Hybrid Plan Overview
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
The defined contribution component of your Hybrid Retirement Plan provides the Hybrid 401(a) Cash Match Plan. You contribute a mandatory 1% of your creditable compensation each month to your 401(a) plan account. Your employer also contributes a mandatory 1%. In addition, you may make voluntary contributions to your 401(a) plan account. Your employer must match a specified percentage of any voluntary contributions you make, which are deposited to this account. You invest these contributions through your hybrid 401(a) plan.*
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.
Contributions Table
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% | ||
Start Saving Now
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.
Calculate the Impact on Your Paycheck
Use the Paycheck Calculator to visualize the impact of contributions and other deductions on your paycheck. Calculate now.
SmartStep to 4%
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.
Once you choose SmartStep, you do not have to log in to increase your contribution each year. SmartStep does it for you. Learn more about this feature.
Choose SmartStep Now. Log in to your DCP Account.
Auto-Escalation of Your Voluntary Contributions
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.
Popular Hybrid Publications
Hybrid Member Handbook
JRS Member Handbook
