Employer Update

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).

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

Eligible retirees will see the COLA amount in their August 1 benefit payment.

VRS is one of the few state pension systems required by statute to review the COLA annually. Most states provide COLAs on an ad hoc basis. During years of zero inflation or deflation, no COLA is provided.

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

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