Open Enrollment Meeting Fall 2017 2 Flat per-participant - - PowerPoint PPT Presentation

Fall 2017

VRS Optional Retirement Plan for Higher Education

Open Enrollment Meeting

2

• 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.

*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.

www.orphe.varetire.org/dcp

• 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

• pened
• 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

• ptions in the Plan

* Assets contributed prior to February 2017 will remain in the legacy contracts. Participants may transfer to the RC contract.

• May 2017

July 2017

• New counseling tools

and plan comparison calculator available in myVRS for new hires/rehires

October 2016

• Open enrollment - Current

faculty may select among three providers (DCP , TIAA and Fidelity) to be effective

• Jan. 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 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

TIAA

• New participants must

enroll online or via form before contributions DCP & Fidelity

• Enrollments sent via file

feed

• 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.

17

• 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. Com m on Participant Questions

• 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.

22