Employer Update

On July 1, 2024, VRS-participating employers will begin to administer the payroll withholding for defined contribution component seperately from the defined benefit component for Hybrid Retirement Plan members.

In case you missed it, VRS emailed employers in November with detailed information on action steps to take now to prepare for this administrative change.

Update Your Payroll System

Depending on the payroll structure you have in place, you will need to contact your third-party payroll provider, meet with internal technology staff or update the internal spreadsheet or software you use to track contributions.

Budget for Contribution Payments

• Pay to VRS each month: A fixed defined benefit contribution rate for all employees, including hybrid plan members.
• Pay to MissionSquare Retirement each pay period: Employer mandatory and the employer match on members’ voluntary contributions, which can vary.

For more specifics, visit the Hybrid Rate Separation webpage:

• What Changes?
• What Stays the Same?

To help you navigate the changes, the webpage also includes:

• Your Questions Answered.
• Spreadsheet of Payroll Examples.

Coming in First Quarter 2024

• Snapshot Comparison Exercise: After you confirm your January, February and March snapshots in myVRS Navigator, VRS will provide a current versus future state snapshot comparison file to show the defined benefit contributions separated from the defined contribution component for hybrid plan members.
• Employer Help Sessions: VRS team members will be available online during set times to answer individual questions and ensure you’re prepared for July 1. Watch for more information.

VRS will continue to support you throughout the rate separation. Look for additional guidance in the Employer Update, watch for the snapshot comparison files in 2024 and contact your Employer Relationship Managers if you need assistance.