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Retirement

Manage all aspects of employee VRS retirement plans, including enrollment, contributions, plan education, compliance, and retirement readiness support. We are here to help employees understand their options, make informed decisions, and prepare confidently for the future.

Retirement Questions:

Contact:
retirement@spsk12.net
757-925-6754

VRS Hybrid Retirement Plan

Overview:
Combination of a defined benefit and a defined contribution plan.

Key Features:

  • For employees hired on or after January 1, 2014, who are not covered under Plan 1 or 2.

  • Part 1: Defined Benefit – like Plans 1 and 2, but with a lower multiplier (1.0%).

  • Part 2: Defined Contribution – employee and employer make contributions to an investment account.

  • Employees must actively manage part of their retirement through investments.

Contributions:

  • Employee: 5% mandatory (1% to DC, 4% to DB) + up to 4% voluntary (matched by employer up to 2.5%)

  • Employer: Mandatory contribution + match on voluntary contributions.

Vesting:

  • Defined Benefit: Vests after 5 years.

  • Defined Contribution: Vests gradually over 4 years for employer match.

Retirement Eligibility:

  • Similar to Plan 2: Rule of 90 or age 60 with 5 years of service.

VRS Plan 2

Overview:
Also a defined benefit plan, similar to Plan 1 but with some changes in eligibility and benefit structure.

Key Features:

  • For employees hired on or after July 1, 2010, or before that date but not vested by January 1, 2013.

  • Retirement age is later: full retirement at age 60 with 5 years of service or age 90 under the "Rule of 90" (age + years of service = 90).

  • Uses a lower average final compensation period (5 highest years instead of 3).

  • Employee contribution is the same (5%).

Benefit Formula:
Same as Plan 1, but potentially less generous due to retirement age and compensation calculation changes.

VRS Plan 1

Overview:
VRS Plan 1 is a defined benefit plan. It provides a fixed, lifetime monthly benefit based on a formula, not on investment performance.

Key Features:

  • For employees hired before July 1, 2010, and vested as of January 1, 2013.

  • Retirement benefits are based on years of service and average final compensation.

  • Requires employee contributions (typically 5% of salary) and employer contributions.

  • Full retirement at age 65 with 5 years of service, or age 50 with 30 years of service.

Benefit Formula:
Average Final Compensation × Retirement Multiplier (1.7%) × Years of Service