The Virginia Retirement System serves as the Plan Administrator for several defined contribution plans in addition to the VRS Defined Benefit Plan. These Plans include the Commonwealth of Virginia Deferred Compensation Plan, the Virginia Cash Match Plan, and the Optional Retirement Plan for Political Appointees. For more information, see our DCP section. The plan allows members to defer a portion of their pre-tax salary into a savings account. The money is not taxed as long as it remains in the account.
Members decide how the funds are invested from approved investment options.
The return on investments are compounded annually. Money withdrawn from the account is subject to ordinary income taxes.