Tax deferred investments allow employees to invest a portion of their salary and deferred liabilities. The university matches 50 percent of what the employee contributes to a 403(b) or 457(b) plan with a maximum cash match of $20 per pay period.
In 2017, employees can defer up to $18,000 per year into both the 403(b) and the 457(b) plan ($24,000 is the maximum for employees over age 50). Employees receive the cash match once per pay period and are immediately vested in the cash match account. The 403(b) plans are administered by Fidelity and TIAA. The 457(b) plan is administered by ICMA-RC.
All employees hired after Jan. 1, 2008, are automatically enrolled in the 457(b) plan with a $20 pre tax payroll deduction. The university contributes $10 toward their 457(b) plan with the $20 automatic enrollment. To opt out of the automatic enrollment, employees should contact ICMA-RC directly at 1-877-327-5261, or enroll in a 403(b) or 457(b) plan.
To be eligible for the cash match, employees must be covered by:
- A Virginia Retirement System (VRS) defined benefit plan (VRS Plan 1, VRS Plan 2, or VaLORS) or by the Virginia Tech Optional Retirement Plan (ORP); or
- The Virginia Retirement System (VRS) Hybrid Retirement Plan and be making the maximum voluntary defined contribution to that plan.
Adjunct faculty and hourly employees are eligible to participate in the 403(b) and 457(b) plans; however, they are not eligible to receive the cash match benefit.