Retirement & Savings Plans

Virginia Retirement System (VRS)


All full-time employees are required to participate in the VRS. VRS administers a defined benefit retirement program and a group life insurance program. The defined benefit retirement program is based on the amount of years of service and the average final compensation. Employees are vested after five years of VRS service. Sworn law enforcement personnel may receive full retirement benefits at age 50 with at least 25 years of VRS service, 20 years of which must be in law enforcement. An employee with at least ten years of VRS service may retire with reduced benefits as early as age 50.

All full-time employees are provided term, group life insurance and accidental death and dismemberment insurance through the VRS. The insurance has no cash value. The amount of the basic life insurance benefit for death due to natural causes is equal to the employee's annual base compensation rounded up (never down) to the next highest $1,000 and then doubled. For accidental death, the life insurance is double the natural death benefit, or four times the annual base salary rounded up to the next highest $1,000. Front Royal pays the entire cost of the basic group life insurance benefit.

VRS members are also eligible to purchase optional term, group life insurance for natural and accidental death for the member, the member's spouse, and the member's dependent children up to age 21, or age 25 if a full-time student. VRS members may purchase the optional life insurance for 1, 2, 3, or 4 times the annual salary rounded up. The monthly premium is based on the amount of insurance purchased and the age of the member. The member is responsible for paying the monthly premium for the optional life insurance through payroll deduction.

Tax Deferred Compensation Plan (IRC 457)


All Front Royal employees are eligible to participate in a tax-deferred compensation program (IRC Section 457). An employee may choose between 3 plan providers:
  • ICMA-Retirement Corporation
  • VALIC
  • Mass Mutual
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.

United States Savings Bonds


United States Savings Bonds are available for purchase through payroll deduction. In order to take advantage of that provision the employee must set up an account through the Treasury Direct website and forward the account number to payroll, funds will be direct deposited into the employee's account.