benefitsFOCUS – February 9, 2016

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benefitsFOCUSREMINDER: Upcoming medical plan dependent eligibility review

As mentioned in the January edition of the benefitsFOCUS, we will soon begin a dependent eligibility review, conducted by HMS Employer Solutions. The purpose of this review is to ensure all dependents enrolled on our plan meet eligibility guidelines so that only eligible dependents are covered. All employees, retirees, and COBRA participants who currently have a dependent spouse (this includes “county spouses”) or children enrolled on our medical plan will be required to participate. It is important that you submit the documentation upon request, as failure to comply will result in your dependents being dropped from your medical insurance policy.

We recently mailed an announcement to all participants who currently have dependents on our medical plan; you will also receive a mailing from HMS Employer Solutions in the next few weeks that will tell you more about the process, what you’ll need to provide, and when you’ll need to provide it. If you currently have dependents on our medical plan, please be sure to review these communications when they arrive so you can be prepared for this process. We’ve also posted FAQs on the Benefits website.

What’s the BIG news?

Prepare Now for Tomorrow: Changes Coming to VRS Purchase of Prior Service

If you are currently a full-time employee, you may be able to purchase VRS service credit for your previous public employment, active duty military service, eligible periods of certain kinds of leave or VRS refunded service. Why purchase prior service? Service counts toward the five years needed for vesting, which is the minimum length of service needed to qualify for retirement. It also may enable you to qualify for retirement earlier or may give you a higher benefit in retirement. You should be aware that changes are coming to purchase of prior service provisions under VRS and they may affect YOU.

If you have eligible prior service, you may wish to look into purchasing it before January 1, 2017. Types of prior service eligible for purchase include full-time public service with a non-VRS employer, part-time service with a VRS employer, and active duty military service. See a full list of service that is eligible for purchase »

Recent legislative changes simplify the rules for purchase of prior service and ensure that the purchase cost more closely reflects the actual cost of providing the increased benefit in retirement. However, SOME types of service may cost more to purchase and there will be limits on the number of months eligible for purchase of some types of service. Download a pdf that summarizes the upcoming changes »

What You Need to Know

  • VRS recommends that you apply to purchase your service no later than October 1, 2016.
  • If you purchase through a salary-reduction agreement, you must have deductions taken for the month of December 2016, or earlier.
  • If you use a lump-sum payment method, the full payment must arrive at VRS no later than December 30, 2016.
  • Under the new provisions, the cost to purchase refunded service will be the return of the refunded amount plus interest from the date of refund to the purchase date using 7 percent interest compounded annually.

More information is available from VRS, including live and recorded webinars.

Visit your myVRS account to access the Refunded Service Comparison Estimator to estimate the cost to purchase any refunded service on record.

Visit the online Purchase of Prior Service estimators to estimate the costs of purchase under current rules.

Even if you’re a while away from thinking about retirement, purchasing prior service can give you flexibility (earlier retirement or HIGHER benefit payment) for when you ARE ready! DON’T wait until the last minute to explore your options. NOW may be the most cost effective time to add to your VRS service record. 

If you need further assistance with your Purchase of Prior Service questions, you can reach VRS at 1-888-827-3847 or John McQuilkin at jmcquilkin@albemarle.org.

For more information about your employee benefits, our web pages are always available when you are.