VRS – HRP: 1 rev a FD
Virginia Retirement System – Hybrid Retirement Plan Opt In Info for Plan 1/Plan 2 Employees Current Plan 1 and Plan 2 members may choose to opt in to the new Hybrid Retirement Plan. The opt in period runs from January 1, 2014 through April 30, 2014. An individual may change their decision during this period, but whatever election is on record with VRS at the end of April 30, 2014 is irrevocable. Information to consider about whether to opt in to the Hybrid Retirement Plan: (1) The choice on record with VRS at the end of April 30, 2014 is irrevocable. (2) A decision to opt in goes into effect July 1, 2014. (3) If a current Plan 1 or Plan 2 member does nothing, they remain in their current retirement plan (Plan 1 or Plan 2). (4) The Hybrid Plan operates on the Rule of 90 (the sum of a member’s age and service must equal 90 or more to get an unreduced benefit). (5) There is no disability retirement for Hybrid Plan participants. (6) Hybrid Plan members have disability coverage either through the Virginia Local Disability Program or their employer’s alternative plan. Fluvanna County Public Schools is providing an alternative program through VaCorp Insurance Services. (7) The Hybrid Plan is a combination of a defined benefit plan (DBP) and a defined contribution plan (DCB). (a) Plan 1 and Plan 2 employees are in defined benefit plans. (b) Defined benefit plans provide benefits based on age, creditable service and average final compensation (36 consecutive months of highest compensation as a covered employee for Plan 1 and 60 months for Plan 2). Plan 1 and Plan 2 benefits are guaranteed, as is the defined benefit component of the Hybrid Plan. (c) The benefit from the defined contribution plan depends on the contributions made to the plan and the investment performance of those contributions. The benefits are not guaranteed from the Hybrid Plan defined contribution component. There is no COLA applied to DCB component. (8) Vesting in the Hybrid Plan is different for the two components: (a) Vesting in the defined benefit component is after five years or 60 months of creditable service.
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FLUVANNA COUNTY PUBLIC SCHOOLS
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VRS – HRP: 1 rev a FD
(b) Vesting in the defined contribution component applies to the employer contribution. Members are 100% vested in contributions they make. For employer contributions, after 2 years members are 50% vested, after 3 years 75% vested, and after 4 years 100% vested. (9) Contributions for Hybrid Plan participants are as follows: Defined Benefit Mandatory
Defined Contribution Mandatory Defined Contribution Voluntary
Employee 4%
Employer Total Employer Rate MINUS employer DCP contributions
1%
1%
0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00%
0.00% 0.50% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50%
(10) There is a calculator on the VRS website to assist members in making a decision. It can be found at (a member must be logged in to myVRS to use it): http://www.varetirement.org/hybrid/plan-info/opt-in-information.html
(11) Read the VRS Special Member News for December 2013. (12) If you have questions about your individual situation, you can contact Fred Tucker at phone: (434) 566 – 5702; email at:
[email protected]. He is working with the Schools through First Financial on the Hybrid Plan and other VRS issues. (13) Contact Ed Breslauer at (434) 589 – 8208, email:
[email protected] (14) IMPORTANT!!! The decision to opt in to the Hybrid Plan is an individual choice, but once made it is irrevocable.
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FLUVANNA COUNTY PUBLIC SCHOOLS
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