Virginia Retirement System (VRS)
Full-time, classified employees are automatically enrolled in the Virginia Retirement System (VRS) on their first day of employment. VRS, a defined benefit plan, has a five-year vesting period before employees are eligible for a retirement benefit. If an employee separates from the university, he/she may choose to withdraw retirement contributions. Refer to the Handbook for Participants published by VRS for additional information.
Supplemental Retirement Accounts
Tax-Deferred Annuities - 403(b) and 457 Accounts
The university provides employees the opportunity to supplement their retirement income through pre-taxed supplemental retirement accounts. Deposits can be payroll deducted and placed into a special savings account that can be accessed at the time of retirement. Employees may elect to have up to 100% of their income (up to IRS cap) deducted and placed into a 403(b) or a 457 account. If interested in participating in a supplemental retirement account, please contact a Benefits representative at (540) 568-3970. The employee is responsible for ensuring that his/her contributions are in compliance with IRS regulations concerning tax-deferred contributions. Visit the HR website for a list of participating companies.
Employer-Paid Cash Match Plan
JMU offers a Cash Match Plan, which can be started any time after employment, to all full-time employees who establish a supplemental retirement account. The employer match is a half match program with JMU contributing the maximum of $20.00 per pay period. For example, an employee who contributes $40.00 per pay period to his/her supplemental retirement would receive a $20.00 per pay period match. The money contributed to the employee’s supplemental retirement account is either a 403(b) or 457 account, while the match contribution is a 401(a) account. An employee is only eligible for one match account.
Employees may invest in a tax-advantaged Roth IRA retirement account. Employee-only contributions are made with after-tax dollars and are tax-free at the time of withdrawal. Employees investing in Roth IRAs are responsible for ensuring that their contributions are in compliance with IRS regulations. Visit HR's Roth IRA website for a list of participating companies and detailed information.