Employer Update

Get the VRS Training You Need

Take advantage of the following webinars to increase your knowledge:

• Introduction to VRS, June 18, 20, 25 and 27 (session includes four classes).
• Disability Retirement, 2-3 p.m. April 24.
• Health Insurance Credit, 2-3 p.m. May 22.

Check out the VRS Training Academy for course descriptions and additional training opportunities.

Health Insurance Credit Forms Updated

The Request for Health Insurance Credit (VRS-45) and the Optional Retirement Plan Health Insurance Credit Employer Certification of Service (VRS-75) have both been updated to include the latest Medicare Part B premiums, along with an update to the instructions for the Insurance Policy Information section.

COLA Increases Take Effect July 1

The following cost-of-living adjustments (COLAs) take effect July 1 for eligible retirees in Plan 1, Plan 2 and the Hybrid Retirement Plan (defined benefit component). Eligible retirees will see the COLA amount in their August 1 benefit payment.

• 3.56% for Plan 1
• 3.0% for Plan 2 and the Hybrid Retirement Plan

Virginia Sickness and Disability Program: Members of VSDP receiving long-term disability benefits for at least one year will receive an increase in their long-term disability benefit effective July 1, based on the calculated COLA for the year.

• 3.56% for Plan 1
• 3.0% for Plan 2 or the Hybrid Retirement Plan

Life Insurance: The new minimum beginning July 1 is $9,532. Retirees with at least 30 years of service get a minimum life insurance benefit that does not reduce below a certain minimum amount, indexed using the Plan 2 COLA calculation each year.

Health Insurance Credit Increases for Some Retirees July 1

Legislation passed in 2023 increases the health insurance credit for retired constitutional officers, their employees and state employees, effective July 1.

Constitutional Officers and Employees

• Monthly amount increases from $1.50 to $1.75 per year of creditable service (not to exceed $52.50 per month) for retired constitutional officers and their employees who have at least 15 years of creditable service.
• Increases the credit to $52.50 per month for constitutional officers or constitutional officers’ employees who retired on long-term disability.

State Employees

• Monthly amount increases from $4 to $4.25 per year of service with no monthly cap for retired state employees who have at least 15 years of creditable service.
• Increases the monthly credit for state employees who retired on long-term disability from $4 per year of service to $4.25, or $120 per month, whichever is greater.