The House Appropriations Committee adopts policy changes and funding adjustments to support employee benefit programs provided to public sector employees.
Virginia offers public sector employees the following benefit programs: retirement benefits through the Virginia Retirement System (VRS), group life insurance (VRS), a health credit to offset health insurance costs for retirees (VRS), the Virginia Sickness and Disability Program (VRS), employee health insurance through the Department of Human Resource Management (DHRM), Worker’s Compensation Benefits (DHRM) and the Line of Duty Act benefit (administrative responsibilities are shared by the VRS and DHRM).
Budget Overview
The benefit programs provided through the Virginia Retirement System and the Department of Human Resource Management are funded through rate contributions paid to VRS and DHRM by state agencies and political subdivisions on behalf of their employees who are eligible for the benefit programs. The contribution payments made to support the benefit programs are a mixture of state general funds, state nongeneral funds, payments from political subdivisions, and employee contributions.
Public Employee Retirement Plans
The General Assembly has approved 2 significant reforms to the retirement system. As a result of these actions, the VRS administers 2 distinct defined benefit plans; a hybrid retirement plan which includes both a defined benefit and defined contribution; and optional defined contribution plans. As of May 31, 2025, there were 380,132 active members in the VRS retirement system in 3 distinct plans.
- Plan 1 | 101,520 employees enrolled
Includes employees generally hired/rehired before July 1, 2010 and with at least five years of service credit as of January 1, 2013
- Plan 2 | 77,920 employees enrolled
Includes employees are generally employees who were hired or rehired from July 1, 2010, to December 31, 2013, or were hired any time after July 1, 2010 and are eligible for the hazardous duty supplement or the judicial retirement system
- Hybrid plan | 200,692 employees enrolled
Includes employees whose VRS membership date is on or after January 1, 2014 and who are not eligible included in the hazardous duty benefit or the judicial retirement benefit
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