1. myVRS Navigator Patricia S. Bishop, VRS Director Barry C. Faison, Chief Financial Officer Kathryn A. Quiriconi, Controller

2. 2 VRS Vision “To be the trusted leader in the delivery of benefits and services to those we serve.” The VRS Vision sets our direction, guides our plans and actions and serves as the foundation for our interactions with customers.

3. 3 VRS Vision for myVRS Navigator The VRS vision for myVRS Navigator: Replace 20-year-old technology infrastructure Automate tasks and streamline processes Maintain superior customer service to a growing population Build on features of myVRS to provide online service and tools for employers, members and retirees Meet evolving customer expectations: individualized approach, education, online transactions, 24-7 accessibility

4. 4 HR Actions Drive Pension Benefits Pensions are benefits: Like other employee benefits, the value of the pension benefits does not change simply as a result of payroll actions In the past, creditable compensation was reported by payroll and fluctuations in pay resulted in negative impacts on pension benefits Today, creditable compensation is derived from annual salary Pensions are affected by employment actions; this creates a new importance for HR departments myVRS Navigator is driven by HR actions, with data recorded in HR systems

5. 5 Three Systems, One Team myVRS Navigator CIPPS PMIS

6. 6 myVRS Navigator Launched in 2012 as part of VRS’ multi-year, multi-phase Modernization: Gave employers immediate online access to member information Required employers to report only new or changed information Provided platform for enhanced services for employers and members

7. 7 myVRS Navigator Next Phase The next phase to launch in December 2015 is refunds processing: Reduce burden to employers by eliminating certification Allow employees to follow refund Distribution of refunds electronically to employees via ACH credit Align with best practices in the financial industry

8. 8 myVRS Navigator Next Phase Additional releases planned for 2016 and 2017: New estimators and educational features available Enhanced member portal for self-service Retirement processing online

9. 9 In the Future for Members Simulate benefit options Apply for retirement or refund online Enroll in optional benefits View all VRS benefits in one place Designate beneficiaries Access educational opportunities Contact VRS via secure message or email Track the status of requests Update address and other info Receive alerts and notices

10. myVRS Navigator Supports Legislative and GASB Changes

11. 11 myVRS Navigator and GASB Changes VRS developed and launched myVRS Navigator in 2012, before two major events: the Hybrid Retirement Plan and the changes in GASB standards myVRS Navigator enabled administration of the Hybrid Retirement Plan myVRS Navigator made GASB compliance possible, because of the greater detail in member reporting Every agency is audited for data in myVRS Navigator Reconciliation (DOA/VNAV/CIPPS) is done for you through a collaborative effort

12. 12 New GASB Standards What Do the New Governmental Accounting Standards Board (GASB) Standards Mean for Employers? Each employer that issues financial statements now has to report retirement plan liabilities on the financial statements. This includes the Commonwealth of Virginia, some of the higher education institutions and independent agencies. Employers started reporting net liabilities for pension plans in their FY 2015 financial statements, using FY 2014 actuarial valuation data.

13. 13 New GASB Standards Which employers are affected by the new GASB standards? All state agencies audited for census data by the APA – Employers who appear in Commonwealth’s Comprehensive Annual Financial Report (CAFR) – Employers who publish their own CAFRs More emphasis placed on census data – Census data includes date of hire, separations, leave, gender, date of birth, contracted salary amount – Foundation for liability calculations – Responsibility for data accuracy shifted to employers – Increased audit work at employers

14. 14 VRS Actions on GASB Changes Expanded availability of data in myVRS Navigator system – Developed report for employer to extract myVRS Navigator data changes (hires, terminations, job changes, status changes, salary changes, etc.) – Supplements monthly Snapshot reports Prepared supplemental information for actuary – Analysis of annual employer contribution revenue to identify variances from current contributions due – Detailed report identifying components of change in plan assets between periods – Report of employer contributions using current year creditable compensation for employer allocations

15. HR and myVRS Navigator

16. 16 VRS Employers Employer TypeMethod of Reporting Number of Employers Number of Employees State Agencies PMIS19961,268 Batch2024,387 On-line83,308 Total22788,963 School Divisions Batch2291,232 On-line12357,965 Total145149,197 Political Subdivisions Batch4443,764 On-line54462,616 Total588106,380 Grand Total960344,540

17. 17 Preparing for myVRS Navigator Conducted comprehensive review of the retirement processes Determined current information did not support efficient retirement processing Conducted best practice research Developed a standard method to gather creditable compensation and earned service data Established a consistent relationship between creditable compensation and earned service Retirement should be an event, not a process

18. 18 Impact on myVRS Navigator Established system business rules – First business day of the month rule: Enrollment Separations Pay increases Job changes Leave of absence – Service and creditable compensation earned over contract period – Defining contract periods and length of contract – Job name determines the retirement benefit plan – Annual salary defines creditable compensation

19. 19 Reporting Member Data Two ways to report: – Online – Batch Enroll and maintain employees PMIS – VRS receives daily log file – Translates log file to batch format – myVRS Navigator makes assumptions when translating file – Role SOC code defines VRS job name – Multiple types of PMIS transactions with the same effective date included in the batch update Job name and pay increase entered simultaneously both come across

20. 20 Three Systems, One Team myVRS Navigator CIPPS PMIS

21. 21 Data Flow PMIS Agency keys transactions into PMIS PMIS generates daily log file for VRS and DOA Navigator Translates daily log file Load translated file Post transactions, or List on PMIS cancelled record report Agency Reviews PMIS cancelled record report Updates VNAV or PMIS, if applicable Generate and confirm Snapshot DOA Produces monthly VRS reconciliation report Processes agency charge/refund

22. 22 Data Corrections Batch processing is for enrolling and maintaining members only Corrections must be made online – Changing a line of data previously reported – For example, the same type of transaction with the same effective date, i.e.: Salary change to $50,000 with effective date of 12/10 keyed into PMIS on 11/15 After reviewing the PMIS transactions, agency realizes a salary of $55,000 with an effective date of 12/10 should have been keyed instead The correction is made on 11/17 and will appear on the PMIS Cancelled Record Report

23. 23 Management Discretion “VRS acknowledges that you may implement management policies based on your business needs to be used in conjunction with these business rules.” – From: Understanding myVRS Navigator’s Calculations and Business Rules Events may need to be reported differently in myVRS Navigator than they are in PMIS to correctly administer the pension benefit – 24/7 facilities schedules may not align with 1 st business day of the month – Member terminated and unable to pay pre-tax contributions cannot earn service credit, termination must be changed to last day of previous month – Higher Ed contract start dates and contract length

24. 24 Ongoing Improvements Examples of recent improvements: – Political appointees – VaLORS/SPORS new hires – DJJ Role SOC Code Items under review for improvement: – Process multiple valid salary change reasons made on the same day – Evaluate online interventions for salary increases of more than 10%

25. 25 Contacting VRS Employer Confirmation Unit: employerconfirmation@varetire.org employerconfirmation@varetire.org Employer Confirmation Unit: employerconfirmation@varetire.org employerconfirmation@varetire.org Employer Representative Marcia Edmonds medmonds@varetire.org medmonds@varetire.org Employer Representative Marcia Edmonds medmonds@varetire.org medmonds@varetire.org Phone Toll-free: 1-888-VARETIR (827-3847), follow the prompts TDD: 1-804-289-5919 Phone Toll-free: 1-888-VARETIR (827-3847), follow the prompts TDD: 1-804-289-5919 Website www.varetire.org/employers (under the Employer tab) Website www.varetire.org/employers (under the Employer tab)