Employer Update

Preparing for employee pay raises? We've put together a simple action plan to help you engage employees and spark their interest in the long-term rewards of saving the raise.

1. Send an email blast using our templates.

Promote the benefits of saving in VRS Defined Contribution Plans (DCP) by sending an email to employees when raises are announced or sharing a reminder before the next contribution election deadline.

• Download email template: Commonwealth of Virginia 457 Deferred Compensation Plan
• Download email template: Hybrid 457 Deferred Compensation Plan

How to use the email templates: The email templates download as HTML files. Open each template and copy the content (CTRL + A). Then paste the content directly into your email message (CTRL + V). Modify the email as needed and distribute it to employees.

Encourage employees to increase their contributions before the next deadline:

• Commonwealth of Virginia 457 Plan (monthly contribution change deadline): 4 p.m. on June 30, July 30 and August 31.
• Hybrid Retirement Plan (quarterly contribution change deadline): 4 p.m. on September 15 and December 15.

To increase their knowledge of just how much they can save through VRS, employees can:

• Learn more about the VRS DCP at varetire.org/dcplans.
• Log in to Account Access to increase their contributions. If they need assistance with their contribution change, they can call Participant Services at 877-327-5261 (option 1), Monday-Friday 8:30 a.m.-9 p.m.
• Use the paycheck calculator to visualize the impact of saving on their paychecks.
• Contact their DC Plans Specialist for assistance with their savings strategy.

2. Share benefits and tips about paying yourself first.

When employees choose to pay themselves first and prioritize their savings, they're increasing the likelihood they can enjoy a more comfortable retirement with a stable stream of income. Savvy savers set aside funds—even if a modest amount—for the future just as they do for their other monthly living expenses.

Here are additional supersaver tips to share with your employees:

• Looking for a gradual savings approach? VRS defined contribution plans offer SmartStep, an automatic savings feature to help you increase your savings over time.
• If you are a Hybrid Retirement Plan member, maximize your contributions to the Hybrid 457 Plan first to receive the employer match before contributing to the Commonwealth of Virginia 457 Plan.
• Start saving early for your future. Check out the Cost of Delay Calculator.

Note: The above chart is for illustrative purposes only and based on a monthly income of $3,000. It assumes a semimonthly employee contribution made on the 15th and 30th of each month and a 6% average annual return after 30 years. The final account balance does not account for plan fees or expenses, which would reflect lower net returns. Investment return and principal value will fluctuate, so when shares are redeemed they may be worth more or less than the original cost.