In This Edition

1. Online MBPs Available Soon
2. Introducing VRS University
3. Updates to myVRS Reflect Legislative Changes
4. Counseling Employees on Refunds
5. Workforce Transition Act Update
6. Fall Voluntary Long Term Care Open Enrollment Begins October 18
7. Creditable Compensation Webinar Recording Available
8. VRS to Release Modernization Systems Requirements
9. New Faculty Members Have 60 Days to Choose Retirement Plan
10. DC Plans Seminar: Managing Your Defined Contribution Plan Accounts
11. Your Turn to Ask: What happens when a member returns to a covered position from a disability retirement?

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Online MBPs Available Soon

The 2010 Member Benefit Profiles (MBPs) will be available mid-August through myVRS. The MBP is your employees’ annual benefit statement based on information you reported to VRS as of June 30, 2010. VRS will send you an e-mail notice when the MBPs are available in myVRS. The notice will include a short message you can use to notify employees that their MBP is available and it will explain some of the information included on the MBP.

Read more about how to access MBPs and a new “income analysis” feature for employees eligible to participate in the Commonwealth of Virginia 457 Deferred Compensation Plan.

Introducing VRS University

VRS University promotes learning through online courses you can access anytime, anywhere. It will offer a variety of courses for employers available through the Knowledge Center, a web-based platform designed to present learning and knowledge sharing opportunities to users. Through VRS University you have access to a comprehensive record of any courses that you open, start or complete. While state agencies have used the Commonwealth of Virginia Knowledge Center since 2003, access will expand to include political subdivision and school division employers.

When will VRS University Courses be available?

September: State Agencies

State agency employers will access VRS University courses using the Commonwealth of Virginia Knowledge Center. For state agencies without Knowledge Center access, VRS will provide access instructions. Additional instructions will be available in the September issue of Employer Update.

October: Political Subdivisions

Primary and secondary human resource and payroll contacts of political subdivision employers will access VRS University by clicking on the logo from VRS’ Employer Training Page. These contacts will receive an automated e-mail message with log-in instructions. Additional instructions will be available in the October issue of Employer Update.

November: School Divisions

Primary and secondary human resource and payroll contacts of school division employers will access VRS University by clicking on the logo from VRS’ Employer Training Page. These contacts will receive an automated e-mail message with log-in instructions. Additional instructions will be available in the November issue of Employer Update.

After November when all employers are registered, VRS training courses will be available through VRS University only. Modernization courses will be added to the VRS University curriculum. Modernization liaisons will receive a notice along with log-in instructions once the courses are available.

Updates to myVRS Reflect Legislative Changes

VRS is updating myVRS and myVRS for Employers to reflect 2010 legislative changes. Here are highlights of some upcoming new features and changes:

• The Member Plan Inquiry is a new feature in myVRS for Employers to help you identify your new employees’ membership in Plan 1 or Plan 2. After you enter the required information, the Member Plan Inquiry will identify whether an employee is:
  • in Plan 1;
  • in Plan 2, or will be in Plan 2 if rehired after a refund was taken; or
  • not in the system and will be in Plan 2 if hired into a covered position.
  The Member Plan Inquiry will be available August 5.
  
  
• The member account summary page and the service and contributions page in myVRS and myVRS for Employers will display additional data for your convenience. The pages will display whether a member is in Plan 1 or Plan 2 and the amount of employer and member contributions available for a refund. These updates also will be available August 5.
  
  
• The myVRS estimator will continue to be available for Plan 1 benefit estimates. The estimator will be updated to include Plan 2 estimates in mid-2011.
  
  
• The myVRS purchase of prior service credit page will reflect service available for purchase by Plan 2 members.

Counseling Employees on Refunds

Recent changes during the 2010 legislative session require employees to be vested (have at least five years of service credit) to receive a full refund of their member contribution account balance.

Taking a refund cancels membership and eligibility for any future VRS benefits. Advise Plan 1 members who leave employment and take a refund that they will be rehired under Plan 2 if they return to a covered position with any VRS-participating employer. They are eligible to purchase the refunded prior service once they are rehired. The service purchased is credited to their Plan 2 service.

Here are some facts on refunds and leaving employment:

• Plan 1 members who leave their member contributions and interest with VRS will become a deferred member and can return to a VRS-covered position under Plan 1.
• Advise members to visit myVRS where they can look up their member contribution account balances, earliest unreduced and reduced retirement eligibility dates, estimated retirement benefit amounts and other information from their member record that will help them choose the best option to fit their needs.
• VRS recently updated the Request for Refund (VRS-3) 47kb to reflect 2010 legislative changes.

Vested Members

Members who request a refund and are vested will be eligible for a full refund of member contribution account balances, including any employer-paid member contributions.

Non-vested Members

• Non-vested members with employer paid contributions made prior to July 1, 2010. Non-vested members will be eligible to receive a refund of any employer-paid contributions and interest made to the member’s account before July 1, 2010.
  
  
• Non-vested members who have employer and member paid contributions made after July 1, 2010. Non-vested members will not be eligible for refunds of any employer contributions paid to the member account and interest made after July 1, 2010. If a member takes a refund of the contribution and interest in their account, the member will be eligible to receive the member-paid contributions only and the additional employer-paid contributions will be moved to the employer’s Retirement Allowance Account. These funds will not be refunded directly to the employer.
  
  
• Non-vested members who have only member paid contributions made after July 1, 2010. The member is eligible for all member-paid contributions and interest.

Workforce Transition Act Update

Contribution Holiday Effective Through June 30, 2012

In its most recent budget, the General Assembly waived the employer contribution through June 30, 2012 for involuntary separated state employees who choose to receive an enhanced retirement benefit. Usually, the state agency is required to make a direct payment of 15 percent of the employee’s creditable compensation to VRS. The costs associated with each employee will be reflected in the employer contribution rate for state agencies determined during the June 30, 2011 actuarial valuation. This contribution holiday applies only to members who choose the enhanced credit. Employers are still responsible for paying the cost of severance benefits paid to employees who choose the severance option.

Basic Group Life Insurance Form Required for Severance Benefits

If a state employee is involuntarily separated from employment, chooses to receive a cash severance payment and group life insurance will be continued, you must submit the Employer Certification of Basic Group Life Insurance Coverage Under the Workforce Transition Act (VRS-11A) 27kb. This form informs VRS that your employee is eligible for 12 months of group life insurance coverage under the Workforce Transition Act. Failing to submit it may impact distributions from the employee’s deferred compensation account and life insurance payments if the member dies.

Fall Voluntary Long Term Care Open Enrollment Begins October 18

The fall open enrollment for the Commonwealth of Virginia Voluntary Group Long Term Care Insurance Program begins October 18 and continues through December 10. Employees of political subdivision and school divisions that signed up to offer the program before July 16 and did not participate in the spring open enrollment can apply for coverage with limited or no medical underwriting during the fall open enrollment. State employees are not eligible since they participated in the spring enrollment.

For those political subdivision and school employers who missed the deadline to participate in the fall open enrollment, you can still sign up for the voluntary long term care program by sending a signed Employer Adoption Agreement 70kb to VRS. Once the agreement is submitted, your employees and their eligible family members may apply at any time for coverage, however, they will be subject to full medical underwriting. Since the program is employee-paid, it does not cost you, as the employer, anything to offer it.

In order to provide the correct statements to applicants, Genworth must have the five-digit employer code on the employee application for coverage. Please be sure to give the code to your employees to avoid processing delays.

Learn more about the Commonwealth of Virginia Voluntary Group Long Term Care Insurance Program.

Creditable Compensation Webinar Recording Available

A recorded version of Creditable Compensation and Service Credit Accrual for State Agencies and Political Subdivisions 154kb is now available. The recorded webinar explains the enhancements that VRS will make under Modernization to creditable compensation and service credit accrual for 12-month employees, as well as how employers will submit data in the future.

The following recorded Modernization Webinars also are available on the VRS website under the Modernization tab:

• Introduction to Modernization 103kb
• Enrollment and Employer Reporting 162kb
• Creditable Compensation and Service Credit Accrual (for school divisions and higher education employers) 680kb.

VRS to Release Modernization Systems Requirements

This summer, VRS will begin distributing systems requirements for the Modernization program. This information will explain the new technology and processes required for your organization to interact with VRS through its new system. The VRS Modernization liaison identified for your organization will receive the requirements and distribute them to staff members or vendors who need the information.

The first group of employers that will receive systems requirements information will be those that currently send information to VRS in a batch file. Then VRS will begin a staggered distribution throughout the fall to those employers that will report online or will use a combination of batch and online reporting. These requirements also will be posted on the VRS website under the Modernization tab.

New Faculty Members Have 60 Days to Choose Retirement Plan

Faculty employees of Virginia colleges and universities must elect coverage under the Optional Retirement Plan for Higher Education (ORPHE) or the VRS defined benefit plan within 60 days of their hire date.

To choose the ORPHE, faculty employees must complete the Election to Participate: Optional Retirement Plan for Higher Education (VRS-65) 37kb within the first 60 days of their hire date and submit it to their respective human resource office. Faculty employees who do not send in the VRS-65 within 60 days of their hire date will be covered under the VRS defined benefit plan. Because this retirement plan election is irrevocable, encourage employees to read Choosing Your Retirement Plan for Plan 1 Members 465kb or Choosing Your Retirement Plan for Plan 2 Members 515kb for more information.

DC Plans Seminar: Managing Your Defined Contribution Plan Accounts

Rated by participants as one of the most popular seminars, Managing Your Defined Contribution Plan Accounts explains the basics of investing. Attendees will learn the differences between fund options such as stocks, bonds and cash investments. They will discover why it is important to diversify investments and how to do it using the plan’s menu of investment options.

Employees can register to attend the Webinar 16kb version of this session on July 28 and August 30 at 3 p.m. You can request an onsite presentation of this seminar by contacting your regional ING representative.