS defined benefit plan with those of a defined contribution plan. Defined benefit plans produce a consistent pay out after retirement, based on a formula, while defined contribution plans produce a pay out after retirement based on investment earnings. The new plan has both required and voluntary contributions, and payouts are based on both a formula and on investment.
All employees who are currently enrolled in VRS are eligible to move to this new plan. The opt-in period runs from Jan. 1, 2014, through April 30, 2014, with an effective date of July 1, 2014. If you choose to change to the hybrid plan, there are specific, detailed steps you must take to enroll.
VRS is offering in-person sessions, webinars, FAQs and other resources to help employees understand the new plan, along with a new Hybrid Retirement Plan Support Team, available by phone Monday-Friday, 8:30 a.m. - 5:00 p.m. at 1.855.291.2285 (toll free). Find out more at http://www.varetire.org/.
Questions? Contact the HR Service Center at 982.0123 or email AskHR@virginia.edu.