National Retirement Security Month

National Retirement Security Month is an annual effort each October to raise public awareness about the importance of saving for retirement. It's a time to reflect on your personal retirement goals.

IMRF's Voluntary Additional Contributions (VAC) is a unique and very effective savings vehicle available to IMRF members only, to help supplement retirement savings. The VAC program is low-risk and offers higher interest rates than many other retirement savings options.

With VAC, you can elect to save between 1% and 10% of your reported earnings in an account that currently earns 7.25% interest. With IRA and 40l(k) totals fluctuating with the market, the consistent interest rate of VAC is a particularly attractive option for retirement saving.

The interest is credited at the end of the year, based on the opening balance at the beginning of the year. Contributions are after-tax and do not reduce your taxable income as in a 457 or 403(b) plan. IMRF members benefit from the compounding interest on their contributions, which add up to greater savings by the time of retirement.

VAC is a great way to build the personal savings members will need to supplement their pensions in retirement. For more information on VAC related to your plan and tier, select the member tab above and choose your plan and tier. Click Voluntary Additional Contributions in the drop down menu. For more details, check out this VAC fact sheet.

Two other great resources to help you determine if you are on track with your retirement savings efforts are IMRF's Your Glass is Half Full Workshop Webinar and the Pre-Retirement Workshop Webinar for those within 5 years of retirement. These webinars are available on-demand to watch when it is convenient for you!