A flexible 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.
If requested by a participant, all New York State agencies are required to offer the VDC program to eligible employees.
It's flexible.
The VDC program allows employees to decide what to do with their retirement savings by choosing their own investments. They can also name their beneficiaries.
It vests rapidly.
Employees have full rights to the amount in their account after one year and one day of service. NYSLRS/NYSTRS and NYCERS plans have a 5-year vesting period.
It lets employees take charge.
The VDC program offers flexible investment options. Employees can choose investments and authorized investment providers including Corebridge Financial, Fidelity*, TIAA and Voya. With defined benefit plans, the state (NYSLERS) invests the money with the help of investment advisors.
The VDC program 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. Newly eligible employees require 30 days written notification. Failure to enroll may negatively impact plan membership or result in non-enrollment in a retirement system.
TIAA, the multi-vendor coordinator for the SUNY retirement plans, provides training and guidance to agency administrators to educate employees.
Plan Change Videos (effective 2/1/24)
Additional Resources
*If you invest in the SUNY Optional Retirement Program/New York State VDC 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
Full-time and part-time employees of New York State who have an
Employees are not eligible if a union represents them. An employee may not be eligible if they 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 or 30 days from written notification for newly eligible employees.
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-OSC payroll remitters:
1.
2. Establish an escrow account.
3.
4.
5. Notify, educate and assist eligible employees.
For OSC payroll remitters:
1.
2.
3. Notify, educate and assist eligible employees.
4. With your first new VDC Program enrollee, 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
Job Aids
3. Offer personal assistance
Employees can pick up the phone and call
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 Administrators
Michael Consorte
SUNY Director of University-wide Benefits
Denise Gaffor
Retirement Program Manager, NYS VDC Plan