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. Compare the VDC program to defined benefit plans.

It costs less.

The VDC program costs significantly less from the agency’s perspective than DB plans. For example, if an agency employee with an annual salary rate of pay of $100,000 has a VDC plan, your agency could potentially save $75,000 over 10 years.

It vests rapidly.

Employees are fully vested after just one year. DB 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 (formerly AIG Retirement Services), Fidelity, TIAA and Voya. With defined benefit plans, the agency chooses the investments and the providers.

The VDC is a new 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.

More information

VDC program summary (PDF)
Full text of VDC program legislation (PDF)
Policy Forum Videos
Salary Summary Guide (PDF)

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 annual salary rate of pay of at least $75,000 per year 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 State Public Defined Benefit plan. View additional eligibility information.

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

We can help you get your agency onboard.

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 Administrator & SUNY Director of University-wide Benefits

Michael Consorte

1-518-445-4094

Michael.Consorte@suny.edu

Denise Gaffor

Retirement Program Manager, NYS VDC Plan

Denise.Gaffor@suny.edu

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 State Voluntary Defined Contribution Program