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PENINSULA AIRPORT COMMISSION
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2025
24
PLAN 1
PLAN 2
HYBRID RETIREMENT PLAN
Retirement Contributions
Employees contribute 5% of their
compensation each month to their
member contribution account through a
pretax salary reduction. Member
contributions are tax-deferred until they
are withdrawn as part of a retirement
benefit or as a refund. The employer
makes a separate actuarially determined
contribution to VRS for all covered
employees. VRS invests both member and
employer contributions to provide funding
for the future benefit payment.
Retirement Contributions
Same as Plan 1.
Retirement Contributions
A member's retirement benefit is funded
through mandatory and voluntary
contributions made by the member and
the employer to both the defined benefit
and the defined contribution components
of the plan. Mandatory contributions are
based on a percentage of the employee's
creditable compensation and are required
from both the member and the employer.
Additionally, members may choose to
make voluntary contributions to the
defined contribution component of the
plan, and the employer is required to
match those voluntary contributions
according to specified percentages.
Service Credit
Service credit includes active service.
Members earn service credit for each
month they are employed in a covered
position. It also may include credit for
prior service the member has purchased
or additional service credit the member
was granted. A member's total service
credit is one of the factors used to
determine their eligibility for retirement
and to calculate their retirement benefit.
It also may count toward eligibility for the
health insurance credit in retirement, if
the employer offers the health insurance
credit.
Service Credit
Same as Plan 1.
Service Credit
Defined Benefit Component:
Under the defined benefit component of
the plan, service credit includes active
service. Members earn service credit for
each month they are employed in a
covered position. It also may include
credit for prior service the member has
purchased or additional service credit the
member was granted. A member's total
service credit is one of the factors used to
determine their eligibility for retirement
and to calculate their retirement benefit.
It also may count toward eligibility for the
health insurance credit in retirement, if
the employer offers the health insurance
credit.
Defined Contributions Component:
Under the defined contribution
component, service credit is used to
determine vesting for the employer
contribution portion of the plan.
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