Choosing Your Retirement Plan ORPHE - Virginia Retirement System

Virginia Retirement System Optional Retirement Plan for Higher Education Plan 2 Employees Hired or Rehired After June 30, 2010 Choosing Your Retirement Plan Virginia Retirement System Choosing Your Retirement Plan Guidelines and Provider Information Optional Retirement Plan for Higher Education Plan 2 This publication is for employees of colleges and universities hired or rehired after June 30, 2010 and who are eligible to choose between the Virginia Retirement System defined benefit retirement plan and the Optional Retirement Plan for Higher Education, a defined contribution retirement plan. July 2012 Virginia Retirement System - ORPHE Comparison Guide Plan 2 rev 07-30-2012 Page 2 of 26 Introduction The benefits described in this publication apply to employees hired or rehired after June 30, 2010.

A rehired employee is one who is returning to employment in an eligible position and who has no VRS defined benefit plan service credit and no account balance in an Optional Retirement Plan administered or authorized by VRS from a period of employment prior to July 1, 2010. As a new Virginia college or university faculty member, engaged in teaching, administration or research, you are allowed to select your retirement plan. (You also have this choice if you have changed from a classified to a faculty position.) You must choose a retirement plan within 60 days of your employment date. Your choices are the Virginia Retirement System (VRS) Plan 2, a defined benefit plan, and the Optional Retirement Plan (ORP) Plan 2, a defined contribution plan. If you do not elect the ORP within 60 days of employment, you will be covered by the VRS defined benefit plan. Remember: You have 60 days from the date you are employed, reemployed, or you transfer for the first time into a position eligible for the ORP to make your choice and to complete the required forms. If you do not elect the ORP, you will be automatically enrolled in the VRS defined benefit. If you transfer from a faculty position at one public institution in Virginia to another with no bona fide break in service, you must continue in the Plan you originally chose. If you transfer from a faculty position at one public institution in Virginia to another with a break in service you must again choose the Optional Retirement Plan or be automatically covered by VRS. A bona fide break in service is defined as at least one full calendar month from the end of the month in which you were last covered for active employee benefits. The break must occur over a period you normally would be at work. Summer breaks, intersession periods, educational leave, sabbaticals and other leave without pay do not constitute breaks in service. NOTE: If you are moving from one covered position to another and have not had a break in service, you may not request a refund or distribution from the plan by which you were originally covered. However, if you were covered by VRS and elect the ORP in your new position, you may transfer your VRS Member Contribution Account to you ORP account. The rules described here related to transfers and withdrawals...

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