HR: New “SmartStep to Four Percent” Feature for VRS Hybrid

The VRS Hybrid Retirement Plan was designed with an auto-escalation feature. Every three years, members’ voluntary contributions to their hybrid plan accounts will automatically increase by 0.5 percent (payroll deduction) until reaching the maximum 4 percent voluntary contribution amount. Hybrid Members may elect to opt-out of the auto-escalation by logging in to their accounts through myVRS. You must do this every time you receive the notification of an auto-escalation occurrence from the Virginia Retirement System (VRS) by a deadline date established by VRS.

The SmartStep feature allows Hybrid members to choose from four months (January, April, July or October) for their auto-escalation to occur each year until the maximum 4 percent additional contribution limit has been reached. This prevents participants from having to log in to their accounts to opt-out each escalation period and also helps ensure progression toward maximizing voluntary contributions occur. Opting in to the SmartStep feature is required.

Instructions and additional information can be found here: https://www.varetirement.org/hybrid/plan-info/voluntary-contributions.html