Employer Update

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 component independently from the defined benefit component.

You will make separate payments to:

• VRS each month for the defined benefit contribution rate.
• MissionSquare Retirement (current record keeper for VRS defined contribution plans) each pay period for defined contribution mandatory, employee voluntary and employer-matching contributions.

This legislative change will be seamless for members.

Online resource: 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.

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

We look forward to partnering with you to ensure this change goes smoothly.