Hiring VRS Retirees

Retirees may work in part-time position ( non-covered employment ) with a VRS-participating employer and continue to receive their retirement benefit under certain circumstances.

Rules

A bona fide break in service is required.

Before retirees can return to work in any capacity for the VRS-participating employer from which they retired, they must have a break in service of at least one full calendar month during a period they would normally work.

Make no pre-arrangements.

There can be no verbal or written offer of re-employment between the employer and the employee before retirement.

Work 80% or fewer hours.

If a retiree returns part-time, the hours worked must be 80% or less of the full-time equivalent position.

Reclassifying positions to accommodate retirees is not allowed.

You cannot designate a position as non-VRS-covered simply to accommodate a retiree in the position.

Disability retirees forfeit benefits if resuming the same or similar duties.

If an employee retires on disability and accepts a position that requires the same or similar duties as the employee performed in his or her previous position, disability retirement benefits will end.

Certain school division jobs are designated as critical shortage, as determined annually by the Virginia Department of Education, or when a school district receives three or fewer qualified applicants when recruiting for the position. Critical shortage positions include teachers, principals, assistant principals, specialized student support personnel (i.e., social workers, psychologists, nurses) and bus drivers.

These are full-time, temporary positions. You should recruit annually to fill the position before hiring or rehiring a retiree in a critical shortage position. Retirees filling critical shortage positions continue to receive retirement benefits. They will not earn additional service credit, and they will not be eligible for VRS member benefits.

Employer contributions are required. Employers must report critical shortage employees to VRS and submit employer contributions for these positions.

Eligibility

The Retiree must:

• Be retired from a VRS-covered position. (Members of the State Police Officers’ Retirement System, the Virginia Law Officers’ Retirement System and the Judicial Retirement System are not eligible.)
• Be hired by a Virginia public school division in a designated critical shortage position.
• Hold a license for the position as required by the Code of Virginia.
• Have a break in service of at least six consecutive months between the retirement date and the start date of the critical shortage position. This break means not working in any full-time, part-time, or volunteer position, including coaching and substituting, with any VRS-participating employer, or working for a contractor with any VRS-participating employer.
• Not have retired with a reduced VRS benefit under an early retirement incentive program (ERIP).
• Not have retired under the Transitional Benefits Program or the Workforce Transition Act with an enhanced monthly VRS benefit.
• Not be on VRS disability retirement.
• Not have a prearranged commitment, either verbal or written, with the school division before the employee’s retirement date.

In myVRS Navigator

Steps for enrolling and reporting:

1. Use the correct job name in myVRS Navigator.

   Critical Shortage Teacher, Critical Shortage Bus Driver or Critical Shortage Specialized Student Support. Using an incorrect job name in myVRS Navigator (Teacher, for example) will trigger the system to stop the retirement benefit and, in some cases, the employee may receive an overpayment letter from VRS.

2. Submit monthly employer contributions.

   Critical shortage positions will appear in your monthly snapshots under employer contribution-only plans (for administrative purposes).

3. Separate at the end of the school year.

   Because these positions are recruited annually, you must separate critical shortage employees at the end of each contract and re-enroll them if they continue into a new contract.

Required Annual Form

Certification of Eligibility for Critical Shortage Teachers and Administrators (VRS-160)
Certification of Critical Shortage Bus Drivers (VRS-160D)
Certification of Eligibility for Critical Shortage Specialized Student Support Positions (VRS-160S)

Retirees employed in a critical shortage position must complete the appropriate form at the time of employment each year. The employer must certify the form and send it to VRS.

Retired sworn law-enforcement officers may be eligible to return to work full time as a retiree school security officer at a Virginia public school. Retirees working in these positions will continue to receive retirement benefits. They will not earn additional service credit, and they will not be eligible for VRS member benefits.

Employer contributions are required. Employers must report retiree school security officers to VRS and submit employer contributions for these positions.

Eligibility

The Retiree must:

• Be retired from a sworn law-enforcement officer position covered under VRS.
• Be hired by a Virginia public school division in a retiree school security officer position, as defined by the Code of Virginia.
• Have a break in service of at least six consecutive months between their retirement date and the start date of the school security officer position. This break in service means not working in any full-time, part-time or volunteer position with a VRS-participating employer or working for a contractor with any VRS-participating employer.
• Not have retired under the Transitional Benefits Program or the Workforce Transition Act with an enhanced monthly VRS benefit.
• Not be on VRS disability retirement.
• Not have a prearranged commitment, either verbal or written, with the school division before their retirement date.

In myVRS Navigator

Steps for enrolling and reporting:

1. Use the job name Retiree School Security Officer.

   Using an incorrect job name in myVRS Navigator (Administrative Support/Contractual, for example) will trigger the system to stop the retirement benefit and, in some cases, the employee may receive an overpayment letter from VRS.

2. Submit monthly employer contributions.

   Retiree school security officer positions will appear in your monthly snapshots under employer contribution-only plans (for administrative purposes).

3. Separate at the end of the school year.

   Because these positions are recruited annually, you must separate retiree school security officers at the end of each contract and re-enroll them if they continue into a new contract.

Required Annual Form

Certification of Eligibility for Retiree School Security Officers (VRS-160C)

A retiree employed in a school security officer position must complete this form at the time of employment each year. The employer must certify the form and send it to VRS.

Retirees may opt to return to full-time in a VRS-covered position (covered employment). Make them aware of potential impacts of this choice on their future benefits.

When retiring again, an employee will retire under the currently applicable plan for that position, which may change the benefit calculation for the second retirement.

Other Factors to Consider

Cost-of-Living Adjustments

If a retiree is receiving cost-of-living adjustments (COLAs) and returns to covered employment, the COLAs will not immediately resume upon subsequent retirement. As a result, the subsequent benefit may be less than the previous benefit, especially if the retiree has been receiving the COLA for several years. The retiree will become eligible for a COLA effective July 1 of the second calendar year after the subsequent retirement date. The COLA will be calculated as if the retiree were retiring for the first time.

Impact on Severance Benefits

Employees who retired under a severance program administered by VRS will lose any additional retirement credits used to calculate their retirement benefit upon subsequent retirement. This may affect whether the retiree's next benefit is less than the current benefit amount.

Impact on Hazardous Duty Enhanced Benefits

If the employee retired with an enhanced benefit from a position covered by VRS, SPORS or VaLORS and returns to covered employment with any VRS-participating employer in any capacity, the retirement benefit will be determined based on the plan the employee is covered under at the time of subsequent retirement. This may result in the loss of enhanced hazardous duty retirement benefits.

Subsequent Retirement After Disability Retirement

Retirees on disability retirement who return to covered employment will retire under service retirement when they retire again. The period they were retired on disability will be included in the calculation of their service retirement benefit. If a former disability retiree wishes to retire on disability retirement again, he or she must reapply by submitting all required disability retirement forms and documents. The application will be evaluated under the medical review process based on the duties of the new position.

Impact on 457 Plans

If a retiree returns to covered employment and is receiving distributions from the Hybrid 457 Deferred Compensation Plan, those distributions will stop. Employees age 70½ or older are eligible for distributions from the Commonwealth of Virginia 457 Deferred Compensation Plan and the Virginia Cash Match Plan 401(a), as applicable. Hybrid Retirement Plan members who return to work will restart mandatory contributions and make a new election for any voluntary contributions to the plan’s defined contribution component. Additionally, the employee may choose to enroll in the Commonwealth of Virginia 457 Plan and cash match plans, if they have those through their employer.