defined contribution plans advisory committee - 02

Defined Contribution Plans Advisory Committee - 02 September 2021 Meeting MaterialsDefined Contribution Plans Advisory Committee (DCPAC) Meeting 1111 E. Main Street, Pavilion Building
Richmond, VA 23219 Thursday, 9/2/2021 1:00 - 3:00 PM ET
I. Welcome II. Meeting Minutes
Adoption of the Minutes from the June 24, 2021 Meeting DCPAC Minutes 06-24-2021 - Page 2
III. DCPAC Appointments Appointment to fill unexpired term ending June 20, 2022 RBA for DCPAC Appointment
Motion to approve recommendation for appointment RBA_AppointDCPAC_Member - Page 8
IV. Investments DC Investment Belief Statements RBA for DC Investment Belief Statements RBA Revised DC Plan Investment Belief Statements - Page 9 Annual Investments Review Final DC Investments 9-2-21 slide deck - Page 10
V. Administration
Administrative Reports & Communications DC Plans and Hybrid Plan Update ORPHE 2021Q2 Administrative Summary - Page 36
VI. Discussion of New Ideas VII. 2021 Meetings
2021 Meetings
December 2, 2021 at 1:00 p.m. ORPHE Annual Employer Update
(not a meeting of the DCPAC)--September 30, 2021 Upcoming poll for 2022 meetings
VIII. Adjournment IX. Appendix
For informational purposes only; will not be reviewed in detail during the meeting, November 12, 2015 VRS DC Investment Beliefs - Page 62 Annual DC Investment Review - FY 2021 - Page 65 2021Q2 Administrative Summary [Appendix Slides] - Page 101 Q2 2021 Quarterly Review - VRS Copy - FINAL_LORES - Page 112 GOA July 2021 - Many Participants Do Not Understand Fee Information - Page 195
Master Page # 1 of 318 - Defined Contribution Plans Advisory Committee (DCPAC) Meeting 9/2/2021 ________________________________________________________________________________
Defined Contribution Plans Advisory Committee Meeting Minutes
June 24, 2021 Page 1 of 6
Minutes
An electronic meeting, held in accordance with §2.2-3708.2(A)(3) of the Code of Virginia and Chapter 56 of the 2020 Special Session I Acts of Assembly, of the Defined Contribution Plans Advisory Committee (DCPAC) of the VRS Board of Trustees convened electronically on June 24, 2021, with the following members present:
Committee Members:
Hon. J. Brandon Bell, Chair Dr. Susan Gooden Shannon Irvin Rick Larson Brenda Madden David Winter
Members of the Board of Trustees: O’Kelly McWilliams, III John Bennett Michael Disharoon William Garrett
VRS staff members in attendance: Trish Bishop, Steve Cerreto, Jeanne Chenault, Michael Cooper, Jon Farmer, Josh Fox, Kelly Hiers, KC Howell, Robert Irving, Ciara Lawson, Rebecca Nicholas, Joyce Monroe, Laura Pugliese, Kristy Scott, Michael Scott, Jillian Sherman, Jennifer Schreck, Peter Thompson, Rachel Webb and Cindy Wilkinson.
Also in attendance were Lauren Albanese, Financial Investment News; Adam Rosatelli, Virginia Senate Finance & Appropriations Committee Staff; Kimberly Sarte, Joint Legislative Audit and Review Commission Staff; Latosha Johnson, Virginia Department of Planning and Budget Staff; and Denise Fortune, Voya The meeting convened at 1:00 p.m.
Ms. Sherman served as facilitator and walked participants through the logistics of an electronic meeting. Ms. Sherman turned the meeting over to Mr. Bell to call the meeting to order.
Chairman Bell welcomed committee members, board members, VRS staff, representatives from other stakeholder groups and members of the public. Mr. Bell noted that given the current circumstances related to COVID-19, the DCPAC was unable to meet in person. However, utilizing electronic means, the DCPAC could hold this meeting in accordance with §2.2-3708.2(A)(3) of the Code of Virginia and Chapter 56 of the 2020 Special Session I Acts of Assembly as it relates to conducting business during the pandemic.
Mr. Bell took a roll call of each DCPAC member for attendance purposes:
Dr. Gooden – Present Ms. Irvin – Present Mr. Larson – Present Ms. Madden – Present Mr. Winter – Present Mr. Bell – Present
There was no public comment.
APPROVAL OF MINUTES
Upon a motion by Mr. Bell, with a second by Mr. Larson, the minutes of the April 15, 2021 meeting were approved.
Mr. Bell asked for each Committee member to vote on the motion:
Dr. Gooden - Aye Ms. Irvin – Aye Mr. Larson – Aye Ms. Madden – Aye Mr. Winter – Aye Mr. Bell – Aye Trish Bishop, VRS Director, informed the Committee that due to the nature of electronic meetings, a change was made to the format of the presentation materials to help facilitate discussion and focus attention on the most important items .
DC PLANS INVESTMENTS UPDATE
Laura Pugliese, Portfolio Manager, Defined Contribution Plans, shared with the Committee a new performance table that provided an overview of the number of investment options that met or exceeded their benchmarks based on the 1-, 3-, 5-, and 10-year periods in the Unbundled DC Plan Structure and Bundled TIAA ORPHE Structure for the period ending April 30, 2021. She informed the Committee that the investment options in the Unbundled DC Plan Structure, including the Target Date Portfolios and individual investment options, as well as the investment options in the Bundled TIAA ORPHE Structure are performing as expected.
The Committee found the new format helpful. Ms. Irvin inquired if the information would be presented differently when investment options did not meet or exceed the benchmark performance and noted her preference for more information. Ms. Pugliese informed the Committee that additional information could be provided to address any underperforming funds.
Ms. Pugliese noted the difference in the number of total options measured over a specific period can differ across the 1-, 3-, 5- and 10-year periods because the total number of options are based on investment options’ inception dates. She stated for example an investment option may not have a 10- year performance history based on its inception date resulting in the total number of investment options within the 10-year category differing from the total number of investment options in other periods. She also noted that additional detailed information would be provided to the Committee in those instances when investment options did not meet or exceed the benchmark performance.
Ms. Pugliese shared with the Committee that the performance reports for the Unbundled DC Plans and TIAA ORPHE for the period ending April 30, 2021, were included the appendix.
Ms. Pugliese also thanked the Committee for their feedback and suggested edits to the VRS DC Investment Belief Statements. She noted an opportunity was provided to receive additional comments during the June 24th meeting from the DCPAC prior to the September 21st meeting of the VRS Board of Trustees. There being no additional comments at this time, Ms. Pugliese suggested an extension to the deadline for additional comments up until July 16th and informed the Committee that a red lined version with any additiona edits, a final clean document and request for board action would be provided to the DCPAC at the September 2nd meeting.
Following Ms. Pugliese’s report, the Committee took a five-minute recess.
The meeting reconvened upon the following roll call vote:
Dr. Gooden – Present Ms. Irvin – Present Mr. Larson – Present Ms. Madden – Present Mr. Winter – Present Mr. Bell - Present
ADMINISTRATIVE REPORTS AND COMMUNICATIONS UPDATE
Kelly Hiers, DC Plans Administrator, provided an update of the VRS Defined Contribution Plans for the first quarter ending March 31, 2021. Ms. Hiers shared the total assets and accounts under management across all DC plans as of March 31, 2021. Ms. Hiers informed the Committee of recent initiatives, including the ICMA-RC name change to MissionSquare Retirement. She noted that phase out of the ICMA-RC name is expected to be completed in September 2021. Ms. Hiers also provided an update regarding financial planning services with MissionSquare, highlighting preliminary results since the launch of the service. Ms. Hiers shared that VRS DC Plans was the recipient of the 2021 Communicator Award of Distinction for its COVID-19 Response Campaign. Ms. Hiers also provided an overview of the COV 457 Splash Screen initiative to encourage eligible employees to increase deferral elections and participation in the plan. She noted the new feature utilizes enhanced active choice and is presented to eligible employees behind the account login.
DC Plans and Hybrid Plan Update
Ms. Hiers provided an update on total assets and accounts in the COV 457 and Virginia Cash Match plans through March 31, 2021. She also provided a review of total assets and accounts in the Hybrid Retirement Plan for the first quarter of 2021. Ms. Hiers provided an overview of Hybrid Retirement Plan participation highlights, noting the overall participation in Hybrid 457 voluntary contributions and the number of hybrid plan members making voluntary contributions. Ms. Hiers provided an overview of the first quarter DC Plans goal focused on the Annual Review and Benchmarking. The 2020 Annual Service Review with MissionSquare was held electronically on April 21 and April 28, 2021. She shared with the Committee that all 2020 performance standards were met and highlighted several agenda topics addressed as well as current and future initiatives, including a future initiative to increase participation in the COV 457 Plan and an initiative designed to allow employers to customize a pay increase campaign for their employees. With respect to the COV 457 Participation initiative, Dr. Gooden inquired if there was opportunity to further customize the direct mail campaign communication materials to reach eligible participants in underserved communities across the Commonwealth, including employees in rural areas and people of color. Ms. Hiers indicated that although information as it pertains to the race and ethnicity of the DC Plans participant population was not available, efforts could be made to target participants by gender and potentially geographic region. Mr. Larson also shared efforts underway in the higher education community to approach policies through a diversity, equity, and inclusion (DEI) lens to ensure information has a broad appeal, and inquired of measures taken by staff to address diversity and inclusion in the absence of information about race and ethnicity. Ms. Hiers informed the Committee that efforts are made to ensure imagery used across various communication channels is representative of diverse populations and language content is crafted through a readability and accessibility lens so the average person can read and understand the information. Ms. Hiers provided an update of VRS DC Plans’ participation with the Public Retirement Research Lab (PRRL), a collaboration between the National Association of Government Defined Contribution Administrators (NAGDCA) and the Employee Benefit Research Institute (EBRI). Ms. Hiers shared with the Committee some of the data analysis the joint venture has produced, including a white paper published in February 2021 that looks at the state of public sector plans based on PRRL research. She also noted that a new benchmarking tool based on established standards that are consistent across all participating record keepers will allow for the plan to benchmark against public sector peers that have a similar plan structure.
ORPHE Update Ms. Hiers provided an overview by provider of total ORPHE assets, participants and average balances for the first quarter of 2021. She also gave an update on ORPHE provider selections and provider initiatives for the first quarter of 2021. Ms. Hiers informed the Committee of efforts underway to change and streamline the Administrative Summary in order to share the most relevant information with the DCPAC, including the use of dashboards to measure changes and performance in cash flows, contributions, deferral rates, distributions, participation rates, and investment holdings. Ms. Hiers included in the meeting materials the Q1 2021 Administrative Summary Appendix Supplement for the Committee to review. The Committee thanked Ms. Hiers for her presentation.
OTHER BUSINESS
Discussion of New Ideas
Mr. Larson discussed the opportunity for employers to assist DC Plans with promoting strategic communication initiatives around key objectives such as increasing contributions or participation rates. Given the role the Committee plays, Mr. Larson also expressed interest in being added to the email distribution for the monthly Employer Update.
Staff welcomed the opportunity to leverage assistance from employers to help promote and encourage employees to save more for retirement and indicated that DCPAC members would be included on the Employer Update email distribution.
Mr. Larson indicated that he would be willing to share and discuss the findings from his organization’s exercise in reviewing materials through a DEI lens. Staff indicated they would be interested in receiving information and discussing their findings.
UPCOMING DEFINED CONTRIBUTION PLANS ADVISORY COMMITTEE MEETINGS
Mr. Bell confirmed the following DCPAC meeting dates for 2021: The next meeting of the DCPAC will take place on September 2, 2021, from 1:00 p.m. to 4:00 p.m., with a remaining meeting on December 2, 2021 from 1:00 p.m. to 4:00 p.m. The ORPHE Annual Employer Update is scheduled for September 30th, as required by the DCPAC Charter. This is not a DCPAC Committee meeting, however members may attend if interested.
ADJOURNMENT Mr. Bell made a motion to adjourn the meeting. Ms. Irvin seconded the motion. There being no further business, Mr. Bell adjourned the meeting at 2:29 p.m. J. Brandon Bell, Chair Defined Contribution Plans Advisory Committee
Request for Board Action RBA 2021-09-____
Appointment of DCPAC member.
Requested Action
The Board appoints Meghan F. Coates to fill the unexpired term of Kathleen T. Seay, which ends June 20, 2022.
Rationale for Requested Action
Ms. Seay informed the Defined Contribution Plans Advisory Committee (DCPAC) that she would step down from the committee due to her retirement. Ms. Seay’s term expires on June 20, 2022.
Meghan F. Coates has been director of the Henrico County Department of Finance since August 1, 2020. She joined the Henrico County staff in 2019 as deputy director of Finance and also served as acting director of the department.
Prior to her service at Henrico County, Ms. Coates held several positions with Chesterfield County, including budget analyst, budget manager and director of budget and management. She earned a bachelor’s degree from Roanoke College and a Master of Science from Virginia Commonwealth University.
Ms. Coates is highly qualified and willing to be appointed to the DCPAC, and it is the Board’s pleasure to appoint her to the Committee.
Authority for Requested Action
Code of Virginia § 51.1-124.26 authorizes the Board to appoint such other advisory committees as it deems necessary. Each member appointment requires a two-thirds vote of the Board, and advisory committee members serve at the pleasure of the Board.
The above action is approved.
_________________________________________________ ________________________________ O’Kelly E. McWilliams, III, Chair Date VRS Board of Trustees
Request for Board Action RBA 2021-09-____
Approve Revisions to VRS Defined Contribution Plans Investment Belief Statements.
Page 1 of 1 September 21, 2021
Requested Action
The VRS Board of Trustees approves revisions to the VRS Defined Contribution Plans Investment Belief Statements.
Description/Background
In 2015 the Defined Contribution Plans Advisory Committee (DCPAC) along with senior investment staff completed a rigorous process with an outside consultant, Pension Consulting Alliance (PCA), to codify into a legacy document the VRS Defined Contribution Plans Investment Belief Statements. PCA surveyed all DCPAC members, and key senior investment staff members regarding forty-six belief statements under ten topical headings. Each survey participant scored the statements and provided comments. PCA reviewed the statement scores and looked for areas of agreement and areas of disagreement. PCA then discussed the survey results with the participants. The product of the discussions resulted in twelve Defined Contribution Plans Investment Belief Statements that were approved by the Board at its November 12, 2015 meeting.
The attached document reflects clarifications to the Defined Contribution Plans Investment Belief Statements and the document remains consistent with the Statements approved by the Board in November 2015. The DCPAC has reviewed and discussed the changes and supports their approval.
Rationale for Requested Action
The VRS Defined Contribution Plans Investment Belief Statements are intended to help guide the strategic management of the VRS DC Plans investment program. These Investment Belief Statements represent a high-level framework for making decisions that often require balancing multiple, often competing, factors and issues. The Defined Contribution Plans Investment Belief Statements provide context for VRS actions and reflect VRS values, with a focus on VRS maintaining its long-term commitment to provide benefits to its participants.
Authority for Requested Action
The Board adopts these Investment Belief Statements pursuant to its duty to oversee investments under the standard set forth in Code of Virginia § 51.1-124.30. Moreover, Code of Virginia § 51.1-124.22 authorizes the Board to promulgate regulations and procedures and make determinations necessary to carry out the provisions of Title 51.1.
The above action is approved.
_________________________________________________ ________________________________ O’Kelly E. McWilliams, III, Chair Date VRS Board of Trustees
DC Plans Investments September 2, 2021
DC Plans Investment Belief Statements
DC Plans Investment Belief Statements
• April 2021: The Committee and staff began a comprehensive review of the November 12, 2015 investment belief statements
• June 2021: Initial edits discussed and incorporated into the document with any additional edits to be included during the DCPAC September 2021 meeting
• September 2021: Finalize additional edits; DCPAC vote to approve revisions and recommend revisions to the Board • Additional edits provide further clarification and
improve sentence structure
1
Approved by the Board of Trustees: September 21, 2021
____________________________________________________________________
I. Introduction
The Virginia Retirement System (VRS) strives to be consistent withfulfills the fiduciary obligations outlined in the Code of Virginia, which require the VRS Board of Trustees (Board) to discharge its duties with respect to the defined contribution (DC) plans solely in the interest of the beneficiaries thereof and affords the Board the opportunity to contract with private corporations or institutions subject to the standards set forth in §51.1-124.30 to provide investment products and services. The Board, therefore, developed these DCDefined Contribution Plans Investment Beliefs to guide the strategic management of the VRS DC Plans investment program. These DC Investment Beliefsstatements represent a high-level framework for making decisions that require balancing multiple, often competing, factors and issues. In addition, the DCDefined Contribution Plans Investment Beliefs provide context for VRS actions and reflect VRS values, with a focus on maintaining the long-term commitment to provide benefits to participants.
II. VRS DC Investment Belief Statements
The Board developed the following DC Defined Contribution Plans Investment Belief Statements to guide its decisions and provide an anchor to the stated goals and objectives.
Goals and Objectives
A defined contribution plan provides participants is an individual account program whereby participantsto exercise discretion over their retirement assets in their accountsusing investment options selected by VRS or selected by the participant through the brokerage window. Each participant has his or her ownan individual risk tolerance, time horizon, and investment objectives.
1. The primary objective of the VRS DC Plans is to provide participants with an array of investment choices across a range of asset classes, risk levels and investment strategies so participants have the opportunity to develop a stream of retirement income stream that complements the VRS Defined Benefit (DB) Plan or other retirement income.
2. Given the vital role of the DC Plans in VRS’ primary retirement plan offerings, appropriate governance of the DC Plans is critical.
2
a. The VRS Board of Trustees has overall fiduciary authority over the DC investment program. To assist the Board in fulfilling its duty the Board has appointed a Defined Contribution Plans Advisory Committee to provide the Board with objective DC plan design and investment advice.
b. Governing documents such as the Charter for the DC Plans Advisory Committee,
DC Investment Policy Statements, Master Trusts and Plan Documents delineate various roles and responsibilities amongof the Board, the Committee, VRS Investment Sstaff and other interested parties.
3. VRS is responsible for offering a reasonable range of diversified portfolios to serve as the
Plans’ default investment option and for participants thatwho do not have the time, desire, or expertise to design and manage a diversified portfolio.
4. To the best extent possible, VRS will explore and implement capabilities, controls, and
procedures that are transferrable from VRS’ DB plan activities to VRS’ DC plans activities, particularly with respect to investments.
a. Well-structured alternative investments can enhance an individual participant’s portfolio risk/reward profile. VRS will examine methods for providing qualifying alternative investment options into its menu of pre-mixed diversified investment options, where feasible.
5. VRS will monitor and evaluate DC plans industry best practices and incorporate
them where feasible to seek to enhance plan outcomes as demonstrated by qualitative and quantitative measures.
6. Controlling and managing costs is critical to a successful DC plan investment program.
a. Investment options should provide competitive net-of-cost risk adjusted returns.
b. The DC Plans’ costs should be transparent to the individual participant.
c. Given VRS’ large-scale presence in the institutional marketplace, it is beneficial
for the individual participant to access VRS’ expertise and capabilities.
d. Unbundling of DC administration and investment activities should lead to improved cost management.
3
7. Investment option offerings mustshould present be wide-ranging options to accommodate participants’ varying investment knowledge and/or interest in managing their investments andwhile addressing the differences betweenamong participants at varying career stages.who are early on or in the midst of their careers and those who are nearing or in retirement.
a. Individuals mustshould be educated to recognize that their specific
programsinvestment plans require a long-term, multi-decade planning/investment horizon.
b. Investment horizons are unique to eachthe individual participant and may extend
beyond the accumulation phase into the retirement (decumulation) phase.
c. In keeping with industry best practice, the Aadministrative and investment aspects of the individual’s overall programinvestment plan need toshould be unbundled/disaggregated to allow for maximum design flexibility.
d. VRS will make a concerted effortshould continue efforts to contact eligible to
reach out to employees who are eligible but not participating in the VRS DC plans to provide anbuild awareness of theplan benefits. available through the plans.
8. To provide investment flexibility to individual participants, a self-directed brokerage window can be an effective feature of the VRS DC Plans. The self-
directed brokerage window that VRS provides in the VRS DC Plans can serve as an effective investment tool for individual participants.
9. Managing the decumulation of retirement assets is critical. VRS will
explore viable solutions to assist participants in managing this area.VRS should continue to explore viable solutions to assist participants in managing the critically important task of decumulation of retirement assets.
10. Participant investment education is a valuable to participants and necessary for a successful programresource to participants and can enhance a successful program.
a. Participant investment education Minimum education should cover certain key topics consistent with industry best practices including:
i. Identifying keyprincipal retirement planning risks (see Belief Statement 11).
ii. Understanding the accumulation phase vs.versus the decumulation phase.
Formatted: Indent: Left: 0.25", First line: 0.33"
4
iv. Considering the impact of non-plan (outside) assets.
v. Considering other potential sources of retirement income.
b. VRS should also exploreconsider making available various investment advice and financial planning solutions/products available to participants.
11. The VRS should seek to inform DC plan participants about keyfundamental retirement planning risks.
a. Shortfall risk – Tthe probability or potential that an individual may not meet his/her long-term retirement savings goal.
b. Longevity risk – Tthe potential that an individual may outlive his/her retirement assets. c. Drawdown risk – Tthe impact that short-term declines in a portfolio values can have on long-term valuessuccess.
1
Approved by the Board of Trustees: September 21, 2021
____________________________________________________________________
I. Introduction
The Virginia Retirement System (VRS) fulfills the fiduciary obligations outlined in the Code of Virginia, which require the VRS Board of Trustees (Board) to discharge its duties with respect to the defined contribution (DC) plans solely in the interest of the beneficiaries thereof and affords the Board the opportunity to contract with private corporations or institutions subject to the standards set forth in §51.1-124.30 to provide investment products and services. The Board, therefore, developed these Defined Contribution Plans Investment Beliefs to guide the strategic management of the VRS DC Plans investment program. These statements represent a high-level framework for making decisions that require balancing multiple, often competing, factors and issues. In addition, the Defined Contribution Plans Investment Beliefs provide context for VRS actions and reflect VRS values, with a focus on maintaining the long-term commitment to provide benefits to participants.
II. VRS DC Investment Belief Statements
The Board developed the following Defined Contribution Plans Investment Belief Statements to guide decisions and provide an anchor to the stated goals and objectives.
Goals and Objectives
A defined contribution plan provides participants an individual account to exercise discretion over their retirement assets using investment options selected by VRS or selected by the participant through the brokerage window. Each participant has an individual risk tolerance, time horizon, and investment objectives.
1. The primary objective of the VRS DC Plans is to provide participants with an array of investment choices across a range of asset classes, risk levels and investment strategies so participants have the opportunity to develop a retirement income stream that complements the VRS Defined Benefit (DB) Plan or other retirement income.
2. Given the vital role of the DC Plans in VRS’ primary retirement plan offerings, appropriate governance of the DC Plans is critical.
a. The VRS Board of Trustees has overall fiduciary authority over the DC investment program. To assist the Board in fulfilling its duty the Board has
2
appointed a Defined Contribution Plans Advisory Committee to provide the Board with objective DC plan design and investment advice.
b. Governing documents such as the Charter for the DC Plans Advisory Committee,
DC Investment Policy Statements, Master Trusts and Plan Documents delineate various roles and responsibilities of the Board, the Committee, VRS staff and other interested parties.
3. VRS is responsible for offering a reasonable range of diversified portfolios to serve as the
Plans’ default investment option and for participants who do not have the time, desire, or expertise to design and manage a diversified portfolio.
4. To the extent possible, VRS will explore and implement capabilities, controls, and
procedures that are transferrable from VRS’ DB plan activities to VRS’ DC plans activities, particularly with respect to investments.
a. Well-structured alternative investments can enhance an individual participant’s portfolio risk/reward profile. VRS will examine methods for providing qualifying alternative investment options into its menu of pre-mixed diversified investment options, where feasible.
5. VRS will monitor and evaluate DC plans industry best practices and incorporate
them where feasible to seek to enhance plan outcomes as demonstrated by qualitative and quantitative measures.
6. Controlling and managing costs is critical to a successful DC plan investment program.
a. Investment options should provide competitive net-of-cost risk adjusted returns.
b. The DC Plans’ costs should be transparent to the individual participant.
c. Given VRS’ large-scale presence in the institutional marketplace, it is beneficial
for the individual participant to access VRS’ expertise and capabilities.
d. Unbundling of DC administration and investment activities should lead to improved cost management.
7. Investment offerings should present wide-ranging options to accommodate participants’
varying investment knowledge and/or interest in managing their investments while addressing the differences among participants at varying career stages.
3
a. Individuals should be educated to recognize that their specific investment plans
require a long-term, multi-decade planning/investment horizon.
b. Investment horizons are unique to the individual participant and may extend beyond the accumulation phase into the retirement (decumulation) phase.
c. In keeping with industry best practice, the administrative and investment aspects
of the individual’s overall investment plan should be unbundled/disaggregated to allow for maximum design flexibility.
d. VRS should continue efforts to contact eligible employees who are not
participating in the VRS DC plans to build awareness of plan benefits.
8. The self-directed brokerage window that VRS provides in the VRS DC Plans can serve as an effective investment tool for individual participants.
9. VRS should continue to explore viable solutions to assist participants in managing the critically important task of decumulation of retirement assets.
10. Participant investment education is a valuable resource to participants and can enhance a successful program.
a. Participant investment education should cover certain key topics consistent
with industry best practices including:
i. Identifying principal retirement planning risks (see Belief Statement 11).
ii. Understanding the accumulation phase versus the decumulation phase.
iii. Analyzing the costs associated with various investment options.
iv. Considering the impact of non-plan (outside) assets.
v. Considering other potential sources of retirement income.
b. VRS should also consider making various investment advice and financial planning solutions/products available to participants.
11. VRS should seek to inform DC plan participants about fundamental retirement planning risks.
a. Shortfall risk – The probability or potential that an individual may not meet his/her
4
long-term retirement savings goal.
b. Longevity risk – The potential that an individual may outlive his/her retirement assets. c. Drawdown risk – The impact that short-term declines in a portfolio can have on long-term values.
Annual Investments Review Highlights
DCPAC Investment Duties and Responsibilities
• Review trends and identify best practices
• Assist staff in identifying potential asset classes and investment strategies
• Perform annual comprehensive review of investment program with emphasis on three-year and five-year periods
• Review VRS Defined Contribution Plans Investment Belief Statements
• Review DC Plans Investment Policy Statements
• Provide recommendations to the Board as needed
• The complete annual investments review package is found in the Appendix
• Recommended changes to the VRS Defined Contribution Plans Investment Belief Statements
• Staff does not have any recommended changes to the two DC investment policy statements (unbundled & bundled)
• As of June 30, 2021 DC plans assets overseen by investment staff totaled $6.6 billion ($6.3 billion unbundled DC plans; $333.4 million TIAA ORPHE
• An unbundled DC plan structure provides investment staff with maximum flexibility whereas a bundled plan structure does not provide the same flexibility • TIAA operates as a bundled plan provider for the ORPHE
• No changes were made to the unbundled DC plans investment platform
• No changes were made to the bundled TIAA ORPHE investment platform
Unbundled DC Plans
Unbundled DC Plans Data for period ending June 30, 2021
Returns 3 Year Statistics 5 Year Statistics
Fund Type
Standard Deviation
Sharpe Ratio
Tracking Error
Information Ratio
Standard Deviation
Sharpe Ratio
Tracking Error
Information Ratio
% % % % % % % % Money Market Fund Capital 0.08 0.18 1.44 1.36 n/a n/a n/a n/a n/a n/a n/a n/a FTSE 3 Month Treasury Bill Index Preservation 0.08 1.31 1.14 n/a n/a n/a n/a n/a n/a Excess Return 0.10 0.13 0.22 Stable Value Fund1 Capital 0.24 1.89 2.23 2.09 n/a n/a n/a n/a n/a n/a n/a n/a Custom Benchmark Preservation 0.45 1.54 1.66 n/a n/a n/a n/a n/a n/a Excess Return (Book Value) 1.44 0.69 0.43 eVestment Alliance Stable Value Fixed Income Universe 2 1.89 2.28 2.14 Bond Fund Passive 0.03 -0.30 5.39 3.07 3.50 1.17 0.04 n/a 3.27 0.59 0.03 n/a Bloomberg Barclays U.S. Aggregate Bond Index -0.33 5.34 3.03 3.49 1.16 3.25 0.58 Excess Return 0.03 0.05 0.04 MSTAR Ave: IntermediateTerm Bond 0.77 5.26 3.02 Inflation-Protected Bond Fund Passive 0.03 6.61 6.63 4.31 3.98 1.34 0.07 n/a 3.56 0.89 0.06 n/a Bloomberg Barclays U.S. TIPS Index 6.51 6.53 4.17 3.94 1.33 3.54 0.86 Excess Return 0.10 0.10 0.14 MSTAR Ave: Inflation-Protected Bond 7.04 5.93 3.88 High-Yield Bond Fund Active 0.40 17.45 7.77 7.50 9.13 0.71 1.42 0.27 7.26 0.88 1.19 0.43 ICE BofA U.S. HY BB-B Constrained Index 13.44 7.39 6.99 8.84 0.69 7.04 0.83 Excess Return 4.01 0.38 0.51 MSTAR Ave: High-Yield Bond 14.69 6.16 6.21 Stock Fund Passive 0.01 40.84 18.73 17.69 18.53 0.94 0.03 n/a 14.99 1.10 0.03 n/a S&P 500 Index 40.79 18.67 17.65 18.52 0.94 14.99 1.10 Excess Return 0.05 0.06 0.04 MSTAR Ave: Large Blend 40.47 16.77 16.15 Small/Mid-Cap Stock Fund Passive 0.02 57.81 15.26 16.40 24.51 0.57 0.09 n/a 19.79 0.77 0.08 n/a Russell 2500 Index 57.79 15.24 16.35 24.50 0.57 19.78 0.77 Excess Return 0.02 0.02 0.05 MSTAR Ave: Mid-Cap Blend 50.44 13.15 13.75 International Stock Fund Passive 0.06 37.37 9.69 11.44 17.97 0.47 0.95 n/a 14.85 0.69 0.94 n/a MSCI ACWI ex-U.S. IMI Index (linked to MSCI World ex-U.S. Index July 2012 - July 2016 and prior to July 2012 the MSCI EAFE Index)
37.18 9.42 11.17
18.00 0.45 14.86 0.68 Excess Return 0.19 0.27 0.27 MSTAR Ave: Foreign Large Blend 33.76 8.50 10.08 Global Real Estate Fund Passive 0.08 34.51 7.32 5.87 19.55 0.31 0.32 n/a 16.15 0.29 0.41 n/a FTSE EPRA/NAREIT Developed Index 33.55 6.39 4.98 19.69 0.26 16.26 0.24 Excess Return 0.96 0.93 0.89 MSTAR Ave: Global Real Estate 32.33 7.75 6.57
*Annualized. 1 Stable value funds typically track the general movements of interest rates with a lag. It is expected that when interest rates are falling stable value yields do not fall as quickly and when interest rates are rising stable value yields do not rise as quickly. 2 eVestment Alliance universe returns are gross of investment management fees and net of wrap fees. The Stable Value Fund returns are net of all fees.
Data provided by BlackRock, Galliard, MissionSquare and Zephyr StyleADVISOR.
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Unbundled DC Plans Data for period ending June 30, 2021
Fund Type
Standard Deviation
Sharpe Ratio
Tracking Error
Information Ratio
Standard Deviation
Sharpe Ratio
Tracking Error
Information Ratio
% % % % % % % % Retirement Portfolio Passive 0.08 15.80 9.42 7.82 7.81 1.04 0.14 n/a 6.33 1.06 0.13 n/a Custom Benchmark 15.77 9.36 7.77 7.81 1.03 6.33 1.05 Excess Return 0.03 0.06 0.05 Target Date 2025 Portfolio Passive 0.08 20.20 10.32 9.46 10.17 0.88 0.19 n/a 8.26 1.01 0.18 n/a Custom Benchmark 20.17 10.25 9.38 10.18 0.88 8.26 1.00 Excess Return 0.03 0.07 0.08 Target Date 2030 Portfolio Passive 0.08 25.05 11.42 10.68 12.19 0.83 0.24 n/a 9.86 0.97 0.23 n/a Custom Benchmark 25.01 11.34 10.57 12.20 0.82 9.87 0.96 Excess Return 0.04 0.08 0.11 Target Date 2035 Portfolio Passive 0.08 29.86 12.49 11.85 14.11 0.79 0.29 n/a 11.39 0.94 0.27 n/a Custom Benchmark 29.81 12.39 11.72 14.14 0.78 11.40 0.93 Excess Return 0.05 0.10 0.13 Target Date 2040 Portfolio Passive 0.08 34.35 13.42 12.88 15.89 0.76 0.33 n/a 12.81 0.92 0.31 n/a Custom Benchmark 34.26 13.30 12.74 15.92 0.75 12.82 0.91 Excess Return 0.09 0.12 0.14 Target Date 2045 Portfolio Passive 0.08 37.97 14.18 13.63 17.20 0.75 0.37 n/a 13.84 0.90 0.34 n/a Custom Benchmark 37.85 14.04 13.47 17.24 0.74 13.86 0.89 Excess Return 0.12 0.14 0.16 Target Date 2050 Portfolio Passive 0.08 39.86 14.59 13.97 17.82 0.75 0.38 n/a 14.32 0.90 0.35 n/a Custom Benchmark 39.73 14.44 13.81 17.85 0.74 14.34 0.88 Excess Return 0.13 0.15 0.16 Target Date 2055 Portfolio Passive 0.08 40.14 14.67 14.01 17.88 0.75 0.39 n/a 14.37 0.90 0.35 n/a Custom Benchmark 40.07 14.53 13.86 17.94 0.74 14.41 0.88 Excess Return 0.07 0.14 0.15 Target Date 2060 Portfolio Passive 0.08 40.11 14.66 14.00 17.89 0.75 0.39 n/a 14.37 0.90 0.36 n/a Custom Benchmark 40.07 14.53 13.86 17.94 0.74 14.41 0.88 Excess Return 0.04 0.13 0.14 Target Date 2065 Portfolio Passive 0.08 40.02 N/A N/A n/a n/a n/a n/a n/a n/a n/a n/a Custom Benchmark 40.06 N/A N/A n/a n/a n/a n/a Excess Return -0.04 N/A N/A
*Annualized.
Data provided by BlackRock, Galliard, MIssionSquare and Zephyr StyleADVISOR.
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Unbundled DC Plans - Fund Annual Operating Expenses Information as of June 30, 2021
Investment Option1 Investment Manager Type
Investment Management Costs
Wrap & Acquired Fund2
Total Annual Expense Ratio
Expense Ratio YOY Change
Money Market Fund BlackRock Capital Preservation 0.080000% n/a 0.000500% n/a 0.08% 0.00%
Stable Value Fund Galliard Capital Preservation (Book Value) 0.066000% 0.176000% n/a n/a 0.24% -0.01%
Bond Fund BlackRock Passive 0.030000% n/a 0.003500% n/a 0.03% 0.00% Inflation-Protected Bond Fund BlackRock Passive 0.020000% n/a 0.007200% n/a 0.03% 0.00% High-Yield Bond Fund JPMorgan Active 0.380000% n/a 0.010000% 0.005001% 0.40% 0.00% Stock Fund BlackRock Passive 0.007500% n/a 0.001200% 0.004686% 0.01% 0.00% Small/Mid-Cap Stock Fund BlackRock Passive 0.015000% n/a 0.004000% 0.004380% 0.02% 0.00% International Stock Fund BlackRock Passive 0.040000% n/a 0.017800% 0.004507% 0.06% 0.00% Global Real Estate Fund BlackRock Passive 0.070000% n/a 0.009500% 0.004284% 0.08% -0.01% Retirement Portfolio BlackRock Passive 0.070000% n/a 0.005200% n/a 0.08% 0.00% Target Date 2025 Portfolio BlackRock Passive 0.070000% n/a 0.006200% n/a 0.08% 0.00% Target Date 2030 Portfolio BlackRock Passive 0.070000% n/a 0.006900% n/a 0.08% 0.00% Target Date 2035 Portfolio BlackRock Passive 0.070000% n/a 0.007700% n/a 0.08% 0.00% Target Date 2040 Portfolio BlackRock Passive 0.070000% n/a 0.008400% n/a 0.08% 0.00% Target Date 2045 Portfolio BlackRock Passive 0.070000% n/a 0.009100% n/a 0.08% 0.00% Target Date 2050 Portfolio BlackRock Passive 0.070000% n/a 0.009400% n/a 0.08% 0.00% Target Date 2055 Portfolio BlackRock Passive 0.070000% n/a 0.009400% n/a 0.08% 0.00% Target Date 2060 Portfolio BlackRock Passive 0.070000% n/a 0.009600% n/a 0.08% 0.00% Target Date 2065 Portfolio BlackRock Passive 0.070000% n/a 0.009600% n/a 0.08% 0.00% VRSIP VRS Active n/a n/a n/a n/a 0.60% 0.01%
1 There are no short-term trading redemption costs associated with any of the investment options. 2 Includes custody, audit and other specific investment option related administrative costs.
Defined Contribution Plans Advisory Committee Report Unbundled Plans Investment Performance
Below are the totals for the period ending June 30, 2021. Returns greater than one year are annualized.
Investment Options 1 Month 3 Months YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs / Since
Inception1
Value 27
Option 28
Do-It-For-Me: Target Date Portfolios3,4 % % % % % % % % $ % % Retirement Portfolio 0.98 4.16 4.53 15.80 9.42 7.82 6.32 0.08 8/1/05 437,429,436 7.0 5.7 Custom Benchmark 0.96 4.14 4.52 15.77 9.36 7.77 6.27 Target Date 2025 Portfolio 1.02 4.73 6.00 20.20 10.32 9.46 7.52 0.08 7/5/06 339,487,336 5.4 6.4 Custom Benchmark 1.00 4.70 6.00 20.17 10.25 9.38 7.46 Target Date 2030 Portfolio 1.07 5.39 7.69 25.05 11.42 10.68 8.25 0.08 8/1/05 326,388,428 5.2 8.0 Custom Benchmark 1.04 5.37 7.69 25.01 11.34 10.57 8.16 Target Date 2035 Portfolio 1.12 6.02 9.34 29.86 12.49 11.85 8.94 0.08 7/5/06 330,664,77524 5.3 9.2 Custom Benchmark 1.08 6.00 9.32 29.81 12.39 11.72 8.82 Target Date 2040 Portfolio 1.16 6.58 10.83 34.35 13.42 12.88 9.52 0.08 8/1/05 283,042,371 4.5 9.2 Custom Benchmark 1.11 6.57 10.80 34.26 13.30 12.74 9.40 Target Date 2045 Portfolio 1.19 7.05 12.05 37.97 14.18 13.63 9.98 0.08 7/5/06 268,746,971 4.3 10.4 Custom Benchmark 1.14 7.03 12.00 37.85 14.04 13.47 9.84 Target Date 2050 Portfolio 1.21 7.30 12.71 39.86 14.59 13.97 10.23 0.08 9/30/07 265,900,700 4.2 12.0 Custom Benchmark 1.15 7.27 12.63 39.73 14.44 13.81 10.10 Target Date 2055 Portfolio 1.21 7.34 12.82 40.14 14.67 14.01 10.40 0.08 5/19/10 315,250,980 5.0 16.2 Custom Benchmark 1.16 7.32 12.76 40.07 14.53 13.86 10.25 Target Date 2060 Portfolio 1.21 7.34 12.80 40.11 14.66 14.00 10.61 0.08 11/17/14 136,786,705 2.2 11.9 Custom Benchmark 1.16 7.31 12.75 40.07 14.53 13.86 10.46 Target Date 2065 Portfolio 1.21 7.34 12.77 40.02 n/a n/a 21.01 0.08 9/23/19 6,704,824 0.1 1.5 Custom Benchmark 1.16 7.31 12.75 40.06 n/a n/a 21.08
Help-Me-Do-It: Individual Options Money Market Fund5,6 0.01 0.04 0.08 0.18 1.44 1.36 0.72 0.08 11/1/99 92,914,908 1.5 2.0 FTSE 3 Month Treasury Bill Index 0.00 0.01 0.03 0.08 1.31 1.14 0.60 Yield as of 06/30/21: 0.15%7
Stable Value Fund8,9 0.13 0.40 0.83 1.89 2.23 2.09 1.98 0.24 2/1/95 631,966,531 10.1 7.7 Custom Benchmark10 0.05 0.13 0.24 0.45 1.54 1.66 1.44 Yield as of 06/30/21: 1.55%11
Bond Fund12 0.71 1.84 -1.62 -0.30 5.39 3.07 3.45 0.03 11/1/99 178,239,006 2.8 3.7 Bloomberg Barclays U.S. Aggregate Bond Index 0.70 1.83 -1.60 -0.33 5.34 3.03 3.39 Inflation-Protected Bond Fund13 0.60 3.26 1.75 6.61 6.63 4.31 3.50 0.03 7/30/02 54,574,447 0.9 1.5 Bloomberg Barclays U.S. TIPS Index 0.61 3.25 1.73 6.51 6.53 4.17 3.40 High-Yield Bond Fund14 1.58 3.45 6.12 17.45 7.77 7.50 6.84 0.40 5/31/04 51,466,274 0.8 1.8 ICE BofA U.S. High-Yield BB-B Constrained Index 1.27 2.57 2.88 13.44 7.39 6.99 6.43 Stock Fund15 2.33 8.56 15.27 40.84 18.73 17.69 14.88 0.01 11/1/99 1,565,720,012 25.0 10.7 S&P 500 Index 2.33 8.55 15.25 40.79 18.67 17.65 14.84 Small/Mid-Cap Stock Fund16 1.17 5.43 16.96 57.81 15.26 16.40 12.90 0.02 11/1/99 488,286,015 7.8 6.1 Russell 2500 Index17 1.18 5.44 16.97 57.79 15.24 16.35 12.81 International Stock Fund18 -0.50 5.68 9.69 37.37 9.69 11.44 6.44 0.06 11/1/99 233,358,779 3.7 5.0 MSCI ACWI ex-U.S. IMI Index19 -0.64 5.60 9.58 37.18 9.42 11.17 6.12 Global Real Estate Fund20 0.83 9.39 16.06 34.51 7.32 5.87 8.23 0.08 10/1/02 109,784,855 1.8 3.2 FTSE EPRA/NAREIT Developed Index21 0.78 9.17 15.50 33.55 6.39 4.98 7.54 VRSIP22 0.89 6.40 7.95 23.46 10.41 10.23 8.47 0.60 7/1/08 49,753,30725 0.8 0.5 VRS Custom Benchmark23 1.21 4.99 7.41 23.33 10.04 10.12 8.06
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1 If the fund was not in existence for 10 years, fund and corresponding benchmark returns shown represent performance from the since inception date. 2 Fund investment advisers may voluntarily agree to waive expenses. Expense waivers may be terminated at any time. 3 The Target Date Portfolios invest in units of BlackRock's LifePath Index Funds O. The LifePath Index Funds O invest in the master LifePath Index Funds F. The inception dates shown reflect the inception dates of the master LifePath Funds F.
The inception dates for most LifePath Funds O were 12/9/11. The 2055 Fund's O inception data was 12/12/11, the 2060 Fund's O inception date was 1/2/15, and the 2065 Fund's O inception date was 9/23/2019. Returns prior to Funds' O inception dates are those of the Funds F with deductions taken for Funds O investment management fees.
4 Benchmarks are calculated using blended returns of third-party indices that proportionately reflect the respective weightings of the Portfolios' asset classes. Weightings are adjusted quarterly to reflect the Portfolios' asset allocation shifts over time. Indices currently used to calculate the custom benchmarks are: Russell 1000 Index, Russell 2000 Index, MSCI ACWI Ex-U.S. IMI Index, Bloomberg Barclays U.S. Aggregate Bond Index, Bloomberg Barclays U.S. TIPS Index, FTSE EPRA/NAREIT Developed Index and the Bloomberg Commodity Index Total Return.
5 The Money Market Fund invests in units of BlackRock's Short-Term Investment Fund W. The inception data shown reflects the VRS Defined Contribution Plan's investment strategy inception date. Returns of the Fund from July 2012 through July 2016 represent performance of other BlackRock funds. Returns prior to July 2012 represent performance by the previous investment manager, State Street Global Advisors. All performance returns are linked.
6 An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment it is possible to lose money by investing in the Fund.
7 The current yield more closely reflects the earnings of the Fund than the total net return information. 8 The inception date shown reflects the VRS Defined Contribution Plans investment strategy inception date. 9 Direct transfers from the Stable Value Fund to the Money Market Fund (considered a "competing fund") are not permitted. Before transferring to the Money Market Fund, participants must first transfer to a "non-competing" fund for 90 days.
Optional Retirement Plan for Higher Education (ORPHE) participants who want to make a direct exchange to another ORPHE provider, must first exchange to a "non-competing" fund on the MissionSquare Retirement investment platform for 90 days. 10 Effective August 2016, the benchmark represents a hypothetical return generated by the monthly yields of actively traded U.S. Treasuries based on [50% 2- year maturity + 50% 3- year maturity] plus an annualized spread of 0.25% and is
representative of the Fund's expected return profile, given how the Fund is managed and book value accounting treatment. Prior to August 2016 the custom benchmark was based on the monthly yield of actively traded U.S Treasuries with a 3-year maturity plus an annualized spread of 0.50%. The benchmark returns are linked.
11 The current yield more closely reflects the earnings of the Fund than the total net return information. There is no guarantee that the Fund will earn the current yield in the future. 12 The Bond Fund invests in units of BlackRock's U.S. Debt Index Fund M. The U.S. Debt Index Fund M invests in the master Fund F. The inception date shown reflects the VRS Defined Contribution Plans strategy
inception date. Performance returns are linked to the previous investment manager. Returns prior to July 2012 represent performance by State Street Global Advisors. 13 The Inflation-Protected Bond Fund invests in units of BlackRock's U.S. Treasury-Inflation Protected Securities Fund M. The U.S. Treasury Inflation-Protected Securities Fund M invests in the master Fund F. The inception
date shown reflects the inception date of the master Fund F. The inception date of BlackRock's U.S. Treasury Inflation-Protected Securities Fund M was July 20, 2012. Returns prior to Fund M's inception date are those of Fund F with deductions taken for Fund M's investment management fees.
14 The High-Yield Bond Fund invests in units of JPMorgan's Corporate High-Yield Fund-Investment Class. The inception date shown reflects the date the current investment team at JPMorgan commenced management responsibility of the Fund. Performance reflects the investment manager's returns for the aforementioned Fund with deductions taken for investment management fees negotiated by VRS and fund administrative expenses.
15 The Stock Fund invests in units of BlackRock's Equity Index Fund F. Performance represents BlackRock's returns for the master Fund F with deductions taken for management fees negotiated by VRS and fund administrative expenses. The inception date shown reflects the VRS Defined Contribution Plans investment strategy inception date. Performance returns are linked to the previous investment manager. Returns prior to July 2012 represent performance by State Street Global Advisors.
16 The Small/Mid-Cap Stock Fund invests in units of BlackRock's Russell 2500 Index Fund F. Performance represents BlackRock's returns for the master Fund F with deductions taken for investment management fees negotiated by VRS and fund administrative expenses. The inception date shown reflects the VRS Defined Contribution Plans strategy inception date. Performance returns are linked to the previous investment manager. Returns prior to July 2012 represent performance by State Street Global Advisors.
17 Effective July 2012, the performance benchmark is the Russell 2500 Index. Prior to July 2012, the performance benchmark was the Russell Small Cap Completeness Index. The benchmark returns are linked. 18 The International Stock Fund invests in units of BlackRock's MSCI ACWI ex-U.S. IMI Index Fund F. Performance represents BlackRock's returns for the master Fund F with deductions taken for investment management
fees negotiated by VRS and fund administrative expenses. The inception date shown reflects the VRS Defined Contribution Plan's investment strategy inception date. Returns from July 2012 through July 2016 represent performance of another BlackRock Fund. Returns prior to July 2012 represent performance by the previous manager, State Street Global Advisors. All performance returns are linked.
19 Effective August 2016, the performance benchmark is the MSCI ACWI ex.-U.S. IMI Index. It was the MSCI World ex-U.S Index from July 2012 through July 2016 and prior to July 2012 it was the MSCI EAFE Index. The benchmark returns are linked. 20 The Global Real Estate Fund invests in units of BlackRock's Developed Real Estate Index Fund F. Performance represents BlackRock's returns for the master Fund F with deductions taken for investment management
fees negotiated by VRS and fund administrative expenses. The inception date shown reflects the VRS Defined Contribution Plans investment strategy inception date. The Fund transitioned from a U.S. domestic REIT fund to a global real estate fund during July 2012. Performance returns are linked to the previous investment manager. Returns prior to July 2012 represent performance by State Street Global Advisors.
21 Effective July 2012, the performance benchmark is the FTSE EPRA/NAREIT Developed Index. Prior to July 2012, the performance benchmark was the Dow Jones U.S. Select REIT Index. The benchmark returns are linked. 22 The inception date shown reflects the date the VRS Investment Portfolio (VRSIP) was unitized. 23 The VRS Custom Benchmark is a blend of the asset class benchmarks at policy weights. 24 Includes Pending Account VRSIP amount of $0. 25 Includes Preliminary Investment Portfolio Account - PIP amount of $1,050,031. 26 Includes $4,204,572 held in the administrative Special Accounts. 27 May not equal 100% due to rounding. 28 The data reflects the percentage of participants who selected a particular investment option as of June 30, 2021. There were 463,230 participant accounts as of June 30, 2021 across all unbundled DC plans.
All fund performance returns shown reflect all fund management fees and expenses, but do not reflect the Plan administrative fee charged by MissionSquare Retirement which would further reduce the returns shown. All calculations assume reinvestment of dividends and capital gains. All returns are calculated in U.S. dollars. Performance returns are provided by BlackRock, Galliard Capital Management, JPMorgan, Bank of New York Mellon, and MissionSquare Retirement. Benchmark returns are provided by BlackRock, Russell/Mellon Analytical Services, Galliard, and MissionSquare Retirement. Although data is gathered from sources believed to be reliable, we cannot guarantee completeness or accuracy. Plan Administrative Fee: An annual record keeping and communication services fee of $30.50 is deducted from participant accounts on a monthly basis (approximately $2.54 per month). Only one annual fee of $30.50 is deducted from participant accounts for those participants participating in more than one Commonwealth of Virginia defined contribution plan.
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Bundled TIAA ORPHE
Bundled ORP for Higher Education - TIAA RC Contract1
Data for period ending June 30, 2021
Fund Type
Standard Deviation (%)
Sharpe Ratio
Tracking Error
Information Ratio
Standard Deviation (%)
Sharpe Ratio
Tracking Error
Information Ratio
% % % % % % % % BlackRock Equity Index Fund J Passive 0.01 40.84 18.73 17.69 18.53 0.94 0.03 n/a 14.99 1.10 0.03 n/a S&P 500 Index 40.79 18.67 17.65 18.52 0.94 14.99 1.10 Excess Return 0.05 0.06 0.04 MSTAR Ave: Large Blend 40.47 16.77 16.15 BlackRock Russell 2500 Index Fund M Passive 0.04 57.79 15.24 16.39 24.51 0.57 0.08 n/a 19.79 0.77 0.07 n/a Russell 2500 Index 57.79 15.24 16.35 24.50 0.57 19.78 0.77 Excess Return 0.00 0.00 0.04 MSTAR Ave: Mid-Cap Blend 50.44 13.15 13.75 BlackRock MSCI AWCI ex-U.S. IMI Index Fund M Passive 0.11 37.31 9.64 11.43 17.97 0.46 0.95 n/a 14.86 0.69 0.93 n/a MSCI ACWI ex-U.S. IMI Index 37.18 9.42 11.20 18.00 0.45 14.87 0.68 Excess Return 0.13 0.22 0.23 MSTAR Ave: Foreign Large Blend 33.76 8.50 10.08 BlackRock MSCI ACWI IMI Index Non-Lendable Fund M Passive 0.05 41.17 14.57 14.93 18.43 0.72 0.45 n/a 14.85 0.93 0.44 n/a MSCI ACWI IMI Index 40.94 14.24 14.55 18.47 0.70 14.88 0.90 Excess Return 0.23 0.33 0.38 MSTAR Ave: World Stock 38.01 12.74 12.82 TIAA Real Estate Account Active 0.87 6.72 4.30 4.37 2.59 1.14 2.02 -0.10 2.00 1.60 1.59 -0.28 Custom Composite Benchmark 8.65 4.49 4.82 3.13 1.01 2.46 1.57 Excess Return -1.93 -0.19 -0.45
*Annualized. 1 Refer to the unbunded DC plans for information regarding BlackRock's LifePath Index Funds O, Short-Term Investment Fund W, U.S. Debt Index Fund M and U.S. TIPs Fund M. Although the unbundled DC plans use white lable fund names and TIAA does not these funds are the same exact funds. Fund with TIAA plan services expense offset. Underperformance.
Data provided by TIAA, BlackRock, MissionSquare, VRS and Zephyr StyleADVISOR.
Bundled ORP for Higher Education - TIAA RC Contract Fund Annual Operating Expenses1,2
Information as of June 30, 2021
Investment Option Investment Manager Type
Investment Management Costs
Expense Ratio YOY Change
TIAA Traditional Annuity TIAA Fixed Annuity n/a 0.150000% n/a n/a 0.300000% 0.45% -0.04% TIAA Real Estate Account TIAA Active 0.250000% 0.190000% 0.100000% 0.005000% 0.320000% 0.87% 0.09% BlackRock Equity Index Fund J BlackRock Passive 0.010000% n/a n/a n/a 0.001400% 0.01% 0.00% BlackRock Russell 2500 Index Fund M BlackRock Passive 0.030000% n/a n/a n/a 0.006000% 0.04% 0.00% BlackRock MSCI ACWI ex-U.S. IMI Index Fund M BlackRock Passive 0.090000% n/a n/a n/a 0.019300% 0.11% 0.00% BlackRock MSCI ACWI IMI Index Non-Lendable Fund M BlackRock Passive 0.040000% n/a n/a n/a 0.009700% 0.05% 0.00%
1 There are no short-term trading redemption costs associated with any of the investment options. 2 Refer to the unbunded DC plans for information regarding BlackRock's LifePath Index Funds O, Short-Term Investment Fund W, U.S. Debt Index Fund M and U.S. TIPs Fund M. The unbundled DC plans use white label fund names for the aforementioned funds. However, TIAA does not have the capability to use white label fund names.
Funds with plan services expense offsets within the TIAA RC contract.
Percentage of Embedded Record-Keeping and Plan Administration Costs
Investment Option Type
% of Record- Keeping & Plan Administration Costs
TIAA Traditional Annuity Fixed Annuity 0.150000% 0.45% 33% TIAA Real Estate Account Active 0.190000% 0.87% 22%
Defined Contribution Plans Advisory Committee Report TIAA RC Contract Investment Performance Below are the totals for the period ending June 30, 2021. Returns greater than one year are annualized.
Investment Options 1 Month 3 Months YTD 1 Yr 3 Yrs 5 Yrs 10 Yrs / Since
Inception1
Value 19
Option 20
Target Date Portfolios 3,4 % % % % % % % % $ % % BlackRock LifePath Index Retirement Fund O 0.98 4.16 4.53 15.80 9.42 7.82 6.32 0.08 8/1/05 29,637,469 8.9 9.8 Custom Benchmark 0.96 4.14 4.52 15.77 9.36 7.77 6.27 BlackRock LifePath Index 2025 Fund O 1.02 4.73 6.00 20.20 10.32 9.46 7.52 0.08 7/5/06 21,322,361 6.4 7.0 Custom Benchmark 1.00 4.70 6.00 20.17 10.25 9.38 7.46 BlackRock LifePath Index 2030 Fund O 1.07 5.39 7.69 25.05 11.42 10.68 8.25 0.08 8/1/05 29,973,623 9.0 8.8 Custom Benchmark 1.04 5.37 7.69 25.01 11.34 10.57 8.16 BlackRock LifePath Index 2035 Fund O 1.12 6.02 9.34 29.86 12.49 11.85 8.94 0.08 7/5/06 23,049,346 6.9 9.0 Custom Benchmark 1.08 6.00 9.32 29.81 12.39 11.72 8.82 BlackRock LifePath Index 2040 Fund O 1.16 6.58 10.83 34.35 13.42 12.88 9.52 0.08 8/1/05 25,505,620 7.7 9.6 Custom Benchmark 1.11 6.57 10.80 34.26 13.30 12.74 9.40 BlackRock LifePath Index 2045 Fund O 1.19 7.05 12.05 37.97 14.18 13.63 9.98 0.08 7/5/06 22,185,118 6.7 10.2 Custom Benchmark 1.14 7.03 12.00 37.85 14.04 13.47 9.84 BlackRock LifePath Index 2050 Fund O 1.21 7.30 12.71 39.86 14.59 13.97 10.23 0.08 9/30/07 12,538,705 3.8 7.8 Custom Benchmark 1.15 7.27 12.63 39.73 14.44 13.81 10.10 BlackRock LifePath Index 2055 Fund O 1.21 7.34 12.82 40.14 14.67 14.01 10.40 0.08 5/19/10 5,386,192 1.6 5.2 Custom Benchmark 1.16 7.32 12.76 40.07 14.53 13.86 10.25 BlackRock LifePath Index 2060 Fund O 1.21 7.34 12.80 40.11 14.66 14.00 10.61 0.08 11/17/14 1,107,630 0.3 2.1 Custom Benchmark 1.16 7.31 12.75 40.07 14.53 13.86 10.46 BlackRock LifePath Index 2065 Fund O 1.21 7.34 12.77 40.02 n/a n/a 21.01 0.08 9/23/19 853,885 0.3 0.6 Custom Benchmark 1.16 7.31 12.75 40.06 n/a n/a 21.08
Individual Options BlackRock Short-Term Investment Fund W 5 0.01 0.04 0.08 0.18 1.44 1.36 0.79 0.08 7/1/03 6,170,835 1.9 8.1 FTSE 3 Month Treasury Bill Index 0.00 0.01 0.03 0.08 1.31 1.14 0.60 Yield as of 06/30/21: 0.15%6
BlackRock U.S. Debt Index Fund M 7 0.71 1.84 -1.62 -0.30 5.39 3.07 3.46 0.03 6/6/96 9,118,919 2.7 19.4 Bloomberg Barclays U.S. Aggregate Bond Index 0.70 1.83 -1.60 -0.33 5.34 3.03 3.39 BlackRock U.S. TIPS Fund M 8 0.60 3.26 1.75 6.61 6.63 4.31 3.50 0.03 7/30/02 5,079,960 1.5 13.1 Bloomberg Barclays U.S. TIPS Index 0.61 3.25 1.73 6.51 6.53 4.17 3.40 BlackRock Equity Index Fund J 9 2.33 8.56 15.27 40.84 18.73 17.69 14.88 0.01 3/5/97 34,982,684 10.5 25.4 S&P 500 Index 2.33 8.55 15.25 40.79 18.67 17.65 14.84 BlackRock Russell 2500 Index Fund M 10 1.17 5.42 16.95 57.79 15.24 16.39 12.96 0.04 9/30/08 9,345,673 2.8 4.3 Russell 2500 Index 1.18 5.44 16.97 57.79 15.24 16.35 12.86 BlackRock MSCI ACWI ex-U.S. IMI Index Fund M 11 -0.50 5.67 9.66 37.31 9.64 11.43 5.85 0.11 2/28/11 18,070,956 5.4 19.4 MSCI ACWI ex-U.S. IMI Index -0.64 5.60 9.58 37.18 9.42 11.20 5.65 BlackRock MSCI ACWI IMI Index Non-Lendable Fund M 12 1.19 7.13 12.75 41.17 14.57 14.93 11.17 0.05 4/12/13 44,537,786 13.4 34.3 MSCI ACWI IMI Index 1.21 7.18 12.68 40.94 14.24 14.55 10.79 TIAA Real Estate Account 13 1.69 3.84 6.16 6.72 4.30 4.37 6.99 0.87 10/2/95 8,724,387 2.6 27.8 Custom Composite Benchmark 14 1.08 3.74 6.14 8.65 4.49 4.82 7.09
TIAA Traditional Annuity RC 15,16,17,18 0.28 0.86 1.79 3.81 3.97 4.04 4.21 0.45 8/1/05 20,940,382 6.3 29.4 Self-Directed Brokerage Account TIAA - Self-Directed Account n/a n/a n/a n/a n/a n/a n/a n/a n/a 4,840,831 1.5 0.7 Total $333,372,362
Footnotes >
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1 If the fund was not in existence for 10 years, fund and corresponding benchmark returns shown represent performance from the since inception date. 2 Fund investment advisers may voluntarily agree to waive expenses. Expense waivers may be terminated at any time. 3 The BlackRock LifePath Index Funds O invest in the master LifePath Index Funds F. The inception dates shown reflect the inception date of the master LifePath Funds F. The inception dates for most LifePath Funds O were 12/9/11. The 2055 Fund's O
inception date was 12/12/11, the 2060 Fund's O inception date was 1/2/15 and the 2065 Fund's O inception date was 9/23/19. Returns prior to Funds' O inception dates are those of Funds F with deductions taken for Funds O investment management fees. 4 Benchmarks are calculated using blended returns of third-party indices that proportionately reflect the respective weightings of the Funds' asset classes. Weightings are adjusted quarterly to reflect the Funds' asset
allocation shifts over time. Indices currently used to calculate the custom benchmarks are: Russell 1000 Index, Russell 2000 Index, MSCI ACWI Ex-U.S. IMI Index, Bloomberg Barclays U.S. Aggregate Bond Index, Bloomberg Barclays U.S. TIPS Index, FTSE EPRA/NAREIT Developed Index and the Bloomberg Commodity Index Total Return.
5 An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment it is possible to lose money by investing in the Fund.
6 The current yield more closely reflects the earnings of the Fund than the total net return information. 7 The BlackRock U.S. Debt Fund M invests in the master Fund F. The inception date shown reflects the inception of the master Fund F. The inception date of Fund M was 7/20/12. Returns prior to Fund M's inception date are those of
Fund F with deductions taken for Fund M's investment management fees. 8 The BlackRock U.S. Treasury Inflation-Protected Securities Fund M invests in the master Fund F. The inception date shown reflects the inception of the master Fund F. The inception date of Fund M was 7/20/12.
Returns prior to Fund M's inception date are those of Fund F with deductions taken for Fund M' investment management fees. 9 The BlackRock Equity Index Fund J invests in the master Fund F. The inception date shown reflects the inception of the master Fund F. The inception date of Fund J was 3/20/17. Returns prior to Fund J's inception date are those of Fund F
with deductions taken for Fund J's investment management fees. 10 The BlackRock Russell 2500 Fund M invests in the master Fund F.The inception date shown reflects the inception of the master Fund F. The inception date of Fund M was 1/30/13. Returns prior to Fund M's inception date are those
of Fund F with deductions taken for Fund M's investment management fees. 11 The BlackRock MSCI ACWI ex-U.S. IMI Index Fund M invests in the master Fund F.The inception date shown reflects the inception of the master Fund F. The inception date of Fund M was 12/31/12. Returns prior to Fund M's inception date are those
of Fund F with deductions taken for Fund M's investment management fees. 12 The BlackRock MSCI ACWI IMI Index Fund M invests in the master Fund F. Inception dates for the master Fund F and Fund M are both 4/12/13. 13 Transfers out of the TIAA Real Estate Account (REA) are limited to one per quarter. Currently, these transfers do not require a minimum transaction amount; however, in the future TIAA reserves the right, in its sole discretion,
to impose minimum transaction levels, which levels will generally be at least $1,000 (except for systematic transfers, which must be at least $100) or your entire accumulation, if less. Participants may not make a lump-sum transfer into the REA if their aggregated balances across all contracts is greater than $150,000. Systematic transfers and recurring contributions are not subject to this limitation.
14 Effective January 2014, the Custom Composite Index is 70% NCREIF Open End Diversified Core Equity (ODCE) Net Index, 20% Bloomberg Barclays 3-Month Treasury Bill Index, and 10% Dow Jones U.S. Select REIT Index. Prior periods include other representative indices. TIAA's investment management team does not manage its real estate portfolio to a specific published index benchmark. The Custom Composite Index represents a reasonable proxy of how TIAA allocates assets among real property, short-term investments, and REITs over time. The Virginia Retirement System anticipates that Fund returns may vary greatly from those of the Custom Composite Index. Benchmark returns are not available for months that do not end on a calendar quarter due to the fact that NCREIF ODCE Index returns are only published each calendar quarter.
15 Upon separation from service or retirement participants can convert their TIAA Traditional accumulation dollars amount to a lifetime income option or withdraw funds through a fixed period annuity ranging from five to 30 years or a Transfer Payout Annuity, which enables participants to move funds out of the TIAA Traditional Annuity in 7 annual installments for the Retirement Choice (RC) contract. Each installment includes a portion of principal and interest, based on the rate in effect when transfer or withdrawal funds are made. However, there are two exceptions to the payout installment. First, if the TIAA Traditional account balance is less than $5,000, participants can transfer the total amount at any time following termination of employment, but only once during the life of the contract. Second, TIAA Traditional can be withdrawn or transferred to another company up to the full balance within 120 days following termination of employment, subject to 2.5% surrender charge. After the 120-day period, participants can withdraw funds only through a fixed period annuity ranging from five to 30 years or the Transfer Payout Annuity.
16 The TIAA Traditional Annuity RC contract has minimum guaranteed rate during the accumulation phase of 1% to 3% . The current minimum rate for the RC contract is 1%. Further, the TIAA Traditional Annuity RC contract applies to premiums deposited during the applicable calendar year and is guaranteed for 10 years, at which point the minimum rate for these premiums will be reset.
17 TIAA's annual credited rate on new money for the RC contract for the month of June was 3.00%. 18 The TIAA Traditional Annuity is not an investment for purposes of federal securities laws; it is a guaranteed insurance contract. Therefore, unlike a variable annuity or mutual fund, the TIAA Traditional Annuity does not include an identifiable
expense ratio. The 45 basis points (0.45%) approximates the expense provision in the formula for determining TIAA Traditional Annuity returns inclusive of administrative and investment expenses. This expense provision is not guaranteed, it is subject to change.
19 May not equal 100% due to rounding 20 The data reflects the percentage of participants who selected a particular investment option as of June 30, 2021. There were 5,125 (RC contract) participants as of June 30, 2021.
Performance returns shown reflect all fund management fees and other investment related expenses, but do not reflect the TIAA annual administrative fee of $66 (deducted at $16.50 per quarter) which would further reduce the returns shown. Performance returns do not reflect redemption fees and/or surrender charges, if applicable. All calculations assume reinvestment of dividends and capital gains. All returns are calculated in U.S dollars. Fund and benchmark returns are provided by TIAA and BlackRock. Although data is gathered from sources to be reliable, the Virginia Retirement System cannot guarantee completeness or accuracy.
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VRS Defined Contribution Plans
2nd Quarter 2021 (April - June)
Administrative Summary September 2, 2021
Agenda
2
Topic Slide Number(s)
Total Assets & Accounts 3 Unbundled Plans Overview & Updates 4-5 COV 457 & Cash Match Plans 6 Hybrid Retirement Plan 7-10 Focus: Asset Retention 11-18 ORPHE 19-21 Moving Forward 22-25
Total Assets and Accounts Over Time
3 Note: Data reflects totals as of calendar year end and includes ORPHE selected providers and MissionSquare participant, beneficiary, forfeiture & reserve accounts. 2021 data is through June 30, 2021. *Does not indicate unique participants.
Totals as of 6/30/2021 Assets Accounts
$7,335,487,090 471,440
AccountsAs se
ORPSS Assets VSRP Assets Hybrid 401(a) Assets
Hybrid 457 Assets ORPHE Assets Total Accounts*
Assets ↑ 7% Accounts ↑ 1%
since March 31, 2021
New Contract Effective Implementation
• Current record keeper contract expires December 31, 2024
• 18 to 24-month implementation period needed to onboard a new record keeper, if necessary
• Consultant will be hired to assist • Development of RFP • Evaluation of responses • Implementation
4 Master Page # 39 of 318 - Defined Contribution Plans Advisory Committee (DCPAC) Meeting 9/2/2021 ________________________________________________________________________________
NAGDCA Leadership Awards
• COVID-19 Virtual Pandemic Response
• Highlighted key strategic initiatives created by VRS and MissionSquare for participants and employers.
• Technology and Interactive Multimedia for VRS Interactive Virtual Tools
Virtual Award Presentation will take place September 16
6
Cash Match $615,244,384 72,512
-
2014 2015 2016 2017 2018 2019 2020 2021
COV 457 Assets Cash Match Assets COV 457 Accounts Cash Match Accounts Note: Data reflects totals as of calendar year end and includes MissionSquare participant, beneficiary, & reserve accounts. 2021 data is through June 30, 2021.
7
Hybrid 401(a) $873,848,447 184,071
Hybrid 457 $426,805,685 116,336
-
2014 2015 2016 2017 2018 2019 2020 2021
Hybrid 401(a) Assets Hybrid 457 Assets Hybrid 401(a) Accounts Hybrid 457 Accounts Note: Data reflects totals as of calendar year end and includes MissionSquare participant, beneficiary & forfeiture accounts. 2021 data is through June 30, 2021.
Assets 13% Accounts 1%
since March 31, 2021
Hybrid Retirement Plan Participation Highlights
Active Election Participation – 33%
Contributions – 73%
38% are maximizing at 4% 56% are at 1% or less
Of members making voluntary
contributions
8 Data is as of July 1, 2021.Master Page # 43 of 318 - Defined Contribution Plans Advisory Committee (DCPAC) Meeting 9/2/2021 ________________________________________________________________________________
Hybrid/COV 457 Plan Crossover
Quarterly analysis to identify trends for hybrid plan members also eligible for the COV 457 Plan • Evaluate
opportunities to improve/enhance communications
9
VC at all.
4,614 participate in the COV 457 Plan
*Voluntary contributions
126,386 Active Hybrid Plan Members
Hybrid/COV 457 Plan Crossover
• Review contributions to both 457 plans to ensure contributions continue throughout the year
Members who contribute to both and maximize
contributions prior to the end of the year may lose
out on the employer match when contributions stop.
• 415 members identified for outreach via phone and email
• Review contributions and provide education regarding benefits of contributing to the Hybrid plan first
Members who contribute to the COV 457 prior to
maximizing Hybrid contributions may lose out on employer contributions.
Asset Retention
Q1 Q2 Q3 Q4
Asset Retention Metrics (unbundled plans only)
Data calculated at the end of each calendar year
12
COV 457 Plan Assets Hybrid 401(a) & Hybrid 457 Assets
COV 457 Plan Accounts Hybrid 401(a) & Hybrid 457 Accounts
Data as of December 31, 2020Master Page # 47 of 318 - Defined Contribution Plans Advisory Committee (DCPAC) Meeting 9/2/2021 ________________________________________________________________________________
Assets by Employment Status
Assets
Assets Across All Unbundled Plans By Age and Employment Status
Active Terminated
Participants who terminate employment are most likely to withdraw assets from the plan.
Asset Retention Distribution Types – COV 457 Plan
14 Note: Data for 2021 is through June 30, 2021. All other data for the full calendar year.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Rollover (IRA) Service Purchase
or annually.
participants with larger balances.
Asset Retention Distribution Types – Hybrid 401(a) Plan
Note: Data for 2021 is through June 30, 2021. All other data for the full calendar year.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Rollover (IRA)
N um
2020 Average Amount $3,330
2020 Average Amount $3,804
Lump sum payouts are a payout of the participant’s full balance.
Hybrid plan members generally have only a few years of participation in the
plan and smaller balances.
Asset Retention – Incoming and Outgoing Rollovers
16
Outgoing Rollovers Total
Note: Data reflects transactions processed in 2020
Since 2015, 70% of COV 457 outgoing
rollovers have gone to an Individual
Retirement Account.
Unforeseeable Emergency Withdrawals
17 Note: Data for 2021 is through June 30, 2021. All other data for the full calendar year.
1, 35
0
200
400
600
800
1,000
1,200
1,400
1,600
2014 2015 2016 2017 2018 2019 2020 Q1 2021 Q2 2021
Received Approved Denied
68% decrease in UEWs approved and paid from 2019 to 2020 primarily due to the availability of coronavirus-related distributions. • Eviction/foreclosure category had the largest decrease at 76% due to a
________________________________________________________________________________
and older • Invitation to relevant
webinar • Contact information for
local field representative
Outbound calls to participants that have rolled amounts greater than $100,000 out of the plan • Primary themes:
• Consolidating assets • Working with an advisor
Monitor participant status and define metrics for asset
retention
Gather information
Create relevant
Asset Retention Efforts
Administrative Summary ORPHE
Assets $1,158,931,857 $1,222,066,549 5% Participants 10,506 10,566 1% Average Balance $110,311 $115,660 5%
*Excludes deselected providers. Fidelity became a deselected provider effective 1/1/2020. **Includes assets in GRA/RA and RC contracts.
DCP 6/30/2021
TIAA** 6/30/2021
Assets $1,068,717,533
Participants 8,210
Average Balance $130,173
38% of new hires YTD have elected DCP as their provider.
62% of new hires YTD have elected TIAA as their provider.
• Processing timelines • Call center operations • Field services outreach
Implements multiple performance standards
• Pricing reduction from $66/year for participants in RC contract to $28/year for all participants in all contracts
Pricing
Minor updates
TIAA Contract Amendment No. 5
TIAA Contract Amendment
21
Pricing Update - Contributing Factors
Current Structure RC Contracts - $66/year • Participants receive a credit to their
accounts based on TIAA’s Plan Services Expense Offsets*
GRA/RA Contracts – • Participant pays embedded fees • No credit
New Structure All Contracts - $28/year • Participants receive a credit to their
accounts based on TIAA’s Plan Services Expense Offsets*
________________________________________________________________________________
Retire the existing Quarterly Service Review provided by MissionSquare
• Current version is large and consists almost entirely of charts and graphs
• Included in the Appendix each quarter
22
Replace with three high-level dashboards that focus on primary plan metrics
• Allows more focus on most relevant metrics • More visual and easier to identify trends
Data as of June 30, 2021 VRS Defined Contribution Plans
Unique Participants • All plans • 5-year lookback • Format = Line chart
Account Access • Logins during the prior 4
years and the current YTD • Format = Bar chart
Account Access • Registration since
inception (Will need to start over with SS&C transition)
• Format = Bar chart
depend on available space)
• Format = list
Particip