University Cash Match

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 2024, employees can defer up to $23,000 per year into both the 403(b) and the 457(b) plan ($30,500 is the maximum for employees age 50 or over). 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 MissionSquare.

Automatic Enrollment

Faculty who elect the Optional Retirement Plan or faculty and staff who are in the Virginia Retirement Systems Plan 1 or Plan 2, will be automatically enrolled in a 457(b) 90 days after their hire date unless action is taken. If no action is taken, there will be a $20 deduction per paycheck with a $10 cash match from Virginia Tech to the 457(b). To opt out of the automatic enrollment, employees should contact MissionSquare directly at 1-877-327-5261, or enroll in a 403(b) or 457(b) plan.

Cash Match Eligibility

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.