The Benefits of the Voluntary Defined Contribution Program

It's flexible.

The VDC Program allows employees to customize their retirement plan. They can name their beneficiaries and decide what to do with their retirement savings.

Portability.

Once vested, participant balances can move with them if they separate from service with a public employer in New York City. You can also withdraw money when you leave New York City service.

It vests rapidly.

Employees are fully vested after just one year and one day. Defined Benefit (“DB”) plans generally don’t vest for 10 years.

It lets employees take charge.

Employees can choose their investments from any or all of the authorized investment providers Corebridge Financial (formerly AIG Retirement Services), Fidelity, TIAA and Voya. With DB plans, the plan sponsor chooses the investments and providers.

*If you invest in the SUNY Optional Retirement Program/New York State Voluntary Defined Contribution 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.

The VDC is a new alternative to New York City’s DB plans. It is being made available to New York City employees in 2020.

An employee has 30 days from the date of hire to enroll.

TIAA, the Third Party Administrator, supports agencies by offering help and guidance to educate employees.

More information

Full text of VDC Program legislation (PDF)

Employee Eligibility

Full-time and part-time employees of the City of New York and certain Public Employers who have an annual salary rate of pay of at least $75,000 per year and hired on or after July 1, 2013 may be eligible for the VDC Program.

Employees are not eligible if a union represents them. You may not be eligible if you previously participated in a New York City public DB plan.

An employee has 30 days from the date of hire to elect the VDC Program.

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:

Request access to Plan Focus (PDF).
Establish an escrow account.
Provide your agency’s payroll schedule.
Establish funding/banking.
Notify, educate and assist eligible employees. Download the VDC Program enrollment guide (PDF).

For centralized payroll remitters (OSC/OLR):

Request access to Plan Focus (PDF).
Follow OSC Payroll Bulletin No. 1627. (OSC only)
Notify, educate and assist eligible employees. Download the VDC Program enrollment guide (PDF).
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.

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.
View the video

Participant Education Station

Your hub for employee materials and resources.

Contact Information

NYS VDC Program Center

Administrators (through TIAA):

1-888-984-0010

Hours: Monday to Friday, 8 a.m. to 6 p.m. (ET)

Employees (through Retirement@Work):

1-866-271-0960

Hours: Monday to Friday, 8 a.m. to 10 p.m. (ET)

VDC Program Administrators

Michael Consorte

1-518-445-4094

Michael.Consorte@suny.edu

Denise Gaffor

1-212-364-5782

Denise.Gaffor@suny.edu

VDC Program Administrators for City of New York

Web address: nyc.gov/vdc

What does the employee get in retirement?	A fixed, lifetime monthly income in retirement.	Balance is available when you retire, or employee can choose a fixed, monthly income through annuity investments.
When is the employee fully vested?	After 10 years of service. How it works for part-time employees.	After more than one year of service. Find out when vesting is immediate.
Can the employee choose investments?	No.	Yes.
How much does the employee contribute?	Same for both plan types. See details.	Same for both plan types. See details.
How much does your agency contribute?	15.5% of an employee's compensation.	8% of an employee's (subject to IRS annual contribution limits).
When can the employee retire and take money from the plan?	Full benefits at age 63 when you have at least 10 years of service. See additional details.	No minimum retirement age. Tax penalties may apply if you withdraw money before turning 59 ½.
Can it move to a different agency?	No.	Yes.
Are loans available?	Yes (up to 75% of the amount the employee contributed with a maximum of $50,000).	Yes (up to 50% of employee's balance with a maximum of $50,000).
Can you name beneficiaries?	Yes. The employee can choose to name beneficiaries and have a death benefit in exchange for a lower monthly annuity income. (Maximum amount: 3x your salary.)	Yes. (Amount depends on your account balance.)

	Defined Benefit Plan	Voluntary Defined Contribution Program
Agency Contribution Rate	15.5%*	8%
Cost After 1 Year	$15,500	$8,000
Cost After 10 Years	$155,000	$80,000
AGENCY 10-YEAR SAVINGS	-	$75,000

Introducing the New York StateVoluntary Defined Contribution Program