The future is coming.It’s closer than you think.

Will you be ready?

How the Hybrid Plan Works

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Voluntary Contributions

Reduce your taxable income by increasing

your voluntary contributions.

Learn more about saving with VRS

educational resources for members.

Increase your contributions

until you reach the maximum

level.

Pay yourself first. You’re worth

the investment in your future!

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• You can voluntarily contribute up to an additional 4 percent in 0.5 percent increments into the Hybrid 457 Deferred Compensation Plan

• Your employer must match the first 1 percent of your voluntary contribution into the Hybrid 457 Deferred Compensation with a corresponding contribution of 1 percent of your creditable compensation

• Each of your additional 0.5 percent increases will be matched by your employer with a 0.25 percent contribution

• The match will be credited into the Hybrid 401(a) Cash Match Plan

• You can increase or decrease your voluntary contributions on a quarterly basis

Generations & Retirement

MillennialsBorn 1981-1999

• Manage day-to-day money issues

• Deal with serious debt

• Give low priority to saving and investing

• Need to begin saving for retirement

• Need to build emergency savings

• Respond to causes• Like interactive

communication• Want transparency

Generation XBorn 1965-1980

• Have multiple financial obligations

• Need advice for managing cash flow

• Need to save more money for future retirement needs

• Respond to sources they trust

• Want education to be unbiased, free from conflicts of interest or hidden agendas

BoomersBorn 1946-1964

• Have strong money management skills

• May not have saved enough

• Deal with college bills

• Lack emergency savings

• See long-term care costs increasing

• Need to work with a financial advisor

• Need to run financial projection for retirement income

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Does This Sound Familiar?

“I’m already saving the minimum. Will increasing my voluntary contributions really make a difference in the long run?”

“I’ve got to help my parents and pay my children’s college bills. Then I’ll worry about retirement.”

“I’d like to learn more about saving for retirement, but I can’t afford to pay a financial advisor.”

“I need income to pay bills now, not to save for some point in the future.”

“How can I buy the things I want, if I have to put more money into my retirement savings?”

“I’ll start saving for retirement when I get a better job… when I make more money… when I pay off my debt… when I…”

“Retirement’s a long way off… there’s plenty of time to save.”

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Consider These Statistics

More than half of Generation Xers (59%) are not saving enough for retirement; 40% live beyond their means.

More than two in five (42%) Millennials have yet to plan for retirement.

Tax deferral is important for retirement savings, say 75% of Boomers.

When participants perform retirement income calculations, 20% increase contributions by five percentage points.

Four in five (80%) U.S. households with at least one earner have retirement savings that amount to less than their annual income.

Experts suggest saving 10%-15% of current pay to have sufficient retirement savings.

More than 38 million U.S. working-age households do not have retirement accounts.

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See the Difference

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Increase Your Contributions

Reduce your taxable income by increasing

your voluntary contributions.

Learn more about saving with VRS

educational resources for members.

Pay yourself first. You’re worth

the investment in your future!

8

• You can increase or decrease your voluntary contributions on a quarterly basis

• To make a change to your voluntary contribution, use the Account Log-in page on www.varetire.org/hybrid or call Investor Services at 1-877-327-5261 and select option 1

• The cut-off for the change is the 15th of the month prior to the next quarter

• If the 15th is not a business day, the deadline will be the next business

day after the 15th

• Example: You must request the change by September 15 for the change to be effective in the first payroll of October

You Have the Power!

Increase your voluntary contributions today.

Small increases can make a big difference!

Reduce your taxable income by increasing

your voluntary contributions.

Learn more about saving with VRS

educational resources for members.

Increase your contributions

until you reach the maximum

level.

Pay yourself first. You’re worth

the investment in your future!

Remember thatit’s never too early

to start saving for retirement!

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The future is coming.You can be ready.

Increase your voluntary contributions

today.10

For more information, contact your human resource office

or visit www.varetire.org/hybrid

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