Visit the Virginia Retirement Sytem website Employer Update: A publication for VRS Employers
December 2008 A Publication for VRS Employers

VRS and VDOE Announce New Reporting Procedures for Critical Shortage Program for School Divisions

teacherVRS and the Virginia Department of Education (VDOE) recently developed new reporting procedures for the Critical Shortage Program for School Divisions, K-12. This program allows Virginia school divisions to hire qualified VRS retirees in certain full-time positions without interrupting the individual’s monthly retirement benefit. The intent of the program is to alleviate some of the challenges school divisions experience in staffing hard-to-fill positions.

The new reporting procedures require school divisions hiring VRS retirees as teachers or administrators in qualified critical shortage areas to submit the following forms:

The October 31, 2008 Division Superintendents Memorandum explains the new reporting procedures in more detail. VDOE defines critical shortage teaching areas based on the definitions provided in the Code of Virginia and the number of qualified applicants for a position. A list of critical shortage areas is posted on the VDOE Web site at www.doe.virginia.gov.

To learn more about critical shortage and the new procedures, view the e-learning presentation flash icon 1.28mb on the VRS Web site or contact:

Gwyn Ciemniecki
Toll-free: 1-888-827-3847, ext. 7765
gciemniecki@varetire.org

Carolyn Newton
Toll-free 1-888-827-3847, ext. 3196
cnewton@varetire.org

Participant Meetings: What to Expect During Defined Contribution Plans Transition

ING, the new Defined Contribution Plans record keeper, will hold meetings throughout the state in December for participants to learn more about the transition from Great-West Retirement Services to ING.

If you would like to schedule a participant transition meeting, contact Colleen Beaumont at 1-866-776-3468 or e-mail Colleen.Beaumont@us.ing.com or Brete Garland at Brete.Garland@us.ing.com. Employees are not required to pre-register for these meetings.

ING takes over as record keeper for the Commonwealth of Virginia 457 Deferred Compensation Plan, Cash Match Plan, Optional Retirement Plan for School Superintendents and Virginia Supplemental Retirement Plan on January 1, 2009. The contract with the current record keeper, Great-West Retirement Services, expires December 31, 2008.

Participants will not have to re-enroll in the plans. Investment options remain the same. Account balances will transfer automatically to ING from Great-West Retirement Services.

Transition Web Sites Now Available

Get transition information, including key dates, meeting schedules and communications timeline at the new Employer Transition Web Site on the VRS Web site at www.varetire.org. A Participant Transition Web Site also is available from the under the new Defined Contribution Plans tab.

At the end of December, ING will mail participants a Personal Identification Number (PIN). Beginning in January, participants will use this six-digit PIN to log into their online accounts for the first time. Participants will access their personal accounts by going to www.varetire.org and clicking on the Defined Contribution Plans tab to locate the personal account log-in area.

Note the Dates

  • December 1, 2008
    Beginning December 1, 2008, call 1-877-327-5261 (1-VRS-DC-PLAN1) to speak with a participant services representative.

  • December 10, 2008
    Participants wishing to change deferral amounts to be effective January 2009 must submit a paper Payroll Authorization Form pdf 39kb to the Great-West Local Service Center in Richmond by December 10, 2008. If making the change online at www.vadcp.com or by phone, the change must be made by 4 p.m. December 18, 2008 to be effective in January 2009. The maximum IRS deferral amounts increased in January, so participants may want to change their deferral amount to reflect this increase.

  • December 18, 2008 – January 5, 2009
    To transition plan accounts from Great-West to ING, participants may not make changes to their accounts from 4 p.m. December 18, 2008 until 9 a.m. January 5, 2009. During this time, participants may view their accounts online at www.vadcp.com or talk to a service representative. All accounts remain fully invested.

  • January 5, 2009
    Participants can resume account transactions at 9 a.m. January 5, 2008 by accessing the new Defined Contribution Plans site on www.varetire.org or by calling the Plan Information Line at 1-877-327-5261 (1-VRS-DC-PLAN1).

 

VRS Announces Change in Reporting WTA Group Life Insurance Benefits

VRS has announced changes in reporting group life insurance benefits for employees involuntarily separated and electing the cash severance benefit under the Workforce Transition Act (WTA). The Department of Human Resource Management Policy 1.30-Layoff defines leave status for these employees as Leave Without Pay-Layoff (Involuntary Separation) during the 12 months that health and life insurance benefits continue.

Agencies should report group life insurance benefits for employees on Leave Without Pay–Layoff status through the Commonwealth Integrated Payroll/ Personnel System (CIPPS). This is a change to the Department of Accounts (DOA) Payroll Bulletin dated April 23 that instructed employers to submit an Error Adjustment Report (VRS-1501) and inter-agency transfer (IAT) directly to VRS.

If your agency has already submitted a VRS-1501 and IAT to report group life insurance for a WTA employee, do not report the employee through CIPPS for any pay period already reported to avoid an overpayment on your agency’s group life insurance account. More information and additional instructions on reporting group life insurance through CIPPS will be forthcoming in the DOA Payroll Bulletin.

Employers should continue to complete the Employer Certification of Basic Group Life Insurance Coverage (VRS-11A) pdf icon 27kb and send the form to VRS.

If you have questions regarding this change in reporting, please contact the VRS Customer Contact Center toll-free at 1-888-827-3847 and ask to speak with an Employer Reporting staff member.

VRS Improves Disability Retirement Process

teacherIt can be challenging for members applying for disability retirement to collect pertinent documentation and information on their condition. To facilitate this, VRS recently updated the disability retirement process to include changes to several forms and filing requirements.

  • Physician’s Report (VRS-6B) pdf icon 51kb: The VRS-6B, completed by the physician, is now required of all disability retirement applicants. The form was revised to include specific documentation based upon the applicant’s disabling condition. This will make it easier for the applicant to communicate with his or her physician and eliminate some of the follow-up requests from VRS.
  • Employer Information for Disability Application (VRS-6D) pdf icon 23kb: Employers must submit the VRS-6D for all disability applicants, whether or not the applicant is still working. This form provides VRS’ Medical Board an increased understanding of the impact of the applicant’s condition on his or her ability to perform job requirements.
  • Application for Disability Retirement (VRS-6) pdf icon 48kb: The VRS-6 application form was revised to reflect the requirement that the VRS-6D be submitted for all disability applicants.

These disability retirement forms also are required to accompany the disability retirement application:

When possible, submit all disability retirement forms to VRS in one package at the same time.

It’s important to counsel employees considering disability retirement to ensure they understand their benefits and the application process, including providing a copy of the Applying for Disability Retirement Booklet pdf icon 254kb. This publication includes all instructions and up-to-date forms.

Learn more about VRS Disability Retirement.

Important: Participants in the Virginia Sickness and Disability Program (VSDP) are not eligible for disability retirement. Instead, they are covered for short-term disability, long-term disability and long-term care under the provisions of VSDP program.

myVRS: Not Just for Members Anymore

myVRS logoSince its debut in August, more than 9,100 VRS retirees have created online accounts. They’re accessing their secure online myVRS for retirees accounts to:

  • See their monthly retirement benefit payment amount and the date it was deposited into their accounts.
  • Check their current income tax deductions.
  • Find out about annual cost-of-living adjustments.
  • Review health insurance premium deductions and health insurance credit amount.
  • Update their addresses.
  • Review federal and state tax information, including 1099Rs.

VRS mails an authentication code to retirees after processing the retirement application. Authentication codes are good for 90 days. Retirees can register for the retiree version of myVRS once they receive their first monthly benefit in retirement and their authentication code. Retirees register by going to the VRS Web site, selecting the myVRS logo and following the registration instructions.

Tell your employees about myVRS for retirees. It’s a great way to find out about their benefits and keep up with VRS news and benefit changes after they retire.

View myVRS for Retirees e-learning presentation.

Read Retiree News - Fall 2008 *Special Edition* (353kb).

myVRS for Retirees: Registered Users

Number of VRS retirees with secure online accounts in myVRS for Retirees.

Forms Must Display Official Seal When Notarized

Article Revised 12/01/2008 - 5:19 p.m.

All VRS forms requiring notarization must display a sharp, legible, permanent and photographically reproducible image of the notary's official seal. The seal needs to contain, at a minimum, the phrase "Commonwealth of Virginia," the phrase "Notary Public," and the notary's name as it appears on the certificate. All notarizations also must include the notary's registration number. These requirements comply with Virginia law, effective July 1, 2008. VRS will return forms not properly notarized.

The best method of displaying the notary's seal is to use one of the newer rubber stamps or mechanical self-inking stamps instead of a press seal, which does not reproduce as well. Many VRS forms no longer require notarizations, but the following forms do require notarizations:

When notarizing VRS forms, take care not to obscure dates, signatures or other parts of the document.

Read more about notaries.

Your Turn to Ask

Q: When an employee terminates VRS-covered employment, but defers retirement, does the life insurance benefit continue?


A: If the employee meets age and service requirements to retire at the time of termination, basic group life insurance continues at no cost while in deferred membership status. The life insurance amount begins to reduce by 25 percent annually, starting January 1 after the first full year following the date the employee leaves covered employment. It continues to reduce each January 1 until the coverage reaches 25 percent of its value at the time the employee stopped working in a VRS-covered position.

If the employee does not meet age and service requirements to retire, group life insurance coverage ends upon termination. The employee may elect to convert to an individual whole-life policy at non-group rates. The terminating employee must convert the policy within 31 days of the last day of the month of termination.

Read more about basic group life insurance.

Ask your question

To submit a question, send an e-mail to the editor. Only questions of a general nature are published. If your question is an individual case or involves sharing any personal information, such as Social Security number, do not use e-mail. Instead, call the VRS Customer Contact Center at 1-888-VARETIR (827-3847) or contact your Employer Representative.

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