Employer Update

Ready to help employees learn more about their VRS benefits, but not sure where to start? Here are three important points to cover:

1. Steer them to VRS plan resources.

VRS provides plan overviews and other resources for employees in Plan 1 and Plan 2. Point Hybrid Retirement Plan employees to varetire.org/hybrid for more information about their plan.

• Plan 1 and Plan 2 members should register for the next VRS Overview, August 12 (2-3 p.m.) They can learn more about their benefits and how they can enhance their benefit for retirement.
• Hybrid plan members should check out the Hybrid Plan Learning Channel. They can watch a series of videos about different aspects of their plan and learn more about ways they can maximize their future savings.

2. Counsel them to claim online accounts and name beneficiaries as soon as possible.

This video shows employees how to secure their accounts.

Verifying their online accounts helps members prevent others from attempting to lay claim to the accounts fraudulently.

It's important for employees to name a beneficiary for their VRS benefits. They can log into their myVRS accounts to manage their beneficiary information. Hybrid plan members and employees who are eligible to participate in the Commonwealth of Virginia 457 Deferred Compensation Plan and Virginia Cash Match Plan can set up beneficiaries for their defined contribution accounts online through DCP Account Access.

3. Show them ways to save for their futures.

Planning a secure future starts with saving today. For VRS Hybrid Retirement Plan members, that means making voluntary contributions to their Hybrid 457 Deferred Compensation Plan. By contributing the maximum 4% voluntary contribution now, they will receive the full 2.5% employer match. Over time, investment earnings will compound to increase the overall amount an employee has saved for retirement. Contributing more earlier pays off in greater retirement security later.

If you participate in the Commonwealth of Virginia 457 Deferred Compensation Plan and the Virginia Cash Match Plan, remind new employees about their option to participate in these plans.

Hybrid plan members who are also eligible for the Virginia Cash Match Plan should first maximize their voluntary contributions to the Hybrid 457 Deferred Compensation Plan to receive the full employer match, and then begin contributing to the Commonwealth of Virginia 457 Plan.

Bonus tip: To help employees improve their money-management skills, VRS offers myVRS Financial Wellness, a benefit to all VRS members through their myVRS accounts, with some content also available through the VRS website. Self-paced and easy to use, myVRS Financial Wellness includes articles, videos, calculators, educational games, budgeting tools, webinars and start-here guides.