On this page:
- VRS Plan Information
- Retirement Planning
- Purchase of Prior Service
- Links & Resources
- NEW: Hybrid Retirement Plan
The Virginia Retirement System (VRS) administers retirement plans, life insurance plans, and related services for its active members. Eligible members include full-time salaried, permanent employees of the Commonwealth of Virginia, participating local cities, towns, political subdivisions, and all Virginia school boards. Henrico County participates in the Virginia Retirement System and pays the employer contribution of an eligible employee’s salary. Effective July 1, 2012, as required by the Virginia General Assembly, eligible employees will contribute 5% of their salary to their member accounts. Also effective July 1, 2012, salaries of eligible employees were increased 5% to offset the required employee VRS contribution. VRS members are “vested” when they have five years of VRS service credit.
- Plan 1: Members with service credit before July 1, 2010, and vested as of January 1, 2013, are eligible to retire with unreduced benefits at age 65, with at least five years of service, or at age 50 with at least 30 years of service. An employee’s highest consecutive 36 months of creditable compensation is used as the average final compensation.
- Plan 2: Members hired or rehired on or after July 1, 2010, with no pre-July 1 service credit are eligible to retire with an unreduced benefit at their normal social security retirement age with at least five years of service credit or when age and service equal 90. An employee’s highest consecutive 60 months of creditable compensation is used as the average final compensation.
For Plan 1 and Plan 2, service retirement is a defined benefit based on a member’s average final compensation, years of service, and age at retirement. VRS Plan 1 and Plan 2 members may apply for disability retirement benefits if they become unable to perform their job because of a physical or mental disability and the disability is most likely to be permanent.
- Hybrid Plan: This plan applies to most members hired on or after January 1, 2014 with no prior VRS service credit. This plan also applies to eligible VRS Plan 1 and VRS Plan 2 members who elect to opt into the plan during the election window held January 1-April 30, 2014; the plan’s effective date for opt-in members is July 1, 2014. A decision to opt into the Hybrid Plan cannot be changed after April 30, 2014. Public safety employees covered by enhanced hazardous duty benefits are not eligible for the Hybrid Plan. This plan offers a defined benefit component and defined contribution component (similar to 401k). The Hybrid Plan does not offer disability retirement benefits; instead, Hybrid Plan members have a separate program of short and long term disability benefits and a separate County sick leave accrual plan.
- Hybrid Retirement Plan Information Resources:
- Special Issue of VRS Member News – for an overview of the new Hybrid Retirement Plan and list of VRS information resources.
- VRS Plan Comparison Guide for details on significant benefit differences.
- Hybrid Disability - an employer-paid program of short and long term disability benefits for Hybrid Plan members.
- Hybrid Sick Leave Accrual Program - a separate County sick leave accrual plan for Hybrid Plan members that corresponds to the employer-paid disability program.
- County information sessions - for any employees who are considering opting into the hybrid plan. Sessions will focus on County benefit differences for Hybrid Plan members.
- Contact the Hybrid Retirement Plan Support Team at 1-855-291-2285 or email email@example.com.
Thinking about retiring from Henrico County? You can visit the Benefits Division’s Retirement Web page to learn about VRS benefits, retiree health and dental coverage, and other tools to help you plan for retirement.
You may be able to increase your VRS benefit by purchasing prior service credit. Prior service is a period of service that has not been credited to your VRS service record because it was not covered by VRS or it was covered service for which your previously took a refund. Because the amount of your benefit is based on your years of service credit, purchasing prior service credit can increase your monthly retirement benefit. VRS allows eligible members to purchase time for: certain leaves of absence, non-covered service with a participating employer, public service, active duty military service, and VRS refunded service. The cost and time frame to purchase this service is based on whether you are in Plan 1 or Plan 2. For more information on purchasing prior service, visit the VRS purchase of prior service Web page. In order to initiate a purchase of prior service, a member needs to complete the Application to Purchase Prior Service Credit (Form VRS-26). When a completed form is submitted to VRS, a cost letter is generated for the member. The letter provides cost information and payment options, which may include payroll deduction, lump-sum payment, or trustee-to-trustee transfer.