Classified Staff Retirement
Virginia Retirement System (VRS)
- You are automatically enrolled in the VRS Hybrid upon hire. Prior VRS Service may qualify you for a grandfathered plan (VRS Plan 1 or VRS Plan 2).
- The plan requires require you to contribute 5% of your pay toward the benefit.
- The VRS Hybrid plan has both a Defined Benefit “DB” and a Defined Contribution “DC” component, both are pretax contributions. A DB plan provides you with a monthly pension payment at retirement, while the DC portion provides you with an account that you control to provide you with retirement income.
- The VRS mandatory contribution rate of 5% of gross pay is split with 4% going to the DB component and 1% going to the DC component. The Employer matches the 1% DC portion and offers additional matching (see supplemental plans section)
- Hybrid Plan Participants may purchase up to 4 years of EVMS Service, to shorten the “DB” vesting period.
- In addition to the VRS, you can use the Supplemental plans.
The following chart has some basic information about these benefits.
| Feature | Virginia Retirement System |
|---|---|
| Eligible | All Employees |
| Vesting | 4 Years for DC / 5 Years for DB – see below |
| Matching | For Additional Voluntary Contributions |
How long do I plan to work for ODU?
- When enrolled in the VRS and you leave ODU before you work 4 years, you may forfeit the portion that the employer contributed to the DC portion of the benefit. The DC employer contributions vest 50% after 2 years; 75% after 3 years and 100% after 4 years.
- When enrolled in the VRS and you leave before completing 5 years, you forfeit your right to the pension benefit.
I plan to spend a good portion of my career working for ODU, how does the VRS work?
Example: Estimated basic retirement benefit if you work for ODU for 10 years and make $35,000 per year each year.
- VRS Hybrid: Monthly Pension benefit estimate: $291 per month pension payable beginning at age 67 - plus $3,500 saved as an investable account. (Includes match but no earnings or fees)
What if I contribute the full 9% to the VRS Plan?
Example: Estimated basic retirement benefit if you work for ODU for 10 years and make $35,000 per year each year and contribute the full 9% to the plan.
- VRS Hybrid: Monthly pension estimate: $291 per month payable at age 67 – plus account balance of $29,750. This calculation assumes no earnings, losses, or fees. (See matching chart on reverse)
Am I comfortable investing my account balance?
VRS pension committee invests money and is responsible for paying any pension amount in retirement that an employee earns. You will choose how to invest the 1% defined contribution amount and any additional voluntary Hybrid 457 contributions.