Virginia Defined Contribution Plans

For salaried state employees, the matching amount is 50 percent of your contribution to the 457 Plan or $20 per pay period, whichever is less. Political subdivisions and school divisions that participate in the Cash Match Plan may establish their own Cash Match amount.

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Can the dollar amount of the cash match be changed?

Yes. For state employees the dollar amount of the cash match depends on the funding available in the Commonwealth's budgeting cycle. For political subdivisions, the amount is set by the governing board and may be changed by resolution of the governing body.

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What happens to my Cash Match Account if I stop contributing to the 457 Plan?

If you do not make contributions to the 457 Plan on any given pay period, you will not receive an employer match for that pay period. When you re-start your 457 Plan contributions, your employer match will re-start automatically, as long as you continue in a position eligible for the match.

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Do employer contributions to the Cash Match Plan reduce my 457 Plan contribution limit?

No. Since the Cash Match Plan and 457 Plan are separate plans, you are able to utilize the entire permitted contribution limit for the 457 Plan.

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Can I make contributions to the Cash Match Plan?

No. This Plan only accepts regular contributions made by the employer. However, you are allowed to roll over your account from other eligible plans to the Cash Match Plan.

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What other types of retirement plan money can be rolled into the Cash Match Plan?

Other types of retirement plan money that can be rolled into the Cash Match Plan include 401(a), 401(k), 457(b), 403(b), traditional IRA and Federal Thrift Savings Plan.

You may take a distribution of money you have rolled into the Plan at any time, even while still employed with the employer that offers the Plan.

You also may contribute all or part of your lump-sum payment if you select the Partial Lump-Sum Payment Option (PLOP) as your VRS retirement payout.

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Do I receive a match on one-time contribution to the 457 Deferred Compensation Plan?

No. One-time deferrals such as bonuses, unused sick, annual and compensation payouts are not eligible for the employer Cash Match.

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I contribute to both the Commonwealth 457 Plan and 403(b) Plan offered by my employer. Will I receive a match on both?

No. You are eligible for only one Cash Match per pay date. If you contribute to both Plans, tell your employer to which Plan you wish the match applied.

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Can I use my Cash Match Plan balance to purchase service credits for the VRS Defined Benefit Plan?

Employer contributions to the Cash Match Plan cannot be used to purchase VRS service credit. If you have rolled monies from other plans into the Cash Match Plan rollover account these may be rolled over to VRS to purchase approved service credit.

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When I terminate employment or retire are there other contributions I can make to the Plans?

If you select the Partial Lump Sum Option (PLOP) as your VRS retirement payout option, some or all of the lump-sum payment may also be rolled over to your cash match account. Eligible after-tax rollovers will be accepted. You may take a distribution from your rollover account even if you are reemployed by the Commonwealth or a participating employer.

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Can I continue to make contributions to the Plan once I terminate employment with an employer that offers the Plan?

No, you can make contributions to the Plan only while you are employed by a sponsoring employer, including the Commonwealth of Virginia or one of the Virginia political subdivisions, school divisions or special authorities that adopted the Plan. However, you may roll money into the Plan, as long as you have an account balance.

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