In This Edition

1. New myVRS Features Available
2. VRS Board Approves Eligibility Criteria for Alternate Employer Contribution Rates
3. VRS Offers Webinars for Members
4. VSDP: 2009 Appropriations Act Creates New Waiting Period and Vesting Requirement for State Employees
5. 457 Plan Updates
6. Your Turn to Ask

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New myVRS Features Available

Have you checked out myVRS for Employers lately? Three new employer reports were added.

• Contact Change Summary Report
  This report displays all changes made for authorized contacts in the selected employer code during the period entered by the user. 
  Explain this report in detail.
  
  
• Members Eligible for Unreduced Retirement Report
  This report displays a list of members reported as of June 30 of the past fiscal year who may be eligible for unreduced retirement benefits as of July 1 of the year entered by the user. The report includes only those who received VRS Member Benefit Profiles (MBPs) for the fiscal year.
  Explain this report in detail.
  
  
• Members with VRS Service Report
  This report displays a list of members last reported by the selected employer code who have VRS service.
  Explain this report in detail.

How do I access the reports?

1. Log-In to myVRS for Employers.
2. Click the Employer Options tab.
3. Click the Choose Employer link from the left navigation.
4. Enter a five-Digit Employer Code and click the Look Up button.
5. Click the Reports link from the left navigation.

New Functionality for Members

Members who participate in the optional life program can now visit their member account to see their optional life insurance benefit amount. After logging in to myVRS, members simply click on Life Insurance in the left navigation bar to view their optional life insurance amount.

VRS Board Approves Eligibility Criteria for Alternate Employer Contribution Rates

The VRS Board of Trustees recently approved eligibility criteria for counties, cities, towns and school divisions to elect alternate employer contribution rates. The 2009 Appropriations Act allows eligible employers to elect to pay alternate employer contribution rates in fiscal year 2010 that would be lower than the rates certified by the VRS Board of Trustees. The Act requires employers to meet certain fiscal standards for participation established by the VRS Board of Trustees. VRS used the plan’s funded status and the Commission on Local Government’s index of local fiscal stress as part of the criteria for participation.

VRS sent a letter to employers providing additional information about the program and notifying them of their eligibility to elect the alternate contribution rates. Eligible employers also received with the letter a draft resolution for certifying to VRS their election to use the alternate contribution rates.

Prior to making this election, employers will want to consider carefully the implications, including the effect on the plan’s future funded status, additional disclosure requirements and the long-term cost of benefits. VRS is hosting webinars to discuss these implications on the following dates:

• Register for Thursday, May 7, 2 - 3 p.m.
• Register for Tuesday, May 12, 2 - 3 p.m.

VRS Offers Webinars for Members

Beginning in May, VRS is offering a convenient and inexpensive way for your employees to learn about their VRS benefits through webinars. The first webinar, Overview of VRS Benefits, covers:

• VRS benefits
• Purchase of Prior Service
• VRS Web site
• myVRS and myVRS Planner
• Terminating Employment
• Deferred Retirement

Encourage your employees to attend a webinar to learn more about their benefits as VRS members. The webinars are particularly appropriate for members within their first two years of employment; however, all members can benefit from attending.

Beginning in June, VRS will offer member webinars on a bi-weekly basis to include other topics, such as:  Getting Ready for Retirement, Hazardous Duty and Partial Lump-Sum Option Payments (PLOP).

View the Member Webinar Schedule

VSDP: 2009 Appropriations Act Creates New Waiting Period and Vesting Requirement for State Employees

The 2009 Appropriations Act makes changes to the Virginia Sickness and Disability Program (VSDP) for state employees, effective July 1, 2009:

One continuous year of employment

All new and re-hired state employees must complete one continuous year of employment before being eligible for non work-related VSDP benefits. This requirement applies to eligibility for all types of non-work-related disabilities. There are no changes for work-related disabilities. New and re-hired state employees continue to receive sick and family and personal leave in their first year of employment.

Five-year vesting

All new and re-hired state employees must be employed for at least five continuous years before becoming eligible for 100 percent or 80 percent income replacement during periods of VSDP short-term disability. Until the five-year vesting period is satisfied, income replacement is capped at 60 percent of pre-disability income, including catastrophic conditions.

Forty-five-day waiting period

An employee who returns to work full time, full duty during short-term disability and again becomes disabled due to the same condition within 45 consecutive calendar days is considered to have a continuation or recurrence of the prior disability. This is a change from the previous limit of 14 consecutive calendar days (28 consecutive calendar days for catastrophic conditions). The employee does not have to satisfy another seven-calendar-day waiting period and the time worked does not count towards the maximum 125 workdays of short-term disability.

Editor's Note: The 45 days must be calendar days and not workdays, as incorrectly stated in the April 2009 issue of Employer Update.

VRS is updating the Virginia Sickness and Disability Program Handbook for Participants to reflect these changes to the program. The new handbook will be printed this summer and available on the VRS Web site under Publications.

457 Plan Updates

Employer Webinars to Cover 457 Plan Enrollment and Processing

VRS and ING are hosting employer webinars in May and June. The webinars will include an overview of the employer Web site, enrollment procedures, payroll processing and account access. Separate webinars are scheduled for the following groups:

• CIPPS and Decentralized State Agencies
  • Register for Tuesday, May 19, 9 - 10 a.m.
  • Register for Tuesday, June 2, 2 - 3 p.m.
• Political Subdivisions and School Divisions
  • Register for Tuesday, May 19, 11 a.m. - Noon
• UVA, UVA Medical, VCU and GMU
  • Register for Wednesday, June 10, 9 - 10 a.m.

State Auto Enrollment Timeline

Employees normally see their first automatic contribution come out of their pay approximately 90 days after they are entered into their employer’s payroll system. However, the transition to ING, the new record keeper for the VRS defined contribution plans, necessitated a delay in the usual processing of auto enrollments. For state agencies that auto enroll in the 457 Plan, the first automatic contributions are scheduled on the following dates:

457 DCP First Automatic Contributions

Hire Date	First Contribution
October, November and December 2008	May 1, 2009
January 2009	July 1, 2009
February and March 2009	July 31, 2009

Employees hired in April 2009 will return to the normal schedule with the first contribution occurring on the September 1 pay date.

Salaried state employees hired or rehired on or after January 1, 2008 are enrolled automatically in the 457 Plan unless they already have a 457 account, self enroll, actively contribute to a 403(b) account or opt out of 457 Plan participation.

Use of Passwords to Self Enroll or Opt Out

ING sends passwords to all eligible new employees. Employees who want to start contributions to the 457 Plan before automatic contributions begin can use their passwords to self enroll by going to the plan’s Web site at www.varetire.org and selecting the Commonwealth of Virginia 457 Deferred Compensation Plan under the Defined Contribution Plans tab. They also can enroll by using the Participant Enrollment 273kb form on the site.

Employees can use their passwords to opt out of the 457 Plan from the plan’s Web site. Employees who opt out before the first scheduled contribution will have no contribution made to the plan. Employees who opt out within 90 days of the first contribution may take a refund. Refunds are taxable and reported on a 1099-R the following January. The employee forfeits the employer cash match when taking a refund.

Participants Make Changes the Easy Way by Going Online

Most 457 Plan participants find it easy to make changes by going online to increase, decrease or suspend the amount they contribute to the 457 Plan. From www.varetire.org, they select Account Log-In under the Defined Contribution Plans tab and log into their accounts using their PIN numbers. Once logged in, they can select the plan 457 Deferred Compensation. Changes are effective with the first available pay date of the following month. Participants also can make changes by calling the Plan Information Line toll-free 1-VRS-DC-PLAN 1 (1-877-327-5261).

Can’t find your PIN?

• Go to www.varetire.org, select Account Log-In under the Defined Contribution Plans tab, and select Forgot Your PIN? under the User Log-in box. You will be asked for your user name or Social Security number and date of birth.
• Call the Plan Information Line at 1-VRS-DC-PLAN1 (1-877-327-5261), Option 1, to speak with a Customer Service Associate, weekdays 8 a.m. to 8 p.m. Eastern Time. You will need your Social Security number and be
  asked questions to confirm your identity.

A reminder of your PIN will be mailed to your address of record within three business days of making the request online or by phone.