Employer Update

Political subdivision and school division employers looking to ease their administrative burdens and provide employees with additional savings opportunities may want to consider adopting the Commonwealth of Virginia 457 Deferred Compensation Plan.

All employees of VRS-participating employers that have adopted the 457 plan – including wage and part-time employees – are eligible to participate. Members’ 457 Plan account information is integrated with myVRS for a holistic retirement outlook. In addition to state agencies and public colleges and universities, nearly 100 VRS-participating employers have adopted the plan since its inception.

Low fees: VRS offers one transparent administrative fee ($30.50 annually per participant) to record keep employees’ defined contribution plan accounts.

Consolidate: Employers with existing 457 plans may transition those assets to the Commonwealth of Virginia 457 Plan. VRS and MissionSquare Retirement, our record keeper for defined contribution plans, will work closely with you to ensure a seamless transition.

Pair it with the Cash Match option: If you previously adopted the Commonwealth of Virginia 457 Plan, consider pairing it with the Virginia 401(a) Cash Match Plan to provide employees with an additional incentive to save for retirement. Participation rates are higher when employers offer both the 457 and Cash Match plans, according to VRS research.

Visit the Plan Adoption page to learn more about our seamless adoption process and access additional resources about the Commonwealth of Virginia 457 Plan.