In This Edition
- Board of Trustees Certifies Contribution Rates
- Vendor Selected for Voluntary Group Long-Term Care Program
- Modernization Information Added to Your VRS Homepage
- Employees are Going to myVRS for Their MBPs
- New DC Plan Account Security Measures Start in November
- Remind ORPPA Participants of Their Resources
- K-12 Critical Shortage Reports Due Now
- FAQ of the Month
Board of Trustees Certifies Contribution Rates
At its October 15 meeting, the VRS Board of Trustees voted to certify to the Governor and the General Assembly money committees the contribution rates for state employees, teachers, the State Police Officers’ Retirement System (SPORS), the Virginia Law Officers’ Retirement System (VaLORS) and the Judicial Retirement System (JRS) for fiscal years 2011 and 2012. The Board also voted to certify contribution rates for Other Post-Employment Benefits (OPEBs). The Board will review local government rates in November.
In December, the Governor will unveil his 2011-2012 biennium budget, which will contain his recommendation regarding the funding of the contribution rates. VRS will not know the final contribution rates for these plans until the 2010 General Assembly session concludes.
| Plan | Rate* |
|---|---|
| State | 8.46% |
| Teacher | 12.91% |
| SPORS | 25.56% |
| VaLORS | 15.93% |
| JRS | 46.79% |
| *Note: These rates do not include the 5 percent member contribution. | |
| Benefit | Rate |
|---|---|
| Group Life Insurance | 1.11% |
| Virginia Sickness and Disability Program (VSDP) | 0.75% |
| Health Insurance Credit (Teachers) | 1.08% |
| Health Insurance Credit (State Employees) | 1.06% |
Vendor Selected for Voluntary Group Long-Term Care Program
VRS has selected Genworth Life Insurance Company to replace Aetna Life Insurance Company as the provider for the Commonwealth of Virginia Voluntary Group Long-Term Care Insurance Program, effective March 1, 2010. Genworth Life Insurance Company is a Genworth Financial Company and is based in Richmond. Aetna is no longer in the group long-term care market.
As a result of legislation in 2008, VRS assumed administration of the program from the Department of Human Resource Management (DHRM). VRS conducted research and a competitive procurement process before selecting Genworth Life as the new provider.
In the coming weeks, Genworth Life will provide transition details to current participants. In the spring, other eligible participants also will receive information about how they may apply for long-term care coverage with Genworth Life. Genworth Life has developed a Web site where human resource officers may obtain information about the transition. Go to the Genworth Long-Term Care transition site for employers.
Modernization Information Added to Your VRS Homepage
With the enhancement of the Employer homepage of the VRS Web site, you now have access to the latest updates on the VRS Modernization Program. If you missed the “Introduction to Modernization” webinar in October or want to review the information again, select the link to the PDF or other information from the webinar from the Modernization tab. Go to Employer homepage. A recorded version will be added later this month. And stay tuned to your homepage for future updates.
Employees are Going to myVRS for Their MBPs
Have you been encouraging your employees to access their Member Benefit Profiles (MBPs) through myVRS? If so, it’s working.
In August, there were 4,914 visits to the MBP download page. Following the posting of the 2009 MBPs, the MBP download page recorded 6,689 visits for the month of September. The MBP is your employees’ annual benefit statement based on information you report to VRS through June 30 each year. The MBP shows their earliest retirement eligibility dates and estimated benefits, member contribution account balance and other benefit information.
This year, more than 180 employers opted to direct their employees to myVRS for their MBPs instead of distributing hard copies. These employers represented 133,720 active members, which compares to 209,834 active members who received hard copies. Here are more highlights:
- myVRS recorded 20,034 individual user logins in September, compared to 12,945 in August, a difference of almost 55 percent. Total logins, which count all visits from all usernames, were 37,400 in September, compared to 26,942 in August.
- As of the end of October, 31 percent of all VRS members eligible to register for myVRS have created online accounts.
myVRS e-learning and communications targeting members are available to help you spread the word. Go to Communication Tools. And, congratulations on your success in marketing the online MBP to your employees.
New DC Plan Account Security Measures Start in November
Effective November 23, participants in the Commonwealth of Virginia 457 Deferred Compensation and Cash Match Plans, the Optional Retirement Plan for Political Appointees, the Optional Retirement Plan for School Superintendents and the Virginia Supplemental Retirement Plan will be prompted to create a new password to access their accounts. This requirement is in response to enhanced security measures:
- The new password must be between eight and 20 characters and consist of numbers, lower-case letters and upper-case letters. Special characters, such as &, %, $ and *, are not allowed.
- A new lock-out feature will protect accounts not accessed within 12 months of the last login. Participants who do not log into their plan accounts at least once every 12 months will need to call toll free 1-VRS-DC-PLAN1 (1-877-327-5261) to answer security questions and receive a new password.
The current issue of Focus, the defined contribution plans’ participant newsletter, provides information about the coming password changes. These changes apply only to defined contribution plan accounts for which ING is the record-keeper. Employees use a different password for their myVRS online accounts. No password is needed to access general information on the VRS Web site.
Remind ORPPA Participants of Their Resources
If you have employees in the Optional Retirement Plan for Political Appointees (ORPPA), remind them that they have access to a number of resources on the VRS Web site. Employees can create a secure online ORPPA account to manage their plan. Publications include the ORPPA Plan Highlights and Plan Document, the participant newsletter Focus and the Planning and Investment Guide. ORPPA participants also can attend the DCP Regional Education Meetings and Webinars to learn about the investments available to them. For more information, go to ORP Political Appointees. Also, don’t forget to sign up for the Defined Contribution Plans Employer Webinar-ORP for Political Appointees, scheduled for November 6 from 10-11 a.m.
K-12 Critical Shortage Reports Due Now
November 1 was the deadline to report information on employees working full time in K-12 critical shortage teaching and administrative positions for the 2009-2010 school year. If you have not done so, complete and submit a Certification of Eligibility for Critical Shortage Teachers and Administrators (VRS-160) 
34kb to VRS for each individual as soon as possible. If you are not currently employing critical shortage personnel, complete and submit a Certification of Non-Participation of Critical Shortage Teachers and Administrators (VRS-160A) 23kb.
The Virginia Department of Education defines the criteria for K-12 critical shortage positions. VRS is required to certify critical shortage teachers and administrators annually. To be considered for a critical shortage position, VRS retirees must:
- Be licensed by the Virginia Board of Education for the position they will hold.
- Have a bona fide break in service of at least 12 consecutive months between their retirement date and the date they are hired in a critical shortage position. This break in service means not working in any full-time, part-time or temporary position, including a summer school or substitute teaching position, with any VRS-participating employer.
- Not have retired under your school’s Early Retirement Incentive Program (ERIP), if applicable, unless the retiree is receiving an unreduced VRS benefit.
- Not have taken a refund of retirement contributions and interest in their member contribution accounts or deferred their retirement.
For more information, go to Return to Work.
FAQ of the Month
Q: Can I create online tools or develop forms specific to my agency or locality to assist my employees with their VRS benefits?
A: VRS advises you not to create your own tools or forms for VRS benefits. VRS benefits are governed by the Internal Revenue Code and Title 51.1 of the Code of Virginia. VRS has developed administrative processes, such as benefit enrollment, and associated forms in collaboration with third-party administrators to ensure compliance with federal requirements and state statute. Employees who use tools or forms you create may be required to re-apply in order to comply with federal and state law.
For assistance in counseling your employees about their VRS benefits, go to Checklists and Job Aids. If you have a question or suggestion about a VRS benefit process or form, please contact your Employer Representative. In addition, over the next four years, VRS will be implementing new online benefit simulation and enrollment tools for your employees through the VRS Modernization Program. For more information, select the Modernization tab from the Employer homepage.
Have a question?
E-mail the editor. If your question has broad appeal, it could be featured in a future edition of Employer Update.
Important note: Do not send a question regarding an individual employee or the employee’s confidential or personal information, such as a Social Security number, to the editor. For assistance with a specific case, call VRS toll free at 1-888-VARETIR (1-888-827-3847) to speak with an Employer Advisor (select menu option 3) or contact your Employer Representative.
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