Richmond VA > Retirement > Plans > Defined Benefit

Last Updated: 2013-01-31

The Defined Benefit Plan (DB) is a contributory retirement plan that pays a monthly benefit at retirement based on your age, years of creditable service and your average final compensation while you were employed with the city of Richmond.

The contribution rate for general employees is 1% of creditable compensation each pay period.

Benefits of the DB Plan are based on a formula that includes your average final compensation, years of service and a multiplier. The average final compensation is the average annual creditable compensation of a member during the member's 36 consecutive months of creditable service in which such compensation was at its greatest amount. The formula for general employees has a multiplier of 1.75% and the formula's maximum number of years of service is 35.

If an Early Service Reduction (ESR) factor is applicable, the ESR is five percent per year up to your normal retirement age of 65 or years of service for unreduced retirement benefits (30 years for general employees), whichever is smaller.

The city of Richmond contributes an amount each year that varies according to calculations by the system's actuary. The city's contributions are invested by outside investment firms with the primary objective being to ensure the security, stability and continued growth of assets for members' future benefits. The City Code requires that the plan be maintained on an actuarially sound basis.

Defined Benefit Plan - Enhanced Option

The Enhanced Defined Benefit Option, like the DB Plan, pays a monthly benefit at retirement based on your age, years of creditable service and your average final compensation while you were employed with the city. However, you are required to make additional contributions of 3.57% of your creditable compensation each pay period until you terminate employment or retire in order to receive the benefit of the enhanced option.

The enhanced option provides for an increased monthly benefit based on a formula that has a multiplier of two percent. Again, the benefit level is set by formula, regardless of the retirement fund's investment performance.

If you elected the enhanced option, you must make the required contributions until you retire or terminate employment with the city. The 3.57% contribution must be made for a minimum of three years and will increase each time you receive a pay increase.

If, however, you elected the enhanced option and do not become vested or make the required minimum contributions, your contributions will be refunded to you by the system.

Contact Information:

Richmond Retirement System
City of Richmond
730 E. Broad Street, Suite 900
Richmond, VA
23219 USA
Phone: (804)646-5958
Fax: (804)646-5299

Toll-Free (Outside Central Virginia): (888)288-2781
Office Hours: By Appointment Only
Monday - Friday
8:00 a.m. - 5:00 p.m.
Walk-in Visits:
Monday - Friday
10:00 a.m. - 12:00 p.m.
and 1:00 p.m. - 3:00 p.m.

More Contact Information

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