January is the perfect time to take a look at your Voluntary Additional Contributions (VAC) and decide whether you want to adjust your contribution rate. Whether you received a pay increase and are interested in putting more into your VAC or you want to reduce your VAC to help make ends meet, re-evaluating your contribution amount at the beginning of each year is a good habit to get into.
With VAC, you can elect to save between 1% and 10% of your reported earnings in an account that currently earns 7.25% interest.* The interest is credited at the end of the year, based on the opening balance at the beginning of the year.
VAC participants recently received their 2020 interest, which was 7.25% of their start-of-the-year balance. The high interest rate, low risk, and compounding interest make this a unique and highly effective savings opportunity available to IMRF members only, to help supplement your retirement savings.