Employer Update

When employees are called to  active-duty military service, take time to carefully review and communicate the potential impact on their VRS benefits to ensure a smooth transition for armed services members.

The Uniformed Services Employment and Reemployment Rights Act (USERRA) pertains to VRS defined benefit plans, the Hybrid Retirement Plan and VRS Defined Contribution Plans, with regard to participation, vesting, eligibility and accrual of benefits.

After you certify the employee’s military service:

• Employees will have time served granted at no cost.
• Employers are required to submit mandatory employer contributions for the Hybrid Retirement Plan or an optional retirement plan, if applicable.
• Employees may choose to make up any mandatory or voluntary employee contributions.
• Email dcplans@varetire.org for assistance with make-up contributions to a VRS defined contribution plan.

To ensure an employee’s military service is accurately recorded and benefits correctly applied as required by USERRA, it’s essential to take the necessary reporting steps when the employee goes on leave, and later when the employee returns to the workplace.

Follow These Five Steps in MyVRS Navigator

1. When military leave begins, mark the employee on leave without pay. Select the Active-Duty Military Leave option.
2. Do not report contributions to VRS while the employee is in leave-without-pay status. However, do keep the employee’s compensation up to date in myVRS Navigator. Always enter the compensation that would have been paid had the employee not been on active-duty military leave.
3. Upon return to work, mark the employee as Active in myVRS Navigator.
4. Employees called to active-duty military service are eligible for VRS service credit for the time served. When an employee returns to active employment, ask the employee to provide you with the Form DD 214 (Report of Separation) so that you can certify eligible active-duty military leave in myVRS Navigator. You must confirm the employee has met all USERRA return-to-work qualifications.
5. If while on leave the employee was entitled to any annual compensation changes, separate periods of eligibility must be created each time the annual compensation changes.

NOTE:
The member will not receive the service credit until the certification is completed by the employer.

Learn More

• Uniformed Services Employment and Reemployment Rights Act.
• Refer to the Employees on Military Leave job aidfor detailed information on employer reporting requirements.
• For detailed instructions on certifying service, see the Certifying Military Service Using the DD214 job aid in the Commonwealth of Virginia Learning Center (login required).