457(b) Deferred Compensation Plan

The 457(b) deferred compensation plan provides an excellent opportunity to invest pre or post-taxed dollars and can be an integral part of longer term financial and/or retirement planning. The Commonwealth of Virginia 457(b) Plan is administered by VOYA. All employees, including adjunct faculty and wage, are eligible to participate in the 457(b) deferred compensation plan. However, only full and part-time faculty and staff employees are eligible to receive the employer cash match.  Employees may participate in the 403(b) tax deferred savings plan and the 457(b) deferred compensation plan at the same time.

The limit that may be deferred for 2026, as determined by the Internal Revenue Service, is:

• $24,500 if 49 years or younger
• $8,000 catch up if age 50 or older = $32,500 annual limit
  • If prior-year VT pay was over $150,000, catch-up must be Roth
  • Not automatic – employee must elect Roth
• The 457(b) "Standard Catch-Up" (also called the 3-Year Catch-Up) lets government/tax-exempt employees near retirement (usually ages 60-63) contribute double the normal limit for up to three years before their declared normal retirement age, if they under-saved in prior years; it's a special provision separate from the standard age-50+ catch-up, allowing "make-up" contributions for past missed deferrals, often doubling the annual limit for that period. 

If you are a wage employee and wish to sign up for a 457(b) account, complete this wage enrollment form and return it to Human Resources.

Managing your account

Changes can be made online using the directions below or by calling VOYA at 877-327-5261

1. Log in to (or register for) your VOYA account

To Enroll in a 457(b):

1. On the Home Screen under 'Accounts' is a 'Ready for Enrollment' option
2. Under 'Ready for Enrollment' select 'Enroll Now' under the 'COV Deferred Compensation Plan'
3. Follow the on screen promps to enroll.

To Update Current 457b:

1. On the Home Screen under 'Accounts' select 'COV Deferred Compensation Plan'
2. Click 'Update My Contributions.'

Please note: Changes made during the current month will take effect on the mid-month paycheck of the following month.