In this Email:


  • A Message from the VRTA President
  • Multi Year Guarantee Annuities, Explained
  • Today’s Interest Rates
  • What's on the Horizon?

January 2024

President’s Message


The holidays have come and gone, but the memories linger on. After having enjoyed the festivities and the food, next come the resolutions. Topping the chart continues to be the resolve to lose weight and exercise more. Some of us have gone so far as to give up bottled water because of nanoplastics. The list gets shorter when we compare the current items to the ones from past years. We have listed them before. Well, let’s see what happens this time.

 

Many of you have received another notice from Pension Benefit Information (PBI) of “a third-party event that may affect the security of some of your Virginia Retirement Systems information.” A MOVE it Transfer server was “accessed” on May 29 and 30, 2023, and data such as: name, social security number, and date of birth were downloaded. You are again encouraged to be vigilant against fraud and identity theft.

 

To alleviate anxiety concerning this issue, PBI has enlisted the services of Kroll to provide identity monitoring for 12 months at no cost to you. Visit http://enroll.krollmonitoring.com and take advantage of the monitoring services. You have until February 8, 2024, to activate the service. If you have questions, call the toll-free assistance line at (866) 676-3191, Monday through Friday from 9:00 a.m. to 6:30 p.m. Eastern time.

 

As President of VRTA, I have attended Executive Committee meetings, District meetings, and Unit meetings. Attendees have expressed concern about the lack of entrees into the field of education, the average age of existing VRTA members, the health issues among members, and the lack of transportation to meetings. While we are trying to navigate these concerns, I am aware that some of the same issues are relevant to many Districts and Units. Thus, we can’t ignore the effect at the state level.

 

Districts and Units should employ the Membership suggestions. While some suggestions may need to be tweaked, others may work as presented. It will be interesting to hear about the successes and the failures. 

 

For VRTA to continue to fulfill its Mission and Vision, we need to encourage retired school personnel to remain informed by joining the organization that’s mission is “To be the voice, resource and connection for all retired school personnel.” VRTA’s vision is that “All retired school personnel will be safe, productive, informed and financially secure in retirement.”




Jean Marrow

VRTA President


Jean Marrow

VRTA President

Phone: 804-350-7719  

Email: marrow.j@aol.com

Multi-Year Guarantee Annuities Explained

Multi-Year Guaranteed Annuities have become increasingly popular as an alternative to bank CDs. MYGAs are fixed annuity contracts issued by insurance companies.


MYGA's are very similar to bank CDs in that they are both used as vehicles to increase savings, both are considered low to no-risk and will likewise guarantee a specific interest rate for a specific contract's term or time period. For example, assume you put $50,000 into a 3-year MYGA with an interest rate of 5.90%. At the end of 3 years, your initial premium would have increased to $59,382.


Year 1 - $50,000 x 5.90% = $52,950
Year 2 - $52,950 x 5.90% = $56,075
Year 3 - $56,074 x 5.90% = $59,382


MYGA’s compare very favorably to bank CDs and have some distinct advantages:

  • Tax Savings – Taxes are deferred on MYGAs. You do not pay taxes until the interest is withdrawn. This allows interest to be accumulated on the entire principle over the contract term. Earnings on bank CDs are taxable in the year the interest is earned, even if you don’t withdraw your money.
  • Higher Interest Rates – Typically MYGAs offer higher interest rates than their CD counterparts.
  • Liquidity – If you need access to CD funds prior to maturity date, you will be assessed an interest penalty. Some MYGAs allow for penalty-free interest withdrawals and in some cases up to 10% annually. Also, some MYGAs do not allow for withdrawals until the end of the term.
  • Death Settlement – If the annuitant should pass away, an MYGA will pay your beneficiary directly, similar to a life contract, outside of your will or probate. This can be a significant advantage to estate planning.


Give us a call if you have any questions. 

Insurance Advisory Services


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Financial Advisory Services



  • Retirement Income Planning
  • Pension Survivorship Analysis
  • Portfolio Management

Phone (540) 722-2529

Toll-Free (800) 467 5425

Email: savenow@creeksideadvisors.net

WHAT'S ON THE HORIZON?


By the time you read this, the 2024 Session of the General Assembly will have been in session for about a week. A number of bills have been in introduced and some have been assigned to a committee. As I write this on January 10, the committees and committee chairs have been appointed. Since the Democrats have a very thin majority in both chambers, the committees will have a Democratic majority, but if they use proportional appointments, their majority will be small.  Committee membership is important because that’s the first hurdle in getting good legislation passed and bad legislation killed. You may check committee membership at http://leg1.state.va.us.

  

To lobby effectively and efficiently, the Legislative Committee needs to know who your senator and delegate are. Please see the information requested on the Legislative Liaison form found on the website (www.vrta.org) and send it to Tina Whitaker or Bea Morris, Legislative Co-chairs, as soon as possible if you are willing to contact your legislators when there is a specific, urgent need.


In this 60-day session, which ends March 9, the biennial budget, the only one in four years actually written by Governor Youngkin, is the overriding issue. Most other legislation has some cost and will have to be factored into the budget finally approved by the House and Senate and then signed by the Governor. It seems that the makeup of the legislature with a razor thin Democratic majority and a Republican Governor with veto power without the Democratic votes to override it, will lead either to compromising to get meaningful legislation passed that gives everybody something but not everything they wanted or to a stalemate that leads to nothing getting done. Information on specific bills will soon be sent to my legislative lists as it was in previous years, but don’t miss the fun of looking up bills on many topics that interest you.


Lobbying done using the name of VRTA is focused on legislation dealing with education, teachers and their benefits, the well-being of retirees including the work with AARP on improvements in nursing homes, etc. These are huge issues that are very demanding, so we do not get embroiled in cultural issues that may be divisive in our membership and are unlikely to have a conclusion anytime soon. Certainly, all of us have preferences on some legislation not in the VRTA focus and we should be knowledgeable about these bills and lobby on them as a constituent.


VRTA focuses on state elections and issues, but we must also be alert to the actions of the federal government because of its effects on state governments. We must support NRTA/AARP in their lobbying activities on issues that affect the elderly. Although we had a state election in Virginia barely two months ago, the presidential primary is on the horizon. The primary date in Virginia is Tuesday, March 5. However, we have early voting that begins January 19. At this point, both Democrats and Republicans will have more than one candidate. Virginia has open primaries, meaning that anyone can vote for candidates in either party but can’t vote for candidates in both parties. Voters will be asked if they want a Republican ballot or a Democratic ballot, but they can’t have both. In November, voters will be given one ballot with both the Republican and Democratic nominee. Every registered voter should take the opportunity to vote in the primary, and voting should be made accessible and convenient to as many people as possible; however, 45 days early seems too long. Too much can happen in that length of time that could affect your vote, and you don’t get a do-over. It’s expensive and unnecessarily time consuming for a busy registrar’s office, and it requires more from poll workers who are becoming harder to get. Legislation has been introduced to shorten early voting. HB 44 (Green) would limit early voting to 30 days and SB 42 (Peake) would limit it to 21 days before the election.


Lots of education bills have been introduced and assigned to a committee. We are pleased that VRTA’s request for a JLARC study of the teacher workforce crisis has been introduced in both chambers and the bills have been assigned to the Education Committees. We should thank Senator Sturtervant for SJ 9 and Delegate Amanda Batten for HJ 53.




Bea Morris 


VRTA Legislative Chairperson


Email: beam1340@verizon.net


Important VRTA Dates to Remember


Friday, Feb. 23, 2024 - deadline for submitting info for VRTA Spring Newsletter to Susan Martin. 

April 16-17, 2024: Spring Delegate Assembly at the Doubletree in Richmond, VA.

VRTA Fall 2024 Conference Dates are still being negotiated with the Doubletree Hotel (which is being renovated!); trying to avoid any religious holidays with limited available dates.