Cash Match Program
What is the Employer Cash Match Program?
The employer cash match program is an employer contribution deposited into a 401(a) plan. The program was passed by the Virginia General Assembly in April of 1999 as House Bill #1756. It provides for a percentage match of an eligible employee's deferred compensation amount to a 403(b) or 457 arrangement. This employer match program is a significant enhancement to retirement saving plans to assist eligible employees in preparing for retirement.
Who is Eligible?
To be eligible for the match, you must meet all of the following conditions:
- A salaried employee, classified or faculty member, who has
- Making a contribution to a 403(b) or 457 plan of at least ten dollars per pay period.
The following are not eligible for the match program:
- Wage employees i.e., P-14s, Work Studies, and Student Hires.
- Those not enrolled in an approved 403(b) and/or 457 plan with an approved vendor, or
- Those whose 403(b) and/or 457 contributions are less than ten dollars per pay period.
How Do I Sign Up?
To participate in the Cash Match program, you have to establish a 403(b). Once you establish a 403(b), you will automatically receive the match. Click here to find out what steps are needed to establish a 403(b). If you meet the eligibility requirements and your current vendor accepts the employer match contributions in a 401(a) account, you will automatically be enrolled in the program and have the employer match contribution go by default to the 403(b) vendor. If your 403(b) vendor does not currently accept 401(a) contributions amount, you will be contacted to choose a different vendor for your 401(a) contribution amount as well as your 403(b). You will not have to change vendors if you want to forego the match.
Note: 457 plan participants who meet the eligibility requirements will automatically be enrolled in the match program with the employer match money going into the 457 plan.
How often can I change my Match Provider?
The 401(a) match vendor can only be changed once every year. This does not preclude someone from changing their 403(b) vendor whenever they choose. It is not possible, however, to have separate vendors for a 403(b) amount and the 401(a) contribution amount.
What is the match amount?
The limit that can be matched is *twenty dollars or 50% of your deduction amount, whichever is lesser, for each semi-monthly pay cycle.
*The current twenty dollar maximum may increase in the future if the match program becomes fully funded by the General Assembly.
What carriers are eligible to receive the match amount?
These are our preferred carriers who can accept 401(a) contribution amounts: