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Board Sets Cost-of-Living Adjustments for Eligible Retirees

March 2026
Decorative. A retired couple harvest late winter vegetables from their backyard garden during early spring.

The VRS Board of Trustees announced 2026 cost-of-living adjustments (COLAs) for retirees at its February 5 meeting. The VRS website has been updated to display the new COLA amounts, effective July 1, 2026:

  • 2.63% for members in Plan 1.
  • 2.32% for members in Plan 2 and the Hybrid Retirement Plan.

Eligible retirees will see the COLA amount starting with their August 1 benefit payment.

Virginia Sickness and Disability Program

Members receiving long-term disability benefits under VSDP for at least one calendar year will see a:

  • 4.00% increase in their creditable compensation.
  • 2.63% (Plan 1) or 2.32% (Plan 2 and Hybrid Retirement Plan) cost-of-living adjustments to their benefit payments.

Virginia Local Disability Program

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

Retirees with at least 30 years of service are covered by the VRS Group Life Insurance Program and receive a minimum life insurance benefit, indexed using the Plan 2 COLA each year thereafter. The new minimum beginning July 1 is $9,995.