Your Chance to Learn More About Separation of Hybrid Plan Employer Rates
Beginning July 1, 2024, employers will administer Hybrid Retirement Plan contributions in the same way they currently administer contributions to other deferred compensation plans.
- The rates employers pay for Plan 1, Plan 2 and the defined benefit component of the hybrid plan will be calculated in the same way.
- The employer matching contribution to the defined contribution component will continue to vary based on individual member election of voluntary contributions.
- Payroll withholding for the defined contribution component will be handled independently from the defined benefit component.
Simplifying hybrid plan administration: Ultimately, separation of the defined benefit and defined contribution rates should streamline your workflow, reduce payroll processing errors and ease reconciliations.
Plan now for updates to your payroll system: Legislation separating the contribution rates was passed in 2022 with a delayed effective date of July 1, 2024, to allow time for employers to update payroll systems, if necessary, and to make other required changes in their reconciliation and reporting processes.
Attend Info Session
VRS will hold online information sessions to lay out more details about process changes related to this legislation. Make plans to attend one of these sessions, joined by your colleagues in information technology and payroll.
The feedback we gather from you will further enhance the level of support we provide throughout the pre-implementation process over the next year.