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In order for an employee to be eligible to participate in the VDC program, all of the following requirements must be met:

• Hired on or after July 1, 2013 and active on payroll status, 
• Be an unrepresented (non-union) full-time or part-time employee, 
• Have an annualized salary of $75,000 or more, and 
• Not currently a member of any New York City pension system, as of the rollout of the VDC program
  
  To understand the differences between the VDC program and a City pension system, view Comparing the VDC program and Defined Benefit Plans

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Employee contributions are based on percentages relative to the employee’s salary: 

• Annualized wages of $75,000.00 = 4.5% 
• Annualized wages of $75,001.00 to $100,000.00 = 5.75% 
• Annualized wages of $100,000.01 or more = 6% 

VDC program employee contributions are made through payroll deductions on a pre-tax basis. Contributions are not subject to federal income tax until withdrawn but are subject to state and local income taxes in the year in which they are made.

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Yes, the City/Public Employer will contribute 8% of the employee's salary. 

Employer contributions for the first year of employment are not made until the employee has fulfilled the vesting requirement. An employer contribution of 8% of salary will be made for the duration of employment thereafter. 

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Vested Participants are those:

(1) Employees who were hired on or after July 1, 2013 in an unrepresented title and completed 366 days of City service, are automatically vested in the VDC program.

(2) Employees who have a vested retirement contract from any of the VDC investment providers (Fidelity, TIAA, AIG, or Voya). 

Employee contributions and employer contributions for vested participants, made via payroll deductions, will be directed by the VDC administrator to the participant’s selected VDC investment provider(s).

Pre-Vesting Participants are those:

Participants who have not yet completed 366 days of City service. VDC contributions will be deducted from the employee's paycheck and held by the City until the employee is vested. Once vested, the City of New York or Public Employer will make a single lump sum contribution of applicable escrowed employer contributions and employee contributions plus interest to the VDC administrator, who will in turn allocate the funds to the participant’s selected VDC investment provider(s).

A participant who does not complete the vesting period is entitled to a distribution of his or her own employee contributions, plus interest. 

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In order to participate in the VDC program, the employee must enroll in the program: 

• Within 30 days of the employee’s hire date.

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The employee must complete a VDC Eligibility Verification & Acknowledgment Form 

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The employee can visit the New York State VDC website at www.vdc.ny.gov, select "New York City" and then follow the instructions under "How to Enroll."

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