Announcements
VRS Board Approves Changes to Cost of Purchasing Prior Service
Effective July 1, the VRS Board of Trustees approved new approximate normal cost rates for purchasing prior servicefor Plan 1 and Plan 2 members, hazardous duty employees in SPORS, VaLORS and political subdivisions, judges, and Hybrid Retirement Plan members.
Which New Laws Affect VRS?
See the 2025 Legislative Summaryto view new laws that affect VRS-administered benefits, plans and programs, including:
- Disability benefits for certain emergency dispatchers.
- Virginia Law Officers’ Retirement System membership for conservation officers.
- Retirement allowance changes for judges effective in 2026.
Cost-of-Living Adjustments Took Effect July 1
The following cost-of-living adjustments (COLAs) took effect July 1 for eligible retirees in Plan 1, Plan 2 and the Hybrid Retirement Plan (defined benefit component).
- 2.95% for Plan 1.
- 2.48% for Plan 2 and the Hybrid Retirement Plan.
Eligible retirees will see the COLA amount in their August 1 benefit payment.
Virginia Sickness and Disability Program (VSDP)
Members receiving long-term disability benefits under VSDP for at least one calendar year will see a:
- 4.00% increase in their creditable compensation.
- 2.95% (Plan 1) or 2.48% (Plan 2 and Hybrid Retirement Plan) cost-of-living adjustments to their benefit payments.
Virginia Local Disability Program (VLDP)
Members receiving long-term disability benefits under VLDP for at least one calendar year will see a:
- 4.00% increase in their creditable compensation if they retire directly from long-term disability.
Life Insurance
$9,768 is the new minimum beginning July 1 (an increase of 2.48% over the previous year for retirees with at least 30 years of service credit).
Hazardous Duty Supplement
$17,856 beginning July 1 and paid monthly beginning August 1 ($1,488 per month).
FY 2026 Updates to Handbooks and Websites
VRS made updates to member handbooks and websites, as is typical for a new fiscal year. If you have printed handbooks and guides on hand, they will soon be out of date. Refer to the Publications section of the VRS website for up-to-date editions. You may order printed copies of the VRS Member Guide, which is designed for new hires. Other handbooks and guides are available on the VRS website for employees to view or download.
Secure Act Requires Employers to Monitor Certain Catch-Up Contributions
Beginning January 1, 2026, employers participating in the Commonwealth of Virginia 457 Deferred Compensation Plan will need to manage age-based catch-up contributions differently for high-earning employees.
The federal SECURE 2.0 Act (Section 603) requires that age-based contributions for employees who made at least $145,000 in the prior year be made as after-tax contributions (Roth). Section 603 does not apply to contributions made under the standard catch-up provision.
Participating employers will need to monitor wages paid to participants in the Commonwealth of Virginia 457 Plan. If their FICA wages exceeded $145,000 threshold, after-tax contributions will be allowed as age-based catch-up contributions.
Additional Resources
Job aid: Voya has provided formatting instructions for producing a new Mandatory Roth Catch-up (MRC) indicator file that employers will submit to Voya annually. See the Employer Secure 2.0 Section 603 Job Aid. The initial file is due January 31, 2026. Voya will accept updates throughout the year.
Webinar: The Defined Contribution Employer Secure 2.0 webinar answers key questions about the changes affecting age-based catch-up contributions.
Reporting to Voya: The Sample Mandatory Roth Catch-up (MRC) indicator file alerts Voya of participants who had FICA wages exceeding $145,000 in the previous year. You will provide the file annually or through a mid-year update.
VRS and Voya will provide additional details later in the year.
