• VRS Retirement Plans

  • VRS Hybrid Plan 

    The VRS Hybrid Plan is for members hired full-time on or after 1/1/14 and not already VRS members.

    Employees enrolled in the VRS Hybrid Plan are covered for the following benefits with their VRS participation:

     

    VRS Website

    The best resource for information on your VRS benefits is the VRS website at www.varetire.org/hybrid. Find the VRS Hybrid Plan OverviewVRS Hybrid Plan Member Handbook, more about your VRS benefits, educational resources, forms and more on the VRS website. 

    Log into your personal  account at https://myvrs.varetire.org/login to view your personal VRS benefits including your Benefit Member Profile. If you are new to the VRS site, choose "Register Now" to set up your user name and password.  

    If you need assistance with the VRS website or prefer to call, you can reach VRS Customer Service at 1-888-827-3847 (TDD:1-804-289-5919).  

    VRS Hybrid Plan Basics 

    The Hybrid plan is called hybrid because it is a combination of two types of plans: a Defined Benefit (DB) Plan and a Defined Contribution (DC) Plan.  You contribute a mandatory 5 percent of your creditable compensation into your VRS plan each pay.  Of the 5 percent, 4 percent goes to the Defined Benefit (DB) plan.  The additional 1 percent goes to the Defined Contribution (DC) plan (a 457 plan) and is matched with a 1 percent LCPS contribution.   

    Defined Benefit (DB) Component + Defined Contribution (DC) Component = Your Retirement Benefit 

    You also have the opportunity to contribute more, up to an additional 4 percent, into the defined contribution (DC) plan (401(a) plan) to build on the benefit from the DB plan.  These contributions are matched by LCPS in the Hybrid 401(a) Cash Match Plan. 

    Defined Benefit (DB) Plan

    You contribute a mandatory 4 percent of your creditable compensation each pay to the DB component on a pre-tax basis. Your contributions are tax-deferred until you withdraw them as part of your retirement benefit or as a refund. VRS manages the investments and related risk for member and employer contributions under this component. If you are eligible for retirement, you will receive this benefit monthly over your lifetime. 

    Age and Service Requirements Under the DB Plan

    You qualify for an unreduced retirement when you reach your normal Social Security retirement age and have at least five years of service credit or when your age and service equal 90 (Rule of 90). Example: Age 60 with 30 years of service credit.  You can retire with a reduced benefit as early as age 60 if you have at least 5 years of service.  

    Average Final Compensation

    Used in your benefit calculation, this is the average of your 60 consecutive months of highest creditable compensation as a covered employee.

    Retirement Benefit Calculations Under the DB Plan

    Under the Hybrid Plan, the Defined Benefit (DB) retirement benefits are determined by a formula based on your age, years of service credit and average final compensation. Once you qualify for retirement, the formula for normal (unreduced) retirement is as follows:

    Average Final Compensation X 1.0% (Retirement Multiplier) x Total Service Credit = Annual Basic Benefit Amount  

    (This amount will be reduced for employees who retire prior to their normal retirement age or may be different based on the type of retirement. See the Hybrid Plan Member Handbook for more details). 

    The best way to model different retirement scenarios is by logging into your personal VRS account at https://myvrs.varetire.org/login

    Defined Contribution (DC) Plan 

    One percent of your VRS mandatory contribution goes to the DC component of the plan.  You also have the opportunity to contribute up to an additional 4 percent toward the DC component which goes into a 457 plan.  Your voluntary contributions have an employer match, are invested (you select from a variety of investment options) and your investments can generate tax-deferred earnings.  You manage the investments and related risk to build on the retirement benefit provided through the Defined Benefit (DB) component.

    Employer Matching Under the DC Plan (Hybrid 401(a) Cash Match Plan)

    LCPS contributes a 1 percent match on the mandatory 1 percent you contribute to the DC plan. 

    For any additional voluntary contributions you make, LCPS will match the first 1 percent with a corresponding contribution of 1 percent of your creditable compensation.
    Each of your additional 0.5 percent increases will be matched with a 0.25 percent contribution. The maximum amount for match is 2.5 percent.  

    VRS Hybrid Contributions and Match Table

    Vesting in the DC Plan

    Your contributions: Vesting in your contributions in your Hybrid 457 DC plan is immediate. Upon retiring or leaving employment, you can withdraw 100 percent of your Hybrid 457 plan account balance.

    Employer contributions (Hybrid 401(a) Cash Match Plan): You also are eligible to withdraw from your Hybrid 401(a) Cash Match Plan balance upon retiring or leaving employment. Withdrawals of your employer contributions and net investment earnings on employer contributions are subject to the following vesting schedule: 1 year – 0%; 2 years – 50%; 3 years – 75%; 4 years – 100%

    Retirement Benefit Calculations Under the DC Plan

    Under this component, the benefit is determined by the amount of contributions and net investment earnings on contributions. You select a distribution (payment) option at retirement. 

    Making Voluntary Contributions to the DC Plan

    If you want to make additional voluntary contributions to your Hybrid 457 plan, log on to the Defined Contribution Plan section of the VRS website and make your elections.  Changes can be made quarterly.  If you need assistance with your Hybrid 457 plan Click here to schedule a virtual appointment with Steven Scott.

     

     

    Other LCPS Retiree Benefits 

    See School Board Policy 7628 for more information on eligibility for other LCPS Retirement Benefits. 

     

Last Modified on November 15, 2023