Are You Ready for Auto-Escalation?
On January 1, 2026, the Hybrid Retirement Plan’s auto-escalation feature will increase member contributions by 0.5% to the Hybrid 457 Deferred Compensation Plan for those not already saving 4% or participating in SmartStep. This increase occurs every three years until members reach the maximum 4% contribution, which qualifies them for the full 2.5% employer match.
Hybrid Retirement Plan members who do not wish to participate in auto-escalation scheduled for January 2026 must opt out in December.
How You Can Help
- Encourage members to increase their contributions now to take full advantage of the employer match.
- Distribute the Employee Auto-Escalation flyer.
- Review the Employer Auto-Escalation guide to understand employer responsibilities.
Key Dates to Know
Opt-out window: December 1–31
Members can customize their contributions using SmartStep or opt out by logging into their account at dcp.varetire.org/login or by calling 877-327-5261 between December 1 and December 31 at 4 p.m. No action is required if the employee accepts the automatic 0.5% increase in retirement savings.
First available payroll in January 2026
In January, you’ll 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.
Employer Support
For additional resources, videos and guides, visit dcpemployer.varetire.org. If you have questions, contact the Voya Employer Support Team Monday through Friday, 8:30 a.m.-5 p.m. at 844-570-1482 or email DCPERSupport@voya.com.
