The System has entered into portability agreements with the Virginia Retirement System (VRS), Newport News Employee Retirement Fund (NNERF) and the Norfolk Employees' Retirement System (NERS). These agreements allow vested members the ability to transfer the value of their retirement benefits between the System and these public entities. Portability, however, does not transfer service year for year.
Service transferred to the System from the VRS, NNERF or the NERS will be used for all purposes by the System: vesting, calculating the amount of your benefit, eligibility to retire and eligibility to receive unreduced benefits. However, if you decide to participate in portability, you will terminate your right to any and all future benefits under the VRS, NNERF or NERS. You may purchase service that is not converted under portability within ninety (90) days of your election to participate.
To be eligible to participate in portability, you must satisfy the following conditions:
- Be an active member of the Defined Benefit Plan
- Be an inactive vested member of the VRS, NNERF or NERS (i.e., you have not withdrawn your member contributions from your account with the exiting Plan).
You must elect to participate in portability within 18 months of becoming a member of the RRS Defined Benefit Plan. If you do not act within this 18-month timeframe, you will forfeit your eligibility to participate.
The System allows vested members to elect to purchase retirement credit for prior years of service to count toward retirement eligibility as follows:
- Certified creditable service in the retirement system of another state or politicial subdivision, provided that the service will not be used to calculate retirement benefits by the other system, and/or
- Full-time service with the City of Richmond on a temporary, seasonal, provisional, Comprehensive Employment Training Act (CETA) or contractual basis, provided that such period has not been previously included in creditable service.
NOTE: Military service and service with the federal government cannot be purchased.
The service purchased cannot be considered in determining eligibility for retirement nor the early service reduction factor if your retirement is within five years of the date of the purchase of service credit.
However, if you are newly vested with five years of service, you may elect to purchase service within ninety (90) days of becoming vested and have immeditate use of the purchased service in determining eligibility for retirement. Any purchase of service made within ninety (90) days of a member's effective date of retirement must be paid in lump sum.
You must pay the following percentage of your present annual creditable compensation or your average final compensation during your thirty-six (36) highest consecutive months of creditable service with the City, whichever is greater, for each year of service you wish to purchase.
- General employees: 10 percent
- Sworn firefighters and police officers: 15 percent
Payment may be made in a lump sum or by payroll deduction in equal installments over a period not to exceed the period of service credit being purchased.