Employer Update

Study: VRS Among Best in Delivery of Service to Members

VRS remains in the high-service, low-cost category compared to its peers, according to an annual study from CEM Benchmarking, which compares retirement systems in the United States and around the world.

• VRS’ total service score of 83 was above the peer median of 78.
• VRS’ total pension administration cost is $74 per member, compared to a peer average of $113.

CEM measures service quality from a member’s perspective. For example, a pension fund that offers more communications channels for its members is perceived to resolve issues more quickly.

Correction Policies Revised for Some Defined Contribution Plans

VRS has updated its policies for handling employer corrections to the following plans:

• Commonwealth of Virginia 457 Deferred Compensation Plan.
• Virginia Cash Match Plan 401 (a).
• Optional Retirement Plans.

The updated correction policies took effect October 1 and are available on the Payroll page of the Defined Contribution Plans Resource Center for Employers.

These updates were made in accordance with Internal Revenue Service guidelines under the Employee Plans Compliance Resolution System (EPCRS), while also following VRS plan governance documents.

Accurate employer reporting of contributions to defined contribution plans is essential to ensuring member contributions are invested timely and according to IRS requirements.

Should you discover a mistake, the correction policies address how to remedy the following errors:

• Missing contributions to members’ defined contributions accounts.
• Delayed submission of contributions.
• Missed earnings on the late contributions.
• Contributions remitted in error to members’ accounts.

Get the VRS Training You Need

Take advantage of the following webinars to increase your knowledge:

• Introduction to VRS, sessions offered in December, March and June (each session includes four classes).
• Refunds and Distributions, 2-3 p.m. January 24, 2024.
• Purchase of Prior Service, 2-3 p.m. February 28.
• Disability Retirement, 2-3 p.m. April 24.
• Health Insurance Credit, 2-3 p.m. May 22.

Check out the VRS Training Academy for course descriptions and additional training opportunities.

myVRS Makes It Simple to Monitor Benefits Online

It’s easier than ever for VRS members to manage their accounts and benefits with myVRS. From one secure location, they can readily view account information, including retirement eligibility date, estimated VRS retirement benefits and easily maintain essential information, including:

• Beneficiaries.
• Purchase of prior service.
• Optional group life insurance coverage.
• Access to survivor benefits.