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| APRIL 2010 | |||||
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Cash Match Plan: Funding continues for the employer cash match paid to salaried state employees who contribute to the Commonwealth’s 457 Deferred Compensation Plan (457 Plan) or to a 403(b) plan sponsored by their employer. However, for Fiscal Year 2011 (July 1, 2010 through June 30, 2011) the cash match for state employees will be 50% of their contribution to the 457 Plan or 403(b) plan, not to exceed $10 per pay date. This change will be effective with the July 1 pay date. It will not impact employees who are automatically enrolled; they will continue to receive a $10 match on their $20 automatic contribution.
More detail on the 2010 legislative changes will be available after the General Assembly’s reconvened session, scheduled for April 14, at which time amendments to legislation passed in the regular session will be considered. Additional information will be provided in this newsletter and in the VRS Employer Update. If you do not subscribe to either of these publications, you can do so to receive updates on the Plans and the changes that affect them.
| top of page | Coming Soon:
Additional Online
VRS continuously looks for ways to improve the security of participants' defined contribution (DC) plan accounts. Participants who previously used the numeric password they established for the Interactive Voice Response (IVR) system will no longer be able to use that same numeric password to access their account online. Beginning in the second quarter of 2010, participants who previously established a numeric password through the Interactive Voice Response (IVR) system will need to change their password when accessing their DC plan account on the Plan Web site. The Web password must be eight to 20 characters long and includes at least: Participants who have already established a Web password that meets these standards will not be required to change their password. Once participants have created their new Web password, they can use the numeric equivalent of that password to access their account through the IVR. Participants should press the number that corresponds to the letter on their phone’s keypad. For example, press 2 for B; press 7 for R. Additionally, beginning in the second quarter of 2010, participants will be prompted to establish five security questions to provide alternative access to their accounts, should they forget their password. Participants who have already established three questions will only need to provide answers to two additional questions.
| top of page | Understanding 457 Plan Rules Related to
| top of page | Leaving Employment Pointers Are Available Online
The Resource Center for VRS Employers is a primary resource for employer information related to the Plans. A Leaving Employer Pointers guide has been added to the “Employer Publications and Guides” section. Pointers provides a quick, concise reference for employers who are working with employees who are terminating employment, retiring or have been laid off. For more detail on this topic your can also access the Leaving Employment employer webinar located on the Welcome page of the Resource Center or contact your dedicated registered representative.
| top of page | Meet Your VRS VRS maintains a Defined Contributions Plans Administration department with four employees dedicated to the six defined contribution plans administered or authorized by VRS. These plans are the 457 Deferred Compensation Plan, the Virginia Cash Match Plan, the Optional Retirement Plan for Higher Education, the Optional Retirement Plan for Political Appointees, the Optional Retirement Plan for School Superintendents and the Virginia Supplemental Retirement Plan. The DC Plans Team consists of the following employees: June Dennis, Defined Contribution Plans Administrator, manages the department with primary responsibility for plan design, legislative implementation, compliance, policies, procedures and communication. Steve Cerreto, Defined Contribution Plans Officer, has primary compliance responsibility for the 457 Plan automatic contribution program and the Optional Retirement Plan for Higher Education, as well as performance of the ORPHE recordkeepers. Steve also approves ORPHE distributions. Bridgette Watkins, Defined Contribution Plan Office, is responsible for Mistake of Fact processing to correct errors related to individual accounts, review of 457 Plan Standard Catch-Up applications, Required Minimum Distributions, plan forms and customer inquiries. Donald Cleary, Plans and Policy Analyst, monitors the performance of ING, the record keeper for the Plans, collects and monitors the employer 457 and Cash Match Plans contribution reports and works with excess 457 Plan contributions. | top of page | 457 Plan Automatic Enrollment Benefits State Employees Since January 2008 when automatic enrollment in the Commonwealth’s 457 Deferred Compensation Plan became effective over 6,700 new and rehired salaried state employees have been enrolled in the Plan. An additional 2,500 employees self enrolled rather than waiting the 90 days to be automatically enrolled. Approximately 6% of employees eligible to be automatically enrolled opted out of Plan participation. Learn more about this important benefit in the April edition of Focus, the participant newsletter. >> Register now for the upcoming session on Friday, April 2 at 9:30 am If you can’t make the webinar, you can access the presentation and previous webinars at www.varetire.org; select the “Resource Center for VRS Employers” under the Defined Contribution Plans tab.
| top of page | DC Regional Education Meetings Held Throughout the Commonwealth
ING registered representatives conduct educational seminars at locations throughout the Commonwealth to help educate employers and employees on Plan features and the benefits of saving for retirement with the DC Plans. In 2010, the following DC Regional Education Meetings are being held:
Getting Started is a new presentation designed for employees who are just starting in their career and those who want an overview of long-term planning for financial security and strategies such as budgeting and debt management. For an up-to-date schedule of the seminars being offered, go to www.varetire.org and select “Resource Center for VRS Employers” under the Defined Contribution Plans tab, then “Regional Education Meeting Schedule.” Or, contact your registered representative to hold an on-site meeting for your employees. Your may select specific topics to be delivered at your site or offer them all.
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Registered Representatives:
VRS Customer Contact Center:
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The change has no impact on non-state agencies that participate in the Virginia Cash Match Plan; those employers will continue with the level of match set by their governing body.
