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VRS Selects ING as Third-Party Administrator for Defined Contribution Plans
VRS selected ING Institutional Plan Services (ING) as the third-party administrator (TPA) for the Commonwealth of Virginia’s 457 Deferred Compensation Plan (457 Plan) and Cash Match Plan, effective January 1, 2009. The selection involved a comprehensive review and competitive bid process that began in 2007. ING also will be the TPA for the Optional Retirement Plan for School Superintendents, Optional Retirement Plan for Political Appointees and Virginia Supplemental Retirement Plan.
This change is no reflection on our current third-party administrator. We think the selection of ING will take services in these programs to new levels and produce significant savings for participants.”
- VRS Director Robert P. Schultze
ING is a global financial institution offering banking, insurance and asset management to private, corporate and institutional clients. The Retirement Services business is one of ING’s key strategic areas of focus.
Commenting on the selection, VRS Director Robert P. Schultze said “This change is no reflection on our current third-party administrator. We think the selection of ING will take services in these programs to new levels and produce significant savings for participants.”
VRS and ING will hold transition meetings for participants and employers during November and December to provide more information about the company and the transition. ING will transition current plan participants so they will not have to re-enroll with ING. Participants will have the same investment choices they now have.
The current third-party administrator, Great-West, will provide service through the end of the current contract that expires December 31, 2008.
Celebrate National Save for Retirement Week October 19-25
Since 2006, the United States Congress has established a week in October to raise awareness about the importance of personal savings in retirement. The National Save for Retirement Week campaign this year is October 19 through 25. VRS joins other organizations around the country in support of this national observance.
Visit these sites to find more information about National Save for Retirement Week and resources you can use to promote retirement saving:
- ICMA Retirement Corporation
- The National Association of Government Defined Contribution Administrators, Inc.
October is Open Enrollment for ORP for Higher Education
October is Open Enrollment month for participants in the Optional Retirement Plan (ORP) for Higher Education. From October 1 until October 31, 2008, ORP participants may change retirement plan providers.
The two plan providers available are Fidelity Investments and TIAA-CREF. Administrative and investment fees vary between the two providers. Participants should read the Open Enrollment Notice to Participants
17kb for more detailed information.
Participants can change their provider by completing the Provider Change Form
75kb and sending it to their Human Resources Office. The participant also must complete an enrollment form and beneficiary form. Changes will be effective for contributions sent to the new provider on or after January 1, 2009.
myVRS Offers New Online Reports for Employers
VRS recently added a Reports tool under Employer Options in myVRS for Employers. The first two reports you can access online are:
- Annual Member Benefit Profile (MBP) Detail report. This report displays information about your employees who receive annual MBPs. This is the report VRS mails to you annually in advance of the MBPs.
- Agency List of New Retirees. This report lists your employees who have been added to the monthly VRS retirement payroll. VRS currently sends this information to you in letter format each month.
You can download the reports in Excel, PDF or CSV (comma delimited) formats for use in a database software.
Help with Online Reports Is Just a Click Away
Use the “Explain This Page” link at the top of the page to get more information about how to use the reports tool. Use the “Explain This Report” link to get details about the report you are currently viewing.
VRS will continue to print and mail both reports to your agency. We will announce new reports as they become available.
Your Turn to Ask
Q: Does an employee who retires under the Advance Pension Option receive annual cost-of-living adjustments (COLAs)? If so, how are they applied? Do any cost-of-living adjustments to the retiree’s Social Security benefit reduce the amount the retiree gets from VRS?
A: The Advance Pension Option allows a member to temporarily increase his or her monthly VRS retirement benefit from the time of retirement to a selected age (at least age 62 but no later than the age the member is eligible for unreduced Social Security benefits). At the age selected by the member, the VRS benefit permanently reduces.
COLAs are figured on the amount the member would have received had the member selected the Basic Benefit option. Therefore, when the VRS benefit amount is adjusted at the age the member selects for the temporary increase to end, any COLAs earned are not affected.
Cost-of-living increases to the Social Security benefit have no affect on the amount of the VRS retirement benefit.
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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