Navigator
What You Need to Know About Hybrid Plan Auto-Escalation 2023
The auto-escalation date for Hybrid Retirement Plan members is approaching, which means your employees may have questions about the process.
What is it? Auto-escalation automates savings and helps Hybrid Plan members save more for their futures. Member voluntary contributions increase by 0.5% every three years until the member reaches the maximum of 4%.
When? The next auto-escalation for Hybrid Plan members is January 1, 2023.
How it works: VRS and MissionSquare Retirement will notify members through hybrid plan website and Account Access messages, newsletter articles and a targeted mailing in early October. You will receive communication materials that you can share with members.
Members may opt-out from September 16 to December 15 by contacting MissionSquare.
Deadline to enroll new employees: Enter new hires in myVRS Navigator by September 9. Members who are not already contributing 4% in voluntary contributions and who started work on or before Sept. 1, 2022, are eligible for auto-escalation.
Processing tips: Follow the normal process for making deferral changes. Your Quarterly Deferral Change Report will include auto-escalated members.
Consider using the batch file process to make reporting contributions easier. For questions about the batch file, email MissionSquare Employer Support. You also may call 877-327-5261 (option 3) or visit varetire.org/hybrid-er.
Encourage savings: Auto-escalation is a built-in feature of their plan, but members don’t need to wait to save more for retirement. They may increase voluntary contributions each quarter. By contributing 4% now, they will receive the full 2.5% employer match.
