Employer Update

VRS will make revisions to its policy for handling employer corrections to Hybrid Retirement Plan members' defined contribution accounts. Expect the process changes to take effect later this year.

These updates will bring the Hybrid Retirement Plan Adjustment Policy into closer alignment with Internal Revenue Service guidelines under the Employee Plans Compliance Resolution System, while following plan documents governing the Hybrid 401(a) Cash Match Plan and Hybrid 457 Deferred Compensation Plan.

Accurate employer reporting of contributions to the defined contribution component of the hybrid plan is essential each pay period. As a best practice, take time to review your snapshot each month to ensure you are withholding the correct amount from each member's paycheck.

The policy addresses how to correct the following errors:

• Missing contributions to members' defined contributions accounts.
• Delayed submission of contributions.
• Missed earnings on the late contributions.
• Contributions remitted in error to members' accounts.

Look for more details about the changes in future issues of Employer Update.