NAGDCA Recognizes VRS for Retirement Planning Tool

RICHMOND, VA September 20, 2011 — The Virginia Retirement System (VRS) recently received a Special Award of Distinction from the National Association of Government Defined Contribution Administrators (NAGDCA) for its Member Benefit Profile-Retirement Income Gap Analysis. The entry was one of three awards of distinction given in the Effective Communication category of NAGDCA’s 2011 Leadership Recognition Awards Program.

VRS’ Member Benefit Profile (MBP) is an annual online statement for members of the pension system. It shows their retirement eligibility dates, estimated retirement benefits, member contribution account balance and other information about their VRS benefits. For members eligible to participate in the state’s deferred compensation plan, the MBP also provides a retirement income gap analysis, which compares their projected retirement income to 80 percent of their salary. The retirement income projection combines their estimated VRS benefit, a Social Security benefit estimate and an estimated annuity from their deferred compensation plan.

Member Benefit Profile GAP Analysis
The Retirement income gap analysis appears on MBPs for members eligible to participate in the state's deferred compensation plan.

Many financial planners use 80 percent of pre-retirement income as a benchmark for maintaining a reasonable living standard in retirement. With the Retirement Income Gap Analysis MBP, members get a graphic representation of what this means in terms of their own future income needs. The MBP also provides tips on how to close the gap between their projected retirement income and their 80 percent target.

“We are honored to receive this award from NAGDCA,” VRS Director Robert P. Schultze said. “More importantly, we are honored to provide tools like the Retirement Income Gap Analysis MBP that can help our members plan for a secure future.”

The 2011 MPB is now available to VRS members through the secure myVRS online system.

VRS administers benefits and provides services for approximately 600,000 members, retirees and beneficiaries. Members include approximately 146,000 teachers, 104,000 local government employees and 90,000 state employees. Retirees and beneficiaries number more than 156,000. The retirement system ranks as the nation's 22nd largest public or private pension fund.