Employer Update

Starting in January 2026, the Hybrid Retirement Plan’s auto-escalation feature will increase members’ contributions by 0.5% to the Hybrid 457 Deferred Compensation Plan.

Every three years, member voluntary contributions automatically increase by 0.5%, up to the maximum 4% on a before-tax basis, unless they choose to opt out.

Encourage Employees to Max Out Now

While auto-escalation is a built-in feature of the Hybrid Retirement Plan, members don’t have to wait to boost their savings. They can increase their voluntary contributions at a faster rate, with changes effective the following month.

The sooner they contribute more, the more time their investments can grow through compounding. By contributing the full 4% now, members receive the maximum 2.5% employer match—and enjoy the added benefit of deferring taxes on both contributions and earnings.

Members also can use SmartStep to gradually increase their contributions. They can adjust the increase percentage, frequency or turn off the feature anytime

Next Steps: Auto-Escalation Timeline

October 28
Enter new hires in myVRS Navigator by October 28, to allow time for processing. Members who are not already contributing 4% in voluntary contributions and who started work on or before November 1 are eligible for auto-escalation.

December 1-31
Members who do not wish to save more may opt-out between December 1 (starting at 9 a.m.) and December 31 by 4 p.m. To opt out, members can log in to their account at dcp.varetire.org/login or call 877-327-5261 (weekdays from 8 a.m. to 9 p.m. ET, excluding stock market holidays).

December 31, 4 p.m.
Deadline to make changes.

First payroll in January 2026
Follow the normal process for making deferral changes. Your Monthly Deferral Change Report will include auto-escalated members. Be sure to allot additional time to enter changes into your system as the volume will be much higher than usual.

Consider using the batch file process to make reporting contributions easier. For questions about the batch file, email Voya Employer Support or call 844-570-1482.

Communications Support

VRS and Voya Financial will notify members about auto-escalation through dcp.varetire.org/hybrid and DCP account messages, newsletter articles and a targeted mailing this fall.

You will also receive communication materials that you can share with members.