Employer Update

Effective July 1, employers will manage withholding for the defined contribution component separately from the defined benefit component. Your monthly snapshots in myVRS Navigator will reflect the change after hybrid rate separation.

Snapshot Comparison Reports

Starting this month, VRS will provide Snapshot Comparison reports previewing how your snapshot will look after rate separation. Once you confirm your January, February and March snapshots in myVRS Navigator, VRS will provide before-and-after comparison files to show the defined benefit contributions separated from the defined contribution component for hybrid plan members.

Snapshot comparisons will be created for the reporting months of January, February and March 2024.

• The January report is available for download now.
• The February report will be available April 1.
• The March report will be available May 1.

The example reports are based on employer contribution rates currently in effect versus July 1 rates.

Refer to the Snapshot Comparison Report job aid (login required) for tips on how to interpret your monthly comparison report. If you do not have log-in credentials for the Commonwealth of Virginia Learning Center, email externalVLC@varetire.org to request registration.

Use these files as dress rehearsals for managing contributions for hybrid plan members after July 1. The sample reports can help you identify any further adjustments you may need to unlink the defined benefit and defined contribution rates in your payroll systems in time for the transition.

The “before” (lefthand) side of the spreadsheet displays the actual contribution data from the January snapshot. For hybrid plan members, the defined benefit component amount is offset by the employer match on mandatory and voluntary defined contribution amounts.

The “after” (righthand) side of the spreadsheet displays zeros for defined contribution amounts in the snapshot, as this data will no longer be captured by VRS. The defined benefit rate for hybrid members is no longer reduced by the employer contribution percentage, meaning the defined benefit rate becomes the same for all employees.

After rate separation, you will reconcile the defined contribution amounts withheld from employees’ paychecks to the amounts remitted to MissionSquare Retirement each pay period.

Employer Help Sessions

VRS recommends using the data from your snapshot comparison reports to run practice reconciliations internally before July 1. VRS team members will be available online during set times in March, April and May to answer individual questions about the reports.

Register for an employer help session.

PRO TIP
Address outstanding payment reconciliation issues in your system now and strive to stay current leading up to rate separation.