Advance Pension Option
A higher benefit until an age between 62 and your Social Security normal retirement age, then a permanent reduction.
Plan 1 Handbook p. 19More on this →Average final compensation (AFC)
Your average yearly pay over your highest-paid months in a row: 36 months in Plan 1, 60 months in Plan 2 and the Hybrid plan.
Getting Ready to Retire Guide p. 9, NoteMore on this →Basic Benefit
The monthly benefit from the formula, for your lifetime only. It's the largest monthly payout option.
Plan 1 Handbook p. 16, Basic BenefitMore on this →Bona fide break in service
At least one full calendar month away from work, during a period you'd normally work. Leave, summer break and sabbaticals don't count.
Plan 1 Handbook p. 46, 52More on this →COLA
Cost-of-living adjustment: a yearly July 1 increase tied to inflation (CPI-U), up to 5% in Plan 1 and 3% in Plan 2 and the Hybrid plan.
Plan 1 Handbook p. 56; Plan 2 Handbook p. 57, Cost-of-Living AdjustmentsMore on this →Covered employment
A full-time permanent, salaried position with an employer that participates in VRS. Part-time positions (generally 80% or less of full-time hours) are non-covered.
Plan 1 Handbook p. 14, What Is Covered and Non-Covered Employment?More on this →Deferred member
Someone who left covered work but kept their contributions with VRS.
Plan 1 Handbook p. 45, Becoming a Deferred MemberMore on this →Defined contribution component
The savings-account part of the Hybrid plan: your and your employer's contributions plus investment gains or losses.
Hybrid Handbook p. 22-23, ContributionsMore on this →Health insurance credit
A tax-free monthly credit toward your own health premiums after 15 years of service: $4 per year of service for teachers.
Plan 1 Handbook p. 62-63More on this →Membership date
The date you were first reported to VRS in a covered position. It restarts if you take a refund and return.
Hybrid Handbook p. 81, Frequently Used TermsMore on this →PLOP
Partial Lump-Sum Option Payment: a lump sum of one to three years' Basic Benefit for working past unreduced eligibility, in exchange for a lower monthly benefit.
Plan 1 Handbook p. 18More on this →Retirement multiplier
The percentage of your average final compensation you get for each year of service: 1.7% in Plan 1, 1.7% or 1.65% in Plan 2, 1.0% in the Hybrid plan.
Getting Ready to Retire Guide p. 9, Retirement MultipliersMore on this →Rule of 90
Plan 2 and Hybrid: you can retire unreduced when your age plus service credit equals 90.
Hybrid Handbook p. 16, Unreduced RetirementMore on this →Survivor Option
A smaller monthly benefit so that a survivor keeps getting 10% to 100% of it after you die.
Plan 1 Handbook p. 17, Survivor OptionMore on this →Vested
At least five years (60 months) of service credit, which you need for any retirement benefit.
Plan 1 Handbook p. 14, VestingMore on this →Source: VRS Plan 1, Plan 2 and Hybrid Retirement Plan Handbooks for Members, 07-2026 editions (VRSHB-1 07-2026, VRSHB-2 07-2026, HybridHB 07-2026), Plan 1 Handbook pp. 14, 16, 17, 18, 19, 45, 46, 56, 62-63; Plan 2 Handbook p. 57; Hybrid Handbook pp. 16, 22-23, 81. Also: Getting Ready to Retire Guide p. 9. Last reviewed .