Simplified Defined Contributions Process Effective July 1, 2024
Effective July 1, 2024, the Virginia Retirement System will simplify the way defined contributions are calculated and paid to the Hybrid Retirement Plan, following a 2022 legislative change. Employers will now manage payroll withholding for defined contributions separately from defined benefits, aligning with the normal rate-setting schedule for fiscal year 2025-2026.
Starting with the July 16 paycheck for semi-monthly paid employees, the July 5 paycheck for bi-weekly paid employees, and the August 16 paycheck for all 9-month faculty, Mason will contribute a defined benefit rate of 12.52% of creditable compensation. The Mason matching defined contribution depends on individual voluntary contributions, with a maximum match of 2.5% for a 4% employee contribution.
What this means for you:
- For semi-monthly paid employees, deductions remain the same.
- For bi-weekly paid employees, defined contributions and the mandatory 1% defined benefit contribution will be deducted 26 times per year instead of 24. The total annual contribution amount remains unchanged.
Read more about the Hybrid Rate Separation on the VRS website: Hybrid Rate Separation
We recommend utilizing the Hybrid Plan Learning Channel, which offers webinars and presentations on the Hybrid Retirement Plan's defined benefit (DB) and defined contribution (DC) components. Explore these resources on the Mission Square website.
For questions or assistance, contact the VRS Customer Contact Center at 888-827-3847, log in to your MyVRS account: MyVRS Login, or email benefits@gmu.edu.