Celebrate National Save for Retirement Week (October 16-22)
 National Save for Retirement Week was created to raise awareness of retirement savings and the ease of saving through employer-sponsored retirement plans, such as the Commonwealth of Virginia 457 Deferred Compensation Plan, 403(b) plan and other tax-deferred savings plans. Take advantage of this opportunity and schedule time for your local representative to come to your location. Representatives can:
- Help non-participating employees enroll in the Plan;
- Help participants understand the investments available including the enhanced Self-Directed Brokerage option
- Meet individually to review participant account information; and
- Conduct education meetings for employees.
The following topics are offered throughout the year and can be presented at your location.
- First Steps to Financial Security.
Provides employees getting started in their career an overview of how to use the Plans to develop a long-term strategy toward achieving financial security.
- Deferred Compensation and Cash Match Plans Overview.
Provides employees an overview of Plans and the investment options available.
- Managing Your Defined Contribution Plan Accounts.
Provides an overview of investment options and basic investment principles.
- Retirement Distribution Strategies.
Reviews distribution options and strategies for retirees and participants nearing retirement.
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Quick Enrollment Opportunities for “30-Something” employees
On September 22, ING mailed a promotional flyer to non-participating employees encouraging them to enroll in the Plan. The flyer promotes the benefits of the 457 and Cash Match Plans and provides information on how to enroll.
Who will receive the flyer?
Salaried state employees ages 39 and younger who do not work for institutions of higher education, whose agency reports through CIPPS and who do not currently contribute to the 457 Plan.
A second flyer will mail in early November to those who take no action after receiving the first mailing.
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Tools to Help Participants Save for Retirement
Member Benefit Profile (MBP)
The MBP is your employees’ annual benefit statement based on information reported to VRS as of June 30, 2011. Accessible through employees’ myVRS account, the MBP provides:
- Estimated retirement benefit amounts
- Earliest unreduced and reduced retirement eligibility dates
- An income analysis feature that shows estimated VRS retirement benefit and income from sources such as the 457 Plan and Social Security
- Tips to help employees enhance retirement income
Visit the Resource Center for VRS Employers to access:
- Plan publications and forms
- Employer publications and guidance
- Webinars and presentations
- Investment option information
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Available resources can help you encourage your employees to log in or register for myVRS to view their MBP.
myVRS Retirement Planner allows employees to estimate retirement income and do the following:
- Evaluate different VRS retirement scenarios using estimates from the myVRS Benefit Estimator
- Factor in DC Plans and other retirement plans account balances
- Project the impact of increasing retirement savings or changing investment strategy
- View an estimate of Social Security benefit if eligible on the retirement date entered
- Include health insurance premium estimates
- Include a spouse’s or other individual’s retirement income
- Itemize living expenses in retirement
Rate Escalator — available on DC Plans Web site
- Makes it easy for participants to increase 457 Plan contributions automatically on a quarterly, semi-annual, annual or a one-time basis.
- Go to www.varetire.org and select 457 Plan under the Defined Contribution Plans tab. Once logged in, select Manage Contributions under My Account.
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Required Minimum Distributions
Scheduled for December
Participants are required by law to begin withdrawing money from their retirement account(s) by April 1 of the year following the year in which they turn age 70½ or leave employment with an employer that offers the Plan, whichever is later.
Unless participants qualify for the April 1 grace period, this distribution, called a required minimum distribution (RMD), will occur no later than December 20, 2011. Participants in the Virginia Retirement System Investment Portfolio (VRSIP) or Self-Directed Brokerage Account (SDBA) must have enough in their core investments to cover the RMD amount and maintain the $2,500 required minimum. Participants should check their account balance online at www.varetire.org or by calling 1-VRS-DC-PLAN1 (1-877-327-5261).
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DC Plans Web Site Enhancement
Participants now have a convenient way to access historical information about their Plan account transactions. Through this feature, they can select a time period and review transaction activity, such as contributions or exchanges.
Go to www.varetire.org and select the Plan under the Defined Contribution Plans tab. After login, select My Account, then Transaction History.
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Have a suggestion?
Contact us with your suggestions for content for this newsletter or the Resource Center for VRS Employers.
 Take a brief survey to let us know the types on articles you would like to see in Employer View.
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Reminder for Optional Retirement Plan (ORP) Participants
Participants in Optional Retirement Plan for Political Appointees (ORPPA), Optional Retirement Plan for School Superintendents (ORPSS) or Optional Retirement Plan for Higher Education (ORPHE) will lose eligibility for other VRS benefits if they terminate and take a total distribution from their ORP accounts. VRS benefits include state retiree health insurance, group life insurance and the retiree health insurance credit. Plan 1 employees who terminate employment and take a total distribution and who later return to public employment will be covered under VRS Plan 2. Some retirement benefits are dependent upon starting periodic payments from the ORP immediately upon terminating employment.
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 Go Green!
DC Plan participants can elect to receive electronic versions of their DC Plan account(s) statements and other documents. Go to www.varetire.org and select a Plan under the Defined Contribution Plans tab. Once logged in, select My Profile, then Mail Delivery Preferences.
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Self-Directed Brokerage Account Offers More Options
The Self-Directed Brokerage Account (SDBA) available through the Plans now offers exchange-traded funds (ETFs) and individual stocks and bonds, in addition to the mutual funds offerings. Participants in the Plans can establish a brokerage account by completing the TD Ameritrade application and Release Form available in the Forms section of the Resource Center for VRS Employers. Forms are also available in the Forms of the DC Plans Web site.
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 Updated Plan Forms Available
Be sure to check the Resource Center for VRS Employers often for updated fact sheets, Plan publications and forms. Failure to use the most current form(s) and/or send to the correct address will delay processing the participant’s request.
Download current forms:
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Quick facts about the Plans’ record keeper
ING is responsible for record keeping administration and participant communications for the Commonwealth of Virginia Defined Contribution Plans. One of the top three retirement plan providers in the country, ING has been meeting the retirement needs of working Americans for over 40 years. A stable, strong company with top tier rankings in the industry, ING has more than $300 billion in combined assets under administration and management as of June 30, 2011. As the Plan Administrator, VRS partners with ING to help participants plan and invest for retirement.
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