VRS Optional Retirement Plan for Higher Education Open Enrollment Meeting Fall 2017
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• • Flat per-participant pricing Updated VRS ORPHE website – – Provider comparison Improves transparency – Improved educational information – Fee equalization • Investment and fee basics – Refund of revenue share • New provider microsites • Open Enrollment meetings – Plan-specific investment performance – Provide platform for all providers – Self-directed brokerage window – Web-based for 2017
• Multi-provider (DCP, Fidelity, and TIAA) • Added DCP option 1/1/2017 • Moved to lowest cost share class available with Fidelity • Moved to group contracts with TIAA • VRS has negotiated a flat per participant cost and corresponding quarterly revenue credit with TIAA and Fidelity Provider DCP Fidelity TIAA Provider Structure Unbundled Bundled Bundled Annual $30.50/year per $60/year $66/year administrative & unique participant recordkeeping fee across platform Revenue Sharing No Yes, but revenue Yes. Revenue credit credit agreement in agreement in place place. for new RC contract.
• January 2017 – Available for contributions and transfers – A record-keeping/plan administration fee * of $2.54 will be deducted from account on a monthly basis ($30.50/year). – Self-directed brokerage account available. Additional fees may apply. www.orphe.varetire.org/dcp *For participants in more than one Commonwealth of Virginia (COV) defined contribution plan, like the COV 457 Deferred Compensation Plan or Virginia Cash Match Plan, only one annual fee of $30.50 will be deducted.
• January 2017 – Move to Class K share class for Fidelity funds – Self-directed brokerage account added. Additional fees may apply. – A record-keeping/ plan administration fee of $15.00 will be deducted from account on a quarterly basis ($60.00/ year). • The record-keeping/ plan administration fee is prorated and may be reduced by revenue credits applied to certain investment options in the Plan. www.netbenefits.com/orphe
• February 2017 – Retirement Choice (RC) contracts opened • All ongoing payroll contributions directed to RC contracts – Self-directed brokerage account added. Additional fees may apply. – A record-keeping/ plan administration fee of $16.50 will be deducted from account on a quarterly basis ($66.00/ year) from the Retirement Choice (RC) contracts* • The record-keeping/ plan administration fee is prorated and may be reduced by revenue credits applied to certain investment options in the Plan * Assets contributed prior to February 2017 will remain in the legacy contracts. Participants may transfer to the RC contract.
• May 2017
December 2017 January 2017 • New hires/rehires to begin • Open Enrollment Provider changes plan/provider elections in myVRS become effective • Electronic employer acknowledgment process in • New hires may select myVRS Navigator from three providers October 2018 October 2016 July 2017 • Open Enrollment • Open enrollment - Current • New counseling tools in myVRS faculty may select among and plan comparison (provider three providers (DCP , TIAA calculator available in election) and Fidelity) to be effective myVRS for new Jan. 2017 hires/rehires
• Pop-up window indicating number of days remaining in election window • Default to applicable VRS plan if no election made within 60-days of employee’s hire date 12
By October 31, 2017 • Participant Provider Change Form, VRS-65P, completed with required signatures • Retain copy for employer records • Send to VRS • Send to Payroll for processing Prior to first contributions to new provider (Jan. 2018) • Enrollment and beneficiary designation with new provider TIAA DCP & Fidelity • New participants must • Enrollments sent via file enroll online or via form feed before contributions • Manage investment selection & beneficiary designation online
• If I want to continue with my current provider, do I need to make any changes? – No. No action is required unless you would like to make a change. • Can I choose to transfer my existing funds from one provider to another? – Yes. Plan-to-plan transfers are permissible subject to any fund- specific trading restrictions or short-term trading redemption fees.
Com m on Participant Questions • Will I continue to be able to invest with my current provider? – As in previous years, ORPHE participants may choose to change provider companies during October open enrollment each year. 17
• Is my ORPHE account portable if I move to an employer covered under a different plan? – Yes. Assets are always portable once a participant separates employment and becomes eligible for distribution per Internal Revenue Code regulations. • Rollover of assets to new employer’s plan or an Individual Retirement Account – If the same provider is available at the new employer, it will be a separate provider contract and different investment options may be available. 18
• Fall 2016 – VRS ORPHE and provider microsites launched – 13 Open Enrollment meetings • In-person and webinars www.orphe.varetire.org
• Provider Services • Investment Performance • Plan Administration Fees* • Range of Fees* • Investments available • Default Investment Options • Self-Directed Brokerage Account* • Annuities available *Information provided is current unless otherwise noted and may be subject to change.
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