VRS Transitioning to New DCP Record Keeper in 2025
The VRS Board of Trustees recently named Voya Financial as the third-party record keeper for the VRS Defined Contribution Plans (DCP) effective January 1, 2025. MissionSquare Retirement is the current record keeper and has served in this capacity since January 2014.
VRS will provide you with additional details throughout 2024 to prepare for the transition. In the meantime, here’s some background information to help you better understand DCP and the role of a record keeper.
What are VRS Defined Contribution Plans?
The benefit under a defined contribution plan is based on contributions and net investment earnings on these contributions, similar to an individual retirement account. VRS-sponsored plans include supplemental savings plans like the Commonwealth of Virginia 457 Deferred Compensation Plan and retirement plans like the defined contribution component of the Hybrid Retirement Plan or the Optional Retirement Plan for Higher Education.
What does the record keeper do?
The defined contribution plans record keeper:
- Manages contributions to and distributions from plan accounts.
- Works with investment managers selected by VRS to complete transactions.
- Provides a call center, websites, participant education and communications to help you better understand your investment options.
Why is VRS changing record keepers?
Record keepers have a contract with VRS. State law requires VRS to periodically initiate requests for proposals, which allows the agency to evaluate service proposals from the current record keeper and other qualified vendors that are interested in serving as the record keeper. After a comprehensive review, VRS selects a vendor based on the evaluation criteria in the request for proposal. This process allows the agency to negotiate services and costs to continue providing members, retirees, employers and beneficiaries with superior customer service.
What does the change mean for plan participants?
Participant account details, investments, contribution elections and beneficiaries will automatically transition to Voya. However, there will be a few changes and actions you need to take, such as registering your account with Voya in early 2025.
NOTE:
Confirm, add or update your contact information, including your mailing address, mobile phone number and email address in myVRS and DCP Account Access. Providing these details helps secure your accounts and ensures that we are able to send transition-related items to your current address.
