Prepare for Retirement

VRS Plan 1​​​​​

Unreduced Retirement

Normal retirement age under VRS Plan 1 is age 65. You become eligible for an unreduced benefit at age 65 with at least five years of service credit or at age 50 with at least 30 years of service credit.

Reduced Retirement

You may retire with a reduced benefit as early as age 55 with at least five years of service credit or age 50 with at least 10 years of service credit. To determine your reduced benefit, VRS applies an early retirement reduction factor to your unreduced basic benefit.

VRS Plan 2

Unreduced Retirement

Normal retirement age under VRS Plan 2 is your normal Social Security retirement age. You become eligible for an unreduced benefit when you reach your normal Social Security retirement age and have at least five years of service credit or when your age and service credit equal 90. Example: Age 60 with 30 years of service credit.

Reduced Retirement

You may retire with a reduced benefit as early as age 60 with at least five years of service credit. To determine your reduced benefit, VRS applies an early retirement reduction factor to your unreduced basic benefit.

VRS Hybrid

Unreduced Retirement

You become eligible for an unreduced retirement benefit under the defined benefit component when you reach your normal Social Security retirement age and have at least five years of service credit or when your age and service equal 90 (Rule of 90) and you have at least five years of service credit. Example: Age 60 with 30 years of service credit.

Reduced Retirement

You may retire with a reduced benefit as early as age 60 if you have at least five years of service credit. To determine your reduced benefit, VRS applies an early retirement reduction factor to your unreduced basic benefit.

Leaving Employment Prior to VRS Retirement Eligibility

If you leave VRS-covered employment before retirement, you can:

• Leave your funds with VRS and become a deferred member. If you are vested, you may be eligible for a future retirement benefit if you meet the age and service requirements for your plan; or
• Take a refund of your member contributions and interest. Taking a refund cancels your membership and eligibility for any future benefits.

Before you decide:

• Remember that choices you make now may have a significant impact on your future retirement.
• Read the leaving employment section of the VRS Handbook for your plan.
• Review information on the VRS website.
• Speak to a VRS representative at 888.827.3847.

If you are enrolled in the Optional Retirement Plan or Medical Center Retirement Plan, you may qualify as a UVA retiree based on your most recent hire date and years of service:

Hired before 7/1/2010

• age 55 with at least five years of benefited service, or age 50 with at least 10 years of benefited service

Hired on or after 7/1/2010

• age 60 with at least five years of benefited service or when your age and benefited service equal 90

Leaving Employment Prior to Retirement Eligibility

• If you separate from UVA but you are not eligible to retire, you will retain your own contributions into the plan. 
• You must meet the vesting requirements for your plan in order to retain employer contributions.
  • ORP Vesting
  • MCRP Vesting

All invested funds are subject to investment gains or losses.

In order to receive benefits in a timely manner, start the process well before your retirement date. Use the following timeline:

• At least 4-6 months before retirement:
  Contact your vendor for information about forms to complete. These include:
  • Mission Square (formerly ICMA-RC) - 877.327.5261
  • Fidelity - 800.343.0860
  • TIAA - 800.842.2252
• Approximately 4 months before retirement:
  Contact the Benefits Division at UVA Human Resources at 434.243.3344 to discuss health insurance and other benefits.
• At least 3 months before retirement:
  Contact the local Social Security Office to apply for payments - if desired. If you (or a dependent) are 65 or older, you and/or your dependent must also apply for Medicare if not already enrolled.

The benefits available at retirement include:

VRS, ORP, or MCRP distributions (depending on your current plan)

• Social Security and Medicare benefits
• Health care insurance
• In many cases, life insurance and distributions from 403(b) savings plans

The beginning date for your first required minimum distribution is January 1 following the later of the calendar year in which you: reach age 73 (age 75 if born before January 1, 1959), or retire.

If you defer retirement benefits, you are not eligible to enroll in the Retiree Health Benefits Program.

Contact your retirement vendor to discuss distribution options.

You can receive your retirement income in several ways depending on your plan:

• Receive the highest monthly income available when you retire, but this option is only payable to you and will not transfer to your survivors.
• Choose a reduced benefit option to make your retirement income available to your survivors.
• Receive a higher benefit in your early years after retirement and before receiving social security benefits, then reduce the benefit when your social security starts.
• Retire after your social security income has started.
• Receive a lump-sum distribution of up to three times your annual benefit, requiring you to work past full retirement age for one to three years.

Before you retire, choose an income payment option:

• Basic Annual Lifetime Benefit
• 10% - 100% Survivor Option
• Special Survivor Option
• Partial Lump Sum Option Payment (PLOP)
• Advance Pension Option (APO)

If you did not join the Virginia Sickness and Disability Program (VSDP), use your sick leave balance to purchase VRS service credit at retirement.

• Maximum purchase of service time cannot exceed the sick leave payout rules and is governed by the VRS policies found in the VRS 1 Handbook or VRS 2 Handbook.
• Benefits will submit your accrued sick leave hours to VRS, then VRS will determine how many months of service you are eligible to purchase.
• Calculations performed by you and/or your Benefit Counselor are strictly estimates; VRS makes the final determination.

If you were hired prior to 2000 and joined VSDP, you are eligible to use your disability credits, if applicable, to purchase VRS service credit at retirement.

UVA partners with TIAA and Fidelity Investments to offer a robust retirement plan to save for your future. When you enroll in ORP, you also have short- and long-term disability, and life insurance with The Standard. Set up a consultation with your retirement plan representative or attend a seminar at UVA to learn more.

Contact TIAA, log in to your account, and more

Account login 
Consultations/Seminars
800.842.2252

Contact Fidelity, log in to your account, and more

Account login
Consultations/Seminars
800.343.0860

ORP Summary

Optional Retirement Plan Summary

For more information about how the ORP works, visit the ORP page.

If you enroll in MCRP, you can choose either TIAA or Fidelity Investments. Each provider has resources for UVA employees and representatives to assist you. Set up a consultation or attend a seminar at UVA.

Contact TIAA, log in to your account, and more

Account login 
Consultations/Seminars 
800.842.2252

Contact Fidelity, log in to your account, and more

Account login 
Consultations/Seminars 
800.343.0860 

Medical Center Retirement Program Summary

Medical Center Retirement Program 

For more information about how the MCRP works, visit the MCRP page.

You may want to meet with a Social Security Administration representative to discuss your options for when to take your Social Security Retirement Income. 

You may take partial benefits at age 62. The Social Security Administration will pay you an additional 8% per year once you reach your full retirement age if you elect to take your retirement at a later date. You must take it at age 70. For an overview of retirement age effects on benefits, visit the Social Security Administration website.

You also have the option to file-and-suspend. If you have a spouse who is receiving their full retirement benefit, you may file-and-suspend your benefit and request to take one-half of your spouse’s full benefit amount. This does not affect the amount of retirement benefit received by your spouse. This will allow you to continue to earn the additional 8% per year until you reach 70. At that time you can file to take your full retirement benefit

The Charlottesville area District Social Security Administration office is located at 1470 Pantops Mountain Place and can be reached by telephone at 1-800-772-1213.  You can find booklets online as well as a local office locator at the Social Security Administration homepage. If you haven’t already done so, you are encouraged to create an account with “my Social Security.”

• When you retire, you must sign-up for Medicare Part A (hospitalization) or Medicare Part B (healthcare) even if you continue to work at the University.
  • (Retirees and dependents on the UVA Retiree Health Plan must enroll in Medicare when they become eligible.)
• More information on Medicare is available at medicare.gov. You can also research additional benefit options offered through the Health Insurance Marketplace.  
• Learn about changes to UVA's Health Benefits Program for 2022.
• It's important to be aware of how Income Related Monthly Adjustment Amount (IRMAA) impacts your cost for Medicare. Learn more about Medicare B premiums and whether you’ll be subject to IRMAA.

RESOURCES:

• Research the State’s Retiree Health Benefits Program either on the UVA HR site or at the state-level Department of Human Resource Management webpage. 
• More information on Medicare is available at medicare.gov.
• You can also research additional benefit options offered through the Health Insurance Marketplace.  
• Understanding Medicare: Discussion about the basics of Medicare, Medicare options and what's new to Medicare. Video presentation with Randy Rodgers from JABA.  

For 2022, UVA has lowered the cost of health, dental, or vision benefits for part-time employees.

Part-time employees will receive the same employer contribution to their premium as full-time employees, resulting in much lower premium rates.

At retirement, file a VRS-15 Request For Income Tax Withholding:

• Your VRS retirement income is subject to federal income tax
• If you plan to reside in the Commonwealth of Virginia during retirement, your VRS retirement benefit is subject to state income tax

Contact your tax advisor for additional guidance.

Retirement plan contributions are usually made with before-tax dollars; federal income taxes are deferred until withdrawals later on.

No taxes are due on pretax contributions and earnings until the money is withdrawn, but because these plans are intended primarily for retirement, you can generally withdraw funds only after termination of employment or age 59½ (subject to plan rules). If you withdraw funds before age 59½, they may be subject to an additional 10% early-withdrawal penalty.

Please contact your tax advisor for additional guidance.

403(b) and 457 plan contributions can be made with pretax dollars or Roth after-tax contributions.

No taxes are due on pretax contributions and earnings until the money is withdrawn. Roth contributions are tax-free when withdrawn and Roth earnings can be withdrawn tax-free as long as it has been five tax years since your first Roth 403(b) contribution. Because these plans are intended primarily for retirement, you can generally withdraw funds only after termination of employment or age 59½ (subject to plan rules). If you withdraw funds before age 59½, they may be subject to an additional 10% early-withdrawal penalty.

Please contact your tax advisor for additional guidance.

Contact your retirement plan vendor to make arrangements, or make an appointment to meet with a campus representative from your vendor.

You generally have to start taking withdrawals from your retirement plan accounts by April 1 following the later of the calendar year in which you:

• reach age 73 (age 75 if born 1960 or later) or
• retire (if your plan allows this)

Contact your retirement plan vendor to make arrangements, or make an appointment to meet with a campus representative from your vendor

If you have Basic Life insurance with Minnesota Life, your insurance continues after you retire at no cost to you if you meet both of the following requirements:

• You are at least 55 years old
• You have at least five years of continuous service as an employee, or are age 50 with 10 years of service (including five years of continuous service as an employee)

The insurance amount reduces by 25% annually starting January 1 following 12 months of retirement, and on every January 1, thereafter until coverage reaches 25% of its value at your retirement.

If you are eligible to retire but defer receipt of your annuity, reduction begins on January 1 following the first 12 months from the date you separate from service. At its fully reduced level, you will have approximately half of your preretirement compensation in life insurance.

If you retire due to disability, your life insurance also continues and does not begin to reduce until you reach age 65. Beginning January 1 of the first full year following the date you reach 65, your insurance begins to reduce at the rate of 25% annually until your coverage reaches 25% of its value at retirement.

If you took either a service or disability retirement before July 1, 2001, your basic group life insurance reduces 2% each month until it reaches 25% of its value at retirement.

Although accelerated death benefit and the right to voluntary irrevocable assignment continue into retirement, accidental death and dismemberment (AD&D) coverage ceases.

If you are a Medical Center employee enrolled in life insurance with The Standard, your retiree life insurance provides a death benefit of $10,000 payable to your designated beneficiaries upon your death. The death benefit amount stays level for the rest of your life. 

UVA provides $10,000 in life insurance to eligible retired members who have participated in The Standard life insurance. Verify your insurance and beneficiaries when you retire. The Standard plan also allows you, at retirement, to convert part or all of the basic and supplemental insurance you have as an active employee.

• You will be paid for your accrued annual leave balance not to exceed the maximum payment amount when separating from state service by resignation (including resignation from layoff status), retirement, termination, or death

• You may request and use (if approved) annual leave on your last scheduled work day before separation from state service, including retirement. Navigate to Workday>Absence>Request Absence

• Annual leave balances remaining after separation will be paid up to the maximum limit

• Find and print out your leave balance in Workday by navigating to Workday>Absence>View Absence Balance

• You will be paid for unused accrued PTO hours at 100% of your base rate of pay

• Find and print out your leave balance in Workday by navigating to Workday>Absence>View Absence Balance

• 25% of your catastrophic leave balance, up to a maximum of $5,000, will be paid upon termination if you have five or more years of continuous service