Employer Update

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

In addition to state agencies and public colleges and universities, about 120 VRS-participating employers have adopted the plan since its start.

Opportunity to Consolidate

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

Low Fees for Participants

VRS offers one transparent administrative fee ($35.50 annually per participant) to record keep employees’ defined contribution plan accounts.

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 added incentive to save for retirement. Participation rates are higher when employers offer both the 457 and Cash Match plans, VRS research shows.

Seamless Adoption Process

Your governing body must pass a resolution to adopt a DCP plan. Then:

• Your organization becomes a participating employer effective within 60 to 90 days of adoption.
• Transitioning any existing 457 plan to the Commonwealth of Virginia 457 plan generally takes 90 to 120 days.

For more information on adopting a DCP plan, contact your Employer Relationship Manager.