Celebrate National Save for Retirement Week!
October 17-23, 2010

Once again, the United States House of Representatives passed a resolution to establish a National Save for Retirement Week (October 17-23). Celebrating and promoting National Save for Retirement Week is a great opportunity to promote the importance of saving for retirement with the Commonwealth’s 457 and Cash Match Plans.

Take advantage of the resources available through the Plans, including local registered representatives who can visit your location and host an on-site education meeting for employees. Registered representatives help non-participating employees enroll in the Plan(s) and review account information to help current participants reach their retirement goals. You can also encourage your employees to access myVRS to estimate retirement expenses and see their retirement savings progress.

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Educate your Employees and Promote Their Retirement Security

Local registered representatives make it easy for you to keep your employees up-to-date by bringing the education to you.

Deferred Compensation Regional Education Meetings (DC-REMs) are held throughout the Commonwealth from March through October. Employers can also schedule these sessions to be presented at their location.

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.”

Following is a brief description of the DC Regional Education Meetings offered in 2010:

• Getting Started: 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.
• Managing Your Defined Contribution Plan Accounts: an overview of the Plans’ investment options and basic investment principals; appropriate for all employees.
• Retirement Distribution Strategies: reviews distribution options; appropriate for retirees and participants nearing retirement.

Webinars. Web-based versions of DC-REM sessions are also available. Webinars enable employees to attend a presentation at their desk or at home. Employees can register for a webinar online.

One-on-one meetings. Contact your registered representative to schedule an on-site visit. Participants and employees will have the opportunity to meet with representatives and ask questions about their account, or get help enrolling. Employees can also speak with a representative by phone through the toll-free Plan Information Line.

Make your job easier and contact your registered representative today!

“Janice was very knowledgeable and friendly. She presented the information in a way that employees that were not interested in it before were interested after hearing her presentation.” ~Donna Shough, Patrick County

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 Parker, Western Virginia Representative janice.parker@us.ing.com  •  1-877-327-5261, Option 2, Ext. 14

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Attend an Upcoming Employer Webinar

Register for the upcoming webinar for employers: 457(b) Uniformed Services Leave Make-Up 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.

>> Friday, October 22 at 9:30 a.m.

If you missed any of the previous webinars or are unable to make this webinar, you can access the presentations online at the Resource Center for Employers.

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Employees Must Use the Correct Method to Change Their 457 Plan Contribution Amount

When a participant changes regular contributions to the 457 Plan or is using
the contribution enhancement benefits available, you must follow the correct process to ensure changes are implemented. Employees of state CIPPS agencies must make changes to regular contributions online at www.varetire.org by selecting the appropriate Plan under the Defined Contribution Plans tab or by phone at 1-VRS-DC-PLAN1 (1-877-327-5261). Paper forms will not be accepted. By law, the change requested can be reflected in the participant’s pay no earlier than the first available pay date in the month following the month in which the change was requested. This may not be the first pay date in the month, depending upon the date the request was made.

Decentralized state colleges and universities and non-state agencies that have adopted the 457 Plan should regularly communicate to employees the preferred method of making 457 Plan contribution changes. If your agency requires contribution changes to be made online or by phone, you should not accept paper payroll authorization forms, except in those cases where a paper form is required. If your agency requires the use of paper payroll authorization forms, they must be sent to ING. Should a question arise about an employee’s contribution and ING is unable to document the participant’s direction, the participant could be subject to a refund of contributions, which is a taxable event.

It is imperative that you review your feedback report each pay date to ensure all requested changes are made in a timely manner. This report is the only notification you will receive of deferral change requests, cancellations and new enrollments. All participants have the ability to make deferral changes online or over the phone with the exception of the following Agencies: UVA, UVA Medical, VCU and GMU.

Political sub-divisions, school divisions, Special Authorities and Method 2 State Agencies (CWM, VA Tech, VMI, JMU and ODU) should check the feedback report based on the previously provided schedules. To obtain a new schedule or additional information needed to access your feedback report, please e-mail ING at VRS_ProcessingDept@us.ing.com.

There are three situations in which all 457 Plan participants would use a paper form to indicate their contribution amount. This process is the same regardless of the type of agency offering the Plan.

1. One-Time Deferrals: Employees who will receive a bonus or other special compensation on which taxes are paid, or are leaving employment and have unused sick and/or annual leave or other types of compensation paid to them at termination, may contribute those amounts to their 457 Plan account. To do so, the employee must complete the Payroll Authorization One-Time Deferral Form and provide it to the agency’s payroll office while they are employed and no later than the month prior to the month the amount would otherwise be paid to the employee. The payroll office will process the form and send it to ING, the Plan record keeper, as documentation of the contribution requested by the employee. A one-time deferral does not mean the employee can do it only one time; rather, it is for one pay date the employee is contributing an amount different from the regular contributions. The one-time deferral counts toward the participant’s annual contribution limit.
   
   
2. 457 Plan Standard Catch-Up: Employees eligible to make accelerated contributions to their 457 Plan account in the three years prior to reaching their designated Normal Retirement Age should use the Payroll Authorization Standard Catch-Up Form. The payroll authorization form, along with the Standard Catch-Up Credit Worksheet and Normal Retirement Age Election Form, should be mailed to VRS with copies given to the agency payroll office.
   
   
3. Agency Transfers: If a participating employee transfers from one agency to another, they must provide their new employer the Payroll Authorization-Agency Transfer Form to begin contributions at their new place of employment. The new payroll department should set up the participant’s deferral, sign and date the Agency Transfer Form and forward the form to ING as documentation of the agency transfer request. Please note this form may not be used to change the participant’s existing contribution amount and should only be used to continue at the participant’s current deferral rate when transferring from one agency to another.

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State Employees Can Defer Their 2010 Bonus

The Payroll Authorization One-Time Deferral Form must be completed and submitted to the Payroll Office no later than November 12, 2010 to defer their bonus. Employees must indicate the dollar amount they wish to contribute to the Plan or “Net” if they want the total after applicable withholding contributed. (Employees not currently enrolled in the 457 Plan must enroll by November 1, 2010.) The contribution of the bonus counts toward the participant’s annual contribution limit. For additional details read the Department of Accounts Payroll Bulletin Volume 2010-17. Additionally, DHRM (memo dated June 15, 2010) and VRS (Member News Fall 2010) issued guidance related to tax deferral of the bonus payment through contribution to the 457 Deferred Compensation Plan.

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Fund Focus: VRSIP Allows only Quarterly Changes

Managed by a team of investment professionals within the VRS Investment Department, the Virginia Retirement System Investment Portfolio (VRSIP) is a diversified portfolio of investments representing numerous asset classes. VRSIP is different from a conventional fund in that it only allows incoming contributions and outgoing transfers on a quarterly basis. (A conventional fund is valued daily and shares can be bought and sold daily.) Participants may only invest in and make transfers on a quarterly basis because some of the portfolio’s underlying asset classes, such as real estate and private equity, are not easily liquidated and are valued quarterly.

Contributions and transfers into the VRSIP made before the end of a quarter go into the Interim Account VRSIP (IAVRSIP) and are invested in the Long-Term Growth Fund before being deposited into the VRSIP. The Long-Term Growth Fund is an Asset Allocation fund.

Outgoing transfers from the VRSIP requested prior to the end of a quarter are held until the eighth business day of the following quarter. Because of the lag in the valuation process, the outgoing transfer into another investment occurs around the 11th to 14th calendar day of the quarter.

Investments in the VRSIP are NOT guaranteed by the Virginia Retirement System, the underlying investment managers, the Commonwealth of Virginia, the Federal Deposit Insurance Corporation or any agency of the U.S. Government. The VRSIP is subject to investment risks, including loss of principal.

VRSIP may be appropriate for investors who want to simplify the asset allocation process by investing in a single fund consisting of a diversified portfolio, have a long-term investment time frame and are willing to accept the risks associated with the daily volatility of the investment markets. To learn more about VRSIP, access the fund fact sheet available on the Resource Center for Employers.

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DC Plans Web Site Enhancement

Encourage your employees to check out the improvements made to the home page of the Plans’ Web site (the screen that appears after a participant logs in from the login page). To log in, go to www.varetire.org, select the appropriate Plan under the Defined Contribution Plans tab and then Account Log-In.

Contact Us

Participant Statements to Mail Participants’ quarterly statements will be mailed with the most current Investment Option Performance Report and Focus participant newsletter during the week of October 25.

Have a Question or Suggestion? You can contact your registered representative by phone or e-mail. We look forward to hearing from you!

Registered Representatives:
1-VRS-DC-PLAN1 (1-877-327-5261), weekdays 8:30 am – 5:00 pm

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 Parker, Western Virginia Representative
janice.parker@us.ing.com
1-877-327-5261, Option 2, Ext. 14

VRS Customer Contact Center:
1-888-VARETIR (1-888-827-3847), weekdays 8:30 am – 5:00 pm