News and Announcements
VRS Reports 6.1% Fiscal Year 2023 Return
VRS reported a 6.1% return, net of fees, on its investment portfolio for fiscal year 2023, ending the year with approximately $105 billion.
Tax Forms Coming in January
If you received a monthly retirement benefit from VRS in 2023, expect a Form 1099-R from VRS in late January. The Form 1099-R shows your benefit payments, taxes withheld and other information for the previous calendar year. Use the form to complete your 2023 federal and state income tax returns. The form will also be available in your myVRS account no later than January 31.
Reminder: Imputed Income Subject to Taxes
If you were covered under the VRS Group Life Insurance Program as a member, this benefit follows you into retirement. If the value of your group life insurance coverage exceeds $50,000, the value of the excess amount is considered imputed income and is subject to income taxes and FICA (Social Security and Medicare) taxes.
If you have VRS group life insurance coverage, VRS automatically withholds FICA taxes and sends you a Form W-2 each year showing the amount withheld and the additional taxable income.
Use the Form W-2 to file federal and, if applicable, state income taxes. As your life insurance coverage reduces, the amount of imputed income also reduces. If your coverage reduces to less than $50,000, these taxes will no longer be withheld, and you will no longer receive a W-2 from VRS.
Protect Yourself From Identity Theft and Fraud
Check out VRS’ Security Center for online safety tips, fraud prevention tips and information about claiming your accounts.
Meet With Your Virtual DCP Specialist
As MissionSquare Retirement’s VRS Defined Contribution Plans Specialist, Ashley Lucas is dedicated to helping you keep your money working for you in retirement. Her virtual services include retirement income strategies, investment education and counseling related to VRS Defined Contribution Plans. These include the Commonwealth of Virginia 457 Plan, the Virginia Cash Match Plan, the Hybrid 457 Deferred Compensation Plan and more.
Sign up for an appointment with Lucas by choosing your plan and navigating to Education. There is no charge for these services.
Changing Your Survivor Option
If you chose the Survivor Option at retirement, contact VRS to name a new survivor or revert to the Basic Benefit if a qualifying change occurs:
- Your survivor dies.
- Your survivor is your spouse and you divorce with fewer than 20 years of marriage.
- Your survivor is your spouse, you divorce after 20 or more years of marriage and your survivor dies, remarries or consents in writing to a change in the benefit.
- You provide VRS a written consent from your survivor giving up claim to a benefit along with proof of your survivor’s good health.
You can change the Survivor Option only once during your lifetime. If you revert to the Basic Benefit instead of naming a new survivor, the Basic Benefit is payable retroactively no more than 60 days from the date VRS receives your completed authorization form.
Reach Your Goals With a Certified Financial Planning Expert
As a VRS retiree, you have access to Certified Financial Planning services offered by MissionSquare Retirement – even if you don’t participate in a defined contribution plan. CFP professionals offer guidance and support to help you feel confident about your financial security. This may help you forge a path for reducing debt, budgeting, estate planning and more. Sign up for no-cost webinars and one-on-one 30-minute consultations.
Retired Public Safety Officers Eligible for HELPS
The federal Healthcare Enhancement for Local Public Safety (HELPS) Retirees Act allows eligible retired public safety officers to exclude a certain amount per year from retirement income used for qualified health insurance premiums or long-term care insurance premiums.
Premiums covering yourself, your spouse and dependent children may be eligible for this tax exclusion. You must claim the insurance premium exclusion on your tax return. The Form 1099-R that you receive reflects total taxable income without any adjustment for this benefit. For more information, contact a tax advisor or the IRS at 800-829-1040.
