A new fiscal year brings updates to employer contribution rates, retiree cost-of-living adjustments (COLAs) and VRS resources.
FY 2027-2028 Employer Contribution Rates Take Effect
The new contribution rates are effective for fiscal years 2027 and 2028, beginning July 1, 2026, and ending June 30, 2028.
- Statewide plans and other post-employment benefits: Refer to the Contribution Rates webpage.
- Political subdivisions: Contribution rate letters for all political subdivision employers are available for download in myVRS Navigator.
Line of Duty Act Fund Premiums
Participating employers will pay $1,385 per full-time employee, effective July 1. (This is an increase from $1,015.)
As required by law, LODA benefits are funded on a pay-as-you-go basis. Premiums cover health care costs for current beneficiaries, as well as projected costs for new claims. Because these benefits are not pre-funded, participating employers should expect annual increases.
COLA Increases Take Effect
New COLAs for eligible retirees are effective July 1, 2026:
- 2.63% for Plan 1 members.
- 2.32% for Plan 2 and Hybrid Retirement Plan members.
- Retirees will see the COLA reflected in their August 1 benefit payment.
Virginia Sickness and Disability Program: Members receiving long-term disability benefits for at least one year will receive an increase effective July 1, based on the year’s calculated COLA.
- 4.00% increase in their creditable compensation.
- 2.63% (Plan 1) or 2.32% (Plan 2, Hybrid) COLAs to their benefit payments.
Virginia Local Disability Program: Members who have received long-term disability benefits for at least one calendar year and whose long-term disability ends immediately before their retirement will receive a 4.00% increase in creditable compensation.
Updates to Handbooks and Websites
As part of the fiscal year start, VRS will update member handbooks and websites. Printed handbooks and guides may soon be out of date, except for the VRS Member Guide.
- Refer to the Publications section of the VRS website for the most current editions.
- You may order printed copies of the VRS Member Guide for new hires.
- All other handbooks and guides are available online for employees to view or download.
