The Hybrid Retirement Plan includes an auto-escalation feature that will automatically increase Hybrid members’ voluntary contributions by 0.5 percent every three years, beginning January 2017, and continuing until members reach the maximum 4 percent in voluntary contributions.
Benefits of Voluntary Contributions
Voluntary contributions allow members to accumulate savings on a pretax basis, increase savings through the employer match and work toward income replacement during retirement. Members have access to a variety of low-cost investment options with the opportunity to earn compounded interest. VRS encourages members not to wait for auto-escalation to take effect and to contribute 4 percent now to receive the full 2.5 percent employer match.
VRS and ICMA-RC will notify members about this feature through the hybrid member website, call center and with targeted mailings. Members hired on or before September 1, 2016 will be part of the auto-escalation group. Members will have the option to opt out, October 1 through December 15. Only members who do not opt out and are not yet contributing the maximum of 4 percent into the Hybrid 457 Plan will be auto-escalated. Before each auto-escalation date, members will receive opt-out information. Members will be able to opt out by logging in to Account Access or by contacting ICMA-RC at 855.291.2285.
Additional information on the VRS Hybrid Plan can be found online.