Voluntary Retirement Plans

403(b) deferred savings plans and 457(b) deferred compensation plans

Employees are offered several choices of investment options to supplement their retirement plans. Employees may participate in either a 403(b) deferred savings plan, the 457(b) deferred compensation plan, or both. The state also provides cash match benefits to assist eligible employees in preparing for retirement.

Auto 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 pre-tax deduction per paycheck with a $10 cash match from Virginia Tech to the 457(b). 

Opting out

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.

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 MissionSquare. 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.