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    Retirement

    The City of Lynchburg provides the following retirement benefits to eligible employees:

     Virginia Retirement System
    The Virginia Retirement System (VRS) is a defined benefit plan. Defined benefit plans promise employees a lifetime monthly benefit payable at retirement. The City contributes 20.89% and the employee contributes 5% towards the cost for VRS benefit.   The amount that employees receive at retirement is determined by a specific formula, not the amount of accumulated contributions in VRS account. The formula uses age at retirement, average final compensation, and years of service. By law, Full-Time employees are automatically enrolled. For more information, follow the links:

                •    MyVRS Log-in
                •    VRS Member Handbook
                •    Public Safety VRS Member Handbook
                •    Employee Policies & Procedures Manual

     457 Deferred Compensation Plan
    The 457 Deferred Compensation Plan is a defined contribution plan. Employee contributions are deducted from earnings before taxes are applied (pre-tax). Employees bear the risk of earnings and losses associated with investment selections and the ups and downs of the market. Employees must contribute a minimum of $5 per pay period up to a maximum of $16,500 annually or $22,000, if over age 50. For more in formation follow the links:

                •    ICMA Log-in
                •    About 457 Deferred Compensation Plan
                •    
    Employee Policies & Procedures Manual

    Social Security
    Part of your retirement income will come from Social Security. The City pays 7.65% to Social Security in addition to the FICA taxes withheld from employees' pay checks. To find out more about your Social Security benefit, follow the link:

                •    www.ssa.gov

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