The VRS Hybrid Retirement Plan (Hybrid Plan) was created by the Virginia General Assembly as a way for the state to save money.  As a result, Plan 1 and Plan 2 members may think their plans are better than the Hybrid Plan.  However, it might be advantageous for some employees to opt-in to the Hybrid Plan.  Following are some issues that Plan 1 and Plan 2 members may want to consider to determine if that is a good choice for them.

Pros

• Is health or longevity an issue?  Plan 1 and Plan 2 will pay substantially all of their value in lifetime monthly benefits.
• Are you an expert investor?  Be honest! 
• Do you anticipate moving soon to another job that is not covered by VRS?
• Is flexibility more important than retirement income security?

Cons

• Is your health good?
• Are you a poor investor?
• Do you have roots in the area?
• Do you anticipant salary increases, either from promotion or inflation?
• Is retirement income security more important than flexibility?
   

This following chart summarizes the VRS plans that are are more advantageous for the above concerns.