Short answer: your yearly VRS Basic Benefit is your average final compensation × your plan's multiplier × your years of service. Plan 1 uses 1.7% on a 36-month average; Plan 2 uses 1.7% for service before 2013 and 1.65% after, on a 60-month average; the Hybrid plan uses 1%. Handbook example: $42,000 × 1.7% × 30 = $21,420 a year. Which plan am I in? See also early retirement and one more year. Load this example in the calculator.
Step 1: your average final compensation
Plan 1 averages your 36 highest-paid months in a row. Plan 2 and Hybrid average 60 months.
- Plan 1: $126,000 over your highest 36 months ÷ 3 = $42,000. Plan 1 Handbook p. 16, Average Final Compensation Example
- Plan 2: $210,000 over your highest 60 months ÷ 5 = $42,000. Plan 2 Handbook p. 15, Average Final Compensation Example
If the member has fewer than 60 months of service, AFC is the average over the entire period of creditable service. Va. Code § 51.1-124.3 ("Average final compensation") Salary increases in the last four years not related to promotion that exceed the average increase of comparable employees may be excluded from AFC if the Board finds their primary purpose was to raise the retirement benefit. Housing, travel, vehicle and cell phone allowances are not creditable compensation. Va. Code § 51.1-152; Employer Manual p. 5 The Internal Revenue Code limits the annual compensation that may be used to calculate a benefit; the limits change annually and are not given in the handbooks. Plan 1 Handbook p. 17, Note
Step 2: your multiplier
| Plan | Multiplier | On |
|---|---|---|
| VRS Plan 1 | 1.7% | all service |
| VRS Plan 2 | 1.7% | service earned, purchased or granted before January 1, 2013 |
| 1.65% | service earned, purchased or granted on or after January 1, 2013 | |
| Hybrid Retirement Plan | 1% | service earned, purchased or granted while a hybrid plan member |
| Hybrid, moved from Plan 1 | 1.7% | service before July 1, 2014 |
| 1% | service after July 1, 2014 | |
| Hybrid, moved from Plan 2 | 1.7% | service before January 1, 2013 |
| 1.65% | service January 1, 2013 - June 30, 2014 | |
| 1% | service after July 1, 2014 |
Plan 1 Handbook p. 16, Your Core Benefit; Va. Code § 51.1-155(A)(1); Plan 2 Handbook p. 15, Your Core Benefit; Va. Code § 51.1-155(A)(1); Hybrid Handbook p. 17, Your Core Benefit; Va. Code § 51.1-169(D)(1); Hybrid Handbook p. 18, Defined Benefit Multiplier for Opt-In Members; Employer Manual p. 5, Multiplier table; Va. Code § 51.1-169(D)(1)
Step 3: the handbooks' examples
All three handbooks use a $42,000 average and 30 years. Our engine gives the same result for each.
| Example | Math | A year | A month |
|---|---|---|---|
| Plan 1, age 50 | $42,000 × 1.7% × 30 | $21,420 | $1,785.00 |
| Plan 2, age 60 | $42,000 × 1.65% × 26 ($18,018) + $42,000 × 1.7% × 4 ($2,856) | $20,874 | $1,739.50 |
| Hybrid, age 60 | $42,000 × 1% × 30 | $12,600 | $1,050.00 |
| Hybrid, moved from Plan 2 | $100,000 × (1.7% × 4.5 + 1.65% × 1.5 + 1% × 12) | $22,125 | $1,843.75 |
The Hybrid amount is only the pension part. The defined contribution account comes on top.
If you retire early, a reduction applies to this amount for life. See Retiring early.
Plan 2 and opt-in multipliers depend on when each year of service was earned, bought or granted (before 2013, before July 2014, or after). We can't see your record.
Unless you enter your own split, we assume continuous full-time service from your membership date.
Plan 2 Handbook p. 15, Your Core Benefit; Hybrid Handbook p. 18VRS doesn't pay monthly service retirement amounts under $50. Employer Manual p. 11
From the sources
- Your Basic Benefit is average final compensation x retirement multiplier x years of service credit, divided by 12 for the monthly amount.Plan 1 Overview p. 1, Service Benefit Calculation
- Multipliers: Plan 1, 1.7%. Plan 2, 1.7% on service before January 1, 2013 and 1.65% on service after. Hybrid, 1.0%.Getting Ready to Retire Guide p. 9, Retirement Multipliers
- Hybrid members who opted in keep their old multipliers on earlier service. From Plan 1: 1.7% before July 1, 2014, then 1%. From Plan 2: 1.7% before 2013, 1.65% from January 1, 2013 to June 30, 2014, then 1%.Hybrid Handbook p. 18, Defined Benefit Multiplier for Opt-In Members
- Plan 1: average final compensation is the average of your 36 consecutive months of highest creditable compensation. Plan 2 and Hybrid use 60 consecutive months.Getting Ready to Retire Guide p. 9, Note
- Creditable compensation is your annual base salary. It excludes overtime, bonuses, allowances and extra-duty pay such as coaching stipends.Hybrid Handbook p. 15, What Is Creditable Compensation?
- Raises in your last four years that aren't tied to a promotion and exceed what comparable employees received can be left out of your average if VRS finds they were meant to boost your pension.Va. Code § 51.1-152
Questions
What is the VRS retirement multiplier?
1.7% in Plan 1. In Plan 2, 1.7% for service before January 1, 2013 and 1.65% after. In the Hybrid plan, 1%.
What is average final compensation?
Your average yearly pay over your highest-paid 36 months in a row (Plan 1) or 60 months (Plan 2 and Hybrid). It counts base salary, not overtime, bonuses or stipends.
Is there a minimum benefit?
VRS doesn't pay monthly service retirement amounts under $50.
Source: VRS Plan 1, Plan 2 and Hybrid Retirement Plan Handbooks for Members, 07-2026 editions (VRSHB-1 07-2026, VRSHB-2 07-2026, HybridHB 07-2026), Plan 1 Handbook pp. 13, 16, 17; Plan 2 Handbook pp. 13, 15, 16; Hybrid Handbook pp. 15, 17, 18. Also: Employer Manual pp. 5, 6, 11; Plan 1 Overview p. 1; Getting Ready to Retire Guide p. 9; Code of Virginia §§ 51.1-124.3, 51.1-152, 51.1-155, 51.1-169. Last reviewed .