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Effective January 1, 2009

Retirement Programs

All full-time and part-time salaried University Staff Managerial & Professional employees must participate in either the Optional Retirement Plan (ORP) or the Virginia Retirement System (VRS). Part-time employees are defined as those who work at least 20 hours, but less than 32 hours per week. The retirement program selected effects the life and disability insurance benefits, so careful consideration should be given to this decision. Once a retirement program is elected, the decision is irreversible.


Optional Retirement Plan (ORP)
The ORP is a "defined contribution" plan in which retirement benefits are based on employer contributions plus earnings of the account balance over the course of the participant's working years. In a defined contribution plan, the value of the retirement benefits may change, depending on investment gains or losses. On behalf of participants hired on or after January 1, 1991, the University contributes 10.4 percent of salary.

Participants may invest employer contributions in one of the following companies: TIAA/CREF, Fidelity Investments or Vanguard. Employees have 60 days from their date of hire to elect a retirement program. Changes in vendor selection may be made at any time of year, up to three times per year. NOTE: If no program is selected during the 60 days, state policy requires members to be enrolled in VRS.
Virginia Retirement System (VRS)
The Commonwealth of Virginia requires all full-time State employees to participate in VRS, unless they are eligible and participate in the ORP. VRS is a "defined benefit" plan that provides benefits based on years of service, age, and average annual salary, paid during the highest 36 consecutive months of credited service. VRS provides retirement benefits, calculated at retirement, as early as age 50 with ten years of service. There is an annual cost-of-living increase for retirees, beginning in the second calendar year after retirement. The contribution needed to fund the system is actuarially determined and adjusted every two years. Full retirement benefits are available for employees with 30 years of service and at least age 50. The total contribution is paid by the University. To contact VRS call toll free (888) 827-3847 or visit their website at http://www.varetire.org. Please Note: An individual may not receive a retirement annuity from the Virginia Retirement System (VRS) or one of the Optional Retirement Plans while the University of Virginia is making contributions to a regular retirement program. An individual who is receiving a retirement annuity from an account to which any Commonwealth of Virginia agency contributed should contact the UHR Benefits Division.