Committee Wayne Thorley, SOS, Chair Debbie Bowman, DHHS-ADSD, Vice Chair Kent Ervin, Ph.D., NSHE Matt Kruse, EFFPD Steve Woodbury, Retired Staff Rob Boehmer, NDC Executive Officer Micah Salerno, Administrative Assistant       to the Executive Officer Henna Rasul, Senior Deputy Attorney General
	Contact the NDC Administrator or Staff: Rob Boehmer, NDC Executive Officer 775-684-3397 rboehmer@defcomp.nv.gov Micah Salerno, Exec. Officer Admin. Asst. 775-684-3398 deferredcomp@defcomp.nv.gov or Contact the NDC Contracted Provider, Voya®: Carson City office 866-464-6832 NDC@voya.com
	Wednesday, August 28, 2019 9 a.m. Legislature Building 401 S. Carson Street • Room 2135 Carson City
	If you are interested in saving for retirement and have not enrolled in the Nevada Deferred Compensation Program, choose any of these convenient ways to get started now. EZ Enrollment Visit the NDC website to download and complete the EZ Enrollment Form and fax it to the NDC office. Enroll online Select Enroll Now and follow the two-step process after you click here. Meet with your Voya local representative Call toll free 1-866-464-6832 or 775-886-2400 to set up an appointment to review your personal situation and complete the forms.

What's New

The Nevada Public Employees’ Deferred Compensation Program (NDC) welcomes the summer with many exciting tasks at hand and new educational opportunities to assist participants and employees with their Journey to and through retirement.

NDC Will Retain Recordkeeping Vendor

The NDC Committee and Administrative Staff are pleased to announce the decision to negotiate a new recordkeeping services contract with our incumbent recordkeeper, Voya Financial^®.

Voya^® was chosen from among six vendors who responded to the NDC’s Recordkeeping Services Request for Proposal (RFP). The NDC Committee, Administrative Staff, State Purchasing and our contracted investment consultant worked together for months to request and evaluate proposals. This process is required by statute every five years to ensure that our participants are getting the most competitive services, pricing, and interest guarantees.

The RFP Evaluation Committee narrowed the initial evaluation to the three highest-ranking vendors who were invited back for best and finalist presentations. All three finalists could very easily have provided the NDC Program with contracted services. The State Department of Administration Purchasing Division reported to the NDC Committee at a special meeting held May 17, 2019, that our current recordkeeper was the highest-scoring vendor and directed the NDC Administration to begin contract negotiations with Voya^®. The new contract will be presented to the Board of Examiners in August 2019 for approval, with details to be formally announced in the months to come. Any questions or concerns can be directed to Rob Boehmer, NDC Executive Officer, at 775-684-3397 or rboehmer@defcomp.nv.gov.

NDC Welcomes Nye County Employees

We are pleased to announce that the NDC Committee has approved Nye County to adopt the NDC Program as its sole deferred compensation plan option. One of Nevada’s demographically largest counties, Nye County is the 12th of the 16 counties in the State to join the NDC Program. Nearly $4 million in accumulated assets have been transferred and added to the NDC’s $830 million in assets already under management. This move will offer the most robust and valuable supplemental retirement plan available to the county’s more than 400 employees. We welcome you all to the NDC Program.

Mark Your Calendars Now

To promote and participate in National Retirement Security Week, NDC will again host the 13th Annual Financial Education Days during the weeks of October 14-24, 2019. Be sure and mark your calendars to attend one of the many workshop sessions that will be held throughout the state. More information will be sent out to employees and participants and published in our third quarter newsletter.

In closing, all of us here at NDC wish you and your family a safe and enjoyable summer.

Managing the hefty price tag of health care costs

With all the advances in medicine and technology, it’s no surprise that people are living much longer than before. Medical breakthroughs don’t come cheap, though. The rapid rise of health care costs could have a large impact on your quality of life in retirement.

Save and save again

Unfortunately, health insurance doesn’t cover all of your medical expenses. As a result, some workers are tempted to tap into their retirement plan savings account before they should. The best way to prepare for future healthcare costs as well as any other financial situation is to save as much as you can today.

Consider a Health Savings Account

If your employer offers a high-deductible health plan, then you can save for current and future medical expenses in a health savings account. Contributions to an HSA are made pre-tax (up to the IRS annual contribution limit). Withdrawals can be made to pay for qualified medical expenses, including dental and vision, and are never taxed. Any interest or earnings also grow and are distributed tax-free when taken for qualifying medical costs.

For example, eligible State employees who participate in the Consumer Driven Health Plan (CDHP) have access to an HSA coupled with their qualified high-deductible health plan through the State’s Public Employees’ Benefits Program. These HSAs are employee-owned, portable and can be used for health care and medical expenses even after an employee retires or terminates employment. Information about this program for State employees only is available at https://pebp.state.nv.us/plans/previous-years-plan-documents/plan-year-2019-documents-and-rates/. Employees of political subdivisions and NSHE can get more information about HSAs through their employer’s Human Resources team.

Choose in-network providers

Going outside of your health plan provider’s network to a non-participating doctor could result in an expensive — and avoidable — medical bill. When you visit in-network providers, you get access to the lower rates that they’ve negotiated with your health plan.

Use medical expense deductions

If you have unforeseen emergencies that are not fully covered by your insurance, the IRS allows some relief, making some of these expenses partly tax-deductible. If you incur extraordinary medical expenses in one year, you can deduct from your taxable income the medical costs that exceed 10% of your adjusted gross income.

Healthcare costs are likely to be a significant part of your retirement budget. If you haven’t already factored these costs into your retirement, you may want to consider planning for it. The sooner you prepare, the better off you could be.

Neither the Nevada Deferred Compensation Administration nor Voya^® or its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.

Financial planning for special needs

It’s easy to get overwhelmed with the task of planning for a lifetime of care for a loved one who isn’t fully able to support him or herself. Financial planning for special needs families involves making plans for medical expenses, caretaking, and preserving the child’s government benefits. Ultimately, when it comes to developing a sound financial plan, there is no “one-size-fits-all” strategy.

With proper planning, families can protect their loved ones and help secure their well-being today and tomorrow. It’s also important to understand what resources are available. Here are some big-picture planning steps you and your family should consider.

Carefully consider who is named as a beneficiary

Any funds and assets for loved ones with special needs that amount to more than $2,000 could affect their eligibility for means-tested government support. Consider setting up a special needs trust for the benefit of the family member with disabilities or special needs, and naming it as the beneficiary of your retirement accounts, life insurance policies and other financial accounts in your name. Keeping assets in a special needs trust can be used to pay for goods or services that are in the beneficiary’s best interest, while also maintaining the beneficiary’s eligibility for government assistance programs.

Extend your support with the employee assistance program

One of the most commonly overlooked and underused employee benefits is the employee assistance program. These programs may offer helpful assistance for a variety of personal situations. For example, the State’s Employee Assistance Program (EAP) provides support to qualifying State employees and their dependents. Financial information, legal support and resources, work-life solutions, clinical counseling and critical incident stress management services are confidential and available at no charge. State employees can learn more by visiting the Employee Assistance Program Employees of political subdivisions and NSHE can get more information about their EAP options directly through their employer’s Human Resources team.

Save money today with health care spending accounts

Insurance doesn’t cover all of a family’s health care expenses, so it’s good to save money in an account that has tax advantages, such as a Health Savings Account. Click for more information.

Work with a specialized financial planner

A trained financial planner with special needs planning experience can help families learn about and understand their options. Together, you can put a financial strategy in place with a clear roadmap for a brighter tomorrow.

Neither the Nevada Deferred Compensation Administration nor Voya^® or its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.

The retirement and college savings tug-of-war

Juggling two big-ticket goals at the same time isn’t easy. If you’re feeling stress about saving for both your retirement and a child’s education, you’re not alone. While you may view college as an investment in a child, you don’t want to short-change your future, especially since you are close to retiring.

Put on your oxygen mask first

Retirement savings should be your number one priority. A child who reaches college age can apply for loans, grants and scholarships, but only you will fund your retirement.

The NDC Program permits you to make pre-tax contributions, Roth after-tax contributions or a combination of the two. If you decide to make pre-tax contributions to your NDC account, those deferrals will lower your current federal income taxes and accumulate tax-deferred. So, saving for retirement is a tax strategy, too.

Another priority is creating an emergency fund. Keeping cash in the fund helps you avoid tapping your other savings to meet unexpected expenses.

If you have high-interest debt, you may want to pay it down so you can free up money to save toward retirement or educational expenses.

Saving for college

The average cost of tuition and fees for the 2018–2019 school year was $35,676 at private colleges, $9,716 for state residents at public colleges and $21,629 for out-of-state students at state schools.*

These tax-advantaged savings plans are available to help meet future education costs.

A 529 plan. Every state offers a 529 plan. When you set up a 529 plan account, you designate a beneficiary whose education expenses will be paid using the money in the account. The beneficiary can be anyone, including you. Withdrawals may be free of state as well as federal income tax.

A Coverdell education savings account (ESA). ESAs offer tax-deferred growth and tax-free withdrawals when you use the money to pay for qualified educational expenses. You choose the investments. The beneficiary must be younger than 18 when you open the account. You are allowed to change beneficiaries to another member of the same family if you wish.

You’ll want to evaluate the different investment options, fees and restrictions on the plans before you make your choice.

To get to your college savings goal faster, you may want to encourage family and friends to chip in, too. Relatives and friends can contribute amounts to whatever educational savings plan account you open.

Neither the Nevada Deferred Compensation Administration nor Voya^® or its affiliated companies or representatives provide tax or legal advice. Please consult a tax adviser or attorney before making a tax-related investment/insurance decision.

Source: *US News & World Report, https://www.usnews.com/education/best-colleges/paying-for-college/articles/what-you-need-to-know-about-college-tuition-costs

Get organized to breathe easier in retirement

Decluttering is a popular topic these days. Articles, books and television shows promote getting rid of what’s no longer useful and keeping what matters in easy reach.

But why limit yourself to emptying closets or the garage? Maybe it’s time to apply the approach to your financial life, too. See how many of these action items you’ve already completed, and which ones to consider tackling soon.

	Review your will and advance medical directives (i.e., health care proxy, living will and durable power of attorney documents). If necessary, make updates.
	Check the beneficiaries for your retirement accounts and insurance policies. If there’s been a major event in your life, such as a marriage, divorce, birth of a child or a death, you may need to change the beneficiaries to reflect your current wishes.
	Create a list of where to find your accounts, insurance policies, birth and marriage certificates, divorce decree, passport, title documents for real estate and vehicles and financial and legal advisers.
	Store copies of important papers and documents, including those listed above, in a bank safe deposit box.
	Start or pare down the filing system for your financial records. Label the folders clearly and store temporary records on a flash drive or in a fireproof file cabinet. Keep the current year’s records available, then put away the rest. Check with your financial or tax advisor about how long you need to keep documents and when to shred them.
	To cut down on paperwork, switch to edelivery of your NDC account statements and documents. Log in at nevada.beready2retire.com and change your mail delivery preference from paper to electronic delivery.

THE DEFERRED WORD   |  Second Quarter 2019

Nevada Public Employees’ Deferred Compensation Program (NDC)
Nevada State Library and Archives Building, 100 N. Stewart Street, Suite 100, Carson City, NV 89701

Phone 775-684-3397    |    Fax 775-684-3399    |    defcomp.nv.gov

This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related investment/insurance decision.

Insurance products, annuities and funding agreements are issued by Voya Retirement Insurance and Annuity Company (“VRIAC”), Windsor, CT. VRIAC is solely responsible for its own financial condition and contractual obligations. Plan administrative services provided by VRIAC or Voya Institutional Plan Services LLC (“VIPS”). VIPS does not engage in the sale or solicitation of securities. All companies are members of the Voya® family of companies. Securities distributed by Voya Financial Partners LLC (member SIPC) or third parties with which it has a selling agreement. All products and services may not be available in all states.

Nevada Deferred Compensation is not affiliated with the Voya family of companies.

CN775501-0320

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