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Retiree NewsVIRGINIA RETIREMENT SYSTEMWINTER 2020 VOLUME 19 NUMBER 2Are You Making the Most of Your myVRS Account?Did you know that everyVRS retiree has a myVRSaccount? If you’ve never claimedyour account, or if you haven’tused myVRS since before youretired, you’re missing out on theconvenient services available bylogging into myVRS for Retireesat myVRS.varetire.org.For starters, myVRS has all of yourimportant benefit information in oneplace. In addition to viewing yourlatest benefit payment amount, youcan see the tax amounts withheld,download your 1099-R form and, ifapplicable, view your health insurancepremiums and your health insurancecredit amount. You can also view costof-living adjustments and the value ofyour life insurance, if you participate.Making a move? No need to call VRS;just use myVRS to update your addressand contact information. With justa few clicks you can change your taxwithholdings as well.The future holds even more convenientself-service features for retirees throughmyVRS. Look for these featurescoming next year: Online beneficiary management:Update beneficiaries online insteadof submitting the Designation ofBeneficiary (VRS-2) paper form.This function will include settingup beneficiaries for your VRSdefined benefit account and grouplife insurance benefits. Direct deposit management:Set up your direct deposit or notifyVRS when you change financialinstitutions or bank accounts andneed to redirect your monthly benefitpayment. H ealth insurance credit management:Instead of submitting a form, retireeseligible for the health insurance creditwill go online to claim the credit,report insurance premium changes ormake other adjustments. S urvivor accounts:For the first time,survivors of VRSmembers will have theopportunity to registerfor a myVRS account,which will allow themto view and maintainthe benefits they receive.If you are a survivorof a VRS member inaddition to being a VRSretiree yourself, you will be able toview and maintain your survivoraccount when logged into your ownmyVRS account.Registering your myVRS accountis also a security best practice.Completing the identity verificationsteps and then establishing a strongpassword is the single most importantthing you can do to prevent someoneelse from fraudulently attempting tolay claim to your account.IN THIS ISSUE2 Trust Fund HealthRemains Stable DuringChallenging TimesEligible for HealthInsurance Creditin 20213 Retiree Profile:6 2021 Direct Deposit4 VRS News and7Retiree Spotlight:Ruth and Peter Gregory6 Non-Teacher School8VRS by the NumbersEd MayhewAnnouncementsDivision RetireesSchedule
Trust Fund Health Remains Stable During Challenging TimesVRS ended fiscal year 2020 with approximately 81.6 billion in the VRS Trust Fund, achieving a 1.4%return, net of fees. The VRS fund returns exceeded the custom benchmark and continues to exceed thecurrent 6.75% assumed actuarial rate of return for the 25-year period.When economic times are good, youmay not think about the investmentperformance of the trust fund thatmuch, but in years like 2020 whena global pandemic is causing marketvolatility and other disruptions, you mayfind yourself paying more attention tothe future outlook. Unlike a 457 Planor an individual retirement account,the short-term fluctuations in marketvalue do not affect the amount of yourpension. Your VRS defined benefitis based on your years of service andaverage final compensation during yourworking career.VRS has a long-term investment strategyand an efficient portfolio policy thatbalances risks with rewards. As a longterm investor, VRS focuses on returns andperformance over 20 to 40-plus years, notsimply a single year or quarter to quarter.VRS mixes stocks, bonds, real estate andother investment strategies to diversify thefund portfolio. Diversification creates astable foundation for the future and helpsmoderate the highs and lows experiencedin the stock market. Our investmentprofessionals are mindful that thedecisions made today must support publicemployees through the coming decadesand beyond.VRS pays approximately 5.3 billionannually in benefit payments to morethan 223,000 retirees and beneficiariesfrom the VRS trust fund, which ismanaged by the investment team.Beyond investments, the trust fundalso depends on member and employercontributions. While you were working,you or your employer contributed apercentage of your compensation toyour Member Contribution Accounteach month. Your employer also mademonthly contributions to VRS basedon its total employee population. Thesecontributions went into the trust fundand were invested during your career tofund your future retirement benefit. Asa result, your benefit remains constantthroughout retirement and does notfluctuate with market changes.Detailed financial information isavailable in the VRS ComprehensiveAnnual Report; or read the PopularAnnual Financial Report for a summary.Both publications are available atvaretire.org/publications. You canaccess quarterly investmentperformance and allocation reportsat varetire.org/investments.Virginia Retirement System Asset Allocationas of June 30, 2020(Dollar amounts in billions/percent of fund)13.8%CreditStrategies13.8% 11.3 13.7 11.212.5%16.8%Fixed IncomeReal AssetsPrivate Equity 10.2PIP 1.2Public Equity 30.4Total Fund Market Value 81.6 billion2 RETIREE NEWS WINTER 2020MAPS37.2% 2.4Cash 1.21.5%3.0%1.5%J oin theConversationon VRS’ Facebookpage
RETIREE PROF IL EEd Mayhew on Keeping the Brain SharpThroughout his four-decade-long career as a teacher—34 of those years at Winchester Public Schools—Ed Mayhew says he noticed time and time again the link between exercise and his students’ academicperformance. Retired since 2007, Mayhew has published seven books on health, aging and brain exercisesand continues teaching workshops on his “brain sprints” regimen for school children. At age 75, he’s stillrunning 5Ks, 10Ks and half-marathons, and proclaims regular intensive movement as the single largestfactor in keeping the brain sharp, for students and seniors alike.What inspired you to writeabout fitness, brain powerand aging?I used to watch Jack LaLanne onTV in the 1950s. My mother likedto watch his show and we’d watchit together. He was a proponentof exercise and a healthy diet, so Ibecame very interested in fitnessfrom a young age. The actor BobCummings, who was already in his50s by then, was also big into healthand fitness, and I remember readinghis book and feeling inspired. That’show I first got started.Several of your books arewritten with educators andparents in mind. How did yourexperience as a teacher informyour views on the mind-bodylink for children?I saw the benefits firsthand withelementary school children. Ifound that physical movementcombined with academics actuallytransformed them. There was oneboy in kindergarten who was waybehind, wasn’t talking and wasn’tdoing well at all. With a simplemovement activity, I worked withhim, and after a few weeks it madeall the difference in the world. Hehad a breakthrough and openedup, started to speak in class, startedreading the words off the menu atlunch. Youngsters whoEd Mayhew stands with four of his published books and artwork for Brain Man, a cartooncharacter developed in conjunction with his brain training program for students.couldn’t read – when they learnedcombined with movement –they started to read. Multiplestudies have found that exerciseat moderate to high intensityeven for short periods improveslearning, memory, problem-solving,concentration and verbal fluency,with positive effects lasting forhours.What did you learn in yourresearch for your bookFitter After 50 ?For Fitter After 50, I interviewedolder individuals who were fitterthan they had been when they wereyounger, or who were fitter thanmost young people. I profiled themto show that older people can have PAGE 6RETIREE NEWS WINTER 2020 3
VRS NEWS AND ANNOUNCEMENTSGovernor AppointsTwo New Membersto Board of TrusteesEarlier this year, Gov. Ralph Northamannounced two appointments to the VRSBoard of Trustees:Michael DisharoonMichael Disharoonof Virginia Beach is aprincipal and portfoliomanager at Palladium,a Norfolk-basedinvestment managementfirm.Susan T. Gooden, Ph.D.Susan T. Gooden, Ph.D.,of Henrico is the dean ofthe L. Douglas WilderSchool of Governmentand Public Affairs atVirginia CommonwealthUniversity.To see all members of the Board of Trustees,visit varetire.org.Tax Forms Comingin JanuaryIf you received a monthly retirementbenefit from VRS in 2020, expecta Form 1099-R from VRS in lateJanuary. The Form 1099-R showsyour benefit payments, taxeswithheld and other information forthe previous calendar year. Use theform to complete your 2020 federaland state income tax returns.DON’T F ORGET:Imputed Income Impacts Tax FilingDoes the value of your group lifeinsurance coverage exceed 50,000?If so, the value of the excessamount is consideredimputed income andis subject to incometaxes and FICA(Social Security andMedicare) taxes.If you have VRSGroup Life Insurancecoverage, VRSautomatically withholds FICA taxesand sends you a Form W-2 each yearshowing the amount withheld andthe additional taxable income.Use the Form W-2 to file federaland, if applicable, state incometaxes. As your life insurancecoverage reduces, the amount ofimputed income also reduces. If RETIREE NEWS WINTER 2020See Your Formsin myVRSYou can find a Form1099-R for each yearyou have filed taxes asa retiree under IncomeTax Information inyour myVRS account. You will alsofind a Form W-2 for each year thevalue of your group life insurancecoverage exceeded 50,000.Note: If VRS needs to send youa corrected form, the correctedversion will not be displayed inmyVRS.DID YOU NOTICE OUR FACEL IF T?VRS Website Gets a New LookTo better serve you, varetire.org hasa fresh design that works on mobiledevices as well as your computer.Look for the new Already Retired?tab on the homepage to help younavigate to your familiar sectionsof the website. In addition, you’lldiscover Just forRetirees pointers oneach relevant benefitand program page.If you havesupplementalsavings in definedcontribution plans,you can quicklynavigate to those plansusing the new DefinedContribution Plans4your coverage reduces to less than 50,000, these taxes will no longerbe withheld and you will no longerreceive a W-2 fromVRS.button at the top of the homepage.The myVRS button has also movedto the top right of the page. If youneed to contact VRS, scroll down tothe website footer to locate phoneand email information, as well asadditional links.
VRS NEWS AND ANNOUNCEMENTS continued from page 4E L I G I B L E T O REC EIV E TH E H EA LTH INSURANCE CREDIT?Keep VRS Up to DateIf you retired from a participating employer with at least 15 yearsof service, the health insurance credit provides a reimbursementto assist with the cost of your health insurance premiums. Thecredit ends upon your death and cannot exceed the amount of yourindividual health insurance premium.If VRS is deducting your health insurance premium from your retirement benefit,you do not need to apply for the health insurance credit. This deduction appearson your Benefit PaymentSummary page in myVRS.If VRS is not deducting yourhealth insurance premium orif you have eligible healthinsurance coverage in additionto your employer-sponsoredcoverage, complete andsend the Request for HealthInsurance Credit (VRS-45) toVRS to ensure you receive themaximum credit. The VRS-45is available at varetire.org or bycalling 888-827-3847. Keepingyour information currentensures you receive the proper credit amount and are not at risk for receiving anoverpayment, which would require you to reimburse VRS.The health insurance credit is a dollar amount set by the General Assembly foreach year of service and is added to your monthly retirement benefit if you areeligible. It provides a reimbursement to assist eligible retirees with the cost ofhealth insurance premiums.Qualifying health plans: Individual health plans Coverage as a dependent on a spouse’s plan Employer-sponsored health plans, including the State RetireeHealth Benefits Program Medicare Part B Dental and vision plans Prescription drug plans, including Medicare Part DAll non-teacher school division employees who retired with at least 15 yearsof service credit will begin receiving the benefit under new legislation effectiveJuly 1, 2021. See Non-Teacher Retirees Eligible for Health Insurance Credit in 2021on page 6 for more information.Attention RetiredPublic SafetyOfficersThe federal HealthcareEnhancement for LocalPublic Safety (HELPS) Retirees Actallows eligible retired public safetyofficers to exclude a certain amountper year from retirement incomeused for qualified health insurancepremiums or long-term care insurancepremiums, if the premium is deducteddirectly from their retirement benefit.Premiums covering yourself, yourspouse and dependent children may beeligible for this tax exclusion. You mustclaim the insurance premium exclusionon your tax return. The Form 1099-Rthat you receive reflects total taxableincome without any adjustment for thisbenefit. For more information, contacta tax advisor or the IRS at 800-8291040, or visit irs.gov.Use Account Access to RequestDefined Contribution PlanDistributionsYou no longer need to submit a form torequest a distribution from your VRSdefined contribution plan. Just log intoAccount Access at varetire.org/dcp-login.Select the account from which you wishto withdraw funds. Separate requests arerequired for each defined contributionplan in which you participate. Forexample, if you participate in theCommonwealth of Virginia 457Deferred Compensation Plan and theVirginia Cash Match Plan and wishto receive distributions from bothaccounts, you must make two separaterequests through Account Access.For more information or to request adistribution by phone, contact ICMARC at 877-327-5261, select option 1and ask for a Participant ServicesRepresentative.RETIREE NEWS WINTER 2020 5
Non-Teacher School Division RetireesEligible for Health Insurance Credit in 2021Starting July 1, 2021, all non-teacher school division employees who retired with at least15 years of VRS service credit will be eligible for a monthly health insurance credit of 1.50 per year of service under legislation passed during the 2020 General Assembly session.What do I do if I receive a letter?The letter will provide information aboutthe benefit and will include instructionson how to update your health insuranceinformation. You will need to completethe steps provided in the instructions tobegin receiving your benefit.Already receive the Credit?The legislation also removes the 45cap on the credit. Retired non-teacherschool division employees currentlyreceiving a 45 credit may see anincrease in the credit amount.Non-teacher school division employeeswho retired on disability before July 1,2020, will not be affected if this measurewould reduce their current monthlycredit amount.2021 DIRECT DEPOSIT SCHEDULEMONTH OF:6DEPOSITED ON:DecemberDecember 31, 2020JanuaryFebruary 1FebruaryMarch 1MarchApril 1AprilApril 30MayJune 1JuneJuly 1JulyJuly 30AugustSeptember 1SeptemberOctober 1OctoberNovember 1NovemberDecember 1DecemberDecember 31 RETIREE NEWS WINTER 2020How will I know if I’m eligible?In early summer, VRS will identify andmail eligible school division retirees aletter explaining their new eligibility. Theletter will include instructions on steps totake to begin receiving the benefit. In themeantime, ensure that your address andcontact information is up to date throughyour myVRS account at myVRS.varetire.org so that you receive your letter if youare eligible.If you are a retired non-teacher schooldivision employee who already receivesthe health insurance credit, your benefitmay increase. The legislation removesthe 45 per month cap on the credit.VRS will notify you by mail if yourbenefit will increase.Where do I find more information?More information will be available onthe VRS website in summer 2021 andin the summer issue of Retiree News.RETIREE PROFILE: ED MAYHEW continued from page 5amazing accomplishments. Helen Kleinis one example: She was in her 50s whenshe first started running and ended uprunning 28 races of 100 miles or longerfrom age 56 to 80. You don’t have todo that; but I wanted to show what’spossible. You can get fitter than youwere, and you can get fitter than peopleyounger than you.When writing my book Age Blasters:3 Steps to a Younger You, I found thatthe most important factors are a strongdesire to get fit, a belief that it is actuallypossible to feel younger and a plan ofaction to accomplish the goal of feelingyounger.What advice do you have forliving well in retirement?My best advice is to find somethingthat you enjoy doing and make surethat you keep moving. Find stuff thatkeeps you on your feet and keeps youoff your seat!I know that a lot of people areconcerned about staying mentallysharp. The number one thing to staymentally sharp is to keep moving,to have an exercise program. Five30-minute walks a week. Moderateto vigorous physical activity is moreimportant than crosswords andSudoku. Those are good, too, butexercise is the number one thing!
RETIREE SPOTLIGHTRuth and Peter Gregory: Reunited in RetirementIf Ruth and Peter Gregory have anything to say about love, it’s that it’s never too late. They’ve had anunusual love story—one involving two engagements, four decades apart. Last year, at long last, theytied the knot.“To make up for lost time wemake a point on the 15th ofevery month to celebrate ouranniversary,” Peter says with asmile.Four years later and their lives hadchanged drastically. Ruth was newlyretired and dealing with the passing ofher husband; Peter was divorced andliving in Florida. Looking for a placeto spend the winter, Ruth too foundherself in Florida, about an hour’sdrive from Peter. One day he askedher if she’d like to have dinner and therest, as they say, is history.“It’s our only chance to makeit to 50 years, to try and catchup!” Ruth adds, affectionately.The two met in 1975 at thestudent-run radio station atColgate University in NewYork. They instantly hit it offand it wasn’t long before theygot engaged, making plans toone day wed at Chapel Houseon Colgate’s campus.“She came to my house for dinner andnever left,” Peter laughs. “We realizedat that point that we had always beenin love, that we were soulmates.”It wasn’t long before they wereengaged – again – and in June 2019they finally had their wedding atColgate’s Chapel House.“We essentially becameinseparable,” Peter remembersfondly.The pair moved to Virginiafor Peter to attend law schoolRuth and Peter on their wedding day at Colgate University,at Washington and Lee andthe place where it all began.Ruth to complete a master’sand had daughters. Ruth made a careerdegree in education from thefor herself in Virginia, in workforceUniversity ofdevelopment at Virginia WesternVirginia. NextDo You Have aCommunity College in Roanoke andthey moved outStory to Share?then Central Virginia CommunitywesttoUtah,Contact VRS atCollege in Lynchburg, where shethen Colorado.proffice@varetire.orgwith your uniqueserved as vice president of workforceBut, ultimately,retirement experiencessolutions. She continued her educationmarriage justor advice about life inas well, receiving a doctorate inwasn’trightattheretirement.community college leadership fromtime. Much toOld Dominion University.the disappointment of their families,they called off their engagement andIt wasn’t until 2014, decades after lastwent their separate ways.speaking, that Ruth was in DenverRuth drove back east; Peter stayed inColorado to practice law. The onceinseparable couple became strangers.They both settled down, got marriedfor a higher education conference.On a whim she looked up Peter, andthey caught up over dinner. Eachcontinued on their different pathswith the occasional email.Starting a marriage in retirement hasits advantages, they both agree.“We don’t have to fight over the kids,we don’t have to fight over our jobs, wedon’t have to fight over the mortgage,”Ruth says. “It makes it a whole loteasier to focus on our relationship.”Another point of agreement – it’sworth the time to reconnect with thosewho mean something to you.“Everybody’s journey is different,”Ruth explains. “If there’s someone outthere you’re curious about, go aheadand reach out. The worst thing thatcould happen is they’re happily marriedand you move on.”“Get in touch with anyone you feltwas your soulmate,” Peter chimes in,laughing. “I’ve never been happier.”RETIREE NEWS WINTER 2020 7
Virginia Retirement SystemP.O. Box 2500Richmond, Virginia 23218-2500PRSRT STDUS PostagePAIDRichmond, VAPermit No. 2399V R S B Y TH E N U MB ERSDirectorPatricia S. BishopPublic Relations DirectorJeanne L. ChenaultVRS AT A GLANCECommunications StrategyManagerVirginia SowersAT JUNE 30, 2020Senior Public Relations &Communications StrategistWendy D. JenkinsEditorMatthew KubisiakACTIVE MEMBERS:347,8088TOTAL RETIREESAND BENEFICIARIES:223,441 RETIREE NEWS WINTER 2020EMPLOYERS:837Virginia Retirement SystemP.O. Box 2500Richmond, VA 23218-2500Toll-free: 888-827-3847TDD: 804-289-5919retiree-info@varetire.orgvaretire.org
What inspired you to write about fitness, brain power and aging? I used to watch Jack LaLanne on TV in the 1950s. My mother liked to watch his show and we’d watch it together. He was a proponent of exercise and a healthy diet, so I became very interested in fitness from a
