The Hybrid Retirement Plan is funded through contributions both you and your employer make to the defined benefit and the defined contribution components of the plan.

Mandatory Contributions

Defined Benefit Component

You contribute a mandatory 4% of creditable compensation each month to your defined benefit member contribution account on a pretax basis. Your employer makes a separate contribution to your defined benefit component based on the payroll of all covered employees. The VRS plan actuary determines the rate your employer pays based on several factors.

The Code of Virginia does not allow VRS members to borrow or withdraw funds from their defined benefit member contribution account. You can take a refund of your member contribution account when you leave covered employment.

Defined Contribution Component

You contribute a mandatory 1% of your creditable compensation each month to your Hybrid 401(a) Cash Match Plan. Your employer also contributes a mandatory 1% to that account. In addition, you may make voluntary contributions to a Hybrid 457 Deferred Compensation Plan, and your employer must match a specified percentage of any voluntary contributions you make. See the “Voluntary Contributions” tab for details.*

Voluntary Contributions

In addition to your mandatory contribution, you may make up to an additional 4% voluntary contribution to the defined contribution component of the Hybrid Retirement Plan each month.

Additional Benefits of Voluntary Contributions

Employer Match

Consider boosting your voluntary contribution amount to 4%. If you save 4%, you’ll receive 2.5% in employer matching contributions.

Tax Savings

Taxes are deferred on both contributions and earnings, allowing you to pay less in taxes now.

Defined Contribution Component

Employee Mandatory Contributions Hybrid 401(a) Employer Mandatory Contributions Hybrid 401(a) Employee Voluntary Contributions Hybrid 457* Employer Matching Contributions Hybrid 401(a)
1% 1% 0% 0%
Members can elect a voluntary contribution between 0.5% and 4%. The maximum employer match is 2.5%
Maximize Savings

You can save more for retirement in a supplemental plan. Remember to maximize your voluntary contribution to the Hybrid 457 Plan first to take full advantage of the employer match. Total contributions to both plans cannot exceed IRS annual contribution limits.

 0.5% 0.5%
1% 1%
1.5% 1.25%
2% 1.5%
2.5% 1.75%
3% 2%
3.5% 2.25%
4% 2.5%

Online:Log in to your DCP Account. Select the percentage of each paycheck you’d like to set aside in voluntary contributions. You can begin saving up to 4% right away to receive the maximum 2.5% match from your employer.

Phone:Call Participant Services at 877-327-5261

You can change your voluntary contributions on a monthly basis, starting January 2025.

Use the Paycheck Calculator to visualize the impact of contributions and other deductions on your paycheck. Calculate now.

Save more by making small annual increases to your voluntary contributions. If you cannot save 4% now for the full 2.5% match from your employer, small increases will help you reach 4% gradually, with less impact on your paycheck.

Log in to your DCP account at dcp.varetire.org/login to choose SmartStep now.

To help you maximize your retirement savings, the Hybrid Retirement Plan has an auto-escalation feature. Unless you opt out, your voluntary contribution to the Hybrid 457 Deferred Compensation Plan will automatically increase by 0.5% (through payroll deduction) on a set three-year schedule until reaching the maximum 4%, which provides the highest employer match.

Next automatic escalation: January 1, 2026.

* Some provisions related to voluntary contributions and associated employer match may differ for school division employees who have elected to use an employer-sponsored hybrid 403(b). For additional information, contact your human resource office.

Learn More About Your DCP Contributions

Learn how mandatory and voluntary contributions fund your retirement and how to take advantage of your employer’s match.

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