The City of Lynchburg provides the following retirement benefits to eligible employees:

Virginia Retirement System

The Virginia Retirement System (VRS) is a defined benefit plan. Defined benefit plans promise employees a lifetime monthly benefit payable at retirement. The City contributes 19.66% and the employee contributes 5% towards the cost for the VRS benefit. The amount that employees receive at retirement is determined by a specific formula, not the amount of accumulated contributions in VRS account. The formula uses age at retirement, average final compensation, and years of service. By law, full-time employees are automatically enrolled. For more information, visit the VRS website. For plans, review these links:

457 Deferred Compensation Plan

The 457 Deferred Compensation Plan is a defined contribution plan. Employee contributions are deducted from earnings before taxes are applied (pre-tax). Employees bear the risk of earnings and losses associated with investment selections and the ups and downs of the market. Employees must contribute a minimum of $5 per pay period and up to a maximum of $19,500 annually or $26,000, if over age 50. For more information, follow the links:

Social Security

Part of your retirement income will come from Social Security. The City pays 7.65% to Social Security in addition to the FICA taxes withheld from employees' paychecks. To find out more about your Social Security benefit, follow the link: