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Auto-Escalation 2023: Opt-Out Period Begins September 16 for Hybrid Retirement Plan Members
The next Hybrid Retirement Plan auto-escalation will take place in January 2023, effective with the first payroll that month.
Automatic increases and matching employer contributions help keep savings rolling for members! Every three years, voluntary contributions to the Hybrid 457 Deferred Compensation Plan automatically increase by 0.5% until the member reaches the maximum of 4%. Members may opt out of auto-escalation from September 16 through December 15.
As an employer, you can promote the benefits of auto-escalation and share member announcements to educate employees on the long-term value of contributing 4% to build retirement savings.
Take note of these important dates to ensure you and your hybrid plan members are prepared.
| Dates | Actions |
|---|---|
| September 16 - December 15 | Opt-out period for members who do not wish to save more for retirement. Voluntary contribution changes during this time override the auto-escalation increase. Members will receive an educational postcard at their homes in early October. |
| December 16 | Download the fourth quarter Deferrals Changes Report from EZLink and implement the deduction changes in your payroll system before your first January payroll cycle. |
| January 2023 | Once you confirm the December snapshot in myVRS Navigator, generate the January snapshot and reconcile the new voluntary contribution amounts to your first January payroll to ensure the amounts being withheld match the amounts on the snapshot. Remit contributions to MissionSquare following your regular payroll schedule. Delayed implementation of the increased voluntary contributions may result in penalties to the employer. |
Check out the auto-escalation website for employers where you can download messages to target to members and view other details.
Have additional questions?
- Contact MissionSquare Defined Contribution Plans Support at 877-327-5261 (option 3).
- Visit the Hybrid Retirement Plan Resource Center for Employers.
- For questions about the VRS snapshot or enrollments, contact VRS Hybrid Support at 855-291-2285.
