My sister is nearing retirement as a teacher in Virginia. My brother suggested she "check with me" regarding her decision to leave this year or next. WOW! I surprised they are asking me for advice. I did a bit of checking and here's what I found pertaining to the Virginia pension plan:
VA State Retirement plan for State Employees incl teachers.
- 1.7% x Yrs of Svc x Avg Hi 3 Ann Sal .......employer paid
Unreduced for early @ age 50 w/30 yrs
Cola'd vs. CPI 5%max
Soc Sec covered
12k state tax exempt
Health Care Credit $2.5-4.0/mo x yrs of svc
Deferred Comp plan w $40/mo max match
FWIW, Avg teacher salary in VA is about 52k
This info looks to be a couple yrs old........ She was told they get NO MEDICAL beyond age 65!!!
When states grant pension exemptions for state income tax, does the pension have to be from the same state?
Does anyone here have insight, experience, or advice regarding the Virginia plan?