December Employee Benefits Spotlight

From: Human Resources

Below is a list of important announcements from the Benefits Team.

VRS Defined Contribution Plan recordkeeper transition

VRS has selected Voya Financial to serve participants in VRS Defined Contribution Plans (DCP). Beginning Jan. 1, 2025, Voya will assume record-keeping responsibilities for the following VRS plans:

• Hybrid Retirement Plan (defined contribution component)
• Hybrid Cash Match Plan 401(a)
• Commonwealth of Virginia 457 Deferred Compensation Plan
• Virginia Cash Match 401(a)

If you are enrolled in one of the above plans, learn more about the things you should be aware of during this time.

You will receive a statement from Mission Square early January showing a zero balance, meaning your funds have been transferred to VOYA. You should be able to log into your VOYA account the week of Jan. 6 to confirm transferred balances. 

Annual tax document mailings: Verify addresses by Dec. 31

Payroll and the Commonwealth of Virginia are getting ready for the annual mailing of tax documents, including W2s, 1042S, and IRS 1095-C forms. Tax documents will be available electronically or will be mailed to home addresses of record by Jan. 31, 2025.

To ensure tax documents are sent to the right address, employees are encouraged to review all applicable address types in Hokie Spa and update as necessary by Tuesday, Dec. 31. 

Once available, W2 forms can be accessed electronically through Hokie Spa or ADP. ADP will mail W2 forms based on the print status each employee indicates in the ADP system prior to W2 printing in mid-January. 1042S forms will be available electronically through HokieSpa for all applicable employees before the IRS deadline. Printed W2s and 1042S will be sent to employees’ current mailing addresses. The Virginia Department of Human Resource Management (DHRM) processes IRS Form 1095-C, which provides information regarding any employer-provided health insurance coverage or offers of coverage. DHRM is required to mail 1095-C documents to home addresses of record.

For questions about address updates, contact the HR Service Center at hrservicecenter@vt.edu. For more questions about year-end tax statements, visit the Payroll’s website. For specific W2 or 1042S questions, email VTW2@vt.edu.

Voluntary Retirement Plan contribution limits for 2025

Virginia Tech employees have many retirement plan options, including voluntary plans such as the university's Deferred Savings Program (403(b) Plan) and the Commonwealth of Virginia’s Deferred Compensation Plan (457(b) Plan).

All Virginia Tech employees (including adjunct faculty, wage, and student wage) are eligible to participate in one or both voluntary plans, which provide additional ways to save money toward retirement. Contributions can be made through pre-tax or after-tax (also called Roth) payroll deductions. Employee contributions and any applicable matching employer contributions in your 403(b) and 457(b) Plan are immediately 100 percent vested.

Below are the 2025 IRS maximum annual limits for contributions to a 403(b) Plan and a 457(b) Plan:

• Under age 50: $23,500
• Over age 50: $31,000 (with the $7,500 age catch-up)

Note: These limits are separate for the 403(b) and 457(b) plans, and employees can contribute to both. 

If you wish to enroll, or are already participating and wish to make changes to current contributions, the following links provide access to additional information:

• 403(b) Plan: Changes can now be made online through Hokie Spa. More information can be found here.
• 457(b) Plan: Contact the plan provider or by calling 1-877-327-5261. or by calling 1-877-327-5261.

If you intend for a contribution change to be effective for the first pay period in January 2025, all changes should be made by Dec. 21.

For more information about Virginia Tech’s retirement plan options, contact the HR Service Center at 540-231-9331.

2025 holiday and winter closing schedule announced

The holiday and winter closing schedule for 2025 has been posted on the university’s website.

University Policy 4315: Guidelines on Holidays contains more information on university holidays, holiday time, and other procedures. For questions about the policy, contact your college or department HR representative. 

Reminder for employees with dependents who turned age 26 in 2024

If you are an employee with a dependent child who turned 26 in 2024, that child will no longer be eligible for health coverage on Jan. 1, 2025. The coverage for this dependent will automatically terminate effective Dec. 31, 2024. This could result in eligibility for reduced membership coverage and possibly lower premium costs (depending on continued coverage for other eligible dependents). 

Consistent plan changes are permitted when a child loses eligibility. You may change your plan within 60 days of your child losing eligibility by submitting a health benefits enrollment form to Human Resources. If you wish to continue with the same plan for remaining covered individuals, no action is required.  

Letters were mailed to the address of record for each affected employee in October outlining the health benefit options for children who will lose coverage in the Health Benefits Program due to age. If your child qualifies as an incapacitated dependent, please refer to the letter for additional information. 

If you need further assistance, please contact the HR Service Center at 540-231-9331.