Political subdivision and school division employers that are 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 other VRS-participating employers have adopted the plan, which allows employees to save for retirement through payroll deductions.
Opportunity to Consolidate
Employers with existing 457 plans may transition those assets to the Commonwealth of Virginia 457 Plan. VRS and Voya Financial, the record keeper for defined contribution plans, will work closely with you to ensure a seamless transition. Voya charges a single administrative fee to manage employees’ DCP accounts.
The Adoption Process — At a Glance
Your governing body must pass a resolution to adopt the Commonwealth of Virginia 457 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.
VRS research shows that participation rates are higher when employers offer both the 457 and Cash Match plans. 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.
