Retirement Incentive Program

September 2012

Retirement Incentive

Who would be eligible? Full (Unreduced) Retirees Early Retirees

Retirement Incentive

Full (Unreduced) Retirees• At least 50 years old with 30 years of VRS

service• At least 65 years old with 5 years of VRS

service• $10,500 incentive

Retirement Incentive

Early Retirees At least 50 years old with 10 years of VRS

service At least 55 years old with 5 years of VRS

service $2,000 incentive

Retirement Incentive Regulation 8-42

• Changes effective 7/1/13• Employees who have at least 10 years of service

with Chesapeake Public Schools who elect the early retirement incentive will be able to continue participation in the health care plan at the current level of CPS premium contribution.

• Employees who elect early retirement after 7/1/13 may retire with a significantly reduced CPS premium contribution.

Regulation 8-42Retire Before 7/1/13

Tiers only apply Pre-65Retire After 7/1/13

Tiers apply pre-65 AND post-65

10+ CPS Years of Service for Contribution

CPS(service-based)

CPS(service-based)

100% Tier 20+ VRS Full or Early* 10+ Full

75% Tier 15+ VRS Full or Early** 20+ Early*

50% Tier 10+ VRS Full or Early*** 15+ Early**

0% Tier <10 VRS or CPS

Full or Early Full: <10 CPSEarly: < 15 CPS

FullEarly***

• Full retirees with 10 years CPS will ALL get 100% of the CPS contribution

• Early Retirees will need 15 years (not 10) with CPS to get a premium contribution

Retirement Incentive Requirements

• Employee’s effective retirement date must be as of or after November 1, 2012.

• Employee must notify Human Resources by 4 p.m. December 15, 2012

• Resignation letter must be submitted at time of election.

• Legal agreement must be signed.• Resignation date must be no later than

6/30/2013.

Retirement Incentive

Incentive Distribution• Payout of the incentive will be made on

6/30/13.• Distribution will be made in a lump sum

payment.

Retirement Incentive

All employees considering retirement are encouraged to verify benefit information with VRS. Please visit the VRS website to view member information.www.varetire.org/myVRS

View your member information, including service credit and compensation reported to the VRS by your employer.

Check the status of an application for retirement, purchase services or refund.

Estimate your retirement benefit using current information. View and update your personal contact information online.

Retirement Incentive

Important Dates to Remember• Employees must notify the Department of

Human Resources by 4 p.m. on December 15, 2012, of their intent to participate in the retirement incentive program.

• Resignation date must be no later than 6/30/2013.