Retirement & Savings Plans

Virginia Retirement System (VRS)

Effective July 1, 2012, as required by the Virginia General Assembly, eligible employees contribute 5% of their salary to their member accounts.  VRS members are vested after five years of VRS service credit.  Service retirement is a defined benefit based on a member's average final compensation, years of service, and age at retirement.

Plan 1:  Members with service credit prior to July 1, 2010 are eligible to retire with unreduced benefits at age 65, with at least five years of service, or at age 50 with at least 30 years of service.  An employee's highest consecutive 36 months of creditable compensation is used as the average final compensation.

Plan 2:  Members hired or rehired on or after July 1, 2010, with no service credit prior to July 1, 2010, are eligible to retire with an unreduced benefit at their normal social security retirement age with at least five years of service credit, or when age and years of service credit equal 90.  An employee's highest consecutive 60 months of creditable compensation is used as the average final compensation.

Hybrid Plan:  This plan applies to most members hired on or after January 1, 2014, with no prior VRS service credit.  This plan also applies to eligible VRS Plan 1 and VRS Plan 2 members who elected to opt into the plan during the election window held January 1 - April 30, 2014, for an effective date of July 1, 2014.  Public Safety employees covered by enhanced hazardous duty benefits are not eligible for the Hybrid Plan.  This plan offers a defined benefit component and defined contribution component (similar to a 401K). Hybrid members receive short and long term disability benefits following 12 consecutive months of employment.

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Tax Deferred Compensation Plan (IRC 457)

All Town of Front Royal employees are eligible to participate in a tax-deferred compensation program (IRC Section 457). An employee may choose between 2 plan providers:

• MissionSquare Retirement
• EMPOWER

Each plan allows the employee to defer a portion of salary which will not be subject to current federal or state income taxes. The deferred salary amount is invested with the above listed firms under contract with the Town and is not normally available for withdrawal until retirement or termination. The employee may incur a penalty and/or interest expense for early withdrawal.