The Hybrid Retirement Plan is funded through contributions both you and your employer make to the defined benefit and the defined contribution components of the plan.

Defined Benefit Component

You contribute a mandatory 4% of creditable compensation each month to your defined benefit member contribution account on a pretax basis. Your employer makes a separate contribution to your defined benefit component based on the payroll of all covered employees. The VRS plan actuary determines the rate your employer pays based on several factors.

Note: The Code of Virginia does not allow VRS members to borrow or withdraw funds from their defined benefit member contribution account. You can take a refund of your member contribution account when you leave covered employment.

For more information:
Hybrid Retirement Plan Handbook .
Hybrid Contributions Illustration

Defined Contribution Component

The defined contribution component of your Hybrid Retirement Plan provides the Hybrid 401(a) Cash Match Plan. You contribute a mandatory 1% of your creditable compensation each month to your 401(a) plan account. Your employer also contributes a mandatory 1%. In addition, you may make voluntary contributions to your 401(a) plan account. Your employer must match a specified percentage of any voluntary contributions you make, which are deposited to this account. You invest these contributions through your hybrid 401(a) plan.†

For more information:
Hybrid Retirement Plan Handbook .
Hybrid Contributions Illustration

†Some provisions related to the voluntary contributions and associated employer match may differ for school division employees who have elected to use an employer-sponsored hybrid 403(b). For additional information, contact your human resource office.

VRS