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March 2011

VSE-FACULTY-L@LISTSERV.GMU.EDU

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From:
Melinda Barnhart <[log in to unmask]>
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Date:
Wed, 16 Mar 2011 16:44:50 -0400
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From: HR/Payroll Department Contacts
[mailto:[log in to unmask]] On Behalf Of Janet Walker
Sent: Monday, March 14, 2011 4:32 PM
To: [log in to unmask]
Subject: Instant HR/Payroll: Additional Information on the Legislative
Change to VRS Retirement

 

Legislative Change to VRS Retirement
As a follow up to last week's budget town hall meeting, we wanted to share
some additional information that we hope will help further explain the
retirement change recently approved by the state legislature. 

Beginning with the June 25, 2011 pay period (paycheck 7/15/11),
grandfathered VRS employees (those hired before 7/1/10) will pay 5% of their
salary toward their VRS retirement.  The legislature has authorized, and
Mason will provide, a 5% increase in salary to these employees to help
offset this new deduction.  

It's important to note that while Mason will be moving forward to comply
with the legislation as currently written, the discussion regarding state
retirement programs (both VRS and ORP) is likely to continue in future
legislative sessions.

To help clarify who is impacted by the change, please see the chart below. 


Retirement Plan

Salary Increase

Change


VRS (hired before 7/1/10)

Yes. 5% (as of 6/25/11)

5% employee contribution begins on 6/25/11


ORP (hired before 7/1/10)

No

None


 

 

 


VRS (hired 7/1/10 or after)

No

None. 5% employee contribution continues unchanged.


ORP (hired 7/1/10 or after)

No

None. 5% employee contribution continues unchanged.

 Note: All employee contributions to both retirement programs are pre-tax.

Additionally, it's also important to note that for grandfathered VRS
employees, the 5% salary increase will not completely cover their new VRS
deduction. This is because the 5% increase is based on the current salary
and the 5% VRS deduction is based on the new, higher salary. 

For example, let's say someone makes $40,000 per year. 


Current Annual Salary

$40,000


5% Increase

$  2,000


New Annual Salary

$42,000


5% VRS Annual Contribution

$  2,100

If you have any questions, please call the HR & Payroll Customer Service
Center at 3.2600 and ask to speak to a member of the benefits team.

 



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