Employer Update

Engage employees in a meaningful opportunity to revisit their retirement goals and decide if they're on track for a secure future during National Retirement Security Month, which takes place in October.

Although employed workers are generally well-positioned to save, invest and prepare for retirement, many still aren't saving enough. A recent survey conducted by the Transamerica Center for Retirement Studies found that fewer than three in 10 workers “strongly agree” they are building a large enough retirement nest egg, and almost half (47%) expect to retire after age 65 or do not plan to retire. This shows the urgent need for employees to learn more about their VRS benefits, supplemental savings plans and employer match options while engaging in long-term financial planning.

VRS stands ready to help. We invite you to share the following short messages with members to help them learn more about the tools and resources available to them. Copy and paste these messages into emails, newsletter articles or flyers as you communicate with employees during October:

Get started with myVRS. Register and log in to myVRS to access a growing library of retirement planning resources and self-service features. Try out the myVRS Benefit Estimator to see what your VRS benefit in retirement might look like under different scenarios. With the myVRS Retirement Planner, you can set an income-replacement goal and enter expected income sources. The planner includes calculators and a budgeting worksheet to help you meet your goals.

Learn more with myVRS Financial Wellness. The nationally recognized myVRS Financial Wellness program will help you make informed and educated decisions on everyday financial matters while saving for the future. Using your secure myVRS account, you can tap into articles, videos, customized action plans and more – all tailored to help you pursue and meet your short- and long-term financial goals.

Get Free Financial Planning Assistance. VRS members may sign up for no-cost webinars and one-on-one 30-minute consultations with Certified Financial Planning (CFP) professionals. Services are provided through MissionSquare Retirement, the third-party record keeper for VRS Defined Contribution Plans.

Sign up for upcoming CFP webinars.

Hybrid Plan members: Don't Miss the Match. The Hybrid Retirement Plan combines the features of a defined benefit plan and a defined contribution plan. The defined benefit provides the foundation of your future retirement benefit. The defined contribution provides a tax-deferred savings plan for you to build on your defined benefit. It's important to maximize your voluntary contributions at 4% to receive the full 2.5% employer match.

Act now: 4 p.m., September 15 is the next quarterly deadline for voluntary contribution changes.

[If you offer the Commonwealth of Virginia 457 plan to employees, include the following in your messaging.]

Once you reach the maximum 4% voluntary contributions in the hybrid plan, consider saving even more with the Commonwealth of Virginia 457 Deferred Compensation Plan. If you contribute at least $10 per paycheck to the Virginia Cash Match Plan, you will receive a 50% cash match, up to a maximum $20 match per pay date. Even modest savings add up over time.