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If you leave your job, you’ll need to decide what to do with your defined benefit member contributions and interest. Here’s a quick guide on your options.

Become a Deferred Member

By leaving your funds with VRS, you become a deferred member. Your member contribution account will continue earning 4% interest annually.

Reasons to defer your membership:

• Benefit eligibility: If you have at least five years of service credit, you are vested and may qualify for a lifetime monthly benefit when you meet age and service requirements for your plan.
• Easy return to employment: If you come back to a VRS-covered job, your contributions and service credit will resume. You will stay in the same VRS plan, if eligible under your new position.
• Access to myVRS: Keep planning for the future you imagine by using myVRS to view your member records, access retirement planning tools and build money-management skills using myVRS Financial Wellness.

While deferred, you remain eligible to request a refund of your member contributions and interest.

Request a Refund

You can take a refund of your member contributions and interest. You will receive a cash payment, but taking a refund cancels your VRS membership and eligibility for any future benefits. If you return to VRS-covered employment, you will be hired under the retirement plan in place for that position.

Consider these steps before requesting a refund:

• Check your balance: Log in to myVRS to review your member contribution account balance and a summary of your plan’s other benefits, if applicable. Knowing this information may help you weigh your options.
• Research the details: Refer to your plan handbook and the VRS website for more information (see Leaving Employment).
• Seek guidance: Consult your human resources officer or contact VRS for assistance.

You can request a refund online using myVRS.

VRS withholds federal and state taxes if you have your refund paid directly to you. The IRS may impose an additional tax penalty for early withdrawal, depending on your age. You can defer taxes by rolling over your refund into an Individual Retirement Account or another qualified retirement plan.

NOTE If you participate in a VRS defined contribution plan, refer to your plan’s leaving employment guide under the Publications page of your plan’s website to learn about your options.