Employer Update

What should I know about coming changes to how Hybrid Retirement Plan contributions are calculated and paid?

VRS will simplify the way employer contributions are calculated and paid for the Hybrid Retirement Plan, beginning July 1, 2024. Employers will manage payroll withholding for the defined contribution part independently from the defined benefit component.

You will make separate payments to:

• VRS each month for the defined benefit contribution rate.
• MissionSquare Retirement every pay period for defined contribution mandatory, employee voluntary and employer-matching contributions.

While this legislative change primarily impacts employers, members may see a difference in how defined contributions are withheld from their paychecks.

Ultimately, the separation of the defined benefit and defined contribution rates should reduce payroll reconciliation issues and other administrative burdens on VRS-participating employers.

VRS will support employers throughout the implementation process. The Hybrid Retirement Plan Rate Separation webpage is your go-to source for information, including:

• A quick review of the hybrid rate separation legislation and how it may affect your budgeting forecasts.
• Which aspects of hybrid plan administration will change, and which won’t.
• Steps you can take now to plan for the transition.
• Have questions? Submit them through our online form.