Employer Update

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

Auto-escalation helps members save more for retirement and qualify for a higher employer match. Escalation occurs every three years and includes all hybrid plan members except those who opt-out, are currently using Smart Step to regularly increase their contributions or are already making the highest (4%) voluntary contribution.

Take note of the following dates and deadlines.

October 28

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

December 1-31

Members may opt-out between December 1 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).

First payroll in January 2026

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.

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.

Jump Start Savings

For hybrid plan members, upping their voluntary contribution brings benefits including a higher employer match and additional tax-deferred savings. Employers can encourage saving more by reminding members they don’t need to wait for auto-escalation to realize benefits now. You can point out the following:

• Activating Smart Step gives you control of how much you’re increasing your contribution and when. It’s a great option for employees not ready to contribute the maximum 4% yet but are willing to set up a path to reach that limit on their own timetable.
• Upping your voluntary contribution on a one-time basis is as easy as accessing your DCP account or calling 877-327-5261.