This communication is being sent to HR Directors, HR Administrators, Benefits Administrators, and Payroll Administrators of all Cardinal HCM Payroll agencies.

On July 1, 2024, legislation separating the defined benefit and defined contribution portions of the employer contribution rates for Hybrid Retirement plans will take effect. In response, Cardinal has implemented the necessary system updates in collaboration with VRS. Below are the updates to ensure compliance.

Learn More

For additional details, review the VRS Hybrid Retirement Plan Rate Separation section on page 4 of SPO Payroll Bulletin 2024-07 and the VRS Hybrid Rate Separation webpage.

Hybrid Retirement Changes in Cardinal

Cardinal leveraged the recent Open Enrollment (OE) period to discontinue the Hybrid Retirement "blended" employer contribution plan (7V) for all existing employees as of 7/1/2024.

Impacts to Employees

A minor change will appear on employees' paycheck/pay advice. These changes include:

• The Hybrid Retirement "blended" employer YTD contribution amount will continue to appear on employee paychecks as "HYB Rtmt" through the end of 2024.
• Beginning with checks dated after 7/1/2024:
  • The current HYB Rtmt amount will show as 0.00.
  • The employer paid benefit showing as HVRMDB or HJRMDB (judiciary) is the new Hybrid Retirement employer contribution.

Other changes that Administrators will see (depending on role), include:

Daily VRS VNAV Elections Upload

Starting June 3, 2024, the daily VRS VNAV Elections Upload to Cardinal will establish Retirement and Hybrid Savings plan elections based on enrollment data. For transactions from myVRS Navigator (VNAV):

• Dated on/after 7/1/2024: the interface will no longer create an enrollment for the hybrid employer “blended” rate plan (7V).
• Dated before 7/1/2024 and received after 7/1/2024 (retroactive elections): the interface will create an enrollment for the hybrid employer “blended” rate plan (7V).
  • Cardinal PPS BN Team will monitor and key a “Terminate” row effective 7/1/2024 for these elections.
  • Agencies should follow SPO guidance on collecting retroactive contributions from payrolls processed after 7/1/2024.

Retirement Effective Dates in Cardinal beginning July 1, 2024

New Hybrid Retirement DC enrollments will be effective on the employee’s hire date or date of eligibility change, including:

• Hybrid Voluntary DC plans (4W)
• Hybrid Mandatory DC plan (7Z)

The following effective dates will remain unchanged:

• Retirement plan elections, including Group Term Life, Retiree Health Credit and VSDP, will continue to be effective the first of the month on/after the employee’s hire date or date of eligibility change (e.g., VALORS to VRS).
• Hybrid voluntary DC rate changes will continue to be effective the first day of the quarter (July, October, January, April).
• ORP elections will continue to be effective on the employee’s hire date.

Special Accumulators

For PY Administrators and PY Read Only roles, you will see the following changes on the Paycheck Earnings tab after 7/1/2024:

• Hybrid Retirement Defined Contribution (DC) Plan (HYBMDC and HYBVDC) contribution amounts will be based on the Optional Retirement Plan (ORP) special accumulator amount.
• Hybrid Defined Benefit (DB) Employer (ER) Match (Hybrid DB ER Match) special accumulator will no longer be populated for current, but the YTD amount will remain through calendar 2024.

Payroll GL Distribution

For payrolls with a pay period end date after 7/1/2024, the nontaxable benefit (employer) amount calculated for Hybrid Defined Benefit (DB) deductions HJRMDB and HVRMDB will be the amount that the agency is charged each pay period.

Additional information related to the VRS Billing Reconciliation in Cardinal will be shared by our team in early August 2024.

Agency Responsibilities

1. Check myVRS Navigator daily for transactions that failed to load from Cardinal HCM.

• Use the ER Centralized State Systems – Cancelled Records report in myVRS Navigator to identify records that were not loaded.
• Reference the VRS Employer Manual: Enroll and Maintain Employees and search on Cancelled Records Report.
• Reminder! When a Cardinal transaction cannot be loaded into myVRS Navigator, the agency must enter the change manually in myVRS, as indicated on the report.

2. Check Cardinal HCM daily for transactions that failed to load from myVRS Navigator.

• Use the VNAV Elections Upload Error (RHR149) report in Cardinal to identify retirement enrollment changes that were not loaded. This report can be run by From/To Date (i.e., 7/1/2024 – 7/5/2024).
• Navigation: Menu > Benefits > Reports > VNAV Elections Upload Err Rpt
• Important! When a PPS/buyback general deduction cannot be loaded, the report provides the general deduction code, effective date, end date, and deduction amount. Agency Payroll Administrators will use this information to key the general deduction into Cardinal HCM, as needed.

When corrections are needed for savings and retirement plan enrollments, create a Cardinal help desk ticket. This is especially important for ORP and Hybrid Retirement DC plans, since agencies are liable for missed earnings.

• Send an email to vccc@vita.virginia.gov and include "Cardinal - VRS Enrollment/Correction (select appropriate option) for Name (add name of employee)" in the subject line.
  • In the email, provide the employee's name and 11-digit Cardinal Employee ID (EMPLID).
  • Include a screenshot of the election in myVRS Navigator (Person Account tab), redact SSN and sensitive information.
  • Include your name, agency, email address, and a phone number where you can be reached.

Regards,

The Cardinal Team

Questions

If you have technical or functional questions, submit a help desk ticket by emailing vccc@vita.virginia.gov and include the following information:

Subject: Cardinal – <brief summary for routing>

Email Content:

• Detailed information about your issue (i.e., functional area, page, actions, error)
• Name, email address, and best contact phone number

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