your retirement: a handbook for hybrid plan retirees...your retirement a handbook for hybrid plan...

YourRetirementA HANDBOOK FOR HYBRID RETIREMENT PLAN RETIREES

Your Retirement A Handbook for Hybrid Plan Retirees / 3

Your RetirementA HANDBOOK FOR HYBRID RETIREMENT PLAN RETIREES

You are in the VRS Hybrid Retirement Plan if your membership date is on or after January 1, 2014, and you are:

• A general state employee.

• A teacher or other professional employee of a local public school division.

• A general employee of a VRS-participating political subdivision (city, county, town, authority, commission) or non-professional employee of a public school division.

• A local law enforcement officer, firefighter or emergency medical technician whose employer does not provide enhanced hazardous duty benefits or the Hazardous Duty Alternate Option.

• An employee who elected the Hybrid Retirement Plan instead of an optional retirement plan (ORP) authorized or administered by VRS.

• An employee who was in VRS Plan 1 or VRS Plan 2 and elected to transfer to the VRS Hybrid Retirement Plan, effective July 1, 2014.

• A justice or judge of a court of record of the Commonwealth of Virginia, judge of a district court of the Commonwealth of Virginia other than a substitute judge, or a commissioner of the State Corporation Commission or the Virginia Workers’ Compensation Commission if you were appointed or elected to an original term on or after January 1, 2014. Please see the Judicial Retirement System Handbook for Members for your plan information.

VRS MISSION:VRS delivers retirement and other benefits to Virginia public employees through sound

financial stewardship and superior customer service.

Note: The information contained in this document is governed by Title 51.1 of the Code of Virginia, as

well as other applicable laws. This information is intended to be general. It cannot be complete in all

details and cannot supersede or restrict the authority granted by the Code of Virginia, which may be

amended from time to time.

CONTACT VRS

Website: www.varetire.org/hybridToll-free: 1-855-291-2285Email: [email protected]

Important email notice: Do not send personal or confidential information, such as your Social Security number, by email.VRS will send only non-confidential replies.

VRS Retirement Counseling Center: 1111 East Main StreetRichmond, VA 23219 Hours: Monday-Friday 8:30 a.m. – 4 p.m. ET

Visit www.varetire.org for directions tothe center and the parking deck; the first hour of parking is free.

VRS Administrative Offices: 1200 East Main StreetRichmond, VA 23219Mailing Address: P.O. Box 2500, Richmond, VA 23218-2500

Contact ICMA-RCRecord keeper for the defined contribution component

of the Hybrid Retirement PlanWebsite: www.varetire.org/hybrid Toll-free: 1-877-327-5261, select option 1 TDD: 1-800-669-7471 Email: [email protected]

ICMA-RC Virginia Service Center:951 E. Byrd Street, Suite 530, Richmond, VA 23219

Hours: Monday-Friday 8:30 a.m. – 5 p.m. ETMailing Address:777 N. Capitol St. NE, Suite 600,Washington, DC 20002

http://www.varetire.org/hybridmailto:[email protected]://www.varetire.org/hybridmailto:[email protected]


BENEFIT INFORMATION AND PLANNING RESOURCES

WEBSITES: • www.varetire.org/hybrid – Hybrid Retirement Plan benefit information

• myVRS.varetire.org/login – Your secure online account

• www.varetire.org/dcp-login – Hybrid Retirement Plan Account Access

RETIREE FORMSAll the forms you may need in retirement are online at www.varetire.org/hybrid. Use the fillable PDF forms or print and fill manually. You also can request a form from VRS. Call 1-855-291-2285.

• Designation of Beneficiary – Defined Benefit Plan (VRS-2)

• Designation of Beneficiary – Hybrid Defined Contribution Plans

• Request for Income Tax Withholding (VRS-15)

• Request for Health Insurance Credit (VRS-45)

• Authorization for Direct Deposit of Monthly Benefit (VRS-57)

• Name and Address Declaration for Retirees (VRS-58)

• Authorization to Discuss VRS Account Information (VRS-900)

• VRS Durable Power of Attorney (VRS-901)

• State Health Benefits Program Enrollment Form for Retirees, Survivors and LTD Participants

(T-20879) (Department of Human Resource Management form for state employees)

• Authorization of Coverage Retention for the Long Term Care Plan (VSDP or VLDP) (VRS-170)

• Group Life Insurance Enrollment (VRS-35E)

• Assignee’s Change of Beneficiary (VRS-38)

• Request for Change Under Optional Group Life Insurance Plan (VRS-39A)

• Retiree Optional Life Continuation (VRS-39R)

• Absolute Assignment of Group Life Insurance (VRS-37)

VRS BENEFIT CONTACTS• Commonwealth of Virginia 457 Deferred Compensation Plan: ICMA-RC, 1-877-327-5261; www.

varetire.org/457. Information on your options if you participate in the Commonwealth’s 457 Plan.

• Group Life Insurance Program: Securian Financial, 1-800-441-2258. Information on life insurance coverage if you are covered under the VRS Group Life Insurance Program.

• Virginia Sickness and Disability Program (VSDP) Long-Term Care Plan (State Employees): Long Term Care Group Inc., 1-800-761-4057. If you are covered under the program and need services, contact the Long Term Care Group Inc. to file a claim.

• Virginia Local Disability Program (VLDP) Long-Term Care Plan: Long-Term Care Group Inc., 1-800-761-4057. If you are covered under the program and need services, contact the Long Term Care Group Inc. to file a claim.

http://www.varetire.org/hybridhttp://myVRS.varetire.org/loginhttp://www.varetire.org/dcp-loginhttps://web1.lifebenefits.com/public/lbwem/New VRS-38 - Assignees Change of Bene.pdfhttps://web1.lifebenefits.com/public/lbwem/New 53411 Request Change Op.pdfhttps://web1.lifebenefits.com/public/lbwem/56050 Retiree Optional Continuation 2-2018 no sec.pdfhttps://web1.lifebenefits.com/public/lbwem/New VRS-37 - Absolute Assignment.pdf

6 / varetire.org/hybrid • 1-855-291-2285

HEALTH BENEFITS• Anthem Blue Cross/Blue Shield (state employees): 1-800-552-2682; www.anthem.com.

Information about health insurance coverage if you are a state retiree and elected the State Retiree Health Benefits Program.

• Medicare: 1-800-633-4227; www.medicare.gov. Information on Medicare benefits and how to file a claim.

• Virginia Department of Human Resource Management (state employees): 804-225-3642 in Richmond or 1-888-642-4414, www.dhrm.virginia.gov. Health care information for state retirees.

SOCIAL SECURITY• Social Security Administration: 1-800-772-1213; www.ssa.gov. Information on benefits and

applying for Social Security or disability insurance benefits online.

• Social Security Online for Women: 1-800-772-1213; www.ssa.gov/women. What every woman should know about Social Security, retirement and Medicare.

TAXES• Internal Revenue Service: 1-800-829-1040; www.irs.gov. For help with income taxes,

including Publication 575 “Pension and Annuity Income for Filing Tax Returns” and other publications for retirees.

• Virginia Department of Taxation: 804-367-8031; www.tax.virginia.gov. Forms and information on filing your Virginia tax returns.

OTHER AGENCIES AND ORGANIZATIONS• Administration for Community Living: www.acl.gov. Connects you to services that help

you maintain health and independence.

• Benefits Checkup: www.benefitscheckup.org. This service of the National Council on Aging helps you find federal, state, local or private programs that help pay for prescription drugs, utility bills, meals, health care and other needs.

• Center for Medicare Advocacy (CMA): www.medicareadvocacy.org. This organization advocates for Medicare and educates Medicare participants.

• National Council on Aging (NCOA); www.ncoa.org. Coordinating information on health insurance and improving seniors’ financial and physical health.

• Road Scholar: 1-800-454-5768; www.roadscholar.org. Connections to educational travel around the world.

• Senior Connections: 1-800-989-2286; www.seniorconnections-va.org. Offers a comprehensive range of home and community-based services for Central Virginia.

• Office of Aging Services of the Division for Community LIving: 1-800-552-3402; www.vda.virginia.gov. Works with local Area Agencies on Aging and other public and private organizations to help older Virginians find services and information.

1 RETIREMENT AND YOUR HYBRID RETIREMENT PLAN 8Welcome to RetirementDefined Benefit Component Defined Contribution Component

2 YOUR ONLINE ACCOUNTS HELP YOU STAY CONNECTED 14Using myVRS Using Account AccessUsing ICMA-RC’s Self-Service Phone LineSecurity and Privacy Online

3 OTHER SOURCES OF RETIREMENT INCOME 19Social Security Commonwealth of Virginia 457 Deferred Compensation and Cash Match Plans

4 LIFE INSURANCE COVERAGE IN RETIREMENT 22Basic Group Life Insurance Optional Group Life Insurance Naming Your Beneficiary

5 HEALTH INSURANCE IN RETIREMENT 26Eligibility for the State Retiree Health Benefits ProgramMedicare Benefits Receiving the Health Insurance Credit

6 LONG-TERM CARE 31Virginia Sickness and Disability Program Long-Term Care Plan and Virginia Local Disability Program Long-Term Care PlanQualifying for Benefits

7 LIFE CHANGES 33Changing the Survivor OptionDivorce Power of AttorneyInformation for Your Loved Ones

8 WORKING AFTER RETIREMENT 36Returning to Non-Covered Employment Teaching While Retired Retired Faculty Returning to Covered Employment Return to Work in a VRS-Covered PositionRetiring Again

9 FREQUENTLY USED TERMS 42

10 ABOUT VRS 49

TABLE OF CONTENTS

WELCOME TO RETIREMENT The Virginia Retirement System (VRS) had the privilege of serving you during your working life, providing you with benefit services, counseling and retirement planning. Now that you are retired, VRS continues to be your guide, helping you make the most of life in retirement. Your retiree handbook provides information on your benefit payments, taxes, life and health insurance and other resources.

Your VRS benefits in retirement include:

• A monthly payment from your defined benefit account.

• The investments and savings you earned in your defined contribution account, when you choose to take a distribution or annuity.

• Life insurance coverage, if eligible.

• Health insurance credit to help with the cost of your health insurance premiums, if you are eligible.

• Access to myVRS, your VRS online account with benefit information and tips for making the most of retirement.

• Account Access, your secure online link to your defined contribution retirement account.

• Workshops, seminars and one-on-one counseling.

The Hybrid Retirement Plan has a defined benefit component and a defined contribution component.

At retirement your benefit amount from the defined benefit component amount is based on a formula using your age, creditable service and average final compensation.

Your benefit from the defined contribution component depends on the contributions you made while working, your employer’s contributions to your account and their investment performance.

The defined benefit and defined contribution components, along with Social Security and other savings, are the basis of your retirement income.

Defined Benefit Component

YOUR BENEFIT PAYMENTS• You receive your first benefit payment on the first of the month after the month you retire.

Example: You retired July 1; your first payment is August 1 for the month of July.

• VRS deposits your monthly benefit payment to the financial institution account you named when you retired.

Retirement and Your Hybrid Retirement PlanWelcome to RetirementDefined Benefit Component Defined Contribution Component

1

https://myvrs.varetire.org/register/https://accountaccess.icmarc.org/participant/login_vrs.jsphttp://www.varetire.org/retirees/education/index.asphttp://www.varetirement.org/hybrid/education.html


• Your payment is deposited on the first day of the month for the preceding month’s benefit.

• If the first day of the month falls on a weekend or holiday, payment is deposited on the last business day of the preceding month. Example: September 1 is a Saturday; your benefit is deposited on Friday, August 31.

IF YOU CHANGE YOUR DIRECT DEPOSIT ACCOUNTComplete and submit a new Authorization for Direct Deposit of Monthly Benefit (VRS-57) to VRS as soon as possible. Locate the fillable form at www.varetire.org/hybrid.

You will receive a retirement benefit statement from VRS showing the effective date of the direct deposit in your new account. Do not close your old account until your direct deposit begins in your new account. Verify your new deposit information through myVRS.

VRS Calculates the Defined BenefitYour benefit amount is based on a number of factors:

AVERAGE FINAL COMPENSATIONAverage of your 60 consecutive months of highest creditable compensation.

CREDITABLE SERVICE Includes active service and credit for any service you purchased or additional service you were granted. Counts toward vesting under the defined benefit and defined contribution components.

RETIREMENT MULTIPLIER Determines how much of your average final compensation is used to calculate the defined benefit component of your retirement benefit. The Hybrid Retirement Plan multiplier for the defined benefit component is 1.0 percent.

DEFINED BENEFIT MULTIPLIER FOR OPT-IN MEMBERSIf you were previously in Plan 1 or Plan 2 and opted into the Hybrid Retirement Plan between January 1 and April 30, 2014, the defined benefit multiplier reflects the period when you earned the service.

• Plan 1: 1.7 percent multiplier applied to service earned, purchased or granted before July 1, 2014, and 1 percent multiplier applied to service earned, purchased or granted after July 1, 2014.

• Plan 2: 1.7 percent multiplier applied to service earned, purchased or granted before January 1, 2013; a 1.65 percent multiplier for the service between January 1, 2013, and June 30, 2014; and a 1 percent multiplier for service after July 1, 2014.

http://www.varetire.org/hybrid


COST-OF-LIVING ADJUSTMENT (COLA)Cost-of-living adjustments allow your defined benefit to keep pace with inflation. The COLA is based on the Consumer Price Index for all Urban Consumers (CPI-U) published by the U.S. Bureau of Labor Statistics and is updated each July 1, effective with the retirement benefit paid in August. During years of no inflation or deflation, the COLA is 0 percent.

YOUR COLA EFFECTIVE DATE• If you retired with an unreduced benefit or a reduced benefit with at least 20 years

of service credit: You receive a COLA on July 1 after one full calendar year (January 1 to December 31) from your retirement date. Example: If you retired on July 1, 2018, the first COLA opportunity will be July 1, 2020, and will appear in your August 2020, benefit payment.

• If you retired with a reduced benefit and fewer than 20 years of service credit: You will receive a COLA on July 1 after one full calendar year (January 1 to December 31) from the date you would have become eligible for an unreduced benefit. Example: If your unreduced retirement eligibility date is October 1, 2021, but you retire on November 1, 2018, and have fewer than 20 years of service credit, the first COLA opportunity will be July 1, 2023, and appear in your August 1, 2023, benefit payment.

EXCEPTIONS TO COLA EFFECTIVE DATESYour COLA will go into effect on July 1 following one full calendar year (January 1 to December 31) from the date your monthly benefit begins if:

• You were within five years of qualifying for an unreduced retirement benefit as of January 1, 2013.

• You retire directly from short-term or long-term disability under the Virginia Sickness and Disability Program (VSDP), Virginia Local Disability Program (VLDP) or an employer-sponsored disability program.

• You are involuntarily separated from employment for causes other than job performance or misconduct and are eligible to retire under the Workforce Transition Act or the Transitional Benefits Program.

• You die in service and your survivor or beneficiary is eligible for a monthly death-in-service benefit.

HOW THE COLA IS CALCULATED UNDER YOUR PAYOUT OPTION• Basic Benefit or Advance Pension Option: COLA is based on your Basic Benefit amount.

• Basic Benefit with Partial Lump-Sum Option Payment (PLOP), Survivor Option or Survivor Option with PLOP: COLA is based on your reduced benefit amount.

TAXES ON YOUR DEFINED BENEFIT COMPONENTThe defined benefit component of your retirement benefit is subject to federal income taxes and, if you live in Virginia, state income taxes. If your benefit includes after-tax contributions made to your member contribution account while you were employed, this portion of your benefit will not be taxed again.

VRS does not withhold defined benefit taxes for other states. If you change your primary residence to another state and are having Virginia income taxes withheld, update your tax withholdings as soon as possible through your online myVRS account or by submitting the Request for Income Tax Withholding (VRS-15) to VRS. You can find the form at www.varetire.org/hybrid or you can request a copy by calling 855-291-2285.


Defined Contribution ComponentThe defined contribution component of the VRS Hybrid Retirement Plan is based on contributions and net investment earnings on these contributions. Contributions consist of mandatory and voluntary contributions made by you and your employer while you were working.

The defined contribution component combines two plans:

• Hybrid 401(a) Cash Match Plan – You contributed a mandatory 1 percent of your creditable compensation each month to your 401(a) plan account. Your employer also contributed a mandatory 1 percent and matching contributions on any voluntary contributions you made, which were deposited to this account. Money in the 401(a) is tax-deferred until withdrawn.

• Hybrid 457 Deferred Compensation Plan – Any voluntary contributions you made (up to 4 percent of creditable compensation) are tax-deferred until you withdraw the money from your plan.

During your career, you managed the investments and related risk for this component of the plan.

MANAGING YOUR DEFINED CONTRIBUTION FUNDS AT RETIREMENTYour Hybrid 401(a) and Hybrid 457 Plan contributions and any employer matching contributions stopped when you left your position. You can:

• Leave your money in your account and continue to manage your investments. Your pre‐tax account continues to be tax‐ deferred.

• Use your Hybrid 457 Plan to consolidate your retirement funds from other qualified employer plans or Individual Retirement Accounts (IRAs).

• Request a payment (distribution) from your plan. A variety of distribution options are available.

• Roll over money from your Hybrid 457 Plan or Hybrid 401(a) account to another qualified employer plan or IRA.

• Purchase an annuity. Your plan offers an annuity product through MetLife.

What Retirement Option Did You Choose?You receive your defined benefit according to the payout option you chose when you applied for retirement.

BASIC BENEFIT: Based on your age at retirement, years of service credit and average final compensation.

SURVIVOR OPTION: You are receiving a lower monthly benefit during retirement so that your survivor can receive a monthly benefit after your death.

BASIC BENEFIT WITH PARTIAL LUMP-SUM OPTION PAYMENT (PLOP) OR SURVIVOR OPTION WITH PLOP: If you selected the Basic Benefit or the Survivor Option and worked at least one year beyond the date you became eligible for an unreduced retirement benefit, you could choose to receive a one-time Partial Lump-Sum Option Payment (PLOP). This option reduces your monthly benefit.

ADVANCE PENSION OPTION: Your monthly benefit was increased temporarily. It will be permanently decreased at the age you selected at retirement, between age 62 and your normal retirement age under Social Security.


THERE ARE ADVANTAGES TO KEEPING YOUR MONEY IN THE PLAN:• The VRS defined contribution plans offer low administrative fees and investment options

that are competitively priced compared to other investment options.

• If you leave your funds in the plan, they remain tax deferred and you continue to benefit from compound interest.

• You can continue to manage your investments.

• You can roll other accounts, such as traditional IRAs, into your Hybrid 457 plan account.

• Defined contribution plans retirement specialists offer no-cost counseling to help you transition to retirement and beyond.

DISTRIBUTIONSA distribution is a payment from your defined contribution accounts. Distributions may begin following a bona fide break in service from your last day of employment. A bona fide break in service is a break of at least one full calendar month from your last day of employment that occurs during a period you normally would work. Leave with or without pay, summer breaks, intersession periods, educational leave and sabbaticals do not count toward satisfying this break in service.

You are required to take your first minimum distributions by April 1 of the calendar year following the later of: 1) the calendar year in which you reach age 70½, or 2) the calendar year in which you terminate employment from the employer sponsoring your plan.

Requesting a distribution: Submit the Distribution/Direct Rollover/Transfer form to ICMA-RC. Attn: Workflow Management Team, P.O. Box 96220, Washington, DC 20090-6220; Fax: 202-682-6439. The form is available at www.varetire.org/hybrid under Forms.

Separate forms are required for distributions from the Hybrid 457 Deferred Compensation Plan and the Hybrid 401(a) Cash Match Plan.

To learn more about distribution options, call ICMA-RC at 1-VRS-DCPlan1 (1-877-327-5261, select option 1) and ask to speak with an Investor Services Representative.

TAXES ON YOUR DEFINED CONTRIBUTION COMPONENTGenerally, if you have a distribution paid directly to you, ICMA-RC will withhold federal taxes of

20 percent and, if you live in Virginia, state taxes of 4 percent. However, you may request to have

additional taxes withheld at the time of distribution. If you take a distribution from the Hybrid

401(a) Cash Match Plan paid directly to you before age 59½, the Internal Revenue Service (IRS)

may impose an additional 10 percent tax penalty for early withdrawal; there are exceptions to this

FELONY CONVICTIONIf you are convicted of

a felony related to your

VRS-covered employment,

your employer at the

time may direct that your

employer contributions

and related benefits be

forfeited. If you have

questions, please contact

the human resource office

of your former employer.


rule. There is no early withdrawal penalty if you take a distribution from the Hybrid 457 Deferred

Compensation Plan upon leaving employment. For more information, read the IRS 402(f) Special

Tax Notice available at www.varetirement.org/hybrid/publications or contact a tax advisor or the

IRS toll-free at 1-800-829-1040 or www.irs.gov.

Account Access provides an overview of your savings, including a history of your transactions, beneficiary designations and investment information for your Hybrid 457 Deferred Compensation and Hybrid 401(a) Cash Match Plan accounts. Log in at www.varetire.org/dcp-login.

YOUR DEFINED BENEFIT AND DEFINED CONTRIBUTION DISTRIBUTION TAXESYou receive a Form 1099-R from VRS each January for the previous calendar year’s defined benefit payments and tax withholdings. You also receive a Form 1099-R from ICMA-RC for any defined contribution account distributions. File these forms with your federal and state income tax returns.

The Form 1099-R shows:

• Your benefit payments.

• Taxes withheld.

• Other account information for the previous calendar year.

If you participate in the VRS Group Life Insurance Program and have imputed income, you will receive Form W2 from VRS. Imputed income is the cost of VRS group life insurance over $50,000 on the premiums paid by VRS and is subject to income taxes and FICA (Social Security and Medicare) taxes.

NEED TAX HELP? The IRS sponsors programs offering free tax-preparation assistance for taxpayers age 60 and older and for low-to-moderate income taxpayers who cannot prepare their own tax returns. For more information, call the IRS toll-free at 1-800-829-1040. In addition, the following IRS publications, available at www.irs.gov, focus on managing and filing taxes:

• Publication 907, Tax Highlights for Persons with Disabilities

• Publication 17, Your Federal Income Tax

• Form 1040 (Schedule R), Credit for the Elderly or the Disabled

• Publication 554, Tax Guide for Seniors

• Form W-4P, Withholding Certificate for Pension or Annuity Payments

When you retire, your connection with VRS continues through your secure myVRS online account for your defined benefit account and retirement benefits and through your Account Access and ICMA-RC Self-Service Phone Line for your defined contribution account.

http://www.varetire.org/dcp-login

Using myVRSIf you registered for myVRS while working, your account moves with you from active member

to retiree. You continue to use your secure myVRS member account username and password after you retire. Before you retire, check your profile information to ensure you are using an email address accessible to you after retirement. If you did not have an account, see registration information below.

Using myVRS (myVRS.varetire.org), you can view your monthly benefit payment, when and where it was deposited and other current information about your VRS benefits.

From the home page, Your Retirement at a Glance provides:

• Last Payment Date and Net Monthly Benefit Payment. Shows current payment information.

Under Detailed Payment Information, see your net

and gross payment amounts for the month and year,

your financial institution information and your health

insurance credit amount, if you are eligible, for the

month and year. Follow the Direct Deposit Schedule

to see the direct deposit dates for the year.

• Your Hybrid Defined Contribution account

balances (to make any changes to your

contribution amounts and investment options, go

to Account Access).

• Retirement Information Summary. Reflects the

selections you made at retirement, including your

retirement date, VRS plan type and your age at

retirement.

• Your Payment Destination. Shows the financial

institution and address where your benefit payment is

deposited, and the last four digits of your account number. Change your direct deposit account

by submitting the Authorization for Direct Deposit of Monthly Benefit (VRS-57).

IF YOU JUST RETIRED

When you log into your

account after applying for

retirement, a banner at the

top of the page will confirm

that VRS has received your

retirement application.

You will continue to see

your member information

until you receive your first

benefit payment. Once VRS

has issued your first benefit

payment, the information

in your myVRS account will

switch from active member

information to retiree

information.

Your Online Accounts Help You Stay ConnectedUsing myVRS Using Account AccessUsing ICMA-RC’s Self-Service Phone Line Security and Privacy Online

2

http://myVRS.varetire.org


QUICKLY FIND INFORMATION YOU NEEDLinks on every page help you navigate efficiently:

• Update My Profile. Change your address, phone number, username and password.

• Print your income verification. The details of your most recent benefit payment are included on the printed letter.

• View your federal and state tax information. Keep track of federal and state income tax withholdings and exemptions.

• Change Withholdings. Use the built-in calculator to enter different withholding amounts, review the impact on your monthly benefit and submit withholding changes.

• Review Your Cost-of-Living Adjustments (COLAs). View COLAs for the current year and last five years.

• Review Your Health Insurance Information. If you are a state employee who enrolled in the State Retiree Health Benefits Program, view the name of your plan, date of coverage and the premium amount.

• Review Your Health Insurance Credit Information. If you are eligible, see the amount you are receiving and your maximum health insurance credit.

• Review Your Life Insurance Information. View the amount of your basic group life insurance coverage.

TAKE ADVANTAGE OF EDUCATIONAL TIPS myVRS offers counseling information tailored to your needs, helpful guidance on your benefits and tips for getting the most out of your retirement, including practical pointers on managing your finances and using VRS resources.

REGISTERING FOR MYVRSIf you did not have a myVRS account as an active member, go to myVRS.varetire.org/register and follow the on-screen instructions. When logging in for the first time, you will need to verify your identity using one of the following methods:

QUESTIONS?Within myVRS you’ll

find the answers to

frequently asked

questions at the top of

each page under Help.

Can’t recall your

account username

or password? Click

on the Forgot User

Name feature on the

myVRS login page.

In many cases, you

can regain access to

your account. If you

get locked out of your

account, call VRS toll-

free at 855-291-2285.

For additional

questions,

call VRS or email

vrshybridsupport@

varetire.org.

http://myVRS.varetire.org/registermailto:vrshybridsupport%40varetire.org?subject=mailto:vrshybridsupport%40varetire.org?subject=


• Net Benefit Payment Amount: If you have received at least one monthly benefit payment in retirement, you may enter your net payment amount. Find this amount by referring to the most recent statement of benefits you received in the mail from VRS or by checking the VRS deposit amount on your most recent bank statement or online banking account.

• myVRS Access Code: If you retired within the last 90 days, you can use the one-time authentication code you received in the mail from VRS.

If you cannot access your myVRS account using one of these methods, you will answer security questions to confirm your identity. The information you provide is never shared outside of the verification process.

After you complete your initial login, you will need only your username and password for future access.

USING ACCOUNT ACCESSUse ICMA-RC’s Account Access at www.varetire.org/dcp-login to manage your defined contribution accounts, view summary information and see the details for each account 24 hours a day, seven days a week.

What you can do in Account AccessUnder Overview:

• Pick an account to view details.

• Review summary balance and return information for your accounts.

• Create fund comparisons for multiple funds.

• Access Your Brokerage account.

• Review up-to-date share price and performance information.

Under Access my Accounts:

• Review your personal information.

• Update your beneficiary.

Under Learning and Tools:

• Watch the Account Access webinar.

• View the Education section.

• Review Investment Path Strategies.

Under Messages and Alerts:

• View action items and messages.

• Send an email to ICMA-RC.

• Set up text access.

• Adjust statement and document delivery options.

• Set balance and account alert preferences.

https://accountaccess.icmarc.org/participant/login_vrs.jsp


Self-Service Phone LineICMA-RC also offers a self-service phone line, which is available 24 hours a day, seven days a week. Call 1-VRS-DC-Plan1 (1-877-327-5261) to hear:

• Account balance.

• Account summary.

• Last quarterly statement.

• Year-to-date statement.

• General tax information.

• Contact Information.

You can use the self-service phone line to:

• Make account changes.

• Make PIN changes.

• Register for a meeting with a local defined contribution plans retirement specialist.

To access your account, enter your Account ID or Social Security Number, followed by your PIN (the last four digits of your Social Security Number). Then follow the prompts to create a six-digit PIN.

SECURITY AND PRIVACY ONLINE VRS and ICMA-RC are committed to protecting the security and privacy of your information. No one but you has access to your myVRS account or your defined contribution account; never give anyone your usernames and passwords. Visit www.varetire.org/hybrid/security-center for more security information and tips.

VRS and ICMA-RC do not sell your information to anyone. VRS only shares information with third-party administrators authorized to help coordinate benefits and services for VRS members, retirees and beneficiaries.

Tips to Protect Your Identity:

• Do not close your browser to logout of your accounts. Always select the Logout option before exiting your account.

• Never send personal or confidential information, such as your Social Security number, through email, even when you are logged into your online account. VRS and ICMA-RC will send only non-confidential replies.

• Do not use the same password for myVRS and Account Access. Nor should you use those passwords to access other secure systems, such as your online bank account.

• Change your passwords regularly.

• Store any printed copies of your online account information securely.

• Never use publicly shared computers or public Wi-Fi to access secure systems.

18/ varetire.org/hybrid • 1-855-291-2285

Security Best Practice: Claim Your Online AccountsVRS and ICMA-RC take many measures every day to keep your information secure. You can help by registering for your account at myVRS.varetire.org and your defined contribution account through Account Access at www.varetire.org/dcp-login, completing the identity-verification steps and then establishing a password-protected account. Verifying your online accounts helps prevent someone else from attempting to lay claim to the accounts fraudulently.

http://myVRS.varetire.orghttps://www.varetire.org/dcp-loginhttp://www.varetire.org/dcp-login

Social SecurityYou are eligible for a full Social Security benefit in addition to your VRS retirement benefit when you reach your normal Social Security retirement age. The amount of your Social Security benefit is based on lifetime earnings and how many years you worked (refer to chart below). Although the full retirement age has gradually increased, you may qualify for a reduced Social Security benefit as early as age 62.

*If your birthday is January 1, use the previous year for Social Security eligibility.

APPLYING FOR SOCIAL SECURITY Go to www.ssa.gov for more information, including an online application form. Use Social Security’s online planner and estimator for retirement benefit estimates based on your actual Social Security earnings record.

Need more help? Call the Social Security Administration toll-free at 1-800-772-1213 or contact your local Social Security Administration office.

Commonwealth of Virginia 457 Deferred Compensation and Cash Match PlansIf you participated in the Commonwealth’s 457 Plan and the Virginia Cash Match Plan 401(a) at retirement, the options for your account balance are:

• Leave your money in your account and continue to manage your investments. Your pre-tax account continues to be tax-deferred. If you have a Roth after-tax account, it can also remain in the plan. You continue to manage your investments. You cannot contribute to the Commonwealth’s 457 Plan unless you return to salaried or wage employment with an employer that offers the plan.

• Use your 457 or cash match plan to consolidate your retirement funds from other qualified employer plans or Individual Retirement Accounts (IRAs).

Other Sources of Retirement Income Social Security

Commonwealth of Virginia 457 Deferred Compensation and Cash Match Plans

3

Year of Birth* Normal Retirement Age Year of Birth Normal Retirement Age

1937 or earlier 65 years 1955 66 and 2 months

1938 65 and 2 months 1956 66 and 4 months




1942 65 and 10 months 1960 or later 67 years

1943-54 66 years

http://www.ssa.gov


• Request a payment (distribution) from your plan. A variety of distribution options are available.

• Roll over money from your 457 Plan or cash match account to another qualified employer plan or IRA.

• Purchase an annuity. Your plan offers an annuity product through MetLife.

THERE ARE ADVANTAGES TO KEEPING YOUR MONEY IN THE PLAN:• The VRS defined contribution plans offer low administrative fees and investment options

that are competitively priced compared to other investment options.

• If you leave your funds in the plan, they remain tax deferred and you continue to benefit from compound interest.

• You can continue to manage your investments.

• You can roll other accounts, such as traditional IRAs, into your 457 plan or cash match plan account.

• Defined contribution plans retirement specialists offer no-cost counseling to help you transition to retirement and beyond.

DISTRIBUTIONSA distribution is a payment from your defined contribution accounts. Distributions may begin following a bona fide break in service from your retirement date. A bona fide break in service is a break of at least one full calendar month from your retirement date that occurs during a period you normally would work. Leave with or without pay, summer breaks, intersession periods, educational leave and sabbaticals do not count toward satisfying this break in service.

You are required to take your first minimum distributions by April 1 of the calendar year following the later of: 1) the calendar year in which you reach age 70½, or 2) the calendar year in which you terminate employment from the employer sponsoring your plan.

Requesting a distribution: Submit the Distribution/Direct Rollover/Transfer form to ICMA-RC. Attn: Workflow Management Team, P.O. Box 96220, Washington, DC 20090-6220; Fax: 202-682-6439. The form is available at www.varetire.org/hybrid under Forms.

Separate forms are required for distributions from the 457 Deferred Compensation Plan and the Cash Match Plan.

To learn more about distribution options, call ICMA-RC at 1-VRS-DCPlan1 (1-877-327-5261, select option 1) and ask to speak with an Investor Services Representative.

FELONY CONVICTIONIf you are convicted of

a felony related to your

VRS-covered employment,

your employer at the

time may direct that your

employer contributions

and related benefits be

forfeited. If you have

questions, please contact

the human resource office

of your former employer.


TAXES ON YOUR 457 AND CASH MATCH PLANSPayments from the Commonwealth’s 457 Plan and Virginia Cash Match Plan are subject to federal and state income taxes, with the exception of Roth contributions, which are made on an after-tax basis to your 457 Plan and may be withdrawn tax free provided certain criteria are met. The IRS also may impose an additional 10 percent tax penalty on Virginia Cash Match Plan distributions received before age 59½; there are exceptions to this rule. There is no penalty for early withdrawals from the Commonwealth’s 457 Plan. When you reach age 70½, you can withdraw your money from your plan at any time, regardless of your employment status.

Your Roth contributions and any associated earnings are tax free if:

• You are separated from covered employment with a bona fide break in service.

• At least five years have passed since January 1 of the year you made your first Roth contribution.

• You are at least 59½ years old or permanently disabled, or the assets are being paid to your beneficiaries following your death.

Account Access provides an overview of your savings, including a history of your transactions, beneficiary designations and investment information for your 457 Deferred Compensation and Cash Match Plan accounts. Log in at www.varetire.org/dcp-login.

If you have other retirement accounts, such as an Individual Retirement Account (IRA), a 403(b) plan or another employer-sponsored supplemental plan, contact your plan provider or former employer for more information about distributions under these plans.


Basic Group Life Insurance

If you had life insurance through the VRS Group Life Insurance Program when you were working and you meet the eligibility requirements for retirement, you have basic group life insurance coverage in retirement. Life insurance benefits are issued by Minnesota Life Insurance Company, an affiliate of Securian Financial. Benefits include:

• A death benefit equal to your compensation at retirement, rounded to the next highest thousand and doubled. If you retire with 20 or more years of service credit, the death benefit will be based on your highest creditable compensation as a covered employee, even if your salary at retirement was lower.

• An accelerated death benefit option. If you are diagnosed with a terminal condition and have fewer than 12 months to live, you can withdraw some or all of your life insurance proceeds to use for any purpose. Your beneficiary or survivor will receive any remaining amount upon your death.

LIFE INSURANCE COVERAGE REDUCTIONYour life insurance coverage begins to reduce on January 1 following one calendar year after your employment ends. The reduction rate is 25 percent each January 1 until it reaches 25 percent of the total life insurance benefit value at retirement. If you have at least 30 years of creditable service at retirement, your coverage cannot reduce below an $8,000 minimum established in 2015. This minimum will be increased annually based on the VRS Plan 2 cost-of-living adjustment calculation. You may end employment and defer retirement until a later date; however, the Group Life Insurance will begin reducing based on the last month of employment.

Life Insurance Coverage in RetirementBasic Group Life Insurance Optional Group Life Insurance Naming Your Beneficiary

4


GROUP LIFE INSURANCE REDUCTION

When you retire or defer retirement, your life insurance benefit is equal to your creditable compensation, rounded to the next highest thousand and then doubled.

On January 1 following one calendar year after your employment ends (January through December), your life insurance coverage reduces 25 percent.

On January 1 following two calendar years after your employment ends (January through December), your life insurance coverage reduces another 25 percent.

On January 1 following three calendar years after your employment ends (January through December), your life insurance coverage reduces a final 25 percent and remains at that value for the rest of your retirement.

You retire on December 1, 2018. Your compensation at retirement is $49,780; for your life insurance coverage, that amount is rounded to $50,000 then doubled to equal $100,000.

On January 1, 2020, your life insurance coverage reduces to $75,000.

On January 1, 2021, your life insurance coverage reduces to $50,000.

Your final reduction will be on January 1, 2022, and your coverage will remain at $25,000* for the rest of your retirement.

THE VALUE OF YOUR EXAMPLELIFE INSURANCE

*The final amount of insurance will vary according to your creditable compensation when leaving employment, or, if you have 20 or more years of service, your highest annual compensation in VRS-covered employment.


Optional Group Life Insurance

If you are enrolled in the Optional Group Life Insurance Program and meet the qualifications for retirement, you may continue a portion of your coverage upon leaving employment. You as well as your spouse and dependent children, if enrolled, must have been continuously covered during the 60 months preceding your retirement date. Accidental death and dismemberment coverage ends upon retirement. Optional life insurance amounts will reduce by 25 percent based on your age, beginning with your normal retirement age under your plan; coverage ends at age 80. The maximum amount of optional group life insurance coverage in retirement is $275,000. You must elect to continue your coverage within 31 days of the last day of the month in which you leave your position. This option is not available after 31 days. To continue coverage, submit the Retiree Optional Life Continuation (VRS-39R) to Securian Financial.

You as well as your spouse and dependent children, if enrolled, can convert your coverage to an individual policy. You will be billed for the premiums. Submit a Conversion of Group Life Insurance Enrollment (VRS-35E) to Securian Financial within 31 days of the last day of the month in which you leave your position. The form is available at www.varetire.org/hybrid. This option is not available after 31 days.

Naming Your Beneficiary

Hybrid Retirement Plan members submit two beneficiary designation forms. You can name or change your beneficiary for life insurance benefits and the defined benefit component of your plan at any time by submitting the Designation of Beneficiary (VRS-2). For the defined contribution component, use the Designation of Beneficiary – Hybrid Defined Contribution Plans.

• You can name any living person or an entity, such as an eligible trust or charity, as your beneficiary.

• You can name more than one primary beneficiary to share in life insurance benefits and any funds remaining in your member contribution account upon your death, or you can name a different primary beneficiary for each benefit.

DESIGNATING A BENEFICIARY Defined Contribution ComponentTo designate or change a

beneficiary for the defined

contribution component of

the Hybrid Retirement Plan,

log into Account Access at

www.varetire.org/dcp-login.

Current beneficiaries also

appear on your quarterly

statement.

Defined Benefit ComponentTo name or change your

beneficiary for the defined

benefit component,

complete and submit

a Designation of

Beneficiary (VRS-2) to VRS.

The form is available at

www.varetire.org/hybrid.

Be sure to keep a copy for

your records.



• If your primary beneficiary or beneficiaries are deceased at the time of your death, your contingent beneficiary or beneficiaries will receive benefit payments according to your designation.

VRS is required by law to pay benefits according to the latest beneficiary designation in your VRS record, so review your beneficiary designation regularly and update it if necessary.

If VRS does not have a beneficiary designation on file for you, the law requires that VRS pay out your benefits in the order of precedence:

• First, to your spouse.

• If no spouse, to your natural or legally adopted children or descendants of your deceased natural or legally adopted children.

• If none of the above, to your parents equally or to the surviving parent.

• If none of the above, to the duly appointed executor or administrator of your estate.

• If none of the above, to your next of kin under the laws of the state where you resided at the time of your death.

IRREVOCABLE ASSIGNMENT You own your rights in your group life insurance coverage. You may transfer your ownership rights to another living person or entity. However, this is an irrevocable assignment; you cannot change it once it is made. Before making an irrevocable assignment, contact a legal advisor or Securian Financial toll-free at 1-800-441-2258 for assistance. Depending on your circumstances, you may want to consider the accelerated death benefit. The accelerated death benefit allows you to withdraw some or all of your life insurance coverage to use for any purpose if you are diagnosed with a terminal condition and have fewer than 12 months to live. Your beneficiary or survivor will receive any amount remaining upon your death.

LOANS PROHIBITED You may not borrow from or use your group life insurance coverage to secure a loan.

CHILD SUPPORT LIENS The Department of Social Services may file child support liens against proceeds payable under the Group Life Insurance Program. VRS is required to pay life insurance proceeds to the Department of Social Services to satisfy any outstanding child support obligations at your death. These payments are deducted from the life insurance benefit before it is paid to your beneficiary.

Additional Information About Your Life Insurance


ELIGIBILITY FOR THE STATE RETIREE HEALTH BENEFITS PROGRAM

If you retired as a state employee, you are eligible to enroll in the State Retiree Health Benefits Program within 31 days of your retirement date by submitting the State Health Benefits Program Enrollment Form for Retirees, Survivors and LTD Participants (T-20879), available at www.varetire.org/hybrid. If you waive coverage at retirement, you cannot enroll at a later date.

If you elect this coverage, VRS deducts the health insurance premiums from your monthly benefit payment. If your benefit is not sufficient to cover the deduction, the health insurance carrier will bill you directly for the premiums. The State Retiree Health Benefits Program is administered by the Department of Human Resource Management (DHRM). For more information about the program, visit the Department of Human Resource Management website at www.dhrm.virginia.gov.

If you enroll in the State Retiree Health Benefits Program, you also can enroll your survivors (a spouse or dependent children). If you elected the Survivor Option at retirement and your survivors are not enrolled, they may enroll upon your death. If you elected another benefit payout option and your survivors are enrolled at the time of your death, they may elect to continue their coverage by submitting a State Health Benefits Program Enrollment Form for Retirees, Survivors and LTD Participants (T-20879) within 60 days of your death. This option is not available after 60 days.

You can cancel your coverage at any time after you retire by submitting the State Health Benefits Program Enrollment Form for Retirees, Survivors and LTD Participants (T-20879) or by sending a written request to VRS. Canceling your coverage also cancels coverage for your spouse and dependent children, if enrolled. Once you cancel coverage, you are not eligible to re-enroll in the program. However, you can be covered as a

Health Insurance in RetirementEligibility for the State Retiree Health Benefits ProgramMedicare Benefits Receiving the Health Insurance Credit

5

If you were an employee

of a school division or

a political subdivision,

your employer may

offer retiree health

insurance coverage. Some

employers have arranged

with VRS to deduct the

premiums from the

monthly retirement

benefit. Contact your

former employer’s human

resource office for more

information.

http://www.dhrm.virginia.gov


dependent of an active state employee or a state retiree who enrolls you in the program, or if you return to work and retire again as a state employee. In the latter case, you will have 31 days from your subsequent retirement date to elect coverage.

Medicare Benefits

Medicare is a federal government-sponsored health insurance program. You become eligible for Medicare when you reach age 65. Medicare includes:

• Coverage for hospital care (Part A) at no cost to you.

• Medical care (Part B), for which you pay monthly premiums.

• The option to elect coverage under the prescription drug plan (Part D).

Apply for Medicare at least three months before your 65th birthday online at www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227) for assistance. If you are receiving Social Security benefits, you will be enrolled automatically when you qualify and do not need to apply. The premiums will be deducted from your Social Security benefit.

Medicare is your primary health care insurer. You may go to any physician, hospital or health care facility that accepts Medicare. You pay a deductible and then Medicare pays its share of your health care expenses and supplies.

If you have other health insurance coverage, also known as secondary insurance, this insurer will pay its share of covered expenses.

HEALTH INSURANCE CREDITThe VRS health insurance credit is a tax-free benefit that reimburses eligible retirees for a portion of health insurance premiums you pay for single coverage, excluding any portion of the premiums covering a spouse or dependents.

• The credit is a dollar amount set by the General Assembly for each year of service credit at retirement.

• The health insurance credit ends upon your death.

• It cannot exceed the amount of your individual health insurance premiums for single coverage.

• The credit is applied to your retirement benefit payment.

• If you do not receive a monthly retirement benefit payment, VRS will send you a check each month for the health insurance credit amount.


You are eligible if you retired with at least 15 years of service credit as a:

• State employee.

• Teacher or administrative school employee.

• General registrar or employee of a general registrar.

• Constitutional officer or employee of a constitutional office.

• Local social service employee.

• Employee of a political subdivision that elected to offer the health insurance credit to its retirees.

QUALIFYING HEALTH PLANS• Individual health plans.

• Coverage as a dependent on a spouse’s plan.

• Employer-sponsored health plans, including the State Retiree Health Benefits Program.

• Medicare Part B.

• Dental and vision plans.

• Prescription drug plans, including Medicare Part D.

The following are examples of plans not eligible for the health insurance credit:

• Coverage for specific diseases or procedures to treat a specific illness, such as cancer insurance.

• Hospital or other indemnity policies.

• Limited benefit plans, which offer coverage for only particular health care conditions or diseases, and do not replace traditional health insurance.

• Plans covering home health care.

• Long-term care insurance.

• Long-term disability insurance.

• Life insurance.

• Network discount programs or policies, such as pharmacy discount programs.

• Policies that include non-healthcare coverage, such as an auto club membership that includes a prescription discount program.

• Non-insurance healthcare sharing plans or programs.


HEALTH INSURANCE CREDIT DOLLAR AMOUNTS

UNSURE IF YOU RECEIVE THE HEALTH INSURANCE CREDIT?Check your myVRS online account (myVRS.varetire.org) to see if you are receiving the health insurance credit. The amount of the credit and your health insurance premium deduction are reflected in your monthly benefit payment and in your myVRS account.

If you are eligible for the credit but not receiving it, send a Request for Health Insurance Credit (VRS-45) to VRS. If you have Medicare coverage, include the effective date of your Medicare Part B coverage and the premium amount you pay each month for health insurance on the VRS-45. If you have health, dental, vision or prescription drug insurance, complete Part B of the VRS-45. If you have more than one health insurance policy, provide the additional policy information in Part C of the form, available online at www.varetire.org/hybrid. Allow 45 to 60 days for your request for the health insurance credit to be processed.

Employee Type

State employees

Teachers and school administrators

General registrars and their employees, constitutional officers and their employees and local social service employees

General registrars and their employees, constitutional officers and their employees and local social service employees if the political subdivision has elected the $1.00 enhancement

Other political subdivision employees if the employer has elected to provide the health insurance credit

Monthly Amount Per Year Of Service

$4.00

$4.00

$1.50

$2.50

$1.50

Maximum Credit per Month

No Cap

No Cap

$45.00

$75.00

$45.00

http://myVRS.varetire.org


ANNUAL HEALTH INSURANCE CREDIT NOTICEIf you receive the health insurance credit, VRS will send you an annual Health Insurance Credit Notice reminding you to verify and update your health insurance information, if necessary. This will ensure you are receiving the proper credit amount and are not at risk for overpayments, which would require reimbursement to VRS.

To report a change or cancellation, submit a Request for Health Insurance Credit (VRS-45) to VRS. More information about the health insurance credit is available at www.varetire.org/hybrid.

Long-term care insurance can help protect your retirement income against the rising cost of nursing home care or in-home health care.

IF YOU ARE COVERED UNDER YOUR SPOUSE’S HEALTH INSURANCE PLAN Your health insurance credit is based on your portion of the health insurance premium. Your spouse’s health insurance provider can advise you of the premium amount represented by your coverage.


Virginia Sickness and Disability Program Long-Term Care Plan and Virginia Local Disability Program Long-Term Care Plan

If you retired and had coverage under the Virginia Sickness and Disability Program (VSDP) for state employees or the Virginia Local Disability Program (VLDP) for school division and political subdivision employees whose employers participate, you had the option to continue your coverage into retirement. If you continued your coverage, you are paying the premiums directly to the Long Term Care Group Inc.

These plans provide assistance with the following costs:

• Care in a nursing home or hospice facility.

• Assisted living facility care.

• Community-based care.

• Home healthcare services.

• Informal care-giving.

• Alternative or transitional care.

QUALIFYING FOR BENEFITSYou are eligible for benefits if a licensed healthcare professional certifies that:

• You are unable to perform at least two of six activities of daily living; or

• You have a severe cognitive impairment, such as Alzheimer’s disease, requiring substantial supervision.

The maximum daily benefit amount is $96, with a lifetime maximum of $70,080. Benefits are payable 90 calendar days after your licensed healthcare professional certifies that you qualify for long-term care benefits.

Long-Term Care Virginia Sickness and Disability Program Long-Term Care Plan and

Virginia Local Disability Program Long-Term Care Plan

Qualifying for Benefits 6

Six Activities of Daily Living

• Bathing

• Transferring, such as getting in and out of bed

• Dressing

• Toileting (using the bathroom)

• Continence

• Eating (ability to feed oneself)


HOW TO FILE A CLAIMContact the Long Term Care Group Inc. within 60 days of when your licensed health care practitioner certifies that you are eligible for benefits. A family member or friend may call on your behalf.

Contact:Long Term Care Group Inc.P.O. Box 64011St. Paul, MN 55164-0011Toll-free: 1-800-761-4057


Changing the Survivor Option

If you chose the Survivor Option at retirement, you may name a new survivor or revert to the Basic Benefit if:

• Your survivor dies.

• Your survivor is your spouse and you divorce with fewer than 20 years of marriage.

• Your survivor is your spouse, you divorce after 20 or more years of marriage and your spouse dies, remarries or consents in writing to a change in benefit.

• You provide VRS a written consent from your survivor giving up claim to a benefit along with proof of your survivor’s good health.

Note: If you are divorced and VRS has an Approved Domestic Relations Order (ADRO) on file, your benefit must be paid as directed by the ADRO.

DivorceIf you divorce, your VRS benefit may be regarded as marital property in a property settlement. The Code of Virginia authorizes VRS to make a direct payment to a former spouse if he or she is awarded part of your retirement benefit by the court. VRS implements the court decision when it receives a certified copy of an ADRO.

The court, not VRS, decides whether to divide your retirement benefit and how it is to be divided, provided the order is in compliance with the provisions of the Code of Virginia regarding payment of benefits or distributions from a member contribution account. Your attorney can obtain guidelines at www.varetire.org/adro.

VRS will not release information about your benefit to anyone other than yourself without your written authorization, unless your information is subpoenaed.

Power of AttorneyVRS DURABLE POWER OF ATTORNEY (VRS-901)The VRS Durable Power of Attorney (VRS-901) allows you to name a person as your agent in the event you can no longer handle your own affairs. Depending on your authorization, your agent may be able to take the following actions on your behalf:

• Name or update your beneficiary or survivor.

• Request information about your benefits.

Life Changes Changing the Survivor Option

Divorce Power of Attorney

Information for Your Loved Ones

7

To Change Your Survivor If you elected the Survivor Option and need to change your survivor, call VRS toll-free at 1-855-291-2285 for assistance.

http://www.varetire.org/adro


• Take other actions, such as setting up direct deposit, submitting a change of address or filing your tax withholdings.

• Create or change rights of survivorship. This means that if you elected the Survivor Option and your survivor dies or you divorce, your agent could name a new survivor or authorize a change to the Basic Benefit Option.

• Delegate authority granted under the power of attorney. This means that your agent could appoint another person as power of attorney.

You can also delegate your agent to take specific actions on your behalf:

• Create or change rights of survivorship. This means that if you elected the Survivor Option and your survivor dies or you divorce, your agent could name a new survivor or authorize a change to the Basic Benefit Option.

• Delegate authority granted under the power of attorney. This means that your agent could appoint another person as power of attorney.

• Create or change a beneficiary designation.

• Act as a personal representative for your health information and make changes affecting your health benefits.

WHEN TO NAME A POWER OF ATTORNEYConsider naming a power of attorney before you need one. If you should become incapacitated, VRS will have your information on file and can work with your designated agent. You do not have to be incapacitated to have your agent handle your affairs. However, VRS must have the VRS-901 on file designating the individual you wish to act as your agent.

The authority granted by the VRS-901 is limited to matters relating to your VRS record. The agent you designate on the VRS-901 will not have authority over matters outside of VRS. You may submit any valid durable power of attorney drafted by your legal counsel to VRS atP.O. Box 2500, Richmond, VA 23218-2500.

AUTHORIZATION TO DISCUSS VRS ACCOUNT INFORMATION (VRS-900)The VRS-900 allows you to name one or more individuals to speak to a VRS representative about your VRS benefits and account information. It does not allow anyone to take actions on your behalf. If you would like someone other than your agent you named as power of attorney to have this authority, complete the Authorization to Discuss VRS Account Information (VRS-900) and submit it to VRS.

INFORMATION RELEASE AUTHORIZATION – VRS DEFINED CONTRIBUTION PLANSThis form authorizes a third party to obtain information regarding your defined contribution account. Please note that it does not authorize this individual to conduct transactions on your behalf.


Information for Your Loved OnesYour loved one should call Securian Financial toll-free at 1-800-441-2258 or write to Securian Financial at P.O. Box 1193, Richmond, VA 23218-1193 to report your death. Life insurance benefits are issued by Minnesota Life Insurance Company, an affiliate of Securian Financial. The person who calls Securian Financial will need:

• Your full name, Social Security number and date of death as well as a mailing address where claim information can be sent.

• Original or certified copy of the death certificate.

• Original or certified letter of qualification issued by the Circuit Court if benefits are to be paid to an estate.

• Copies of trust agreement establishing a trust and appointment of individual trustee if benefits are to be paid to a trust.

• Copy of guardianship appointment for the minor child’s estate if benefits are to be paid to a minor child.

• Copy of power-of-attorney document if benefits are to be paid to a non-minor beneficiary who has a designated attorney-in-fact to handle his or her affairs.

Securian Financial can initiate VRS benefit claims and will provide information to VRS for processing any benefits due, such as:

• Life insurance benefits.

• Payment of any remaining member contributions in your VRS member contribution account or a monthly benefit to your named survivor if you elected the Survivor Option at retirement.

• Payment from your defined contribution plan accounts, if you participated in these plans.

• Health insurance benefits for your eligible dependents if you are a state retiree, if applicable.

WHAT HAPPENS TO MY MEMBER CONTRIBUTION ACCOUNT WHEN I DIE?If you did not elect the Survivor Option when you retired, the retirement benefit stops and your beneficiary is eligible for a lump-sum payment of any member contributions and interest remaining in your member contribution account in addition to VRS life insurance benefits, if applicable.

If you elected the Survivor Option, your member contributions help fund your survivor’s benefit. Your survivor will receive a monthly benefit upon your death in the amount you designated at retirement instead of a lump-sum payment of any contributions remaining in your account.


After you retire, you can work full- or part-time for any employer that does not participate in VRS and continue to receive your retirement benefits. Or you can work in a non-covered position with a VRS-participating employer and continue receiving your VRS retirement benefit. A non-covered position is a part-time or temporary position that does not provide eligibility for VRS benefits.

If you return to covered employment with a VRS-participating employer, your retirement benefits will stop and you will become an active member.

Returning to Non-Covered Employment

If you return to non-covered employment with the employer from which you retired, you must have a bona fide break in service to continue receiving retirement benefits. A bona fide break in service is a break of at least one full calendar month from your retirement date over a period you normally would work. Periods of leave with or without pay do not count toward satisfying this break in service. For retired teachers and faculty members, summer breaks, intersession periods, educational leave and sabbaticals also do not count toward satisfying this break. If you do not take the break in service, your retirement is void and any benefit payments received will have to be repaid.

The Commonwealth of Virginia, including all state agencies and public colleges and universities, is considered one employer. School divisions and political subdivisions are considered separate employers.

FULL-TIME AND PART-TIME EMPLOYMENTIf you want to work for a VRS-participating employer and continue to receive your retirement benefits, you must work 80 percent or less of the hours required of a full-time employee in the same or a comparable covered position. If you work in more than one part-time position and continue to receive your retirement benefits, the total number of hours for all positions cannot exceed a part-time schedule.

Working After RetirementReturning to Non-Covered Employment Teaching While Retired Retired Faculty Returning to Covered Employment Return to Work in a VRS-Covered PositionRetiring Again

8

EMPLOYERS THAT DO NOT PARTICIPATE IN VRS INCLUDE:

• Financial institutions

• Private companies

• Non-profit agencies

• Virginia localities

that have not elected to participate in VRS

• The federal government

EMPLOYERS THAT PARTICIPATE IN VRS:

• Commonwealth of Virginia, including state agencies and public colleges and universities

• Virginia public school divisions

• Virginia cities, counties, towns and other political subdivisions that have elected to participate in VRS on behalf of their employees


Employers, not VRS, classify positions as full-time or part-time and define the hours applicable to each classification according to the following guidelines:

• Full-time employment is typically considered to be 40 hours a week. Thirty-two hours is the usual minimum number for a full-time position.

• Part-time employment is typically 80 percent or less of a comparable full-time position. Note that some permanent part-time state positions and non-adjunct positions working 20 hours or more with a Virginia Public College or University are paid on a salaried basis and are considered covered positions providing eligibility for benefits.

• Some full-time positions may be considered non-covered if they are temporary and require 80 percent or less of the hours per year that would be considered full-time and permanent for that position.

INTERIM APPOINTMENTS In some cases, retirees can work in an interim position for up to six months without interruption in retirement benefits. Examples include working in a vacant position while the employer recruits for a full-time permanent employee or while the incumbent is on leave. If you are considering an interim appointment, your employer must discuss the appointment with VRS before hiring you in the position. If you return to the employer from which you retired, you also must have a bona fide break in service.

Teaching While Retired

You may work in a non-covered part-time teaching position with your former school division, or an adjunct teaching position with a public college or university and continue to receive your retirement benefits, provided you have a bona fide break in service of at least one full calendar month from your retirement date over a period you normally would work. This includes teachers who retired under an early retirement incentive program (ERIP). Periods of leave with or without pay, including educational leave and sabbaticals, as well as intersession periods, do not count toward satisfying the bona fide break in service. If you were on a nine-, 10- or 11-month contract, summer breaks also do not satisfy this requirement.

WHAT IS COVEREDAND NON-COVEREDEMPLOYMENT? Covered employment is a full-time permanent, salaried position with an employer that participates in VRS. Some part-time permanent, salaried state positions also are covered

under VRS.

Non-covered employment is a part-time position with a VRS-participating employer. Non-covered positions do not provide eligibility for benefits. Part-time positions typically require 80 percent or less of the hours of comparable full-time permanent positions. Some full-time positions may be considered non-covered if they are temporary and require 80 percent or less of the hours per year that would be considered full time and permanent for that position.


Examples:

• You were on a nine-month contract for the period August 1 to May 31, and you retired at the end of your contract. If you wish to return to part-time employment with your employer, the months of June, July and August will not count toward satisfying the bona fide break in service. To continue receiving your retirement benefits, the earliest you could return to work would be October 1.

• You were on a 10-month contract for the period August 20 to June 15, and you retired at the end of your contract. If you wish to return to part-time employment with your employer, the months of July and August will not count toward satisfying the bona fide break in service. To continue receiving your retirement benefits, the earliest you could return to work would be October 1.

If you are a retired teacher or faculty member and want to teach while you are retired, contact your former human resource office to determine the earliest you could return to a non-covered part-time teaching position without interrupting your retirement benefits. Part-time employment is typically 80 percent or less of a comparable full-time position. If you return to any position covered under VRS, whether or not it is a teaching or faculty position, your retirement benefits will stop and you will become an active member.

K-12 CRITICAL SHORTAGE POSITIONSYou may be eligible to teach or serve as a principal or assistant principal in a designated critical shortage position for a Virginia public school. You do not have to be a retired teacher or school administrator as long as you become licensed by the Virginia Board of Education for the position you will hold. Positions are full time and temporary (non-covered) for the current school year. If you qualify, you will continue to receive your retirement benefits but you will not earn additional service credit.

To be considered for a K-12 critical shortage position, you must:

• Work in a designated critical shortage position.

• Hold a Virginia Board of Education license for the position.

• Have a break in service of at least 12 consecutive months between your retirement date and the date you wish to work in a critical shortage position. This break means not working in any full-time, part-time or temporary position, including coaching and substitute teaching, with any VRS-participating employer, or working for a contractor for any VRS-participating employer.

• Not have retired with a reduced VRS benefit under an early retirement incentive program (ERIP) or with any incentive program that enabled you to retire with a reduced or unreduced benefit.

• Not be on VRS disability retirement.

• Be retired from a VRS-covered position. If you took a refund of your member contributions and interest or deferred retirement, you are not eligible to work in a critical shortage position.

• Not have a pre-arranged commitment, either verbal or written, with the school division before your retirement date.


For more information on critical shortage designations and how to apply, visit the Department of Education online at www.doe.virginia.gov or contact the school system where you would like to work.

Retired Faculty Returning to Covered EmploymentIf You Are Retired Under the VRS Hybrid Retirement PlanIf you are retired under the Hybrid Retirement Plan and return to a permanent, salaried full-time or part-time faculty position, you may continue in the Hybrid Retirement Plan, or you may elect the ORPHE. You are eligible for this election whether or not you have a bona fide break in service.

If You Return to a Non-Faculty PositionIf you return to a non-faculty position covered under the Hybrid Retirement Plan or to the State Police Officers’ Retirement System (SPORS) or the Virginia Law Officers’ Retirement System (VaLORS), you will come under the provisions of that plan for retirement and other benefits.

If You Return to Work in a VRS-Covered PositionOnce you are reemployed in a covered position, your retirement benefits must stop effective with the date of your new position. To avoid overpayment of the retirement benefit, your new employer should notify VRS of your return to work as soon as possible.

If you are covered under a defined benefit plan or the Hybrid Retirement Plan administered by VRS, you will resume earning service credit toward your next retirement. Your subsequent benefit calculation will include the additional service credit as well as any increase in your average final compensation. In many cases, that will result in a higher subsequent benefit than your current benefit amount. However, depending on your circumstances, your next benefit may actually be less and you should contact VRS prior to accepting employment to determine the impact to your retirement benefit. Examples:

• Any cost-of-living adjustments (COLAs) you are receiving with your current benefit will not resume when you retire again. As a result, your subsequent benefit may be less than your current benefit amount, especially if you have been receiving the COLA for several years. The COLA will be calculated as if you are retiring for the first time.

• If you retired under a severance benefits program administered by VRS, you will lose any additional retirement credits used to calculate your current benefit upon subsequent retirement. This may affect whether or not your next benefit is less than your current benefit amount.

BEFORE RETURNING TO WORKIf you want to work after you retire, call VRS at 855-291-2285 to determine the effect of accepting covered or non-covered employment on your retirement benefits. Also contact the Social Security Administration for information on how earnings during retirement might affect your eligibility for Social Security benefits. Call toll-free 1-800-772-1213 or visit www.ssa.gov.


LIFE INSURANCE AND DISABILITY COVERAGE UPON REEMPLOYMENTBasic Group Life Insurance

• If you have retiree coverage under the VRS Group Life Insurance Program and return to an employer that participates in the program, you will resume active member coverage for basic life insurance benefits. The amount of coverage will be based on your creditable compensation upon reemployment or, if you have 20 or more years of service credit, your highest creditable compensation as a covered employee.

• If you have retiree coverage and return to an employer that does not participate in the VRS Group Life Insurance Program, you will continue your retiree coverage at the level to which it had reduced before reemployment.

Optional Group Life Insurance

• If you return to an employer that participates in the group life insurance program, you can apply for the Optional Group Life Insurance Program for yourself as well as a spouse or dependent children upon reemployment. You will pay the premiums.

• If you elected optional life insurance with your previous position and continued your coverage into retirement, this coverage will not continue if you return to covered employment with an employer that participates in the VRS Group Life Insurance Program. You must re-apply to have optional life coverage again as an active member. However, if you converted your previous coverage to an individual policy, you may continue your policy as well as re-apply for coverage as an active member if you wish.

Disability Coverage

• If you return to covered employment, you will be enrolled automatically in the Virginia Sickness and Disability Program (VSDP), or the Virginia Local Disability Program (VLDP) or a comparable program provided by your employer. You will be required to satisfy eligibility periods for non-work related disability coverage and certain income replacement levels. For program details, state employees should refer to the VSDP Handbook for State Employees, and eligible political subdivision employees should refer to the VLDP Handbook. Both are available at www.varetire.org/hybrid.

DEFERRED COMPENSATION PLANIf you return to covered state employment, you can enroll in the Commonwealth of Virginia 457 Deferred Compensation Plan. If you are already a participant and have an account balance, you may resume your contributions by logging into your account at www.varetire.org/457. If eligible, you will also receive an employer cash match through the Virginia Cash Match Plan. The amount will be equal to 50 percent of your contributions, not to exceed $20 per pay period.


Retiring AgainIf you are working in a covered position from having previously retired under VRS, your next retirement benefit will be recalculated to include the additional service credit earned in your current position as well as any changes in your average final compensation.

WORKFORCE TRANSITION ACT AND RETURN TO WORKIf you retired under a severance benefits program and return to work in a VRS-covered position, your severance benefit will stop. When you retire again, you will lose any additional retirement credits used to calculate your benefit. This may affect whether or not your next benefit is less than your current benefit amount.

APPLYING FOR SUBSEQUENT RETIREMENTYou must submit a new Application for Service Retirement (VRS-5) and other required forms and documents and elect the same benefit payout option you elected previously. If you elected the Partial Lump-Sum Option Payment (PLOP) for your previous retirement, you will not receive another PLOP; your subsequent benefit also will be adjusted for the payment of your first PLOP. If you elected the Advance Pension Option, your subsequent benefit calculation will be adjusted for the temporary increase in your previous benefit.

COST-OF-LIVING ADJUSTMENT (COLA)Any cost-of-living adjustments (COLAs) you were receiving with your previous retirement benefit will not resume when you retire again. If you are eligible for a COLA, it will be calculated as if you are retiring for the first time. The same waiting period as when you retired for the first time will also apply.


Active Member You are an active member if you are working in a covered position with an employer that participates in the Virginia Retirement System (VRS).

Active Service Active service is the number of years you worked in a covered position. While you were an active member, you earned one month of service credit for each month you were employed (“in service”).

Advance Pension Option The Advance Pension Option is one of the benefit payout options available at retirement under the defined benefit component. This option allows you to temporarily increase your monthly benefit amount until an age you select, between age 62 and your normal retirement age under Social Security. At that point, your benefit is permanently reduced.

Approved DomesticRelations Order (ADRO) An Approved Domestic Relations Order (ADRO) is a court order

related to marital property rights and other attachments to your benefit, such as child support at the time of divorce. If you divorce, your VRS benefit may be regarded as marital property in a property settlement.

Average Final Compensation Average final compensation is the average of your 60 consecutive months of highest creditable compensation as a covered employee. It is one of the factors used to calculate your retirement benefit under the defined benefit component.

Basic Benefit Your Basic Benefit was calculated based on a formula using your average final compensation, a retirement multiplier and your total service credit at retirement. You could elect the Basic Benefit or another payout option when you applied for retirement.

Beneficiary Designation Upon your death, your named beneficiary is eligible for a payment of any balances remaining in your accounts under the defined benefit and defined contribution components as well as any VRS group life insurance benefits you may have. Beneficiary designations for each account are separate; you can designate the same or different beneficiaries for each account.

Frequently Used Terms9


Benefit Payout Options When you apply for service retirement under the defined

benefit component, you elect how you want to receive your benefit. You choose from five benefit payout options, depending on your eligibility: Basic Benefit, Basic Benefit with Partial Lump-Sum Option, Survivor Option, Survivor Option with PLOP or Advance Pension Option. The option you elect is irrevocable; you cannot change it once you retire, with the exception of the Survivor

your retirement: a handbook for hybrid plan retirees...your retirement a handbook for hybrid plan...

Documents