Plan Overview

Below are the important features about the New York State Voluntary Defined Contribution (NYS VDC) Program. This website is intended to be a summary of the plan provisions. In the event that a conflict exists between the information contained within this website and the plan document, the plan document provisions prevail. Additional important implications may flow from your enrollment decision that warrant your consideration. These may include eligibility for retiree health benefits. We urge you to consult with your Human Resources/Benefits Office to help you make an informed decision.

For complete information regarding the VDC Program, visit the VDC website.

Eligibility

Please refer to your agency HR administrator. You may be eligible to enroll in the VDC Program if:

• You were hired on or after July 1, 2013, by a public employer in New York State or New York City—such as a state or city agency, local government, school district—or public benefit corporation;
• Your annual salary is $75,000 or more; and,
• You are in an unrepresented position.

Overview

Under the VDC Program:

• After 366 days of service, you own all the employer contributions made to your account. Vesting is generally 5 years in a New York State defined benefit plan.
• You always own your contributions.
• You have the flexibility to:
   
  • Choose the investment provider(s);
  • Consult with a certified financial advisor at no extra cost to you;
  • Select the funds in which you want to invest;
  • Choose the beneficiary(ies) for your account; and
  • Access your funds in retirement.
• Your account is portable. Your savings can go wherever your career takes you after vesting.
• Flexible distribution options are available after separation from service (systematic or periodic withdrawals), which can transform your savings into reliable monthly retirement income.

Contributions

Your VDC contributions are based on your total pensionable compensation. Your employer/agency also contributes an amount equal to 8% of your total pensionable compensation.

Note: For part-time employees, contributions are calculated based on the full-time equivalent total pensionable compensation rather than the employee’s actual part-time total pensionable compensation.

Distributions

Withdrawals are allowed only upon the following triggering events:

Separation from Service or Retirement:Upon separation from service or retirement, you have multiple payment options available.

Death Claims:Upon your death, benefits would be payable to the beneficiary(ies) that you designated under the Plan. The Plan will provide a variety of options for the payment of death benefits. Your beneficiary must notify Voya Retirement Insurance and Annuity Company of your death and make a payment election in accordance with the Plan. If you do not name a beneficiary (or if your beneficiary predeceases you or does not survive you by 30 days), death benefits will be paid to your estate.

Guaranteed Death Benefit

If you die prior to the start of annuity payments, the amount of money available to your beneficiary(ies) is guaranteed to be the greater of a) the account value, excluding any loan account; or b) the sum of contributions to the account, adjusted proportionately for any surrenders/loans. Guarantees are based on the claims-paying ability of Voya Retirement Insurance and Annuity Company.

You should consider the investment objectives, risks, and charges and expenses of the variable product and its underlying fund options carefully before investing. The prospectuses/prospectus summaries containing this and other information can be obtained by contacting your local representative. Please read the information carefully before investing.

Variable annuities are intended as long-term investments designed for retirement purposes. Withdrawals from an annuity may be subject to an early withdrawal fee and, if taken prior to age 59½, an IRS 10% premature distribution penalty tax will apply, unless an IRS exception applies. Money taken from the annuity will be taxed as ordinary income in the year the money is distributed. Account values fluctuate with market conditions, and when surrendered the principal may be worth more or less than its original amount invested. An annuity does not provide any additional tax deferral benefit, as tax deferral is provided by the plan. Annuities may be subject to additional fees and expenses to which other tax-qualified funding vehicles may not be subject. However, an annuity does provide other features and benefits, such as lifetime income payments and death benefits.

For 403(b)(1) fixed or variable annuities, employee deferrals (including earnings) may generally be distributed only upon your: attainment of age 59½, severance from employment, death, disability, or hardship. Note: Hardship withdrawals are limited to employee deferrals made after 12/31/88. Exceptions to the distribution rules: No Internal Revenue Code withdrawal restrictions apply to ‘88 cash value (employee deferrals (including earnings) as of 12/31/88) and employer contributions (including earnings). However, employer contributions made to an annuity contract issued after December 31, 2008 may not be paid or made available before a distributable event occurs. Such amounts may be distributed to a participant or if applicable, the beneficiary: upon the participant’s severance from employment or upon the occurrence of an event, such as after a fixed number of years, the attainment of a stated age, or disability.