Employer Update

Auto-escalation: The next automatic escalation of Hybrid Retirement Plan members' voluntary contributions takes place January 1, 2023. To encourage members to maximize their retirement savings, the hybrid plan was designed with an auto-escalation feature. Every three years, members' voluntary contributions to their Hybrid 457 Deferred Compensation Plan accounts will automatically increase by 0.5% (payroll deduction) until reaching the maximum 4%. Members whose contributions are auto-escalated will receive additional employer-matching contributions.

Counseling soon-to-retire members: The Getting Ready to Retire guidehas been updated to include relevant information for members in VRS Plans 1 and 2 as well as the Hybrid Retirement Plan. The publication provides important information about the retirement application process and benefits in retirement.

Serving those who serve others for the last 80 years: VRS began operations in 1942, replacing a fund for retired teachers that traced its origins to 1908. Early VRS membership was limited to teachers, school administration employees and state employees, though eligibility soon expanded to include employees of political subdivisions. Today, VRS is proud to serve 835 participating employers and 755,000 members, retirees and beneficiaries. View a timeline of key VRS events.

VRS adds online access to optional group life insurance benefits for retirees and eligible newly hired employees: VRS retirees now have secure access in myVRS to review their optional group life insurance coverage offered through Securian Financial. The online connection to Securian allows retirees to reduce or cancel their optional coverage, if desired. A similar myVRS feature for members rolled out earlier this year, enabling members to link to the Securian site to purchase additional group life insurance coverage for themselves and family members and maintain the benefit online. In addition, newly hired employees can now link to Securian through myVRS to view optional group life insurance benefits, if eligible. They no longer need to wait for the employer to run the monthly contribution confirmation.

Learn more about VRS' investment strategy: Check out varetire.org/investments to gain deeper insights into how VRS' long-term investment strategy supports members in retirement.

myVRS Navigator Security review starts soon: Beginning this summer, VRS will conduct a formal myVRS Navigator security review to ensure that the correct personnel at participating employers have the proper level of access to the system. For the first time, the security review will be conducted online within employers' myVRS Navigator accounts. Security Administrators, who oversee and approve access to myVRS Navigator for their agencies, will receive a notification when the online review begins. Instructions will be made available in myVRS Navigator, and you may contact the Employer Support group for additional assistance as needed. Ensuring only authorized users have access to myVRS Navigator bolsters system security and protects member and employer data.

Retiree COLA takes effect July 1: Eligible retirees in Plan 1, Plan 2 or the Hybrid Retirement Plan (defined benefit component only) will receive cost-of-living adjustments (COLAs) for fiscal year 2023.

Are you new to administering VRS benefits? Let us know so our employer representative team can introduce themselves to you and point you to resources and training opportunities.