VRS introduced several updates to the Optional Retirement Plan for Higher Education (ORPHE) effective January 2020.
Last year, VRS met with faculty and human resource staff at higher education institutions across Virginia. Informed by those meetings, provider investment performance data, industry best practices and in keeping with its fiduciary duty, VRS made changes to improve services and reduce costs for ORPHE participants.
Participants now have a choice of two service providers: DCP (record kept by ICMA-RC) and TIAA for new contributions. Fidelity Investments is no longer a provider option.
A new investment lineup at TIAA became effective January 3, 2020. The updated lineup continues to give you the ability to create a diversified retirement portfolio that matches your investment goals and preferences. Learn more about the new TIAA investment options. Details are also available at TIAA.org/vrs.
There are no changes to DCP. You can mix and match funds among the different investment paths, and you are not limited to investing in only one path at a time. Learn more about the DCP options.
VRS continually monitors providers and investment performance, making changes to plan investments or providers from time to time.
|June 2019||Fidelity Investments will no longer be a provider option for new hires, who will choose between DCP or TIAA.|
|September 2019||VRS will mail an ORPHE 2020 Transition Guide to active participants as well as retired and former employees.|
|September 2019 – January 2020||ORPHE 2020 Education Sessions: VRS staff will make campus visits to meet with participants.|
|October 1 – November 15, 2019||
Extended Open Enrollment Period for future contributions
- ORPHE participants will have a choice of two investment providers: TIAA and DCP (record kept by ICMA-RC).
Fidelity Investments deselected as provider option.
- Beginning June 1, Fidelity will no longer be a provider option for new hires choosing the optional retirement plan. Participants hired on or after June 1, 2019, will have a choice of two providers: TIAA and DCP.
- Beginning October 1, current Fidelity participants will choose another provider to receive contributions as of January 2020, with the option to retain existing assets with Fidelity or transfer balances to a different provider.
- Fidelity investments will be accessible through the self-directed brokerage account offered by TIAA and DCP.
- The TIAA investment lineup will be updated as part of the effort to reduce fees, enhance fee transparency and improve performance. The updated investment menu will provide a mix of investments intended to meet participants’ varying financial goals.
- Balances in the TIAA Group Retirement Annuity (GRA) or the TIAA Retirement Annuity (RA) contract will remain in those contracts and will not be impacted by the updates to ORPHE.
- Both TIAA and DCP will continue to offer a self-directed brokerage account to allow maximum investment flexibility with a broad offering of mutual funds, single securities and exchange-traded fund (ETFs) options for knowledgeable investors that desire additional investment choices.
If you are a retired participant or former employee with Fidelity and/or TIAA accounts, please review this important information:
- This fall, you will receive detailed information by mail regarding the changes to ORPHE.
- Retired or separated Fidelity participants may retain your existing account(s) with Fidelity. Or, you may choose to transfer your assets to DCP or TIAA.
- If you retired or separated employment before February 15, 2017, with an existing balance in the TIAA Group Retirement Annuity (GRA) or the TIAA Retirement Annuity (RA) contract, your existing balance will remain in those contracts and will not be impacted by the updates to ORPHE.