A flexible, low-cost alternative to defined benefit plans.
Introducing the New York State
Voluntary Defined Contribution Program
NYS agencies are required to offer the Voluntary Defined Contribution (VDC) program to eligible employees. Find out how to implement the VDC program at your agency.
The Benefits of the Voluntary Defined Contribution Program
It's the law.
All New York State agencies are required to offer the VDC program to eligible employees.
It's flexible.
A VDC plan can move to different agencies with employees, who can take cash withdrawals and name beneficiaries.
It costs less.
The VDC program costs significantly less from the agency’s perspective than Defined Benefit plans. For example, if an agency employee with an annual salary rate of pay of $100,000 has a VDC plan, your agency could
It vests rapidly.
Employees are fully vested after just one year. Defined Benefit plans generally don’t vest for 5 years.
It lets employees take charge.
VDC programs offer more options in every department. Employees can choose investments and authorized investment providers including Corebridge Financial, Fidelity, TIAA and Voya. With defined benefit plans, the agency chooses the investments and the providers.
The VDC is an alternative to the ERS/TRS defined benefit plans. It debuted in New York on July 1, 2013.
An employee has 30 days from the date of hire to enroll. After 30 days, employees are defaulted into an ERS/TRS defined benefit plan.
TIAA, the Third Party Administrator, supports agencies by offering help and guidance to educate employees.
Plan Change Videos
More Information
If you invest in the SUNY Optional Retirement Program through Fidelity you will be investing in a variable group annuity contract issued by Massachusetts Mutual Life Insurance Company ("MassMutual"), 1295 State Street, Springfield, MA 01111-0001 and administered by Fidelity Investments. If benefit payments are annuitized under the group annuity contract issued by MassMutual, those benefit guarantees are subject to the claims paying ability of MassMutual.
Employee Eligibility
New York State employees who have an
Employees are not eligible if a union represents them. You may not be eligible if you previously participated in a New York State Public Defined Benefit plan.
An employee has 30 days from the date of hire to elect the VDC program.
This is based on an employee's full-year salary or part-time hourly rate. An employee who makes $37 per hour has an annual salary rate of pay of $76,960.
Employees are eligible if their immediate preceding employment was with a Non-State NY public employer (e.g. municipality, commonality, etc.) and if they're hired into an eligible class.
Employees are not eligible if they are a New York State employee whose immediate preceding employment was with another department, division or agency of New York State and they participated in a New York State Defined Benefit Plan (e.g., ERS, TRS, BERHS, PFRS, etc).
Employees can opt-in if they were participating in their agency's Defined Benefit Plan and were promoted into an eligible class after 7/1/2013.
Implementation at Your Agency
The following resources can help you establish the VDC program as a retirement planning option for employees at your agency.
The steps to implementation
For non-centralized payroll remitters:
1.
2. Establish an escrow account.
3.
4.
5. Notify, educate and assist eligible employees.
For centralized payroll remitters (OSC/OLR):
1.
2.
3. Notify, educate and assist eligible employees.
4. When you have your first new enrollee in the VDC program, OSC will instruct you on how to add/code new employee(s) in PayServ.
If I start teaching at a different school, will my retirement plan go with me?
Margaret, Buffalo Public Schools
How to Educate Your Employees
Once you master the program and make it available, it’s time to help your employees enroll.
1. Share the VDC program materials
This website has in-depth information about the VDC program and makes it easy for your employees to enroll online.
This video provides a brief, interactive comparison between the Defined Benefit and Defined Contributions options available to your new employees.
2. Review these resources
Enrollment Guide For Employees
Agency change instructions
3. Offer personal assistance
Employees can pick up the phone and call
4. Participant Education Station
Your hub for employee materials and resources.
Morningstar Managed Accounts 101
Corebridge Financial
Fidelity
Fidelity: Mobile App
Morningstar
TIAA
Voya
Contact Information
We can help you get your agency onboard.
NYS VDC Program Center
Administrators (through TIAA):
Hours: Monday to Friday, 8 a.m. to 6 p.m. (ET)
Employees (through Retirement@Work):
Hours: Monday to Friday, 8 a.m. to 10 p.m. (ET)
VDC Program Administrator & SUNY Director of University-wide Benefits
Michael Consorte
Denise Gaffor
Retirement Program Manager, NYS VDC Plan