457(b) Deferred Compensation Plan
Saving for retirement is easy through the Commonwealth of Virginia's 457(b) deferred compensation plan. Employees:
- Contribute through payroll deduction.
- Defer paying taxes until retirement.
- Can change the amount they want to save (subject to tax code and plan limits).
- May be eligible for a cash match.
The 457(b) Plan is a supplement to the Virginia Retirement System benefit administered through ICMA-RC.
Wage employees may also sign up and contribute into a 457(b) deferred compensation plan. If you are wage employee and wish to sign up for a 457(b) account, complete this wage enrollment form and return it to Human Resources.
All salaried (or benefitted) employees* will be automatically enrolled in the Commonwealth of Virginia's 457(b) Deferred Compensation Plan. Deferral begins approximately 90 days after the date of employment. A total of $20 is deducted from the employees paycheck each pay period. Employees also receive a $10 employer cash match per pay period. You will not be auto enrolled if you have set up a 403(b) or 457(b) plan within the 90 day window. You also have the opportunity to opt out of the Auto Enrollment by contacting ICMA-RC at 877-327-5261.
*Hybrid participants will not be automatically enrolled. Wage employees must opt in to a 457(b) plan.
Before deferrals begin
If employees choose to opt out of the plan within 90 days from the date they received the automatic enrollment notice, no deferral will be made from their salary. The employee's password will remain active and they can re-enroll in the plan at any time.
After deferrals begin
If an employee decides to opt out of the plan after their first contribution was deposited to their account, they have 90 days to opt out and request a refund from ICMA-RC. A check will be mailed to the employee and the refund will reflect any gains or losses. The refund is taxable, and employees will receive an IRS form 1099-R for income tax reporting purposes. The Cash Match Plan balance is forfeited.
Normal distribution rules apply if no refund request is received within the 90-day period.
To opt out of the plan, contact ICMA-RC.
Managing your account
Employees can change their 457(b) deferred compensation plan deferrals and investments online or by calling 1-877-327-5261.