1. What is the Virginia Retirement System?

The Virginia Retirement System (VRS) is a defined benefit retirement plan for public employees in Virginia. The annuity calculation uses a formula based on years of service and average final compensation to determine retirement benefits.

2. How Does the Calculator Work?

The calculator uses the VRS annuity formula:

Where:

• \( YS \) — Years of Service (total years worked)
• \( AFC \) — Average Final Compensation (average of highest consecutive 36 or 60 months of salary)
• \( 1.7\% \) — Multiplier factor for standard retirement

Explanation: The formula calculates the annual retirement benefit by multiplying 1.7% times the years of service times the average final compensation.

3. Importance of Retirement Planning

Details: Accurate retirement planning helps ensure financial security during retirement years. Understanding your potential VRS annuity allows for better financial preparation and decision-making.

4. Using the Calculator

Tips: Enter years of service as a decimal (e.g., 25.5 years) and average final compensation in USD. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Average Final Compensation (AFC)?
A: AFC is typically the average of your highest consecutive 36 or 60 months of salary, depending on your VRS plan and retirement date.

Q2: Is the 1.7% multiplier always used?
A: The 1.7% multiplier is standard for most VRS plans, but some special categories may have different multipliers. Check your specific plan details.

Q3: Can I include partial years of service?
A: Yes, years of service can include partial years (e.g., 25.5 years). The calculator accepts decimal values for precise calculations.

Q4: Are there early retirement reductions?
A: Yes, retiring before normal retirement age may result in reduced benefits. This calculator assumes normal retirement age.

Q5: How often is the annuity paid?
A: VRS annuities are typically paid monthly, but this calculator shows the annual amount for planning purposes.