In addition to mandatory contributions, members may contribute up to an additional 4 percent in voluntary contributions to the defined contribution component of the Hybrid Retirement Plan each month. More information about the defined contribution component can be found in the Hybrid Retirement Plan Handbook .
Take Action with Voluntary Contributions!
Auto-Escalation of Member’s Voluntary Contributions
To encourage members to maximize their retirement savings, the Hybrid Retirement Plan was designed with an auto-escalation feature. Every three years, members’ voluntary contributions to their Hybrid 457 Deferred Compensation Plan accounts will automatically increase by 0.5 percent (payroll deduction) until reaching the maximum 4 percent.
The first automatic escalation takes place January 1, 2017. Members may opt out of the increase between October 1 and December 15, 2016, via Account Access or by calling 1-877-327-5261.
Who is affected? Members reported by their employer to VRS prior to September 15, 2016 with a hire date on or before September 1, 2016, who are not contributing 4 percent in voluntary contributions.
Why Employees Should Be Saving
Why You Should Be Saving
Employer Match - Consider boosting your voluntary contribution amount to 4 percent. If you save 4 percent, you’ll receive 2.5 percent in employer matching contributions!
Tax Savings - Taxes are deferred on both contributions and earnings, allowing you to pay less in taxes now.
|Defined Contribution Component - Contributions Table|
|Employee Mandatory Contributions:
|Employer Mandatory Contributions:
|Employee Voluntary Contributions:
||Employer Matching Contributions:
†Some provisions related to the voluntary contributions and associated employer match may differ for school division employees who have elected to use an employer-sponsored hybrid 403(b). For additional information, contact your human resource office.
Direct Your Employees to Start Saving Now!
Start Saving Now!
Online - Log in to your Hybrid 457 Deferred Compensation account and click My Account, then Contributions. Select the percentage of each paycheck you’d like to set aside in voluntary contributions. You can begin saving up to 4 percent right away!
Phone - Call Investor Services at 1-877-327-5261; select option 1.
Members can make changes to their voluntary contributions each quarter. The cut-off date for changes to an account is 4:00 p.m. ET on the 15th of the month prior to the next quarter. (For example, members must request the change by 4:00 p.m. ET on June 15 in order to be effective in the first payroll of July.) If the 15th is not a business day, the deadline will be 4:00 p.m. ET on the next business day after the 15th.vrs