Short answer: one more year adds a year at your multiplier: $714 a year on a $42,000 average at Plan 1's 1.7%, $420 at the Hybrid plan's 1%. If you're retiring early from Plan 1, it also takes up to 6% off the cut. See the formula, early retirement and the health insurance credit, which grows with each year. Load our Plan 1 example (55 with 25 years) in the calculator.
A year of service at your multiplier
On the handbooks' $42,000 average, one more year of service adds:
| Plan | Multiplier | A year | A month |
|---|---|---|---|
| VRS Plan 1 | 1.7% | $714 | $59.50 |
| VRS Plan 2 | 1.65% | $693 | $57.75 |
| Hybrid Retirement Plan | 1% | $420 | $35.00 |
For the multiplier on service earned now (Plan 2 after 2013, Hybrid). 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)
If you'd retire early, a smaller cut too
Example (our calculator): Plan 1, age 55 with 25 years, $42,000 average. Each year adds service and takes 12 months off the reduction, until 30 years.
| Retire | Service | Cut | A month | Gain vs. a year earlier |
|---|---|---|---|---|
| Now (age 55) | 25 | 30% | $1,041.25 | — |
| 1 more year | 26 | 24% | $1,175.72 | +$134.47 |
| 2 more years | 27 | 18% | $1,317.33 | +$141.61 |
| 3 more years | 28 | 12% | $1,466.08 | +$148.75 |
| 4 more years | 29 | 6% | $1,621.97 | +$155.89 |
| 5 more years | 30 | 0% | $1,785.00 | +$163.03 |
Plan 1 cuts 0.5% a month for the first 60 months early and 0.4% after. Employer Manual p. 4, Reduction by Type: 55/5 (for Plan 1 members) Starting from $1,041.25, five more years lift the check to $1,785.00.
For Plan 2 and the Hybrid plan VRS doesn't publish the early cut, so we can't show the same table. See Retiring early.
Past your unreduced date: the PLOP
Available with the Basic Benefit or Survivor Option if you work at least one year beyond the date you first become eligible for an unreduced benefit: 12 months = 1x the annual Basic Benefit; 24 months = 1x or 2x; 36 months or more = 1x, 2x or 3x. Purchased or granted service cannot substitute for the active service. Not available with the Advance Pension Option or disability retirement, or if the reduced monthly payment would be under $50. Plan 1 Handbook p. 18, PLOP amounts chart; Employer Manual p. 9
- On a $32,000 yearly Basic Benefit: $32,000, $64,000, $96,000. Plan 1 Handbook p. 18, PLOP Amounts chart
- On a $12,600 yearly Basic Benefit: $12,600, $25,200, $37,800. Hybrid Handbook p. 19, PLOP Amounts chart
More on the PLOP and its taxes on Payment options.
From the sources
- Each extra year adds one more year of service at your multiplier and can raise your average final compensation. If you're retiring early, it also shortens the reduction.Plan 1 Handbook p. 16-17, Your Core Benefit; Employer Manual p. 4
- Working at least 12 months past your first unreduced date unlocks the Partial Lump-Sum Option: one year's Basic Benefit as a lump sum after 12 months, up to two years' after 24 months, up to three years' after 36 months.Plan 1 Handbook p. 18, PLOP Amounts
Questions
How much does one more year add to a VRS pension?
One more year of service at your multiplier, on your average final compensation. On a $42,000 average that's $714 a year (VRS Plan 1, 1.7%); $693 a year (VRS Plan 2, 1.65%); $420 a year (Hybrid Retirement Plan, 1%). A raise or a shorter early-retirement cut adds more.
What do I get for working past my unreduced date?
Each extra year still adds service. And after 12 months past your first unreduced date you can take the Partial Lump-Sum Option (PLOP): one to three years of your Basic Benefit as cash, in exchange for a smaller monthly check.
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. 16-17, 18; Plan 2 Handbook p. 15; Hybrid Handbook p. 17. Also: Employer Manual pp. 4, 9; Code of Virginia §§ 51.1-155, 51.1-169. Last reviewed .