Incentive Program

September 2010

Agenda

Purpose of the incentive program Program eligibility Description of the incentive Time period the incentive will be offered Other considerations

Health Insurance VRS Leave Payouts

Q&A on the program

Purpose of the Incentive Program

Reduce the anticipated potential for lay-offs in FY 11/12

Reduce the anticipated potential for salary and/or benefit reductions in FY 11/12

Program eligibility

At 6/30/2011 must be eligible for an unreduced retirement benefitAge 50 with at least 30 years in VRSAge 65 with at least 5 years in VRSMust have been employed for a full contract

year in FY 09/10

Incentive Program

Intended to be a one-time offer Resignation letter submitted at time of

electionMust resign no later than 6/30/2011

Legal agreement to be signed Decision to participate is irrevocable after

7 calendar days

Incentive Program

Does not affect any other benefitsLeave at separationHealth insurance benefits

Incentive Program

Period of election

October 1, 2010

through

November 30, 2010

Incentive Program

CPS Years at 6/30/2011 Benefit

Less than 7 Lump sum payment of $12,000

Paid on 9/15/11 OR 1/15/12

7 but less than 10 Lump sum payment of $12,000

Paid on 9/15/11 OR 1/15/12

OR

Heath insurance as if had 10 years with CPS (eligibility for Medicare Carve-out

Program)

10 or more Lump sum payment of $12,000

Paid on 9/15/11 OR 1/15/12

Useful links - VRSwww.varetire.org/Members/Index.asp

Plan 1

www.varetire.org/myVRS View your member information, including service credit and

compensation reported to VRS by your employer. Check the status of an application for retirement, purchase of

prior service or refund. Estimate your retirement benefit using current information. View and update your personal contact information online.

www.varetire.org/Members/Plan1/Education/Index.asp Registration and information on on-line Webinars by Topic

VRS seminars

Retirement Education Seminar I Schedule

November 10, 2010

Tidewater Community College, Va Beach Campus

Advanced Technology Center

8 am – 12 pm Topics

Psychological Adjustment and Planning for Retirement Mid- and Long-Term Financial Planning Estate Planning and Legal Readiness Register online:

www.varetire.org/Members/Plan1/Education/RESI/Index.asp

VRS Webinarsvaretire.org/Members/Plan1/Education/Webinars.asp

View Webinar on your computer while listening via the telephone

Sept. 23, 2010 Ready to Retire – Plan 1 10:00 – 11:00 am

Sept. 28, 2010 Payout Options 3:30 – 4:30 pm

Oct. 5, 2010 Demystifying the PLOP 10:00 – 11:00 am

Oct. 12, 2010 Health Insurance Credit 3:30 – 4:30 pm

Oct. 19, 2010 Overview – Plan 1 10:00 – 11:00 am

Oct. 26, 2010 Purchase of Prior Service – Plan 1 3:30 – 4:30 pm

Questions