VRS Optional Retirement Plan for Higher Education Open Enrollment Meeting Fall 2017
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Updated VRS ORPHE website Provider comparison Improved educational information Investment and fee basics New provider microsites Plan-specific investment performance Self-directed brokerage window Flat per-participant pricing Improves transparency Fee equalization Refund of revenue share Open Enrollment meetings Provide platform for all providers 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 administrative & recordkeeping fee $30.50/year per unique participant across platform $60/year $66/year Revenue Sharing No Yes, but revenue credit agreement in place. Yes. Revenue credit agreement in 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
January 2017 Open Enrollment Provider changes become effective New hires may select from three providers December 2017 New hires/rehires to begin plan/provider elections in myvrs Electronic employer acknowledgment process in myvrs Navigator October 2016 Open enrollment - Current faculty may select among three providers (DCP, TIAA and Fidelity) to be effective Jan. 2017 July 2017 New counseling tools and plan comparison calculator available in myvrs for new hires/rehires October 2018 Open Enrollment in myvrs (provider election)
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 DCP & Fidelity Enrollments sent via file feed Manage investment selection & beneficiary designation online TIAA New participants must enroll online or via form before contributions
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 fundspecific trading restrictions or short-term trading redemption fees.
Common 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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