In This Edition
Deputy Sheriffs Now Covered Under Hazardous Duty Benefits
Deputy sheriffs covered under VRS became eligible for hazardous duty benefits, beginning July 1, 2008. This is the result of Senate Bill 1166, passed during the 2007 session of the General Assembly. Deputy sheriffs are eligible for an unreduced retirement benefit at age 50 with at least 25 years of service credit or age 60 with at least five years of service credit. Deputy sheriffs who have at least 20 years of hazardous duty service at retirement are eligible for a supplement to their retirement benefit. Currently the supplement is $959 per month, paid until full Social Security retirement age.
On July 1, approximately 2,500 deputy sheriffs, working in 39 localities across the state, became newly eligible for enhanced benefits for hazardous duty employees.
Higher Multiplier for Hazardous Duty Employees
In addition, Senate Bill 1166:
- increased the service multiplier from 1.7 percent to 1.85 percent for state police officers and sheriffs, effective July 1, 2007.
- gave political subdivisions the option to elect the higher multiplier for hazardous duty employees, including full-time, salaried sworn law enforcement officers, firefighters, emergency medical technicians and officers of regional jails or authorities, effective July 1, 2008.
Sixty-four political subdivisions have elected the 1.85 percent multiplier for their hazardous duty employees. VRS updates each member record to reflect the benefit change, based on files provided by the locality.
myVRS for Retirees: Registrations Top 2,000
More than 2,000 retirees have set up secure online accounts in the retiree version of myVRS since its launch in June. They are logging into their accounts to:
Eighty percent of VRS retirees surveyed last year told us they wanted secure online access. We expect the Internet to take on even greater importance as a method for communicating with retirees in the future.”
— Director Robert P. Schultze
- See their monthly benefit payment amount.
- See the date the benefit payment is deposited into their account.
- See their benefit payment history.
- Review health insurance premium deductions, if applicable.
- Review income tax deductions.
- Check their current life insurance amount.
- Update their addresses.
“We’re pleased with this positive early response of retirees to myVRS” says VRS Director Robert P. Schultze. “Eighty percent of VRS retirees surveyed last year told us they wanted secure online access. We expect the Internet to take on even greater importance as a method for communicating with retirees in the future.”
VRS announced the new service in a special edition of Retiree News 
353kb.
457 Plan Makes Tax-Deferred Savings Automatic
Newly hired state employees will see the advantage of early tax-deferred savings on their future retirement income. From January through June about 4,600 new state employees were subject to automatic enrollment in the Commonwealth of Virginia 457 Deferred Compensation Plan (457 Plan) or the comparable 403(b) plans available to higher education employees. Of those employees who had been through both 90-day enrollment windows, only 8.5 percent opted out and chose not to defer payroll deductions to these supplemental retirement plans.
“To our surprise, about 38 percent chose to self-enroll prior to being defaulted into a plan. These early numbers bode well for the success of the automatic enrollment program,” says VRS Director Robert P. Schultze.
Help Employees Maximize Their Benefits
- If an employee gives you a paper 457-Cash Match Plan Enrollment Form 250kb, promptly mail it to the Great-West local service center at the address on the form. This ensures the employee’s deferrals go to the investment of choice, rather than the default investment provided under automatic enrollment. Employees also may enroll online at www.vadcp.com or by calling the voice response system toll free at 1-866-226-6682.
- Encourage employees to complete the plan’s Beneficiary Designation Form 119kb. Or, they may designate their beneficiary online at www.vadcp.com.
- Encourage employees to attend a Regional Enrollment and Education Meeting.
- Schedule informational meetings at your location. Great-West Retirement Services, the plan record keeper, will deliver informational meetings at your location for your new employees and others seeking information about the 457 Plan. Call 1-804-643-1882 to schedule a meeting. Great-West generally requires a 60-day lead time due to high demand.
Important: Do not use the Payroll Authorization Form to enroll an employee in the 457 Plan. An employee who wants to enroll prior to automatic enrollment must use the 457-Cash Match Plan Enrollment Form 250kb, enroll online or by phone. After the first deferral, the employee uses the Payroll Authorization Form 32kb to change the deferral amount. Employees can also change deferral amounts by going online or calling the voice response system.
It’s Not Too Late to Catch-Up
Eligible employees who have not contributed to the 457 Plan or who have contributed less than the annual amount permitted, can catch up, using the provision known as the Standard Catch-Up.
Remind employees using the Standard Catch-Up:
- They can use the Standard Catch-Up in one or more of the three years immediately preceding the year they reach the age they elect as their normal retirement age.
- Employees must complete three forms to use the Standard Catch-Up: Normal Retirement Age Election Form, Standard Catch-Up Credit Worksheet and Payroll Authorization Form. View All 82kb.
- They may not use the Standard Catch-Up in the year in which they reach the normal retirement age they elected.
- They are not required to retire at the normal retirement age they elect. They may continue to work and contribute to the 457 Plan at the regular annual limit that applies.
- They may use the Standard Catch-Up in the year they actually retire, if they retire in one of the three calendar years immediately preceding the normal retirement age they elected.
- They may not use the Standard Catch-Up and the Age 50 Catch-Up in the same calendar year.
More information about the Standard Catch-Up, worksheet and forms, visit the 457 Plan Web site at www.vadcp.com. Select Plan Information and then 457 Plan Forms.
Your Turn to Ask
Q: Assume an employee transfers from an employer that provides an unreduced retirement benefit at age 55 with 30 years of service to an employer that provides unreduced retirement at age 50 with 30 years of service. Could that employee immediately be eligible for a partial lump-sum distribution (PLOP) if he or she already meets the age and service requirements of the second employer at the time of transfer?
A: Eligibility for PLOP is based on the date you first become eligible for an unreduced retirement benefit. Even if the employee in the example above was age 51 with 31 years of service credit at the time of transfer, the employee would not immediately be eligible for a one-year PLOP. He or she must work at least one year past the date of eligibility. If the date of employment with the second employer was July 1, 2008, for example, the employee would be eligible for a one-year PLOP on July 1, 2009, at age 52 with 32 years of service credit.
The same applies for deputy sheriffs, who received enhanced coverage, effective July 1, 2008. On July 1, 2008, they became eligible for an unreduced retirement at age 50 with 25 years of service credit. A deputy sheriff who was age 51 with 26 years of service credit on July 1, 2008 is not immediately eligible for a one-year PLOP. The deputy sheriff must work at least one year past the date he or she first became eligible for an unreduced retirement benefit (July 1, 2008) in order to qualify for the PLOP. In this example, the deputy sheriff will be eligible for a one-year PLOP on July 1, 2009, at age 52 with 27 years of service credit.
Q: If a retiree returns to full-time employment in a VRS-covered position, does the benefit calculation for the employee’s subsequent retirement include all prior cost-of-living adjustments (COLAs)?
A: No. When a retiree returns to full-time VRS-covered employment, retirement benefits cease. Upon retiring again, the benefit is re-calculated based on salary and total service credit at the time of the second retirement. COLAs received during the individual’s prior period of retirement have no bearing on subsequent retirement benefits. COLAs go into effect the second calendar year after retirement and are effective on July 1 each year thereafter.
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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