Employer Cash Match Contribution Amount Reinstated July 1
 Reminder
The maximum Plan contribution amount for 2011 is $16,500 for participants younger than age 50 and $22,000 for those ages 50 and older. Participants within three years of normal retirement age may be eligible for the Standard Catch-up, which allows them to contribute up to $33,000, depending upon the amount of catch-up credit they have available.
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Effective with the July 1, 2011 pay date, the employer cash match amount
will return to 50% of state salaried employees’ contributions to the 457 Plan
or 403(b) Plan, not to exceed $20 per pay date. State employees who
participate in both Plans receive one cash match.
This change did not affect:
- School divisions and political subdivisions that participate in the Virginia Cash Match Plan since their match is set by their governing body.
- Employees who are automatically enrolled in the 457 Plan and receive a $10 match on their $20 automatic contribution. These employees must increase their 457 Plan contribution to at least $40 per pay date in order to receive the maximum available cash match.
If you have any questions, please contact your Virginia registered representative or email your questions.
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Plan 1 State Employees Begin Member Contribution Payments July 1
State employees in the VRS Plan 1 defined benefit program will begin paying the 5 percent member contribution effective with the July 15 pay date. The contribution will be deducted on a pre-tax salary reduction basis. This law excludes Plan 1 elected officials (General Assembly members), judges, Plan 1 Optional Retirement Plan (ORP) participants and local government positions reimbursed by the Compensation Board. Plan 2 members of both VRS and the Optional Retirement Plans began paying the 5 percent member contribution in 2010.
The 5 percent member contribution required under the defined benefit plan does not affect the maximum contribution limits for participants in the Commonwealth of Virginia 457 Deferred Compensation Plan.
Under the new budget provision, Plan 1 state employees who begin paying the 5 percent member contribution will also receive a 5 percent salary increase effective on the July 15 pay date.
For more details and a review of VRS Plan 1 and Plan 2, go to www.varetire.org and select the Employers tab.
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Felony Conviction May Result in Loss of Employer Provided Defined Contribution Plan Benefits
Legislation passed by the 2011 Virginia General Assembly allows employers to direct the forfeiture of all VRS administered or authorized benefits if the employee is convicted of a felony related to his employment. The new law applies to these defined contribution plans: all Optional Retirement Plans (ORPs), including those operated by certain universities, the Virginia Cash Match Plan and the cash match plans administered by colleges and universities, the Virginia Supplemental Retirement Plan, as well as any employer discretionary contributions to the 457 Deferred Compensation Plan. The legislation applies to crimes committed on or after July 1, 2011. Should this situation arise in your agency, contact VRS.
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Self-Directed Brokerage Choices Expand
Effective Monday, August 15, 2011, the Self- Directed Brokerage Account (SDBA) available through the VRS Defined Contribution Plans will offer exchange traded funds (ETFs) and individual stocks and bonds. As a result of this change, SDBA participants will receive a new account number to conduct future transactions.
To ensure SDBA investments are transferred properly, SDBA participants will not be able to place trades in their account beginning Thursday, August 11 at 4:00 p.m. ET through Sunday, August 14. They may resume trading in their new account on Monday, August 15. During this time, SDBA participants may not transfer money between their core investment options and SDBA. SDBA participants should print a current account statement from www.tdameritraderetirement.com for their records, as transaction history and statements for the current account will not be automatically accessible through the new account; SDBA participants must contact the TD Ameritrade Participant Services Team at (866) 766-4015 to request access to this information through the new account.
Since the types of investments are expanding, SDBA participants will be required to sign a new release form. A copy of the release form, along with a letter detailing the changes to the SDBA, will be sent to SDBA participants on July 8. SDBA participants must return the release form to ING, the Plans’ record keeper, by August 8 in order to make new purchases through the brokerage window.
On August 15, TD Ameritrade will send SDBA participants a Welcome Kit that includes their new account number. A new Personal Identification Number (PIN) for the SDBA will also be mailed under separate cover. SDBA participants will need this information to access their new account online or by phone. SDBA participants who need access to their account prior to receiving their new account number and PIN, may call the TD Ameritrade Participant Services Team.
If you have questions or would like a copy of the SDBA participant communication, please contact your Virginia registered representative.
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2011 MBP Coming Soon
In August, VRS will post the 2011 Member Benefit Profile (MBP) online to all myVRS member accounts. The MBP provides an annual benefits statement for each member. One of the most valuable MBP features is the income analysis feature, which helps members gauge their progress in preparing for a financially secure retirement. This income analysis feature allows individuals to measure the gap between estimated retirement income and a target percent of pre-retirement income.
Members with an income gap may consider joining the 457 Plan or if enrolled, increasing their contribution amount. Plan ahead now and schedule time for your Virginia registered representative to come to your work site to assist your employees with questions about the 457 Plan.
Members can view their MBP through the secure online myVRS system. To log in or create an online account, the member can go the VRS Web site at www.varetire.org and select myVRS Access.
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How to Contact Your Virginia Registered Representatives
Contact your local registered representative to schedule an on-site employee meeting. Registered representatives are available by calling the local office toll-free at 1-VRS-DC-PLAN1 (1-877-327-5261), Monday – Friday, 8:30 a.m. to 5 p.m. or by email. Or, if you’re in the Richmond area, stop by the local office at 919 East Main Street, Suite 1604.
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Kelly Hiers, Plan Manager
Richmond/Central Virginia Representative
kelly.hiers@us.ing.com
1-877-327-5261, Option 2, Ext. 13
David Detamore
Central/Northern Virginia Representative
david.detamore@us.ing.com
1-877-327-5261, Option 2, Ext. 11 |
Mackenzie Moss
Tidewater Representative
mackenzie.moss@us.ing.com
1-877-327-5261, Option 2, Ext. 12
Janice Parke
Western Virginia Representative
janice.parker@us.ing.com
1-877-327-5261, Option 2, Ext. 14 |
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Employee Regional Education Meetings and Webinars
As a reminder, ING representatives conduct regional education meetings for participants throughout the state from March through October. To view the meeting schedule go to www.varetire.org and select the Defined Contribution Plans tab, then Resource Center for VRS Employers and Regional Education Meeting Schedule. For employees who cannot attend a meeting, webinars or online seminars are also available. Employees can register for a webinar at www.varetire.org under the Defined Contribution Plans tab, select your plan, then Participant Education on the left navigation area. All of these sessions can also be presented at your agency. Contact your registered representative to schedule.
Upcoming
Employer Webinar
Attend the upcoming employer webinar “457(b) Uniformed Services Leave Make-Up” on August 26 at 10 am or September 29 at 1:30 pm for an overview of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) and how it impacts 457 and Cash Match Plan participants who are returning from military leave.
You can also access previously recorded webinars on the Resource Center for Employers. |
Following is a brief description of the DC-REMs offered in 2011:
- First Steps to Financial Security: an overview of long-term planning for financial security and strategies; appropriate for employees eligible for Deferred Compensation and Cash Match Plans.
- Deferred Compensation and Cash Match Plans Overview: a basic overview of the Plans and the investment options available; appropriate for employees eligible for Deferred Compensation and Cash Match Plans.
- Understanding your Plan Investments: reviews basic investment principles, provides an overview of the options available within the Plans and an explanation of investment performance and account statements. Appropriate for all employees.
- Retirement Distribution Strategies: reviews distribution options; appropriate for retirees and participants nearing retirement.
Web-based versions (webinars) of DC-REM sessions also are available. Webinars allow employees to attend a presentation at their desk or at home. Employees can register for a webinar online at www.varetire.org. Choose the appropriate Plan under the Defined Contribution Plans tab, then Participant Education to view and register for upcoming webinars.
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Short Online Enrollment Presentation available for employees
Encourage your employees to save time and save for retirement! Employees unable to attend a DC Plans Regional Education Meeting (DC-REM) or an educational meeting you have scheduled on site can now access a short, online presentation on how to enroll in the 457 Plan. Go to www.varetire.org and select the 457 Plan under the Defined Contribution Plans tab, then Participant Education to view the presentation.
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DC Plan Web Site Tips You Can Share
The Defined Contribution Plans Web site at www.varetire.org offers participants a convenient way to access information and manage their account. Here are some tips to share with your employees to help them master the basics and avoid delays:
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Entering data in required fields
In cases where participants are asked to enter their Social Security Number—usually at login—type in the SSN without hyphens or dashes. Use a forward slash (/) for date of birth.
Before a new password arrives in the mail
If a participant requests a new password be mailed, he/she should wait for it to arrive in the mail before attempting to log in to an account. Otherwise, the account will become locked.
Answering security questions
The security questions and answers participants create verify their identity and establish future password reset capabilities. Since the answers are case sensitive, participants should use a combination of uppercase and lowercase letters. |
Logging in from a new computer
After a participant establishes security questions, he or she can register their computer(s) to log into their account. Participants can register more than one computer; by registering a computer, participants will not be prompted with security questions every time at login.
Getting locked out
When logging into an account, participants should be careful to enter answers to the security questions correctly. If they make an error or answer incorrectly three times, they will be locked out of their account online and on the Interactive Voice Response (IVR) system. This security feature is intended to prevent someone else from attempting to access an account. To have an account unlocked, participants must call 1-VRS-DC-PLAN 1 (1-877-327-5261) and speak with a Customer Service Associate who will unlock and reset the account after verifying the account holder. This also will reset all security questions.
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