Resource Center for VRS Employers: Hybrid Retirement Plan: Defined Contribution Component

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    Hybrid Retirement Plan Payroll Information

    Payroll Guide

    The Payroll Guide provides step-by-step instructions and in-depth explanations that cover enrollment, calculating the employer match and defined benefit rate and submitting contributions. It also provides information on a variety of special circumstances and aspects of administering the hybrid plan.

    Payroll Guide (for CIPPS-reporting state agencies) PDF icon 

    Payroll Guide (for political subdivisions, school divisions and non-CIPPS-reporting state agencies) PDF icon 

    Hybrid Retirement Plan Adjustment Policy PDF icon 

    Payroll Interface

    You will need to implement payroll-related enhancements that include the four contribution sources for the defined contribution component of the hybrid plan:

    • Mandatory Member Contribution (1%)
    • Mandatory Employer Match Contribution (1%)
    • Member Voluntary Contributions (variable from 0.5% to 4.0%)*
    • Employer Match on Voluntary Contributions (variable from 0.5% to 2.5%)

    *You also will need to make updates to your payroll system to calculate the applicable match on voluntary contributions.

    Hybrid Retirement Plan Contribution Chart: This chart provides an example of the various contribution scenarios under the hybrid plan.
    *You will use EZLink to view or download a listing of quarterly voluntary deferral percentages for individual members in the Hybrid 457 Deferred Compensation Plan.

    ICMA-RC VRS Hybrid Deferral Changes Report Sample
    View this sample deferral report for employers participating in hybrid retirement plans. The file shows a sample report of quarterly voluntary deferral percentages for the Hybrid 457 Deferred Compensation Plan.

    Submitting contributions requires two actions:

    Step 1: Submit the contribution detail through EZLink, ICMA-RC's web-based system

    • as an online entry, or
    • as a batch file.*

    Step 2: Submit the contribution funds to ICMA-RC via ACH credit, ACH debit or wire.

    Contribution Batch File Processing

    Employers participating in the Commonwealth of Virginia Defined Contribution plans will use the appropriate file interface format, available in EZLink under Publications:

    ICMA-RC VRS Hybrid Retirement Plans Payroll File Interface

    • Hybrid 457 Deferred Compensation Plan
    • Hybrid 401(a) Cash Match Plan

    ICMA-RC VRS Hybrid and DC Plans Payroll File Interface 

    • Hybrid 457 Deferred Compensation Plan
    • Hybrid 401(a) Cash Match Plan
    • Commonwealth of Virginia 457 Deferred Compensation Plan
    • Virginia Cash Match Plan
    • Optional Retirement Plan for Political Appointees (ORPPA)
    • Optional Retirement Plan for School Superintendents (ORPSS)
    • Virginia Supplemental Retirement Plan (VSRP)
    • Optional Retirement Plan for Higher Education (ORPHE) - Effective 1/1/2017

    For batch file processing information or to request a copy of the appropriate file layout, please contact the ICMA-RC Defined Contribution Plans Support team at 1-VRS-DC-PLAN1 (1-877-327-5261), and select option 3.

    Resources

    video icon VRS Hybrid Retirement Plan Employer Webinar - Payroll Readiness: An overview of the contribution process to help prepare your payroll systems for the hybrid plan, which went into effect on Jan. 1, 2014 for new hires.