Virginia Defined Contribution Plans

Automatic enrollment applies to salaried state employees hired or rehired on or after January 1, 2008. Employees receive a notice that they will be automatically enrolled approximately 90 days after the date of the notice unless they:

Already have a 457 Plan account
Enroll in the Plan
Begin contributing to a 403(b) Plan or
Opt out of the Plan

At about the same time as the notice, employees will receive a Personal Identification Number (PIN) from the ING, the 457 Plan record keeper. Using their PIN numbers, employees may go online and self enroll, change the amount being contributed or opt out of the Plan. When initially logging in, employees will be asked to set a user name and customize their PIN.

Employees who opt out of the Plan within 90 days of the first contribution may take a distribution of the amount contributed. This refund is taxable and the employee will receive a 1099-R to use in filing taxes. If a refund is taken, the employer cash match is forfeited.

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How do I enroll in the Plan?

You can enroll two ways:

Online: Go to www.varetire.org and select Commonwealth of Virginia Deferred Compensation Plan under the Defined Contribution Plans tab. You will need your PIN to enroll online.
By phone: 1-VRS-DC-PLAN1 (1-877-327-5261), option 1.

You also may complete paper Enrollment and Beneficiary Designation Forms if you are unable to enroll online or by phone.

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Can I transfer or roll over my account from my former employer’s plan into the 457 Plan?

Yes. But only approved balances from other governmental 457(b) plans may be transferred into the 457 Plan. Distributions from other types of Plans including 401(a), 401(k), 403(b), 457, IRA and the Federal Thrift Saving Plan may be rolled into the Cash Match Plan.

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Can I contribute special compensation to the Plan?

Participants terminating employment or retiring may contribute their unused vacation, sick leave, compensatory leave, bonus and recognition leave payout to the 457 Plan. These types of contributions require that you complete a paper Payroll Authorization Form — One-Time Deferral Form and give it to your employer while you are still employed and no later than the month prior the month in which the payment would otherwise be made to you. Bonuses and compensation adjustments may be contributed to the Plan in the same way. An employer also may make a non-elective contribution to an employee’s account.

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What are the expenses associated with the Plan?

An annual recordkeeping and communication services fee of 19 basis points (0.19%), capped at a combined account balance of $130,000 will be deducted from your account on a quarterly basis (00.0475% per quarter). In addition, each investment option has investment management fees that vary by investment option. You can find your Plans’ core investment options’ fees and performance on the Plan Web site at www.varetire.org under the Defined Contribution Plans tab, by calling the Plan Information Line or within the Investment Option Performance report included with your quarterly statement. For more information on fees associated with the Self-Directed Brokerage Account option, refer to the Fact Sheet or call the Plan Information Line.

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How do I keep track of my account?

ING will mail you a combined quarterly account statement showing your account balance and activity for your 457 and Cash Match Plans. You also can check your account balance online by logging into your account at www.varetire.org and selecting Account Log-in from the Defined Contribution Plans drop-down menu. You will need your PIN number to access your account information. Or, you can call the Plan Information Line toll-free 1-VRS-DC-PLAN 1 (1-877-327-5261).

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Will I continue to receive a paper statement from ING or do I have to access my account online for statement information?

You will continue to receive a paper statement after the close of each quarter. Statements also are available online.

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What is the effective date of enrollment into the 457 plan?

In general, enrollments can be effective no earlier than the first of the month following the month in which the enrollment form is received by the Plan. The effective date (meaning the date the first deferral comes out of your pay) may or may not be the actual first day of the month, depending on how the pay dates fall and whether the form was received in time to be processed for the first pay date of the following month.

The exception is for new hires who submit the enrollment form on or before their first day of employment. In this case, 457 Plan regulations allow a deferral from the first pay date, given adequate payroll processing time.

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How do I reactivate an existing 457 Plan account?

If you had a 457 Plan account from a previous period of employment and took a full withdrawal when you left employment, you must reenroll in Plan. If you left money in your Plan account, you may restart your contributions online or by phone, using the Personal Identification Number (PIN) sent to you by ING, the Plan record keeper.

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