The contract with the existing deferred compensation provider (third party administrator), Empower Retirement Services is expiring. This provided a
good opportunity for the Deferred Compensation Board to review the 457 Plan and look for options that
may be more beneficial for our employees.
After an independent financial advisor review, the
Deferred Compensation Board recommended that the current City 457 Plan be
transitioned to the Commonwealth of Virginia 457 Plan (COV 457), which is
managed by VRS. The current record keeper for the COV 457 Plan is ICMA-RC. The investment options selected by the COV 457 Plan are very good and provide participants with a wide variety of investment options (which include target date funds, various asset classes and a self-directed brokerage account).
A joint meeting of the City Council and the School
Board about the proposed changes was held on December 12, 2017. The City
Council approved the change on February 6, 2018. The School Board approved the change on February 13, 2018.
During the interim weeks, numerous opportunities for
information will be available to City and School current and former employees, including many
materials on this webpage. (Please note that these materials will be updated as
new information becomes available, so please check this page often.)
No action is necessary by participants at this time. Participants will receive more details from VRS and ICMA-RC before the transition later this year.