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


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)






VRS (hired 7/1/10 or after)


None. 5% employee contribution continues unchanged.

ORP (hired 7/1/10 or after)


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


5% Increase

$  2,000

New Annual Salary


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.