In This Edition

1. Plan your way to a brighter retirement: VRS provides the tools
2. Money Matters for Virginians: Know the basics
3. Plan during your career through myVRS
4. Learn what to do when: VRS classes for every stage of your career
5. Need more information? VRS offers one-on-one counseling
6. Sometimes you just need to read: Handbooks and retirement information online
7. 457 Plan News
8. Featured FAQ – How soon will I receive my refund check?

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Plan your way to a brighter retirement: VRS provides the tools

You can't control the direction of the stock market or economic indicators, but you can plan for your financial future. VRS has education and retirement planning resources that can help you get there. And many of these resources are as close as your pc, smartphone or tablet. Read on for more information.

Money Matters for Virginians: Know the basics

If you're wondering where to start to plan, why not begin with the basics. The following e-courses on Money Matters for Virginians are free and available to everyone. They take you through:

• Banking — finding the best account for you; the different types of electronic banking; what's best — a savings account, money market or CD?

• Credit — how to establish good credit; what your credit score means; interest rates and what affects them; how to read your credit report; how to make sure your credit report is accurate; how to improve your credit score.

• Taxes — understanding tax brackets; figuring your withholding amounts; how to reduce your taxable income; filing taxes; how long to keep different tax records.

• Investments — the types of asset classes and advantages and risks of each one; stock characteristics; bonds; cash equivalents such as CDs, money market accounts, real estate holdings and their advantages and risks; the importance of allocation and the advantages of diversification; rates of return.

• Financial Planning — determining your net worth; how to set short, mid and long-term goals; saving for college; saving for retirement; preparing for the unexpected; protecting yourself and your family through life and health insurance, disability protection and long-term care.

• Home Finance — planning for home ownership; prequalifying for a mortgage; avoiding overextending; types of mortgages; the buying process; equity and refinancing; when to use an equity loan and when to use an equity line of credit.

Plan during your career through myVRS

myVRS is always there when you want to work on your retirement planning, no matter the time or place.

Use myVRS to see your current member information:

• View your earliest retirement eligibility dates and estimated benefit amounts.
• View your current account information, service credit and member contributions, purchase of prior service information, employment history, compensation history and life insurance coverage.
• Check the status of an application for retirement, purchase of prior service or a refund.

If you are in Plan 1, use myVRS to look up your Member Benefit Profile (MBP), your annual online benefits statement. You also can print a copy to share with your family or provide a financial advisor. If you are in Plan 2, you can look up your member contribution account balance and benefit information through myVRS.

Log in or create a secure online account.

Participate In the 457 Plan and Are In Plan 1? Use Your MBP to Target Your Retirement Income Goal

If you are eligible to participate in the Commonwealth's 457 Plan, your Member Benefit Profile (MBP) includes an income analysis feature. This feature combines your estimated unreduced VRS benefit, a Social Security estimate and an estimated annuity from your deferred compensation plan account, if applicable. The combination allows you to measure the gap between your estimated retirement income and a target of 80 percent of your pre-retirement income. Eighty percent is often used by financial planners as a target for a reasonable living standard in retirement. The analysis also includes tips for closing the gap between your estimated retirement income and the 80 percent target.

Plan 2 members currently do not receive an MBP. However, Plan 2 members can look up their member contribution account balance and benefit information through myVRS.

Use myVRS to Prepare for Retirement

Retirement Planner

Say you'd like to retire by the time you are 59. You're 41 now but haven't saved a lot and have no idea how much you might need. The first thing to do is develop a retirement income plan of your estimated income and expenses in retirement through the Retirement Planner. If you are in Plan 1, the planner allows you to choose from your first unreduced retirement estimate, your first opportunity to retire or you can use an estimate you create through the Benefit Estimator (see below). If you are in Plan 2, you can enter your current estimated unreduced amount from your account home page.

Next, create a Quick Plan or Detailed Plan:

• The Quick Plan gives you an instant result based on your current information and general assumptions built into the planner.

• The Detailed Plan allows you to customize your retirement plans:

  • Enter a different retirement date.

  • In addition to your estimated retirement benefit, include estimated income from a spouse, part-time job or Social Security if you are eligible on the date you use for your plan.

  • Include an estimated annuity from the Commonwealth's 457 Plan, if you participate. You will be able to see your account balances. Also include savings from a 403(b) plan or other tax-deferred savings plan such as Individual Retirement Account (IRA).

  • Build in retirement expenses, including income taxes, health insurance and a Medicare Part B premium if you are eligible on the retirement date you're using for your plan. You can use the assumptions provided in the planner or enter your own figures.

Benefit Estimator

If you are in Plan 1, use the Benefit Estimator to create retirement benefit estimates based on different retirement dates and benefit payout options to see what retirement age and payout option works for you. Use your estimates in the Retirement Planner.

If You Need Help With myVRS

• Select myVRS Help from the bottom of any screen for general information.

• While you are logged in, select Explain this Page from the top right for help with information on a particular screen.

• If you get locked out, call VRS toll free at 1-888-VARETIR (1-888-827-3847).

• For additional questions, call VRS or email myvrs@varetire.org.

Important email notice: Do not send confidential or personal information, such as your Social Security number, by email even when you are logged into your account. VRS will send only non-confidential replies.

Learn what to do when: VRS classes for every stage of your career

The following free member education courses are designed for you no matter where you are in your career – just starting out, nearing retirement or ready to retire. A VRS counselor is available to answer questions after each class.

Are You on Track?

This class is for you if you are a new member or have been working for a while but are not near retirement. It covers what it means to be a member of VRS and what you can do now to plan your retirement. It provides basic information on VRS benefits and products, purchase of prior service and tips on using the VRS website and online self-service tools.

View Are You on Track? schedule

Are You Ready to Retire?

If you are within five years of retirement, this class walks you through key retirement decisions, including choosing a benefit payout option and gives you details on your retirement benefits. This class also shows you how to use myVRS to plan for retirement.

View Are You Ready to Retire? schedule

Your Next Steps

If you have a year or less to go until retirement, this class provides you with all the details you need on the VRS retirement process, including the forms and documents you need.

View Your Next Steps schedule

Retirement Education Seminar Series I and II (RES I and RES II)

These seminars address a variety of financial and retirement planning topics outside of VRS benefits. Industry professionals deliver information on topics ranging from financial planning strategies to adjusting to retirement. The award winning publication Ready or Not, Your Retirement Planning Guide is provided free to all seminar attendees.

View RES-I schedule

View RES-II schedule

Deferred Compensation Plan Regional Education Meetings

If your employer participates in the Commonwealth's 457 Plan, be sure to sign up for the Deferred Compensation Plan Regional Education Meetings 24kb. The meetings are held at sites around the state and cover topics such as long-term planning for financial security, managing your plan and distribution strategies.

View DCP meeting schedule 24kb

Benefit Topics

Want to learn the details of your retirement payout options? How you go about purchasing prior service? What the health insurance credit is? Benefit Topics cover benefits, products and self-service tools in depth. You can take these courses through webinars, e-courses or recorded presentations.

Member Education and Counseling (Plan 1)

Member Education and Counseling (Plan 2)

Need more information? VRS offers one-on-one counseling

If you need individual counseling, meet with a member counselor at 1200 East Main Street in downtown Richmond. Walk-in counseling is available on a first-come first-served basis. Limited scheduled appointments also are available; call VRS toll free at 1-888-VARETIR (1-888-827-3847) for more information. Counseling hours are 8:30 a.m. – 4 p.m., Monday through Friday.

Sometimes you just need to read: Handbooks and retirement information online

Member Handbooks for state employees, teachers and non-hazardous duty political subdivision employees covered under VRS; state police officers; Virginia law officers and hazardous duty political subdivision employees offer details about your retirement eligibility requirements, planning for retirement and your benefits, both in retirement and while working.

The Getting Ready to Retire Guide 410kb focuses on qualifying for retirement, applying for retirement and what happens after you retire.

Find forms you need for everything from designating a beneficiary and purchasing prior service to apply for retirement. Forms provide detailed instructions, and most forms are fillable online. Select the fillable version and complete it online, then print and sign it before submitting.

Learn all about your benefits from the Member homepage on the VRS website, including retirement, group life insurance, disability retirement, the Virginia Sickness and Disability Program (VSDP), long-term care insurance, severance benefits and death-in-service benefits. Also, find out more about designating a beneficiary, the latest educational offerings, purchasing prior service and what happens if you leave employment before retirement. Then visit the Retiree homepage for information on receiving your benefits and insurance in retirement, including how to qualify for the health insurance credit.

457 Plan News

Start Early to Save for Retirement: 10 Reasons to Get Started

It's tax-deferred. It's simple. It's important. Even if you are just starting out in your career, it's smart to plan a financial strategy now to help you meet your retirement objectives. If your employer offers the Commonwealth's 457 Plan, saving through the plan will work with your VRS benefit and Social Security to create the income that will meet your retirement goals. Need more reasons to start saving now? Here are 10 333kb.

Featured FAQ – How soon will I receive my refund check?

If you leave covered employment, you can:

• Take a refund of your member contributions and interest;
• Leave your funds with VRS and become a deferred member;
• If you are vested, you may be eligible for a future retirement benefit if you meet the age and service requirements of your plan; or
• Apply for retirement if you are eligible for an unreduced or reduced retirement benefit.

Taking a refund cancels your VRS membership and eligibility for any future VRS benefits. If you are in Plan 1, take a refund and return to covered employment, you will be rehired under the VRS Plan 2. You must have terminated all VRS-covered employment before you are eligible to receive a refund.

A refund is an adjusted lump-sum payment of your member contribution account balance, depending on whether or not you are vested [tool tip] or involuntarily separated from employment for causes other than job performance or misconduct. It usually takes VRS 45 to 60 days to process a refund, but any missing or incomplete information could hold up the process. Here are some tips to help you receive your money as quickly as possible:

• Use the Request for Refund (VRS-3) 183kb form on the website to be sure you are using the current form. The current version has "Rev. 5/11" in the bottom left corner. You can fill the form in online or print a copy and fill it in. Read the instructions that come with the form.

• Before completing the form, read the IRS 402(f) Special Tax Notice 28.5kb about the tax consequences of having the refund paid directly to you or rolling over pre-tax contributions and interest to a qualified plan that accepts rollovers.

• Read the refund form directions carefully. Be sure you complete all the required information and provide all required signatures. Provide any additional documents that are required, such as information from your financial institution for a rollover of the refund.

• Be sure that all the information is correct before submitting the form.

Refunds are payable no earlier than one full calendar month from when your retirement contributions were last reported to VRS. This one-full-calendar month must take place over a period you normally would work. For teachers and other contract employees, summer breaks or intersession periods do not count toward this break in service. If you are a teacher and leave your position at the end of the school year, for example, your one-full-calendar month period begins September 1.

For more information about your options if you leave your job, see Leaving Employment (Plan 1) or Leaving Employment (Plan 2).