Voluntary contributions to a defined contribution account are a convenient way for employees to increase their savings and build their retirement income, while taking advantage of employer matching funds.
And now, a new calculator built for hybrid members helps members see the effect of increasing their voluntary contributions on their paycheck. The visually interactive calculator allows members to experiment with various savings percentages and determine what works for them.
Members can increase their voluntary contributions in 0.5 percent increments, up to 4 percent of their creditable compensation. Virginia Tech matches the first 1 percent of employees voluntary contribution with a 1 percent contribution and then matches each additional 0.5 percent increase with a 0.25 percent contribution—up to a 2.5 percent maximum match.
Members may update their voluntary contribution elections quarterly. To increase the amount of voluntary contributions, go to www.varetire.org/hybrid and log into Account Access, or call Investor Services at 1-877-327-5261 and select option 1. The deadline for making updates for the next quarter is 4 p.m., June 15.