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U.Va. Human Resources
Classified Staff and Research Associate Pre-Retirement Guide
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Classified staff and research associates may retire with full benefits at age 65 with at least five years of state service, or as early as age 50 with at least 30 years of state service.

If you are a full-time classified staff or research associate who wants to retire, you must request that your department enter separation information into Oracle. You should also follow the steps below to insure the timely receipt of your benefits:
  • Approximately three months prior to your retirement, contact the Benefits Division in University Human Resources at (434) 924-4392 for an appointment to discuss VRS retirement payment options, health insurance, and other retirement benefits.
  • At least three months prior to your retirement, telephone or write the local Social Security Office to apply for payments, if desired. If you or a dependent are age 65 or older, you must also apply for Medicare to begin as of the retirement date.
The benefits available for you at retirement include VRS benefits, Social Security and Medicare, health care insurance, and, in many cases, life insurance, and distribution from tax-deferred savings. On the following pages is general information about all of those benefits, except Social Security and Medicare, and information about the taxability of retirement income. Also provided is an explanation of health care insurance available to you, both during employment and after retirement.

Virginia Retirement System Benefits

The amount of your retirement benefit is based on three factors: your average final compensation (average of your highest 36 consecutive months of salary or AFC), years of service, and age at retirement. The basic formula is 1.7% of AFC x Years Of Service.

Virginia Retirement System Options

Before you retire, you will choose the income option which suits your needs. The following payment options are available from VRS:
  • Basic Annual Lifetime Benefit
  • 10% - 100% Survivor Option
  • Special Survivor Option
  • Partial Lump Sum Option Payment (PLOP)
  • Advance Pension Option (APO)
If you did not join the Virginia Sickness and Disability Program (VSDP), you are eligible to use your sick leave balance to purchase VRS service credit at retirement. The maximum purchase of service time can not exceed the sick leave pay out rules and is governed by the VRS policies found in the VRS Handbook. The Benefits Division will submit your accrued sick leave hours to the VRS and then VRS will determine exactly how many months of service an employee is eligible to purchase. Any calculations performed by the employee and/or Benefit Counselor are strictly estimates. Final Determination of how many months one can purchase is done by the VRS. If you joined VSDP, you are eligible to use your disability credits to purchase VRS service credit at retirement.

Taxation of Retirement Benefits

Federal Tax
All retirement contributions paid by the University are tax-deferred.

State Tax
If you plan to reside in the Commonwealth of Virginia during retirement, you must file a state withholding form indicating how you wish to have state tax withheld.

How to Apply
Approximately three months before your desired retirement date, contact the Benefits Division in University Human Resources to apply for VRS retirement benefits. They may use the VRS Retirement Benefit Calculator to estimate the amount of your retirement benefit.

Health Care Insurance

Health Care Insurance for Active Employees Age 65 and Over
Health care insurance for active employees age 65 and over (and their spouses) is identical to that of employees under age 65. Because Medicare is the secondary provider while you remain employed, you may enroll in Medicare Part A just before your 65th birthday, but may defer Medicare Part B until you retire. If you enroll in Medicare Part B just before you retire, there will be no penalty.

Eligibility for Health Care Insurance After Retirement The Commonwealth of Virginia provides a health insurance group for retirees who receive VRS, FRP or MCRP retirement income. The Benefits Division will assist you with the health insurance application if you elect coverage for yourself and dependents at the time you retire. Your spouse will be able to continue coverage for the rest of his or her life in the event of your death if both of you elect coverage when you retire and you continue coverage in the state retiree insurance program until your death.
Your health insurance premium will be deducted from your monthly VRS check if it is large enough to cover the premium. Otherwise, you may choose to receive coupons and pay premiums by check each month or you may authorize a monthly bank draft from your checking or savings account to pay your premiums if the administrator of your insurance plan offers this option.
If you or your spouse or dependents are ineligible for Medicare when you retire, those ineligible for Medicare will be covered by the UVa Health Plan. Dental and/or vision options are available in addition to the basic health coverage.
If you or your spouse or dependents are eligible for Medicare, the state insurance program is available to those who are Medicare-eligible as secondary coverage after Medicare. The Commonwealth group currently offers one Medicare-supplement plan with a dental/vision option. These offerings are subject to change each January 1.

Insurance Rates for Retirees

Health Credit for Retirees
The Commonwealth of Virginia provides a partial subsidy to cover the health insurance cost. The subsidy is a tax-free credit on the monthly premium and is available for retirees with 15 or more years of service. The monthly credit is calculated by multiplying $4.00 by the number of years of service not to exceed 30 years. The minimum monthly credit is $60.00 and the maximum monthly credit is $120.00. VRS calculates your health credit amount when you retire and automatically includes it in your monthly VRS check if you elect to stay in the state insurance program. If you waive your right to enroll in the state plan, you must complete the VRS-45 form to receive your monthly health credit in your VRS check. This form must be completed every time your premium or health insurance carrier changes.

How to Enroll in Retiree Health Insurance
During a pre-retirement appointment with a representative of the Benefits Division, you and your spouse may complete applications for the retirees' group. If you do not elect health insurance within 31 days of retiring, you waive all future rights to the coverage. Detailed information about the health insurance options is available from the Benefits Division.

How to Change Retiree Health Insurance Coverage
Retirees in the state insurance program who need to make any health coverage changes should contact the Benefits Division of University Human Resources. These changes include additions, deletions, address changes, and Medicare eligibility. Some changes can only be accepted and processed at specific times during the year. Therefore, it is imperative that you contact the University Benefits Division as soon as the event causing the change occurs.

Other Benefits

Life Insurance
Classified staff and research associates who retire with five or more years of state service are eligible for life insurance. As an active employee, your life insurance is equal to your annual salary rounded to the next highest thousand and then doubled. The amount of your insurance will reduce after you retire by 2 percent of the original value each month until your coverage reaches 25 percent of its original value at retirement.
If you retire under disability, your life insurance will not begin to reduce until you reach age 65. At age 65, your insurance will begin to reduce at the rate of 2 percent of the original value each month until your coverage reaches 25 percent of its original value at retirement.

Tax-Deferred Savings
If you have been participating in Fidelity, TIAA/CREF, Vanguard, or Security Benefit tax-deferred savings plans or the Commonwealth's 457 tax-deferred savings plan, you can elect to receive income at the time of retirement. Or, you may defer payments until April 1 of the calendar year following the year in which you attain age 70 ½ or following the year in which you retire, whichever is later. You may make arrangements by contacting the company(ies) directly at the telephone numbers shown below:

Fidelity Investments(800) 343-0860
Security Benefit(800) 888-2461
TIAA/CREF(800) 842-2733
Vanguard Group(800) 523-1188
Great-West (457 Plan)(866) 226-6682


"Perks" For Retirees

Athletics - Retired staff may purchase season tickets for football and basketball based on the availability of tickets at the same rate as currently employed staff. Retired staff who had more than five years of service may purchase a pass for use of athletic facilities. (Intramural-Recreational Sports at (434) 924-3791; Ticket Information at (434) 924-8821.)
Birdwood - Any full-time staff member who retires is eligible to continue receiving the staff rate on membership. Reduced rates are available for retirees on Monday through Thursday. Proof of full-time staff status may be required if information is not on file at Birdwood ((434) 293-4653).
Bookstore - A 10% discount on books is available to retired staff. The bookstore prefers that retired staff present an ID card ((434) 924-3721).
Course Offerings - Any member of the community may take courses. Information concerning tuition waiver for senior citizens (60 years or older) is available from the Division of Continuing Education ((434) 982-5313).
Library - Retired staff who can demonstrate that they are residents of Virginia may become cardholders at no cost.
Parking - Retired staff who are 65 years or older may purchase blue stickers at a reduced annual cost ((434) 924-7231).
Inside UVA - This weekly newsletter published for University faculty and staff will be sent to your home address with the payment of an annual fee of $10.00 ((434) 924-3801).
University Foreign Travel Opportunities - Retired faculty may participate in this program sponsored by University Human Resources. Usually one trip is planned in the Spring and one in the Fall ((434) 924-4381).