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A Publication for VRS Members
September 2022 | Archives

In This Edition

Member Tips: National Retirement Security Month

National Retirement Security Month is just ahead in October, which means it’s the perfect time to assess your financial goals and make sure you’re on track to reach them. VRS Director Trish Bishop explains how VRS resources can help you at every stage of your savings journey.

An image showing a line drawing of a money bag with a large dollar sign and a padlock on it. To the right of the image is text which reads National Retirement Security Month. Below that is the VRS logo. Clicking the image will take you to another website where you may play the video.

Hybrid Plan Members: Keep Your Savings Rolling With Auto-Escalation. On January 1, 2023, the Hybrid Plan's autoescalation feature will boost your retirement savings. It's easy - no action required. Your contributions will automatically increase by 0.5% unless you opt out or you already contribute the maximum 4%.
You save on a pre-tax basis and take advantage of compound interest—earnings on your earnings.  
And the more you save, the more you receive in matching employer contributions. When you save 4%, your employer contributes 2.5%.
Log in to Account Access to select a custom voluntary contribution amount in 0.5% increments up to 4%, or opt out of auto-escalation between September 16 and December 15 at 4 p.m.  
You can also select SmartStep, allowing you to automatically increase your contribution amount over time on a schedule you choose.
An image of a father, young son, and grandfather playing basketball outdoors. To the left of the photo is a calendar icon graphic. On the left side of the two images is text which reads plan ahead. Coming october 1, special one-time guaranteed life insurance opportunity for active members.

Enhance Your VRS Life Insurance Coverage During Special Enrollment Period

Life insurance benefits offer peace of mind in knowing your family has financial resources if you are no longer there to support them. If your employer participates in the VRS Group Life Insurance Program, you are covered with basic group life insurance from your first day of employment. Securian Financial, the insurer, is offering a one-time opportunity to enhance your life insurance protection through optional coverage without medical underwriting during a special enrollment window October 1–November 30.

Special Enrollment Options

Several options are available for active VRS members: 

  • You can enroll in the Optional Group Life Insurance Program for the first time for additional coverage equal to 1x your creditable compensation.
  • If you already have Optional Group Life coverage at 1x, 2x or 3x your creditable compensation, you can increase coverage by one coverage level, not to exceed 4x your creditable compensation, or $400,000.

If you were previously denied coverage due to medical underwriting, you will be able to take advantage of this one-time opportunity to apply without proof of good health.

Additional Options Require Just a Few Questions

If you wish to increase your coverage by more than one coverage level, or you wish to purchase coverage of more than $400,000 for yourself, you can apply by answering three questions about your health history—along with your height and weight. Coverage options are available up to 8x your creditable compensation, with an $800,000 maximum.

You may also purchase coverage for your spouse or dependent children. Evidence of insurability (proof of good health) is required unless applying for coverage within 31 days of a qualifying event, such as marriage or the birth or adoption of a child.

For details about coverage options, visit the Optional Group Life Insurance Coverage page on the VRS website.

Calculate Your Needs

Use Benefit Scout, Securian Financial’s online benefits-decision tool to learn more about your insurance options and costs, ask questions and determine your needs. Access this tool at securian.com/VRS-insurance.

Enrollment Is Easy Through myVRS

To get started, log in to your myVRS account. Select Life Insurance under the My History tab and select the Visit Securian button. Simple enrollment takes just a few minutes. You can purchase coverage for yourself as well as your spouse and dependent children. Once enrolled, you can make changes online with Securian Financial when you access your coverage information through myVRS.

When you meet the qualifications for retirement, you may elect to continue a portion of your coverage when you leave employment. You, as well as your spouse and dependent children, must have been continuously covered during the 60 months before you leave employment to maintain coverage. In retirement, you can continue to use myVRS to access your coverage with the Visit Securian button.

An image of the back of a man wearing a short sleeved shirt with text on the shirt that reads Security in large letters.

Bolster Your Online Security by Claiming Your VRS Accounts

VRS takes measures every day to keep your information secure. You can help add even more protection by claiming your online accounts. Take ownership of your myVRS account and your defined contribution account(s), if eligible, through Account Access.

Completing identity-verification steps and establishing a strong password makes it more difficult for someone else to try to fraudulently lay claim to your online accounts. Logging in regularly helps you detect unusual activity and take quick action to prevent theft or mitigate losses.

Here are three key steps you can take to safeguard against online fraud: 

  1. Refrain from using passwords that are simple or can be easily guessed. Use a strong passphrase over a stand-alone password. Passphrases should feature a combination of upper- and lowercase characters, symbols and numbers. Regularly change your password to further your protection.
  2. Keep antivirus and antispyware software up to date.
  3. Be aware of what is shared on your social media pages. Hackers can use profile information, photos and other content to gain unauthorized access to accounts or devices.

Visit the VRS Security Center page for more online safety and fraud prevention tips.

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VRS Reports 0.6% Return for Fiscal Year 2022

The Virginia Retirement System achieved a 0.6% return, net of fees, on its investment portfolio for fiscal year 2022. The portfolio ended the year with approximately $101.2 billion.

“We registered a positive return by following VRS’ long-term strategy of diversification while taking advantage of strong private markets,” Chief Investment Officer Ronald D. Schmitz said. “Although the return was muted compared to last year’s banner 27.5%, the VRS total fund outperformed passively managed stock and bond indices by over 10%. In addition, we exceeded the assumed rate of return for the three-, five- and 10-year periods.”

Read the full release.

 

View Your Yearly Member Benefit Profile in myVRS

Your 2022 Member Benefit Profile (MBP) will soon be available in myVRS. Your MBP is an annual benefit statement based on information your employer reports to VRS as of June 30, 2022. It shows your account balance information, retirement eligibility and eligibility for other benefits, such as group life insurance and the health insurance credit.

Looking over your MBP provides an opportunity to assess and refocus your retirement goals. Are you on track with your savings? Can you afford to retire earlier than expected, or are there benefits to working longer? Used in conjunction with tools like the myVRS Benefit Estimator and the myVRS Retirement Planner, your MBP can kickstart your future planning.

An image of the top of a Member Benefit Profile on the my VRS website.

 

Register for Live Member Education Webinars

Taking advantage of VRS member education sessions is one of the best ways to gain a deeper understanding of your benefits. Visit the VRS Education and Counseling page to register for upcoming live webinar sessions or watch recorded webinars at your own convenience.

Register for one of the following upcoming live webinar dates.

Are You Ready to Retire? – October 19

If you’re within five years of retirement, this presentation will help you learn about important decisions you’ll have to make, such as when to retire and selecting a benefit payout option.

Benefit Payout Options – October 24

Learn about the four payout options to choose from when retiring and how your benefit is calculated.

Health Insurance Credit – November 10

Find out more about the health insurance credit, if you’re eligible, how it’s calculated and how to claim it.

 

VRS Board Appoints Junkin as Chief Investment Officer

A portrait of Andrew Junkin.

The VRS Board of Trustees recently appointed Andrew H. Junkin as chief investment officer effective January 2023.

Junkin comes to VRS in September from his role as CIO for Rhode Island, where he oversaw the state’s $10.5 billion pension plan, a $2 billion defined contribution plan and other funds. Previously, he was with Wilshire Consulting for 15 years, serving as president for five years. Junkin succeeds Ronald D. Schmitz who will retire January 2023. Schmitz will remain with VRS through the end of this year, working with Junkin to provide continuity and facilitate an effective transition.

See the full press release.

 

An image of a horizonal row of VRS plan handbooks.

Updated Plan Handbooks Available Online

VRS member handbooks have recently been updated to reflect the latest legislative and administrative changes. Find the most up-to-date version of your plan handbook on the VRS Publications page.

When referencing printed or downloaded handbooks from VRS, check the date on the back cover to ensure you have the most recent version. It should match the date of the online version. Most handbooks, except the VRS Member Guide and the Hybrid Retirement Plan Handbook for Members, are no longer available in print.

An image of a hand holding a phone with a charger cord coming from it while the other hand types on a laptop computer. There is a coffee cup to the left of the computer and a pair of eyeglasses to the right of it. On the right side of the image is the my VRS Financial Wellness logo.

myVRS Financial Wellness: Tools and Tips for Informed Financial Decision Making

We never know what tomorrow may bring—fortunately VRS offers tools you can use to build financial resilience. Whether it’s cultivating mindfulness to make wise money decisions, or learning the particulars of a specific financial topic, myVRS Financial Wellness gives you knowledge to build your foundation for the future.

Log in to your myVRS account and select myVRS Financial Wellness to explore the latest courses and tools. Here is a selection of recent additions.

Preparing an Estate Plan Course

Take the Preparing an Estate Plan course to learn about common estate planning documents and how they can help provide peace of mind for you and your loved ones. Log in to your myVRS account and select Financial Wellness to get started today.

Money Mindfulness

Cultivating money mindfulness can offer a wide range of benefits, including reducing stress and building positive financial habits. Explore the Money Mindfulness section to find guided money meditations, prompts for financial journaling and a quiz to discover your money personality type.

Your Credit Score and Report

Using credit responsibly helps your credit score grow over time, unlocking advantages like access to better loan terms and rates. See your score anytime and track changes to your report—safely and securely—with the Credit Score and Report tool. Analyze the factors that impact your score and get fresh updates on your score every month.

U.S. Department of Education Points Teachers to Financial Support Resources

The U.S. Department of Education announced that educators may benefit from the Public Service Loan Forgiveness (PSLF) program. A temporary waiver provides time-limited changes to rules that allow borrowers to receive credit for past periods of repayment that would otherwise not qualify for PSLF. Borrowers are encouraged to act now as the waiver expires October 31.

USDOE also introduced significant improvements to the TEACH Grant program to provide greater flexibility and address previous challenges with successfully completing the program to decrease student loan debt.

Member Spotlight: Sgt. Randy Glascock With the Henrico County Police Animal Protection Unit

A portrait of Sargeant Randy Glascock

Throughout his 18 years of service with the Henrico County Police Animal Protection Unit, Sgt. Randy Glascock has dealt with his fair share of animals. From fielding routine calls about cats and dogs, to responding to the occasional black bear sighting, Glascock says working with animals means there’s never a dull moment.

“Just when you think you’ve seen everything, something else comes along,” Glascock says. “I’m 61 years old now and I still enjoy going to work every day. It’s never boring.”

Glascock says he’s been an animal lover since childhood. When he was growing up on a pig and chicken farm in Fauquier County, he recalls trying to catch any animal he could to make it a pet.

In 2004 at age 42, Glascock made a non-traditional career pivot and left Dominion Energy to join Henrico Police. Initially expecting to work as a regular police officer, Glascock says learning about the county’s animal services during his police academy training inspired him to request placement in the Animal Protection Unit.

“Any animal call that comes out—that’s our job to take care of,” Glascock says. As fully trained police officers, members of the Animal Protection Unit respond to non-animal situations as well, but Glascock says animal calls are never lacking.

“Most calls are domestic animal related: Dogs running at large, neglect. Thankfully, severe cases of animal neglect are rare,” Glascock says. “Sometimes you run into people or animals that are difficult to deal with, but for the most part there are far more good people and good animals.”

Glascock says the majority of dog bite calls are not from dogs directly attacking a person out of the blue, but from a person trying to break up a dog fight. The Animal Protection Unit works with the local health department for testing samples for rabies and other disease.

When Animal Protection Unit officers pick up loose or stray pets, they bring them to the Henrico Animal Shelter. The shelter holds animals until they can be claimed by their owners, and animals that are unclaimed or released by their owners are put up for adoption. In addition to cats and dogs, Glascock says they also occasionally take in rabbits, chickens, pigs and goats.

“We have a little barn set up for that,” Glascock says. “If no one comes forward to claim them, we reach out to local people with farms to help.”

Glascock says that because he’ll likely retire within the next five years or so, he plans to start looking deeper into retirement planning tools offered in myVRS.

“Start saving early,” Glascock says. “When you’re in your 20s, a lot of people aren’t thinking about retirement. But by the time you get to retirement, you’re going to be much better off.”

For more information about the Henrico County Animal Protection Unit, visit henrico.us/animal-protection-unit/ or follow the Henrico County Animal Shelter page on Facebook.

Your Turn To Ask

Your Turn to Ask

What Are My Options If I Leave Covered Employment?

When you leave a VRS covered position before retirement, there are a number of factors to consider related to your VRS benefits.

Options for Defined Benefit Plan Accounts (Pension)

For your defined benefit member contributions, you have two options: becoming a deferred member or taking a refund.

If You Become a Deferred Member

Deferred membership allows you to return to covered employment in the future and continue to add service credit to your original record. Your defined benefit account accrues 4% interest annually, and you can continue to log in to myVRS to monitor your benefits.

If you are already vested, you may be eligible for a future retirement benefit when you meet the age and service requirements for your plan.

You will also remain eligible to request a refund of your member contributions at any time.

If You Take a Refund

Through your myVRS account, you may request a refund of your defined benefit member contributions and interest. If you are not vested, you will be eligible for a refund of the balance, excluding any member contributions made by your employer to your account after July 1, 2010, and the interest on these contributions.

Taking a refund cancels your VRS membership and eligibility for any future benefits.

Options for Defined Contribution Plan Accounts

If you participate in the Hybrid Retirement Plan, which includes a defined contribution component, or a VRS defined contribution plan (DCP), you have several options if you leave employment.

You can leave your money in the plan and continue to manage your investments, which comes with several advantages:

  • Low administrative fees.
  • Your funds may remain tax-deferred and you continue to benefit from compound interest.
  • You can roll other accounts, such as traditional IRAs, into eligible DCP accounts.
  • DCP retirement specialists offer no-cost counseling to help you transition to retirement and beyond.

You can also roll over your money to a different plan, purchase an annuity or request a distribution (refund) of your funds through Account Access. A variety of distribution options are available. For more information, select your plan from the VRS Defined Contribution Page and see the Leaving Employment section on your plan’s website.

Impact on Other Benefits

If you leave employment, you’ll also want to consider the impact on benefit coverage such as life insurance and VSDP/VLDP long-term care coverage. In some cases, you can continue or convert coverage within a certain timeframe. Deferring retirement may impact your health insurance options as a retiree.

Before You Decide

Log in to myVRS to check your member contribution account balance and view your other benefit information. Similarly, check any DCP account balances you may have through Account Access. Knowing this information may help you weigh your options if you are thinking of leaving covered employment. You can also contact your human resource office or call VRS at 888-827-3847 for counseling services.

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