A member may apply for a distribution at any age. However, any member who takes a distribution prior to age 60 will only receive the member-paid contributions, less investment losses and a $25 administrative fee. Prior to reaching age 60, no member is entitled to any contributions made on his or her behalf by a local department, local government, or state government appropriation, if any.
A member who attains the required age and service is entitled to a lump-sum payment that equals the sum of
- his or her contributions;
- contributions made on his or her behalf by a local department, local government, or state government; and
- any associated investment gains or losses.
To be eligible for a distribution and matching funds, if any, a member must attain age 60 and have at least 10 years of qualifying service credit.
If a member is younger than age 60 or has fewer than 10 full years of qualifying service credit, any distribution is subject to reduction in accordance with the Code of Virginia § 51.1-1206 .
With at least five years of service credit, but less than 10, and upon attaining age 60, a member is entitled to a lump-sum payment that equals the sum of
- his or her contributions and associated investment gains or losses;
- contributions made on his or her behalf by a local department or local government and associated investment gains or losses; and
- a portion of the state government's contributions, if any, and associated investment gains or losses.
NOTE: To date, there have been no general fund contributions to VOLSAP.
Portion of State Government Contributions
The portion of state government contributions, if any, a member is entitled to receive is as follows:
|Years of Service Credit||Portion of State General Funds to be Paid|
|At least 5, but less than 6
|At least 6, but less than 7
|At least 7, but less than 8
|At least 8, but less than 9
|At least 9, but less than 10
IMPORTANT: Prior to attaining age 60, a member is only entitled to a distribution of his or her own contributions, less investment losses and a $25 administrative fee. Any contributions made on a member's behalf, from whatever source and including associated investment gains, are irrevocably forfeited if a member takes a distribution prior to attaining age 60.
Distribution in the Event of a Member's Death
Upon the death of a member, distributions are made in accordance with Virginia laws and the order of precedence unless the member has a beneficiary designation on file.
The legal order of precedence in Virginia is as follows: account balances are payable first to the spouse; if there is no spouse, to the member's living children equally; if there are no living children, the member's heirs-at-law as may be determined by the board; or, if there are no heirs-at-law, to the member's estate.
If a member wishes to change the default beneficiary designation described above, which is part of the Application for Membership (VOLSAP-1) , he or she may file a Beneficiary Election Form (VOLSAP-4) with the VOLSAP Plan Administrator naming a specific beneficiary or beneficiaries.
Taxation of Distributions
VOLSAP advises all participants to consult a tax professional to determine the tax implications of a distribution. None of VOLSAP's communications or website material should be considered tax advice. Generally, however, VOLSAP investment gains are subject to taxation, while the principal amount of member-paid contributions is not because contributions are made on an after-tax basis.