Employer Update

When rate separation takes place July 1, you will no longer reconcile the defined contributions for Hybrid Retirement Plan members with your monthly VRS snapshot. Starting July 1, you will administer the defined contribution and defined benefit portions of the Hybrid Retirement Plan as separate and independent components.

Are You Payroll Ready?

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

1. Defined Benefit Component: Make sure you've updated the defined benefit employer contribution rate for hybrid plan members. 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: Be ready to 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.

What Resources Are Available?

To help you prepare for the changes, we've made an illustrative example of the March snapshot available in myVRS Navigator, showcasing how the report will look after July 1. To check if you're ready, compare the example snapshot against your actual March data.

Refer to the Snapshot Comparison Report job aid (login required) for tips on how to interpret your monthly comparison report.

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.