Supplemental Retirement Information
Supplemental plans — use these for additional savings
The Voluntary Hybrid 457(b), the Deferred Compensation 457(b) and 403(b) are offered to allow you the ability to meet your retirement needs using additional tax advantaged vehicles.
- Choose to use the supplemental plans. We strongly encourage you to take advantage of the supplemental plans to increase your retirements savings. It is important to strive to save a total of 15% of your income toward retirement throughout your career.
- Choose one or both. The 457(b) and 403(b) plans enable you to save additional money towards your retirement. Each plan allows you to contribute up to the IRS maximum limit. You can use both plans at the same time to maximize savings.
- Contributions to the 457(b) and the 403(b) may be pre-tax or Roth, choose how to be taxed. \You have the ability to save for retirement in a variety of different tax advantaged ways.
- You can save on pre-tax basis which means you don’t pay federal income tax until you withdraw the money at retirement, or you can save using the Roth feature which means you pay income tax on your savings, but your entire account, including earnings, are paid to you tax-free as long as you are over 59 ½ and had the account for at least 5 years.
- Choose to get the match. All VRS Hybrid 457(b) participants can make an additional voluntary contributions up to 4% to receive the full benefit of ODU 401(a) Cash Match Plan. The match formula is:
Voluntary Employee Hybrid 457 Contribution Employer 401(a) Match Amount 0.50% 0.50% 1.00% 1.00% 1.50% 1.25% 2.00% 1.50% 2.50% 1.75% 3.00% 2.00% 3.50% 2.25% 4.00% 2.50% - Cash matching contributions for VRS Hybrid participants to the supplemental 403(b) or 457(b) require an employee 9% contribution to the plan. Hybrid Participants contributing the 9% are then eligible for additional cash matching (up to $20 per pay period) equal to $480 per year to the supplemental 403(b) or 457(b).
Can I participate in both supplemental plans?
You can save in both. Each plan allows a person to maximize their savings in a tax advantage way.
Do I think I may need access to any of my savings before I retire?
The 403(b) supplemental plan allows for age 59 ½ in-service withdrawals while still employed and loans. The 457(b) plan does not. Both plans allow for hardship withdrawals.
Contact information
- Questions on the VRS: visit varetire.org or call 888.827.3847
- Questions on the Hybrid Retirement Plan or the 457b: Contact Mission Square at 877.327.5261 or online.
- Need help choosing your investments: Contact CAPTRUST at 800.967.9948 or make an appointment at www.captrustadvice.com
- Questions on the 403(b) Plan: Call TIAA at 800.842.2776 or Fidelity at 800.343.0860