Employer Update

The Fiscal Year-End Reminders webpage provides detailed information on tasks employers perform in myVRS Navigator during the summer. The page organizes reminders based on the month in which employers must take certain actions.

Reporting IRS annual compensation: Although 2021 compensation limits were announced and effective for January 1, VRS applies the limits on a plan-year basis (July 1 to June 30). Income that exceeds those amounts cannot be considered part of an employee's creditable compensation in VRS retirement plans:

• $430,000 (for employees with membership dates before April 9, 1996)
• $290,000 (for employees with membership dates on or after April 9, 1996)

If an employee's annual salary exceeds the 401(a)(17) compensation limit, myVRS Navigator automatically calculates creditable compensation and contributions based on the limit. However, employers should report the employee's actual salary. Do not withhold the member contribution on the excess salary. Instead, pay it to the employee as wages.

Contact VRS Employer Support with any questions you may have about reporting employee compensation.