In This Edition

1. 2009 Legislative Wrap Up
2. Meet Your Employer Representative Team
3. Avoid Delays: Counsel Employees to Apply Now for July Retirements
4. Defined Contribution Plans Update
5. Your Turn to Ask

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2009 Legislative Wrap Up

The 2009 session of the Virginia General Assembly adjourned on February 28. The following bills were passed by the General Assembly and will become effective July 1, 2009:

• HB 2065 requires regional jail boards and authorities (and localities participating in such boards and authorities) to provide enhanced benefits for hazardous duty employees to regional jail's superintendents and sworn officers.
• HB 2068, a VRS-requested change, removes the requirement that certain forms be notarized.
• HB 2128 modifies several provisions governing the benefits of members who are disabled or killed in action in the military, to comply with the federal Heroes Earnings Assistance and Relief Tax Act ("HEART Act"). This includes extending the period of time allowed for leave without pay while on active military duty, which extends eligibility for retirement benefits, accidental death and group life insurance benefits.
• SB 919 extends the July 1, 2010 sunset date to July 1, 2015 for provisions allowing retirees to be hired as teachers or administrative personnel without interruption of their retirement benefits.
• SB 994 allows the governing body of any public institution of higher education to designate its campus police chief as administrative faculty.

Several proposed budget amendments awaiting action by the governor also affect VRS benefits. One amendment allows counties, cities, towns and school boards to elect to pay employer contribution rates based upon alternate actuarial assumptions. VRS will establish fiscal standards for participation, including the use of the Commission on Local Government’s fiscal stress index as part of the eligibility criteria. VRS also must provide employers a summary of the implications of using the alternate assmptions and rates. Further, eligible local governing boards must certify to VRS by resolution their election to use alternate rates and that they understand the fiscal implications. VRS will provide localities more information about alternate rates in late April and early May.

Other amendments make the following changes to the Virginia Sickness and Disability Program (VSDP) for state employees:

• Changes the recurrent period for repeat short-term disability claims from 14 consecutive workdays while actively at work and fully released to work full-time and full duty to 45 consecutive workdays.
• Establishes a one-year waiting period for new employees or rehired employees for receipt of short-term disability benefits for non work related claims.
• Institutes a cap of 60 percent on the short-term disability income replacement rate until a new employee serves a five-year vesting period.

VRS will provide additional information as it becomes available.

Meet Your Employer Representative Team

(This is the third of a series of articles to appear on employer resource teams at VRS.)

Whether you want to add or change an employee benefit plan or have a VRS benefits-related question, the VRS employer representative team is ready to offer personal assistance.

“VRS-participating employers represent all types and sizes of public sector employers, including state agencies, school divisions and political subdivisions,” says Employer Representative Program Manager Susan Keith.

Each has unique concerns and information needs. “That’s why we have representatives who specialize in issues unique to each employer group.”

Your employer representative is available to meet with you personally, in the convenience of your own office. Employer representatives can assist you with questions about:

• Actuarial studies when adding or changing benefits
• Employer contribution rates
• Tax laws and legal requirements for VRS benefit plans
• Legislative changes

In addition to one-on-one contact, employer representatives host employer roundtables where employers network, share information and participate in new VRS initiatives.

Meet the Employer Representative Team

 

Avoid Delays: Counsel Employees to Apply Now for July Retirements

July is the busiest month for retirement applications, so remind your employees to get their retirement applications in as soon as possible if they expect to retire this summer. Employees should send applications to VRS at least 90 days, but not more than six months prior to the intended retirement date.

Help your employees get their benefits on time by checking applications before sending them to VRS. Check all forms for completeness, signatures, notarizations and additional documents required. Because forms change frequently, always download the latest version from the VRS Web site. A complete and accurate application makes the retirement experience a smooth one.

Need a quick counseling tool?

Use the Service Retirement Checklist 57kb on the Employer Resources page of the VRS Web site. Designed for use when counseling VRS members about the retirement process, the checklist includes important information to discuss and tasks to complete before, during and after the retirement counseling session.

More information is always available

Encourage your employees to access the VRS Web site at www.varetire.org where they’ll find a wealth of information. From the member tab, select Planning for Retirement to see what is available to help your employees.

Using myVRS, the secure member area of the site, employees can create future retirement benefit estimates using live data from their files. They can simulate various retirement options and use the myVRS Retirement Planner to see what their finances will look like in the first year of retirement.

Defined Contribution Plans Update

Frequently Asked Questions Posted to Web Site

Participants in the 457 Plan can get answers to Frequently Asked Questions about their plan at www.varetire.org under the Defined Contribution Plans tab. From the site, participants can monitor their accounts, review fund information, transfer funds, download statements, print forms and find out about regional educational meetings 40kb.

April 30 is Last Day to Access Great-West Web Site

Plan participants and employers have until April 30 to download or print any stored statements from Great-West Retirement Services’ Web site at www.vadcp.com. After April 30, the site will no longer be available. However, participants who have questions regarding historical account information or 1099-Rs, or need a form should call Great-West at 1-800-701-8255.

Note: ING, the defined contribution plans record keeper, is sending a post card reminder to participants this month of the deadline for accessing the Great-West site.