One of the most valuable benefits offered by your employer is a unique retirement program known as a defined benefit (DB) plan. Unlike any other employment benefit, a DB plan offers you retirement income that will last your lifetime!
VCERA is a multi-employer, defined benefit, public pension plan qualified under Section 401(a) of the Internal Revenue Code to administer this lifelong benefit. VCERA provides its eligible members with pension payments that are calculated based on a formula “defined” by law, not on your retirement contributions. VCERA is therefore different from a defined contribution (DC) plan, where benefits are based on contributions and investment earnings that can eventually be exhausted.
Your lifetime VCERA pension will be based on your age at retirement, total years of retirement service credit and final average compensation. Generally, increasing any of these factors will increase your pension. A fourth calculation factor is benefit tier, which was assigned based on your VCERA membership date and employment classification. Some of the unique advantages of VCERA’s defined benefit plan include: