Q: Will all bands 5-7 positions be converted automatically?
A: Human Resources and the Office for Equal Opportunity, in collaboration with the respective senior management areas, will review job descriptions and identify positions eligible for conversion
Q: If I become faculty will there any difference in health insurance benefits?
A: No, health insurance benefits are the same whether you are faculty or staff.
Q: If I become faculty will I see any changes in my Medical and Dependent Care Flexible Reimbursement Accounts?
A: No, both the Medical and Dependant Care Flexible Reimbursements accounts follow the same rules for both faculty and staff.
Q: Will the amount of my group life insurance change if I convert to faculty?
A: No, Group Life Insurance is calculated the same for both faculty and staff. Coverage is 2 times your annual salary and the coverage is thru Minnesota Life.
Q: I have Voluntary Life Insurance. Will my coverage be affected if I convert to faculty?
A: No, there is no difference in coverage whether you convert to faculty or remain staff.
Q: I have Voluntary Accidental Death and Dismemberment. Will I see any changes to the policy if I convert from staff to faculty?
A: No, both plans are administered by UNUM and the benefits are the same for faculty and staff.
Q: I am a staff member and I have AETNA Long Term Care insurance. Will my long term care insurance change if I convert to faculty?
A: It may change. Staff members are automatically enrolled in a 2 year long term care policy and can purchase 3 more years with no medical underwriting if purchased within 60 days of hire date. Faculty members are not automatically enrolled in long term care, but have the option to purchase long term care insurance with no medical underwriting if purchased within 60 days of appointment.
Q: What is the difference between VRS and ORP retirement plans?
A. The features of the two plans are highlighted below.:
Optional Retirement Plan (ORP) –
Defined contribution Plan – Benefit at retirement is based on contributions, net investment earnings/losses and age (length of time your benefits will be paid).
Currently 10.4% of your salary goes into an account on your behalf. (rate is reviewed every 6 years).
Immediate vesting.
Portability: Continued participation if employed at Virginia’s public college and universities participating in the plan. ORP participation must continue if you transfer to a Virginia public college or university that sponsor’s its own ORP.
If you leave public employment in Virginia your account balance may be rolled over to a subsequent employer’s qualified plan or IRA to defer taxes.
Please note: If you leave public employment you may also choose to withdraw the account balance (currently 10.4% of your salary is being contributed on your behalf). If you decide to withdraw the monies, please be aware the your distribution will taxed at your currnet tax rate and the IRS may impose a 10% penalty if taken before normal retirement age.
Virginia Retirement System (VRS) –
Defined Benefit Plan – Benefit at retirement is based on formula, not contributions into your account. Formula uses average 36 months of compensation, amount of service credit including service you purchased and your age at retirement.
5% of salary is placed in the member’s account. The contribution earns 4% on an annual basis compounded annually on June 30 on contributions that have been in the system for at least 12 months.
The employer makes a contribution to the employer pool account that is based on a rate established every 2 years by VRS actuaries and approved by the General Assembly.
Immediate vesting for the 5% contribution to the member account. And the vesting is 5 years to receive a lifetime retirement benefit.
Unreduced benefit with 30 years of service and at least age 50 or age 65 with 5 years of service. Retirement at age 55 with 5 years of service or at age 50 and 10 years of service provides an actuarially reduced benefit.
Provides lifetime retirement benefit.
Portability: Participation continues if employed in one of approximately 800 employers covered under VRS including Virginia public colleges and universities, Virginia local governments, all Virginia public schools and Virginia state government agencies. Many types of public service and leave may be purchased to enhance the benefit.
Please note: Upon termination, if you do not have 5 years of VRS service to allow you to use your account as a retirement benefit (vesting), you may request a refund of the member account. The amount that can be refunded will be the contributions which the employer has put into an account in your name (currently 5% of your salary is being contributed). You may roll over this amount into a qualified plan or an IRA to defer taxes . If taken before normal retirement age, you may incur a 10% penalty imposed by the IRS.
Please contact human resources for additional information concerning retirement benefits
Q: I am a staff member and was automatically enrolled in the Virginia Retirement system. Will I have the option to change to an Optional Retirement Plan if I convert to faculty?
A: Yes, you can choose to convert to an Optional Retirement Plan within 60 days of your faculty appointment. This decision should be given a great deal of thought, because this election will be irrevocable.
If you need assistance with this decision, please arrange to speak with a benefits specialist by contacting the HR Service Center at 231-9331 for an appointment.
Q: I am a staff member participating in the Virginia Retirement System and I’m planning on converting to faculty. I know I am vested after 5 years with the Virginia Retirement System. When will I be vested if I change to an Optional Retirement Plan?
A: You are immediately and automatically vested if you participate in an Optional Retirement Plan.
Q: I am a staff member and a participant in the Virginia Retirement System. If I choose to convert to a faculty member and continue participation in the Virginia Retirement System, will the benefits be different?
A: No, Benefits are the same for both faculty and staff who participate in the Virginia Retirement System.
Q: If I decide to convert to a faculty position, and choose the Optional Retirement Plan, will I have a choice of companies to invest my Optional Retirement Plan contributions with?
A: Yes, you can currently choose from Valic Retirement, Fidelity Investments or TIAA-CREF.
Q: If I convert to a faculty position and participate in the Optional Retirement Plan and I retire, will the benefits provide me with retirement income over my lifetime?
A: Possibly not. It is possible to out live the amount of money in your Optional Retirement Account(s).
Q: As staff, I currently participate in the Tax Sheltered Annuities 403(b) plans. Will the amount I can contribute change if I convert to faculty?
A: No, both faculty and staff can contribute the same amount. For 2008, those under 50 can contribute $15,500 and those participants 50 and above can contribute an additional $5,000.
Q: As staff, I currently participate in the State Deferred Plan (457). Will the amount I can contribute change if I convert to faculty?
A: No, both faculty and staff can contribute the same amount. For 2008, those under 50 can contribute $15,500 and those participants 50 and above can contribute an additional $5,000. All Faculty and Staff deferring to the state 457 plan contribute to Great West.
Q: I am currently a staff member considering converting to faculty status. If I convert to faculty will the amount of my Cash Match change?
A: No, the maximum the university will match per pay period is $20 on an employee contribution of $40 per pay period into Fidelity, TIAA-CREF, VALIC or GREAT WEST, regardless of staff/faculty status.
Q: I am currently a staff member considering converting to faculty status. If I convert to faculty will the amount of my Cash Match change?
A: No, the maximum the university will match per pay period is $20 on an employee contribution of $40 per pay period into Fidelity, TIAA-CREF, VALIC or GREAT WEST, regardless of staff/faculty status.