Change allows state agencies to contribute to certain employees' Va529 accounts
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A new sign-on and retention bonus tool allows Virginia state agencies to make contributions to employees’ Virginia529 accounts as an incentive to attract and retain those in critical or high-turnover positions.
The tool took effect Jan. 1. The Virginia Department of Human Resource Management and Virginia529 collaborated to develop a streamlined administrative process to facilitate its use. It will be available in addition to a student loan repayment bonus approved in June for similar positions. The state also has promoted the public service student loan forgiveness program, through which employment at a state agency may qualify any employee to receive student loan forgiveness.
“It is my hope that this new compensation tool not only helps us fill critical and high-turnover positions, but also encourages other Virginia employers to consider similar incentives," said Governor Ralph Northam. "At the same time, this new tool helps provide a path to affordable higher education – a key priority of my administration – for Virginia’s state employees and their families.”
The State Council of Higher Education for Virginia projects the total charges for undergraduate students at Virginia’s state-supported four-year institutions will be $24,003 for the 2018–2019 academic year, an increase of 4.4 percent over last year’s costs.
“Our Commonwealth is fortunate to offer a premier 529 College Savings Plan program for investment in our children’s future that can be used to assist us in offering this one-time bonus,” said Secretary of Administration Keyanna Conner. “A thriving state workforce not only benefits Virginia’s state employees and their families, but also the citizens of the Commonwealth that they serve.”
Agencies must fund such bonuses from their current budgets and will require that employees remain employed for up to one year in exchange for the 529 plan contributions. Investing in employees having unique skills engenders greater engagement and longer tenures, and results in savings in future recruitment and turnover costs.
