Rules To Know Before Hiring VRS Retirees

August 2024

Text on the left reading hiring VRS retirees. An older man, seated, working on the computer on the right.

If your prospective new hire previously retired from your organization or a different VRS-participating employer, there are considerations for both you and the retiree before signing the hiring agreement.

By following best practices, you'll avoid liability for any benefit overpayments, and the retiree will be aware of how returning to work impacts their benefits.

Three Hiring Options

Retirees can return to work with a VRS-participating employer in one of three ways:

Return to active employment in a VRS-covered position (full-time). Their benefits will end.
Return in a non-covered position (part-time), following specific rules. Generally, they will continue receiving their retirement benefits.
Serve full-time in certain positions in a school division, following rules and eligibility requirements. They will continue to receive VRS retirement benefits.

Five Rules to Know

Retirees may work in a non-covered (part-time) position with a VRS-participating employer and continue to receive their retirement benefits under certain circumstances. (Some part-time permanent, salaried state positions are covered under VRS.)

Require a bona fide break in service. Retirees must have a break in service of at least one full calendar month during a period they would normally work.
Make no pre-arrangements. There can be no verbal or written offer of re-employment between you and the employee before retirement.
Work 80% or fewer hours. The hours worked must be 80% or less than a full-time equivalent position.
Do not reclassify positions to accommodate retirees. You cannot designate a position as non-VRS-covered simply to accommodate a retiree in the position.
Be aware that disability retirees returning to work may forfeit benefits. If an employee retires on disability and accepts a position that requires the same or similar duties as the employee performed in his or her previous position, disability retirement benefits will end. Members should contact VRS prior to returning to work to determine if the position would disqualify them from receiving disability retirement.

Schools Have Additional Options When Hiring Retirees

Eligible retirees may work full time in certain school division jobs that are designated as critical shortage, such as teachers, administrators, school specialized student support positions and bus drivers. The Virginia Department of Education designates critical shortage areas annually.

Retired sworn law-enforcement officers may be eligible to return to work full time as retiree school security officers at a Virginia public school.

Retirees may return to work in these roles after a six-month break in service during which they do not work for any VRS-participating employer in any capacity.

If retirees qualify to fill these positions, they will:

Continue to receive retirement benefits.
Not earn additional service credit.
Not be eligible for VRS member benefits.

myVRS Navigator Change: Delayed Enrollment For Retirees

When hiring a VRS retiree into a covered (full-time) position, the retiree’s monthly benefit will cease unless enrolled in myVRS Navigator in one of the critical shortage positions or school security officer positions available to school divisions. The system was recently updated to ensure the retiree’s enrollment into positions other than the exceptions, is held in a pending status for 21 days to allow time to reconsider. The employer may cancel the enrollment within the 21-day period if the retiree decides against returning to work in a full-time position. Otherwise, the system will automatically make the enrollment active on Day 22 and the retirement benefit will stop. VRS notifies retirees their benefits will end when they return to full-time work. Retirees who have been overpaid benefits also receive notification.