New Member Information

Size: px

Start display at page:

Download "New Member Information"

Clement Ryan
5 years ago
Views:

1 New Member Information Welcome to ERFC 2001

2 www.fcps.edu/erfc www.fcps.edu/erfc 3 What is ERFC?

2 What is ERFC? ERFC 2001 is a defined benefit Since 1973, The Educational Employees Supplementary Retirement System of Fairfax County (ERFC) has provided members an independent retirement plan that supplements primary retirement benefits from the Virginia Retirement System (VRS) and the Social Security Administration. ERFC is a public sector defined benefit plan, which operates under terms incorporated in the Fairfax County Ordinance and the ERFC Plan Document. In early 2001, the ERFC 2001 plan of benefits was developed for members hired on or after July 1, Membership in ERFC As a new member of ERFC, you join thousands of other Fairfax County Public School Employees in investing for retirement. ERFC 2001 membership includes the following: Full-time teachers; related educational personnel; instructional assistants; administrators; administrative support and technical staff members. When not italicized, ERFC refers to the umbrella organization that administers ERFC and ERFC Governance of ERFC ERFC is governed by a seven member Board of Trustees, which administers the retirement program according to the requirements of the Plan Document and other governing law. The Fairfax County School Board appoints three of the members to the ERFC Board, and three Board members are elected by the membership of the system. These six ERFC trustees then refer and recommend a seventh candidate for approval by the School Board as the final ERFC Board member. This individual Trustee must be someone who is unaffiliated with either Fairfax County Public Schools or the Fairfax County School Board, and who possesses competent financial and/or investment skills. Defined benefit plans qualify under section 401 (a) of the Internal Revenue Code. With a defined benefit plan, a set formula is established and used to compute your retirement benefit based upon your compensation level, and length of service with Fairfax County Public Schools. Plan Features: Lifetime retirement benefits (based on individual) Ancillary benefits such as survivor coverage Investments are made for all beneficiaries, and individual contributors do not control the amount of their contributions nor their investments. ERFC funding ERFC is funded by three sources: member contributions, employer contributions, and investment income. Member contributions are automatically withheld from your salary by FCPS, and credited to an account in your name. Employer contributions are determined by the School Board as part of the budget process, upon the recommendation of the ERFC Board of Trustees and its actuary*. ERFC investments are held in trust and the Board of Trustees supervises the investment of the trust s assets by registered investment advisors. * What is an actuary? An actuary is a business professional who analyzes the financial consequences of risk using math, statistics, and financial theory to study uncertain future events. Each year an actuary recommends an amount of money that needs to be allotted to a retirement system to pay for future benefits.

edu/erfc 5 Vesting ERFC contributions Credited Service with ERFC 2001 Credited Service refers to the periods of time for which you have made member contributions to ERFC as an active FCPS employee.

3 Vesting ERFC contributions Credited Service with ERFC 2001 Credited Service refers to the periods of time for which you have made member contributions to ERFC as an active FCPS employee. You are entitled to a full service retirement benefit if you are age 60 with 5 or more years of credited service, or you have completed 30 or more years of credited service. Vesting Service with ERFC 2001 Vesting refers to the point at which you have earned the right to receive a benefit from ERFC. A member is vested after completing a minimum of five years Vesting Service. Deferred Vested Benefit Once you are vested you have earned the right to receive a retirement benefit from ERFC, even if you leave FCPS before you retire. If you leave FCPS as a vested employee and retain your Accumulated Contributions on deposit in ERFC 2001, you will be eligible to receive a retirement benefit beginning at age 60. Military Service Credit You may be entitled to Military Service Credit, pursuant to federal law, including Section 414(u) of the Internal Revenue Code. ERFC will grant Credited Service as the law dictates, and you are not required to make Member contributions as a condition of receiving that credit. If you are called to active duty military service while you are an active ERFC 2001 member, immediately notify ERFC of your leave assignment. What percentage of my pay is contributed to ERFC? As an ERFC member, you contribute 3 percent of your monthly salary to your ERFC member contribution account. Member contributions earn a fixed rate of interest that is set by the Board of Trustees. The current interest rate is 5 percent compounded annually. FCPS contributes 5.60 percent of each member s salary to your ERFC member contribution account. Your contributions to ERFC are tax-deferred, which means they are not considered taxable income for federal and state income tax purposes until they are withdrawn through a refund or monthly benefit. Purchasing prior refunded service with the Virginia Retirement System (VRS) New FCPS employees need to know that they can purchase refunded service from previous covered employment with the Virginia Retirement System (VRS) at 5 percent of your creditable compensation at the time of purchase. What types of other service can I purchase from VRS? Active Duty Military Service Full-Time Salaried Service such as a civilian position with the Federal Government. Full-Time Salaried Public Service such as service with a public employer or school system in another state. To find out more about your VRS options:

6 www.fcps.edu/erfc 7 www.fcps.edu/erfc Managing your ERFC account Why is ERFC important to me? What is ERFCDirect?

ERFCDirect allows you to view your member information, estimate your ERFC 2001 benefit, update your personal information and Named Beneficiaries. How do I access ERFCDirect?

First time users should click on Register Now and set up a Username and Password that is separate from UConnect or the FCPS Network. https:erfcdirect.fcps.

4 Managing your ERFC account Why is ERFC important to me? What is ERFCDirect? ERFC s online service that provides you direct and secure access to your ERFC benefit information. ERFCDirect allows you to view your member information, estimate your ERFC 2001 benefit, update your personal information and Named Beneficiaries. How do I access ERFCDirect? Simply go to the website directly or go to the FCPS/ERFC website to access your account. First time users should click on Register Now and set up a Username and Password that is separate from UConnect or the FCPS Network. Are there other ways to manage my ERFC account? Each year, you will receive a member profile statement with pertinent retirement information. The statement also details your Accumulated Contributions, with all interest accrued in your name through July 1st. Any statement discrepancies should be reported immediately to ERFC. Does ERFC put out member publications? A bi-annual newsletter is available online. A Comprehensive Annual Financial Report is available on the ERFC Website yearly. The ERFC Summary Annual Report is sent each winter to all members. The ERFC Website is a place to learn all about your retirement contributions: Retirement forms and publications; Board of Trustees; Access ERFCDirect; VRS updates and links; Social Security information; ERFC staff and contact information. It s never too early to think about your retirement. Your ERFC retirement account is an important source of financial security to you and your family. We are here for you! ERFC is dedicated to enhancing the financial wellbeing and security of its members and beneficiaries. We are staffed with counselors and administrators who can readily assist you with all of your account questions and concerns. ERFC is an independent retirement trust, separate from state and local government. We are one of your three sources of retirement benefits. ERFC + VRS + Social Security = Your Retirement!

5 8 For more information about your ERFC benefits Visit ERFC s Website at ERFC through the ERFC website (click on Contact Us link ) Call ERFC at Attend the ERFC Annual Seminar in January (see website for details) Register and visit your account on ERFC Direct at: fcps.edu/wmswebsite For more information about your VRS benefits Register and Visit your VRS account at: For information about Social Security Benefits Visit the Social Security website at: Call toll-free For information about other FCPS benefits contact the FCPS Benefits Office: This brochure provides general information about ERFC benefits. The detailed provisions of the Virginia Code, Fairfax County Ordinance, the ERFC Plan Document, and the Board of Trustees official rules and regulations govern the actual operation of ERFC.

The Educational Employees' Supplementary Retirement System of Fairfax County. ERFC Benefit Plan Structure

The Educational Employees' Supplementary Retirement System of Fairfax County ERFC Benefit Plan Structure effective January 1, 2016 July 1, 2001. See Section 2.02(a). 2 effective January 1, 2016 THE EDUCATIONAL