Employer Update

Accurate employer reporting of contributions to defined contribution plans is essential to ensuring member contributions are invested timely and according to IRS requirements.

Correcting Mistakes

In a recent change in policy – and in preparation for the defined contribution plan record keeper transition to Voya Financial in January 2025 – a Request for Correction Review form is no longer required for account overages or shortages of $50 and less. In many cases, you can make corrections through payroll for errors that fall under this threshold. 

Take time to reconcile payroll each month to ensure you are withholding the correct amount from each member’s paycheck. Should you discover a mistake, corrections policies for VRS Defined Contribution Plans address how to remedy the following errors:

• Missing contributions to members’ defined contributions accounts.
• Delayed submission of contributions.
• Missed earnings on the late contributions.
• Contributions remitted in error to members’ accounts.

Discrepancies should be identified by employers as soon as possible. For account overages of more than $50 that are identified within 14 business days of funding, the funds can be returned directly to the employer by requesting a refund from MissionSquare Retirement Employer Support. Outside of that time frame, adjustments will follow the corrective methods outlined in each plan’s corrections policy and may require the employer to pay fees and/or missed earnings:

• Hybrid Retirement Plan
• Commonwealth of Virginia 457 Deferred Compensation Plan
• Virginia Cash Match Plan 401(a)
• Optional Retirement Plans

Questions?

If you have questions about VRS DCP corrections, email dcplans@varetire.org.