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).

• 2.95% for Plan 1
• 2.48% 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 (VSDP)

Members receiving long-term disability benefits under VSDP for at least one calendar year will see a:

• 4.00% increase in their creditable compensation.
• 2.95% (Plan 1) or 2.48% (Plan 2 and Hybrid Retirement Plan) cost-of-living adjustments to their benefit payments.

Virginia Local Disability Program (VLDP)

Members receiving long-term disability benefits under VLDP for at least one calendar year will see a:

• 4.00% increase in their creditable compensation if they retire directly from long-term disability.

Life Insurance

$9,768 is the new minimum beginning July 1 (an increase of 2.48% over the previous year).

Life insurance for retirees with at least 30 years of service cannot go below this minimum life insurance benefit amount, which is indexed to the Plan 2 COLA calculation each year.

Hazardous Duty Supplement

$17,856 beginning July 1 and paid monthly beginning August 1 ($1,488 per month).

Evaluated every two years, the hazardous duty supplement begins at retirement and continues until normal retirement age under Social Security, or until age 65 for eligible VaLORS members.