Variable Retirement Account
In addition to SDRS retirement benefits, Generational members have flexible benefits through a Variable Retirement Account (VRA). The VRA is funded by a monthly contribution of up to 1.5 percent of pay to active Generational members.
Investment earnings are credted annually (as of June 30) based on SDRS' net investment return for the fiscal year. For VRA distributions during the fiscal year, the VRA will be credited with the estimated investment return through the month prior to the distribution.
The VRA becomes payable at retirement, disability, or death. Generational members may elect payment options to fit their needs: a lump-sum payment to the member, a rollover to the SDRS Supplemental Retirement Plan (SRP) or other eligible plan, or to purchase a SDRS Supplemental Pension Benefit (SPB) at retirement.
Generational members who terminate employment and refund their accumulated contributions will forfeit their VRA. VRA funds are only payable at a Generational member's retirement, disability, or death.
SDRS Form B-7