The VBREA received the below information from the city's payroll office. The two below documents are further detailed in the below paragraphs. For even more details, visit the Consolidated Benefits Office link given above.
The Virginia Beach City Council approved changing the City's current deferred compensation provider from Empower Retirement Services VB 457 Plan to VRS's Commonwealth of Virginia (COV) 457 Deferred Compensation Plan. This change will become effective in June 2018 (a specific date will be communicated soon).
For the COV 457 Plan, VRS contracts with a third-party record keeper, currently ICMA-RC. A record keeper handles the day-to-day operations of the plan such as the money, call center, education, statements, etc. VRS oversees all of this. At the end of 2017, VRS was managing defined contribution assets of over $4 billion compared to the City's $280 million.
If you currently have money in the City's deferred compensation plan (VB 457 Plan):
There's nothing you need to do at this time.
You will receive more details from VRS and ICMA-RC about the transition from Empower to VRS. which will be mailed to your home address sometime around April 2018.
All VB 457 deferred compensation accounts will be moved to the new COV 457 Plan using "like-fund mapping."
This means the city automatically move the funds in your current account (map them) to investments most like what you have now (see attached).
Once your funds are moved (mapped), you'll receive a confirmation letter that your account has been transferred, along with your balance; you can then make any changes in fund selection that you desire.
Knowledgeable, helpful ICMA-RC representatives will be on-site for a period of time before and after the transition occurs. Specific dates, times and locations, along with a new custom website for the transition, will be provided via mail (to your home address) in April 2018.
Reminder: The retirement (pension) plan that the City provides to you is also managed by the Virginia Retirement System (VRS). This is the money the City sets aside for your retirement, in addition to the 5 percent you contribute toward it (Hybrid can contribute up to 9 percent). The change does not impact this part of your retirement. The City's retirement (pension) plan is totally separate from our deferred compensation plan, which is a voluntary plan that allows you to supplement your retirement savings.