Employer Update

Effective July 1, employers no longer reconcile the defined contributions for Hybrid Retirement Plan members with the monthly VRS snapshot. You now administer the defined contribution and defined benefit portions of the plan as separate and independent components.

Your monthly snapshots will change beginning with the July snapshot. They no longer will show the estimated defined contribution amount.

1. Defined Benefit Component: The employer rate is the same 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: Withhold and remit mandatory and voluntary defined contributions from every paycheck, even if the employee starts or leaves mid-month or you have 26 or 52 pay periods. Remit 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., September 2024, with DC contribution withholdings in off-contract months starting summer 2025).

NOTE:
Alert employees of the change and reassure them that the total contribution amount for the year remains the same.

Resources and Support

Visit the hybrid rate separation webpage for additional background.

Employers can count on VRS for ongoing support throughout this process and implementation.

• Access Employer Support.
• Contact your Employer Relationship Manager.