Hybrid Retirement Plan: Helping You Plan for Tomorrow, Today

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    Voluntary Contributions

    Voluntary Contributions

    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!

    Download resources from the Employer Toolkit to help members learn more about the importance of voluntary contributions.

    "From our observation, employees respond better to having things in their hands to read and check out. When we first make an employment offer, I look to see what plan they're going in. If they're going into the hybrid plan, we give them a summary, the Hybrid Retirement Plan Roadmap and the Hybrid Retirement Plan Features and Highlights (brochure). They get that information right off the bat. We feel like it's a more tangible reminder."

    - Stacey Westfall, Virginia Department of Environmental Quality

    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:
    Hybrid 401(a)
    Employer Mandatory Contributions:
    Hybrid 401(a)
    Employee Voluntary Contributions:
    Hybrid 457
    Hybrid 457
    Employer Matching Contributions:
    Hybrid 401(a)
    1.00% 1.00% 0.00% 0.00%

    Note: Members can elect a voluntary contribution between 0.5% and 4%. The maximum employer match is 2.5%

    0.50% 0.50%
    1.00% 1.00%
    1.50% 1.25%
    2.00% 1.50%
    2.50% 1.75%
    3.00% 2.00%
    3.50% 2.25%
    4.00% 2.50%
       

    †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.

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