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Benefits February 17, 2012
Virginia State DC Plans Adopt Target-Date Funds
February 17, 2012 (PLANSPONSOR.com) - The Virginia Retirement System (VRS) will establish target-date funds for employees in its five defined contribution plans currently used by about 68,000 state and local government employees.
Reported by Rebecca Moore
In addition, the state will offer brokerage accounts, effective July 1, reports the Lynchburg News and Advance.
The VRS board voted to adopt separate investment policies for the defined contribution plans it administers for state employees and some local governments, and optional retirement plans it administers for about 6,000 faculty at state colleges and universities.The recommendations grew out of the work of a defined contribution plans advisory committee created in 2008 at the direction of VRS Trustee Paul W. Timmreck, a former state finance secretary and VCU budget official who was then chairman, according to the news report.
The House of Delegates proposed an optional defined contribution plan for state employees beginning January 1, 2013, while the Senate has approved a mandatory plan that would combine reduced pension benefits with defined contributions for most state and local employees hired on or after January 1, 2014 (see “Virginia Governor Proposes Pension Overhaul“).