Employer Update

The next auto-escalation for members in the Hybrid Retirement Plan takes effect January 1, 2026. You may receive questions from employees about how this process works and what it means for their retirement savings.

How Auto-Escalation Works

Auto-escalation is designed to help members gradually save more over time. Every three years, member voluntary contributions automatically increase by 0.5%, up to the maximum 4%, unless they choose to opt out.

Next Steps

VRS and Voya Financial will notify members 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.

To coincide with Voya’s monthly deferral-change cycle, members may opt-out between December 1 and 4 p.m. on December 31 by contacting Voya.

Deadline to enroll new employees: Enter new hires in myVRS Navigator by October 27. Members who are not already contributing 4% in voluntary contributions and who started work on or before November 1 are eligible for auto-escalation.

Processing tips: Follow the normal process for making deferral changes. Your Monthly Deferral Change Report will include auto-escalated members. Be sure to allot additional time for entering changes in 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.

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 each 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.