Employer Update

Starting last month, employers began administering the defined contribution and defined benefit portions of the Hybrid Retirement Plan as separate and independent components.

You submit separate payments for the:

1. Defined benefit component.
   The defined benefit employer contribution for hybrid plan members is the same employer contribution rate you pay for Plan 1 and Plan 2 members. Defined benefit payments go to VRS in full by the 10th of the month, as usual.
2. Defined contribution component.
   Mandatory and voluntary contributions follow the same rules. Withhold and remit both from every paycheck, even if the employee starts or leaves mid-month or you have 26 or 52 pay periods. Base the deductions on the employee’s creditable compensation portion of their actual pay for that period. Remit these contributions to MissionSquare Retirement.

Schools and Higher Education

For less-than-12-month contract employees, defined contribution deductions per pay period will begin at the start of the new contract (e.g., late-August or September 2024, with DC contribution withholdings in off-contract months starting summer 2025).

Need Help?

Join VRS’ online Hybrid Rate Separation Help Sessions this month and in September. Get the help you need to manage the changes to hybrid plan administration.

Register for a help session.

Other resources:

• Visit the hybrid rate separation webpage.
• Review the Contribution Confirmation and Payment Scheduling chapterof the VRS Employer Manual.
• Review the Payroll Guide.
• Access Employer Support.
• Contact your Employer Relationship Manager.