Distributions
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
To date, there have been no general fund contributions to VOLSAP.
Distribution Examples
Susan, Claire and Ted all begin their volunteer service on January 1, 2015. That date is Susan's 55th birthday, Claire's 51st birthday and Ted's 46th birthday. On January 1, 2024, Claire and Ted end their volunteer service and apply for a distribution with nine years of service credit. One year later, on January 1, 2025, Susan ends her volunteer service and applies for a distribution with 10 years of service credit.
Age 60 or older with 10 years or more of volunteer service credit
Susan applies for a distribution on her 65th birthday with 10 full years of volunteer service credit. Therefore, she is entitled to all matching contributions, if any. Her lump-sum payment will equal the sum of 1) her contributions; 2) contributions made on her behalf by her local department and local government, if any; 3) 100% of contributions made on her behalf by the state's general fund appropriations, if any; and 4) any associated investment gains or losses.
Age 60 with fewer than 10 (but at least 5) years of volunteer service credit
Claire applies for a distribution on her 60th birthday with nine years of service credit. Therefore, her lump-sum payment will include only 70% of contributions made by the state's general fund appropriations, if any, but 100% of all other investment gains and contributions made by her or on her behalf. The 70% rate will also apply to any investment gains or losses applicable to the state's contributions, if any, made on Claire's behalf.
Age 55 (or any age prior to age 60)
Ted applies for a distribution on his 55th birthday with nine years of service. Because he applied for a distribution prior to his 60th birthday, Ted is only entitled to collect a lump-sum equal to his own contributions, less investment losses and a $25 administrative fee. All other contributions made on his behalf, including associated investment gains or losses, are irrevocably forfeited.
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 | 5% |
| At least 6, but less than 7 | 10% |
| At least 7, but less than 8 | 25% |
| At least 8, but less than 9 | 45% |
| At least 9, but less than 10 | 70% |
ImportantPrior 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.