1. What is the Virginia State Plan 1 Pension?

The Virginia State Plan 1 pension is a defined benefit retirement plan for employees hired before 2014. It calculates annual pension benefits based on average final compensation and years of service using a fixed multiplier of 1.65%.

2. How Does the Calculator Work?

The calculator uses the Virginia Plan 1 pension formula:

Where:

• \( AFC \) — Average Final Compensation over 36 months (USD)
• \( YS \) — Years of Service (years)
• \( 1.65\% \) — Fixed multiplier for Plan 1 participants

Explanation: The formula multiplies the average of your highest 36 months of compensation by your total years of service and applies the 1.65% multiplier to determine your annual pension benefit.

3. Importance of Pension Calculation

Details: Accurate pension calculation is essential for retirement planning, financial security assessment, and making informed decisions about retirement timing and benefit options.

4. Using the Calculator

Tips: Enter your average final compensation in USD (based on your highest 36 months of earnings) and your total years of service. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for Virginia Plan 1 pension?
A: Employees hired before 2014 who meet the service requirements for retirement benefits under the Virginia Retirement System.

Q2: What is included in Average Final Compensation?
A: AFC includes your highest 36 consecutive months of salary, including regular pay but typically excluding overtime and bonuses.

Q3: Are there minimum service requirements?
A: Yes, specific minimum service years apply for different retirement options (normal retirement, early retirement, etc.).

Q4: How does this differ from Plan 2?
A: Plan 2 (for employees hired after 2013) uses different multipliers and may have different eligibility requirements.

Q5: Can I estimate my monthly pension amount?
A: Divide the annual pension result by 12 to estimate your monthly pension benefit.