Automatic Enrollment in 457 Deferred Compensation Plan Begins January 1, 2008

All salaried state employees hired or re-hired on and after January 1, 2008 will receive a 457 Plan New Employee Packet from Great-West Retirement Services. Great-West, the record keeper for the Commonwealth of Virginia’s 457 Deferred Compensation Plan (457 Plan), will mail packets to the home addresses of state employees beginning in January.

The packet includes:

New Employee Welcome Letter
Plan Features and Highlights
Planning Guide
Investment Guide
Enrollment Form for employees who wish to enroll immediately to maximize the benefits of the plan
Beneficiary Designation Form
Investment Option Performance

State employers received copies of the packet and enrollment information from VRS in November.

Starting January 1, 2008, newly hired and re-hired salaried state employees will be enrolled automatically in the 457 Deferred Compensation Plan (457 Plan). The 2007 General Assembly passed legislation making enrollment in the 457 Plan automatic.

Automatic deferrals of $20 per pay period with a $10 employer cash match begin the first pay date occurring 90 days after Great-West Retirement Services sends the new employee an automatic enrollment notice. Eligible employees have 90 days from the date of the notice to opt out of the 457 Plan. After deferrals begin, new employees have an additional 90 days to opt out of the program and receive a refund of any deferrals made.

New employees are not required to wait to be auto enrolled. They may enroll earlier using a paper enrollment form or online once they receive their automatic enrollment notice and Personal Identification Number (PIN) from Great-West.

Posted: December 13, 2007