One of the most valuable benefits offered by your employer is a
unique retirement program known as a defined benefit (DB) pension
plan. Unlike any other employment benefit, a DB pension 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: