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A Publication for VRS Members
May 2020 | Archives

In This Edition



Latest VRS COVID-19 Updates

VRS Services Continue During COVID-19

We recognize the coronavirus (COVID-19) and resulting state of emergency have disrupted work and family life. Please be assured that VRS continues to process retirements and other member requests, pay retiree benefits, issue refunds and respond as quickly as possible to day-to-day needs.

With the safety and well-being of the communities we serve and our team members being a top priority, most VRS staff are working remotely to assist members and retirees by phone, online or webinar. We will continue to update the VRS COVID-19 Response Updates page with more information as it becomes available. Thank you for your continued patience and flexibility during this difficult period.

Important Reminders:

  • No in-person services are available at VRS offices or onsite at regional and employer locations at this time.
  • Retirement counseling appointments are available by phone.
  • Members are encouraged to access their myVRS accounts or call 888-827-3847 with questions about their benefits.
  • Member education webinars are available online.
 
Info on DCP COVID-19 Emergency Retirement Withdrawals

Federal Relief Bill Allows Emergency COVID-19 Defined Contribution Account Withdrawals

Following passage of the Coronavirus Aid, Relief and Economic Security Act, it is now possible for VRS members experiencing coronavirus-related emergencies to request withdrawals from certain defined contribution accounts.

It’s important to weigh carefully the decision to withdraw funds from a retirement plan that may be needed in the future. Be sure to check with your financial and tax advisors before taking any action. A distribution may potentially impact unemployment benefits; visit the Virginia Employment Commission for additional information.

Withdrawing from your retirement funds should generally be a last resort. The economic costs of withdrawal are likely to be much greater than the benefit of receiving the money earlier. If you have no other options, consider withdrawing only the amount you absolutely need.

VRS and ICMA-RC, the record keeper for the VRS Defined Contribution Plans, have developed a form for members to request coronavirus-related distributions from the following VRS defined contribution plans:

  • The Commonwealth of Virginia 457 Deferred Compensation Plan.
  • The Virginia Cash Match Plan 401(a).
  • The Hybrid 457 Deferred Compensation Plan.

To initiate a distribution, log into or register for Account Access. Once logged on, select Forms and locate the Coronavirus-Related Distribution Request form under the Roll/Disburse category. The form can be downloaded as a PDF or emailed to you. Upon completion, the form can be mailed or faxed to ICMA-RC. You may also request a form by contacting ICMA-RC Participant Services at 877-327-5261, option 1.

Your employer may offer additional plans, such as a 403(b) in which you participate, that are also eligible for this distribution. The maximum amount that can be withdrawn is $100,000 collectively from all eligible plans, e.g., IRA, 401(k), 403(b), not just those administered by VRS.

Active members may not take refunds or withdrawals from their defined benefit pension plans, including VRS Plan 1, VRS Plan 2 or the Hybrid Retirement Plan defined benefit component. Withdrawals are also not allowed from certain defined contribution plans, including the Hybrid Retirement Plan 401(a) Cash Match Plan or optional retirement plans.

To qualify for a Coronavirus-Related Distribution, you must:

  • Be diagnosed with SARS-CoV-2 or with Coronavirus disease 2019 (COVID 2019) by a test approved by the Centers for Disease Control and Prevention.
  • Have a spouse or dependent be diagnosed with SARS-CoV-2 or with Coronavirus disease 2019 (COVID 2019) by a test approved by the Centers for Disease Control and Prevention.
  • Experience adverse financial consequences as a result of being quarantined, furloughed, laid off and/or having work hours reduced, being unable to work due to lack of childcare, closing or reducing hours of a business owned or operated by the individual.
  • Meet any other factors as determined by the Treasury Secretary.

Under limited circumstances not related to the coronavirus, emergency withdrawals are allowed from the Commonwealth of Virginia 457 Deferred Compensation Plan. Not all employers offer this plan. See guidelines for emergency withdrawals PDF Icon.
 


Info Guide about Coronavirus and Your Financial Health

myVRS Financial Wellness: Coronavirus and Your Financial Health

Directly or indirectly, the COVID-19 outbreak has impacted the finances of many families and individuals. Coronavirus and Your Financial Health, a new guide available from myVRS Financial Wellness, features answers, tips and tools to help you stay financially well during this uncertain time. Frequently updated with new articles and information, this digital guide is accessible to all VRS members through their myVRS accounts.

Recent articles and topics include:

 

myVRS Financial Wellness: Your Journey Begins Today

Video: Your Journey Begins Today

Watch this video play-icon  to discover how to get started with myVRS Financial Wellness.


Member Commitment to Public Service on Full Display Amid COVID-19 Response

Since 1985, the first week of May has been designated Public Service Recognition Week, a time to honor the employees of federal, state, county and local governments. With the unprecedented disruption to everyday life resulting from the COVID-19 pandemic, public service has taken on a new meaning for many in 2020. VRS members have stepped up to carry out crucial duties and provide essential services to Virginians all across the commonwealth.

Prince William County Schools

Prince William County Public Schools Director of Food and Nutrition Services Adam Russo and Yorkshire Elementary School Principal Lyn Marsilio hand out free to-go meals to families during school closures due to COVID-19. Employees and volunteers are providing meals for curbside pickup at schools around the county.

Photo courtesy of: Prince William County Public Schools

Despite empty classrooms for the rest of the school year, many Virginia school divisions are still working hard providing lunches and at-home lessons for students. In Prince William County, more than 10,000 “to-go” meals per day are being served to students at 22 locations, according to Adam Russo, director of the Office of Food and Nutrition Services for Prince William County Public Schools.

"We find ourselves in a new reality where many families find themselves laid off, furloughed or underemployed—our program is for all,” Russo says. “During these uncertain times we aim to be as consistent as possible to role model hope for our communities."

City of Lynchburg

City of Lynchburg Department of Public Works employee Mike Franklin waves from a city trash truck during collection services. Essential city services continue with a new emphasis on limiting contact in enclosed areas.

Photo courtesy of: City of Lynchburg

With the COVID-19-related shutdown orders, local governments are seeing a change in demand for public services and utilities. Officials in Lynchburg say the city’s refuse collectors are experiencing a significant increase in weekly residential trash due to citizens being at home more. On the flipside, the city is expecting an overall reduction in water usage due to lowered commercial and industrial demand.

Lynchburg City Manager Bonnie Svrcek says the city’s essential employees are hard at work so that citizens can stay home.

"Refuse collection, social services, fire/EMS, police, water resources, public works and all of the backbone services are indeed the stability in these extraordinary times,” Svrcek says.

Schedules have been modified to minimize exposure in common areas and in vehicles, and care is taken to sanitize Lynchburg Public Works truck interiors twice per day.

Division of Consolidated Laboratory Services

Jessica Maitland shows off a test sample during coronavirus test processing at DCLS in Richmond. Lab scientists are working long hours to keep up with high demand for COVID-19 testing.

Photo courtesy of: Division of Consolidated Laboratory Services

In Richmond, the more than 220 full-time scientists and support staff of the Department of General Services’ Division of Consolidated Laboratory Services (DCLS), Virginia’s public health lab, are truly on the front lines of the COVID-19 response.

"Right now much of the focus of our testing centers is around responding to the COVID-19 pandemic,” says DCLS Director Denise Toney, who holds a doctorate in microbiology and immunology. “We are producing timely, around-the-clock COVID-19 laboratory testing support to the public health community and our health care partners.”

DCLS continues to perform important everyday public health, environmental, agricultural and food safety testing, though some areas are in a more limited capacity as scientists and support staff are redirected to tackle the outbreak-related workload. In many response areas, employees are working long hours, seven days a week, to make sure they can test all of the samples that need to be tested.

“We truly have such dedicated people who never hesitate to step up and volunteer to help,” Toney says. “This is what we are here for and our employees know that their efforts make a difference, not just today, not just during the pandemic, but every day.”

 

myVRS Account Login 

Stay Connected: Register Your myVRS Account Today

To gain a full picture of your VRS member benefits, the best place to start is your online myVRS Account.

Once you register, complete the identity-verification steps and establish a secure password, you can view your employment and salary history, your VRS account balance, annual Member Benefit Profile and the earliest date you can take unreduced or reduced retirement.

Want to preview what your benefit amount in retirement may look like? Explore the Benefit Estimator, a tool that uses information about your past and expected future service credit, to calculate a projected benefit amount in retirement. Set a goal, review your VRS income sources and conduct a detailed gap analysis with the myVRS Retirement Planner.

Logging into your myVRS account also gives you full access to the award-winning myVRS Financial Wellness program, including new coronavirus-related resources.

In addition, registering your account is one of the most important steps you can take to prevent identity fraud. See how by visiting the VRS Security Center.

 

VRS-related-Legislation-information
2020 Legislative Summary

The 2020 General Assembly concluded its work April 22. The legislature passed and the governor signed several VRS-related bills. Two measures of note allow retirees to return to work in critical shortage school bus driver positions and school security officer positions. Read more details in the 2020 Legislative Summary PDF Icon.

 

Governor Appoints New Chairman and Member to Board of Trustees

Earlier this year, Governor Ralph Northam announced two appointments to the VRS Board of Trustees. O’Kelly E. McWilliams III, a current board member, becomes the new chairman, and Chief William A. Garrett, of the Winchester Fire and Rescue Department, joins as a member.

O'Kelly McWilliams

McWilliams of Oakton is a partner at the law firm Mintz. He is a graduate of Longwood University and earned his law degree at George Mason University.

William Garrett

Garrett has more than 30 years of fire and rescue service. He received his bachelor’s degree from George Mason University and a graduate certificate from Virginia Tech.


Rate for Purchasing Refunded Service Changes July 1

The interest rate used to calculate the purchase cost for refunded service will decrease to 6.75% on July 1, down from the previous rate of 7%. This rate matches the most recent assumed rate of return for the VRS trust fund.

If you previously left a VRS-covered position, took a refund of your member contributions and interest and have now returned to covered employment, you may purchase the refunded service to count as service credit under your current plan. Purchased service credit counts toward the five years needed to become vested and eligibility for retirement and the health insurance credit.

The purchase cost is based on the refund amount, plus interest compounded annually from the date of the refund to the date you buy back the service. You may purchase all or a portion of your refunded service at any time as an active VRS member. For more information on refunded service and other types of service you can purchase, visit the VRS Purchase of Prior Service webpage.

 

FAQ: Do Market Fluctuations Affect My Future VRS Benefits?

In times of stock market volatility, you may be concerned about the impact on your prospective retirement benefits. Keep in mind that your future defined benefit is based on a calculation, and investment performance does not affect the payment amount retirees receive.

VRS structures its portfolio to minimize the impact of market volatility on its overall investments, although the fund is not immune from market fluctuations. VRS investment professionals are focused on managing the portfolio for the long-term. The portfolio is highly diversified, with investments such as bonds, private assets and real estate in addition to investments in equities and the S&P. Diversification helps prevent all assets from behaving the same way at the same time.

If you have a balance in a VRS defined contribution account, such as the Commonwealth of Virginia 457 Deferred Compensation Plan or the Hybrid 457 Deferred Compensation Plan, and you want to learn more about market risk and return and how it impacts your investing portfolio, visit varetire.org/dcp, select your plan, then select Education.
 


Member Education

Member Education

Webinar courses are posted on the VRS website as they are scheduled. Register from our Education and Counseling pages.

Retirement Planning
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