Plan Adoption

Adopt the Commonwealth of Virginia 457 Deferred Compensation Plan Today!

Why Adopt the Plan?

The Commonwealth of Virginia 457 Deferred Compensation Plan (457 Plan) enables employees to save additional funds for retirement through before-tax and Roth after-tax contributions. All employees of VRS-participating employers, including wage and part-time employees, are eligible for participation.

Adopting the 457 Plan offers benefits for both employers and employees, such as reducing administrative tasks and providing employees with integration through myVRS for comprehensive retirement planning.

Visit dcp.varetire.org/457 to learn more about the 457 Plan.

6 reasons to adopt the plan

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Employers with an existing 457 plan may have the option to transition those assets to the Commonwealth of Virginia 457 Plan. Voya Finanical, the record keeper for defined contribution plans (DCP), along with VRS, will facilitate a smooth transition process with the outgoing record keeper.

VRS charges a single administrative fee to manage employees' DCP accounts. The current fee is $35.50 per year for each participant. Participants enrolled in multiple VRS DCP accounts (e.g., 457 Plan, Virginia Cash Match Plan or the defined contribution component of the Hybrid Retirement Plan) only pay this total fee annually.

Employees can manage their DCP accounts through the plan website, dcp.varetire.org/login or by using various online tools, including the Voya Retire® mobile app, self-service education tools and retirement calculators like myOrangeMoney®.

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

  • The employer 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.

Employers who have adopted the 457 Plan may consider adopting the Virginia Cash Match Plan. Research indicates higher participation rates when both plans are offered.

The Virginia Cash Match Plan encourages employees to save for retirement by providing a cash match incentive. Full-time and part-time salaried employees making continuous contributions to the 457 Plan are eligible for this match. Employees covered under the Hybrid Retirement Plan must first maximize voluntary contributions to the Hybrid 457 Plan to be eligible for the employer match under the Virginia Cash Match Plan. Political subdivisions and school divisions determine the match amount.

Visit dcp.varetire.org/cashmatch to learn more about the Virginia Cash Match Plan.

For more information on adopting a DCP plan, contact your Employer Relationship Manager or call 844-570-1482 (option 2).