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Virginia State Employee Plan 2 Pension Formula:
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The Virginia State Employee Plan 2 Pension is a defined benefit retirement plan for Virginia state employees. It calculates retirement benefits based on average final compensation and years of service using a fixed percentage multiplier.
The calculator uses the Virginia Plan 2 pension formula:
Where:
Explanation: The formula multiplies the 1.7% benefit rate by your average final compensation and years of service to determine your annual pension benefit.
Details: Accurate pension calculation helps state employees plan for retirement, understand their expected benefits, and make informed decisions about retirement timing and financial planning.
Tips: Enter your average final compensation in USD (typically your average salary over the highest 60 consecutive months) and your total years of service. Both values must be positive numbers.
Q1: What is considered Average Final Compensation (AFC)?
A: AFC is typically the average of your highest 60 consecutive months of salary, including regular pay but usually excluding overtime and bonuses.
Q2: Is there a maximum years of service limit?
A: While there's no absolute maximum, benefits typically cap based on plan provisions. Most employees accumulate 30-40 years of service.
Q3: When can I retire with full benefits?
A: Full retirement age varies by plan provisions, but typically requires reaching a certain age and/or years of service combination.
Q4: Are cost-of-living adjustments included?
A: This calculation shows the base pension. COLA adjustments are typically applied separately and vary by plan provisions.
Q5: How accurate is this calculator?
A: This provides an estimate based on the standard formula. Actual benefits may vary based on specific plan provisions, early retirement factors, and other variables.