VDC Program

Voluntary Defined Contribution Program (VDC)

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On March 16, 2012, Chapter 18 of the Laws of 2012 was signed into law, which amended portions of the Retirement and Social Security Law, Education Law, and the Administrative Code of the City of New York. Among other things, this legislation amended Article 8-B of the Education Law to authorize the participation in the SUNY ORP of all unrepresented (non-unionized) employees of the City of New York and other public employers hired on or after July 1, 2013, and earning at the full-time rate of $75,000 or more on an annualized basis.  This new retirement-benefit option is known as the Voluntary Defined Contribution (VDC) program.

Beginning October 1, 2020, the City of New York will be offering the VDC program to this newly eligible class of employees.The State University of New York (SUNY) is the plan sponsor of the VDC Program and TIAA is the third-party service provider. Vesting, investment providers, and plan rules follow the SUNY ORP Plan Document and policies.

VDC program Summary Program Description (SPD)


What are the eligibility requirements to participate in the VDC program? Read More


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

Required Contribution Amount

How much is an employee required to contribute to the VDC program? Read More


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 Contributions are not subject to federal income tax until withdrawn but are subject to state and local income taxes in the year in which they are made.

Employer Contribution

Does my employer make any contributions to my account? Read More


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. 

Vesting Period

How does an employee know if they are vested? Read More


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. 


When can an employee enroll in the VDC program? Read More


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

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

How does an employee enroll in the VDC program? Read More


The employee must complete a VDC Eligibility Verification & Acknowledgment Form 

How does an employee register for the VDC program through TIAA after they are approved by the OLR?  Read More


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."

Withdrawal Options

What are an employees options when they leave City service? Read More