VRS Plan 1 - Virginia Retirement System

1 Virginia Retirement System Plan 1 Handbook for MembersPROVIDING INFORMATION ABOUT 1 VRSV irginia Retirement System (VRS) Plan 1 Handbook for MembersYou are in Plan 1 if your membership date is before July 1, 2010, and you were vested (you had at least five years of creditable service) as of January 1, 1 VRSCONTACT VRSW ebsite: Toll-f ree: 1-888-VARETIR (1-888-827-3847)TDD: 804-289 -5919 Email: Important email notice: Do not send personal or confidential information, such as your Social Security number, by email. VRS will send only non-confidential Retirement Counseling Center: 1111 East Main Street, Richmond, VA 23219 VRS Administrative Offices: 1200 East Main Street, Richmond, VA 23219 Mailing Address: Box 2500, Richmond, VA 23218-2500 VRS Mission:VRS delivers Retirement and other benefits to Virginia public employees through sound financial stewardship and superior customer : The information contained in this document is governed by Title of the Code of Virginia .

2 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 referenceVRS Website at myVRS, a secure online System providing information from your member record and Retirement planning Benefit information, forms and publications, including the Handbook for members Free member education about your benefits, money matters and Retirement planning as well as the Commonwealth s 457 Deferred Compensation Plan, if offered by your employerVRS Retirement Counseling Talk with a counselor about your Retirement options, applying for Retirement and retiree benefits.

3 Walk-in counseling is available on a first-come first-served basis. Limited scheduled appointments also are available; call VRS toll-free at 1-888-VARETIR (1-888-827-3847) for more information. Counseling hours are 8:30 , Monday through Friday. Go to for directions and parking Contacts American Association of Retired Persons: 1-888-OUR-AARP (1-888-687-2277); Anthem Blue Cross/Blue Shield (State Employees): 1-800-552-2682; Commonwealth of Virginia 457 Deferred Compensation Plan: 1-VRS-DC-PLAN1 (1-877-327-5261); (select the Defined Contribution Plans tab) Group Life Insurance Program: Minnesota Life, 1-800-441-2258 Internal Revenue Service: 1-800-829-1040; Medicare: 1-800-MEDICARE (1-800-633-4227); Social Security Administration: 1-800-772-1213; Virginia Division for the Aging: 1-800-552-3402.

4 Virginia Department of Human Resource Management (State Employees): Virginia Department of Taxation: 804-367-8031; Virginia Sickness and Disability Program (VSDP) (State Employees): Reed Group, 1-877-928-7021; VSDP Long-Term Care Plan (State Employees): Long Term Care Group, Inc., 1-800-761-4057 Virginia Workers Compensation Commission: 1-877-664-2566; Benefit Information and Planning ResourcesTable of Contents Page 1. Welcome to VRS Preparing for your Future 4 You and your Partners 5 myVRS: Helping You Plan for Tomorrow, Today 6 What to do if 8 About VRS 102. your Retirement Plan Eligible Employees 11 About your Plan 12 Qualifying for Retirement 13 Benefit Payout Options 133.

5 Saving for Retirement Deferred Compensation Plan 19 Allowable Contribution Amounts 20 Consolidating your Retirement Funds 21 Deferred Compensation Plan Resources 214. Enhancing your Benefit Purchase of Prior Service 22 Types and Purchase Amounts of Prior Service 23 Cost Windows 25 Applying to Purchase Prior Service 26 Payment Methods 275. Group Life Insurance Program Basic Group Natural and Accidental Death, Dismemberment and Other Life Insurance Benefits 29 Designating a Beneficiary 30 Optional Group Life Insurance Program 326. Virginia Sickness and Disability Program (State Employees) Income Protection for Non-Work-Related and Work-Related Disabilities 34 Sick, Family and Personal Leave 35 Short-Term Disability Coverage 36 Long-Term Disability Coverage 38 Coordination With Other Benefits 38 How to File a Claim 397.

6 Retiring on Disability Eligibility 40 Medical Review 41 Non-Work-Related Disability Retirement Benefit 41 Work-Related Disability Retirement Benefit 42 Benefit Payout Options 44 Applying for Disability Retirement 45 After You Retire on Disability 47 Page8. Long-Term Care Programs VSDP Long-Term Care Plan (State Employees) 499. Death-in-Service Benefits What Is a Death-in-Service Benefit? 51 Non-Work-Related Cause of Death 51 Work-Related Cause of Death 5210. Leaving Employment Options if You Leave your Job 54 Impact on Benefit Coverage 56 Severance Benefits 5811. Getting Ready to Retire Retirement Readiness Resources 59 Applying for Retirement 60 Deferring Retirement 62 Retirement Readiness Checklist 63 12.

7 Receiving Retirement and Deferred Compensation Plan Payments Direct Deposit 64 Taxes 64 Cost-of-Living Adjustments (COLA) 65 Social Security 66 If You Divorce 67 Deferred Compensation Plan Options 6713. Insurance in Retirement Group Life Insurance 69 Retiree Health Insurance (State Employees) 71 Health Insurance Credit 71 Long-Term Care Coverage 7314. Working After Retirement Non-Covered Employment 74 K-12 Critical Shortage Positions 75 Returning to Covered Employment 75 Retiring Again 77 15. Frequently Used Terms 783 | Virginia Retirement System PL AN 14 | 1-888-VARETIR (1-888-827-3847) PL AN 1 Preparing for your Future As a member of the Virginia Retirement System (VRS), you have a tremendous opportunity to lay the foundation for your future Retirement needs.

8 your partners are your employer and practical terms, preparing for Retirement is about having enough income to live comfortably after you retire. Most financial planning experts recommend 80 percent of your current earnings as a Retirement income target. The components are: your monthly VRS Retirement benefit; Social Security; and Savings you put aside for your future. That means not only saving for Retirement but also staying on track toward your Retirement income target by increasing the amount you save over your active career. As a member of VRS, you also have other benefit coverage to protect you and your loved ones, including: Life insurance Disability coverage Long-term care benefits Benefit for your beneficiary or survivor if you die while you are an active memberThe Virginia Retirement System Handbook for members explains how these benefits support you while you are working and after you retire.

9 It also describes the member resources available to help you get started on planning to VRS Preparing for your Future You and your Partners myVRS: Helping You Plan for Tomorrow, Today What to do if About VRS15 | CH 1 Virginia Retirement System PL AN 1 You and your PartnersYou You can start saving for the future from the first day of employment through the Commonwealth of Virginia 457 Deferred Compensation Plan if you are eligible, a 403(b) plan or another supplemental Retirement plan if offered by your employer. You or your employer (on your behalf ) also contributes 5 percent of your creditable compensation each month toward your future monthly Retirement you are an active employee, take time to learn more about your benefits by referring to your member handbook, looking up information on the VRS website at and taking advantage of member education opportunities (see right column).

10 your Employer One of the most important roles your employer plays is participating in Social Security and contributing to Social Security on your behalf. In addition, without this participation, your employer would not be eligible to participate in VRS. your employer funds your Retirement benefit by making a separate contribution to VRS. VRS invests these contributions to provide benefits for future retirees. If you participate in the Commonwealth s 457 Plan, your employer may match a portion of your contributions through the Virginia Cash Match Plan. your employer pays toward other coverage that protects you and your loved ones while you are employed and after you retire.