Virginia Defined Contribution Plans

How are the employer match contributions made on my behalf invested?
The investment options for the Cash Match Plan are the same investment options available to you under the 457 Deferred Compensation Plan. You have a choice of a broad and diverse array of investment options.

The Plan offers a variety of investment options across different asset classes so you can build an investment strategy that is right for you. You may be eligible to participate in the Self-Directed Brokerage Account option for an additional fee. Only publicly-traded mutual funds are offered through the brokerage option.

VRS is responsible for selecting and monitoring the core investments offered in your VRS Defined Contribution Plans. The investment options are organized into four distinct tiers, representing different overall investment approaches. Depending upon your own preferences, you can mix and match investment options within each tier to help you meet your investment return objectives within your individual risk tolerance and overall investing style.

Tier I: Pre-Mixed Asset Allocation Funds
Tier II: Passively Managed Funds
Tier III: Actively Managed Funds
Tier IV: Self-Directed Brokerage Account Option

Remember that by investing in different Tiers, you are not automatically diversifying your investment portfolio. Please refer to the Fund Profile Sheets to ensure you are getting the diversification you desire by reviewing the top holdings of each fund.

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Tier I: Pre-Mixed Asset Allocation Funds

The VRS Defined Contribution Plans offer three distinct passively managed asset allocation funds in this Tier, each representing a different potential risk versus return profile designed to track their respective market indices. Investment professionals maintain a pre-mixed weighting of specific asset classes (for example, U.S. bonds, U.S. stocks and foreign stocks) to create an asset allocation fund in each investment option. These professionals monitor performance on an ongoing basis and make adjustments as needed to maintain the pre-mixed weightings of these specific asset classes. These asset allocation funds may be most appropriate for those investors who may want to simplify the asset allocation process.

Tier II: Passively Managed Funds

Investors seeking to track the total return performance of the various market indices may want to consider choosing from among the investment options in this tier.

Tier III: Actively Managed Funds:

Investors seeking to exceed the total return performance of the various market indices may want to consider choosing from among the investment options in this tier.

Tier IV: Self-Directed Brokerage Account Option

For an additional fee the Self-Directed Brokerage Account (SDBA) option allows you to select from thousands of publicly traded mutual funds in addition to your VRS Plans’ core investment options. The SDBA option is for knowledgeable and experienced investors who acknowledge and understand the risks and costs associated with the funds available through this option.

To learn more about each of these funds, read the fact sheets on the Plan Web site at www.varetire.org. From the Defined Contribution Plans tab, select Commonwealth of Virginia Deferred Compensation Plan (457 Plan) and then Fund Information.

Your contributions buy into the investment options along with other participants who choose the same investments. You also will receive an Investment Options Performance (IOP) Report with your account statement each quarter to help you keep up to date on the performance of the investment options in your Plan. A monthly IOP is posted each month on the Plan’s Web site. You also can get your account statement by logging into your account at www.varetire.org. Select the Defined Contribution Plans tab and then Account LogIn. You will need your Password to log into your account.

In order to choose the investments that make sense for you, you can review mutual fund prospectuses, fund fact sheets and disclosure documents on the Web site, or call the Plan Information Line toll-free 1-VRS-DC-PLAN1 (1-877-327-5261). You should consider the investment objectives, risk, fees and expenses carefully before investing. For information about the Self-Directed Brokerage, contact TD Ameritrade at 1-866-766-4015. Read the fund information carefully before investing. You also may attend a Deferred Compensation Regional Education Meeting 59kb.

For more information about the Plan’s investment options, go to www.varetire.org and select Commonwealth of Virginia Deferred Compensation Plan or Cash Match Plan 401(a) under the Defined Contribution Plans tab or call the Plan Information Line toll-free at 1-VRS-DC-PLAN1 (1-877-327-5261).

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How do I keep track of my account?

ING, the record keeper, will mail you a combined quarterly account statement showing your account balance and activity for your 457 and Cash Match Plans. You may select to receive your statements online. You also can check your account balance online by logging into your account at www.varetire.org. Select Account Log-in from the Defined Contribution Plans drop-down menu. You will need your password to access your account information. Or, you can call the Plan Information Line at toll-free 1-VRS-DC-PLAN1 (1-877-327-5261).

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What happens if I don’t give directions as to how my money is to be invested?

If you do not specify how you want your money invested, contributions will be placed in the Plan's default investment option until you select your investments. The default option may not be the choice you would want, so you should make sure that you specify your own investment options. The default investment option for your Plan is the Balanced Growth Fund.

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Can I split my employer contributions among the different Investment Options?

Yes. You may allocate your employer contributions in any whole percentages among the available investment options.

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How can I transfer or reallocate amounts from one investment option to another?

Use your password and Social Security number to access your account under the Defined Contribution Plans tab the Plan Web site at www.varetire.org or call the toll-free Plan Information Line at 1-VRS-DC-PLAN1 (1-877-327-5261).

You can:

Move all or a portion of our existing balances between investment options (subject to Plan rules)
Change how your future contributions are invested.
To make a change, access the Plan Web site at www.varetire.org and select Account Log In from the Defined Contribution Plans tab. Using your password and the user name you selected, log into your account. You also can make a change by calling the toll-free Plan Information Line at 1-VRS-DC-PLAN1 (1-877-327-5261).

As you manage your retirement account, please remember that the investment options in your Plan are intended for long-term investment. Nevertheless, you should regularly review your account to be sure you are on the path to achieving your financial goals and make changes as necessary. Keep in mind that most funds have implemented trading restrictions in an effort to stop market timing and/or excessive trading.

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What is market timing and excessive trading?

In general, the Securities and Exchange Commission's rules define "market timing" activity to be the frequent buying and selling of fund shares in order to take advantage of the fact that there may be a lag between a change in the value of a fund's respective securities and the reflection of that change in the fund's share price.

"Excessive trading" is generally defined as purchase and sale transactions by a participant that occur with such frequency and/or such size as to materially affect the fund's ability to meet its investment objective, in the judgment of the fund.

If a fund determines that your trading activity constitutes market timing or excessive trading (according to that fund's definition of market timing or excessive trading), the fund will restrict your ability to trade in its fund. Such restrictions may include, but are not limited to:

limiting you to one trade per certain number of days (e.g. one trade per 30 days, 60 days or 90 days, as determined by each fund company)
requiring that your trades be mailed to ING through U.S. mail or
closing the fund to new contributions and transfers in.

All decisions regarding whether you are market timing or excessively trading are made by the funds. ING acts only at the direction of the funds available in your 457 Plan and your Plan Administrator. As a participant in the 457 Plan and Cash Match Plan, it is your responsibility to review the prospectus and/or other disclosure documents for any investment option in which you invest and to understand and adhere to the trading policy and related restrictions set by the fund in its prospectus, as amended from time to time.

Please refer to the Web site at www.varetire.org for more information on market timing and excessive trading.

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How can I learn more about managing my Plan account?

In addition to receiving the Fund Fact Sheets for the investment options you are considering, you may attend a “Managing Your Defined Contribution Plan Accounts” Workshop. These workshops are held around the state as part of the Deferred Compensation Regional Education Meeting 59kb.

Your employer also may schedule this session for your location. Additionally, you may contact the ING Virginia service center to schedule an account review with the registered representative that serves your area. Registered representatives do not give investment advice.

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