Virginia State Retirement System

[jazz4cash]

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?

Thanks!

 

[hellbender]

http://www.varetire.org/Members/BenefitPlans/VrsEligible.html

 

[jazz4cash]

thanks for the link hellbender........is that a hokie in your avatar?

here's a quote from that site:
The fund's private equity and real estate investments produced outstanding returns, at 28.6 percent and 23.4 percent respectively. In addition, the system saw a 15.3 percent return in public equity (U.S. and international stocks), a 5.3 percent return in credit strategies and a -0.6 percent return in fixed income.

..............sounds pretty good except the NEGATIVE return on fixed income! The overall return was 14.3

 

[hellbender]

thanks for the link hellbender........is that a hokie in your avatar?

Yep! How about that Duke game Saturday? Payback is sweet!

 

[Goonie]

When states grant pension exemptions for state income tax, does the pension have to be from the same state?

Jazz,

Here's a link that lists, by state, what the state taxes are, and how much if any their exemptions are. Also it lists whether or not out of state pension are taxed or not, and to what extent.

http://www.retirementliving.com/RLtaxes.html

Hope that helps you out some.

Goon

 

[jazz4cash]

Yep! How about that Duke game Saturday? Payback is sweet!

As a Maryland Fan, nothing tops seeing Duke go down! You probably heard that Duke has not lost in overtime at home since 1985! It was especially sweet when the MD women beat Duke in last years title game.

Goonie.........thx for the link. I could not digest it all, but I think I'll assume she loses the deduction if she moves to MD.