Hybrid Retirement Plan: Helping You Plan for Tomorrow, Today

    • Print this page

    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

    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 p.m. ET on the 15th of the month prior to the next quarter. (For example, members must request the change by 4 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 p.m. ET on the next business day after the 15th.

    Make Saving Easy

    Calculate the Impact to Your Paycheck

    Encourage Employees to Use the Paycheck Calculator

    Encourage employees to use the Hybrid Member Paycheck Calculator to visualize the impact of contributions and other deductions on their paychecks.

    Use the Hybrid Member Paycheck Calculator to visualize the impact of contributions and other deductions on your paycheck Calculate now.


    SmartStep to 4 Percent

    Encourage employees to save more with small annual increases to their voluntary contributions. If they cannot save 4 percent now for the full 2.5 percent employer match, small increases will help them reach 4 percent gradually, with less impact on their paychecks.

    Once employees choose SmartStep, they do not have to log-in to increase their contributions each year. SmartStep does it for them. Learn more about this feature .

    Encourage employees to choose SmartStep Now! They will log in through DCP Account Access and click My Account, then Contributions. The can set an annual increase amount (from 0.5 to 3.5 percent) and which month the increase will occur (January, April, July, or October). Their contributions will increase each year until they reach the maximum of 4 percent.

    Is SmartStep different from auto-escalation? SmartStep and auto-escalation are hybrid plan features that work together to help members save more for retirement. Members opt into SmartStep and choose the amount and month of their annual increase. No action is required for auto-escalation, which occurs every three years.

    Save more with small annual increases to your voluntary contributions. If you cannot save 4 percent now for the full 2.5 percent match from your employer, small increases will help you reach 4 percent gradually, with less impact on your paycheck.

    Once you choose SmartStep, you do not have to log-in to increase your contribution each year. SmartStep does it for you. Learn more about this feature. Learn more about this feature .

    Choose SmartStep Now! Log in through DCP Account Access and click My Account, then Contributions. Choose your annual increase amount (from 0.5 to 3.5 percent) and which month your increase will occur (January, April, July, or October). Your contribution will increase each year until you reach the maximum of 4 percent.

    Is SmartStep different from auto-escalation? SmartStep and auto-escalation are hybrid plan features that work together to help members save more for retirement. Members opt into SmartStep and choose the amount and month of their annual increase. No action is required for auto-escalation, which occurs every three years.

    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 next automatic escalation takes place January 1, 2020. Members will be provided with further details in 2019.

    vrs