What's New?

As the Nevada Summer comes to a close and the Autumn Season begins, the Nevada Public Employees’ Deferred Compensation Program (NDC) prepares for exciting changes and new educational opportunities to help participants and employees as you NV your retirement.

The NDC Program Hits Assets Milestone

We are excited to announce that our long-term Milestone Goal has been achieved for the first time in the history of the Program! The NDC Program hit $1 Billion in total assets under management. This is exciting for all current and future NDC participants, as this milestone often allows us to qualify for better investment pricing and future potential Plan design enhancements. This also continues to improve the value of the NDC Program and the overall financial wellness for our participants and their families.

Governor Sisolak Appoints Two New Members to the Deferred Compensation Committee

In late August, Governor Steve Sisolak appointed two new members to the Nevada Deferred Compensation Committee, filling vacancies from September, 2019 on the 5-member Committee.

We are excited to announce that Ms. Susie Chang and Mr. Jeff Ferguson have been appointed to serve as members of the NDC Committee.

Our recent September 22 session served as their first Committee meeting.

Ms. Susie Chang currently holds a position with the Nevada Gaming Control Administrative Staff. Ms. Chang brings substantial knowledge in call center management, actuarial management, fiscal analysis, asset management, financial auditing, and investment management. Ms. Chang holds a BA in Mathematics Applied Sciences & Actuarial Planning from UCLA, Los Angeles, CA. She previously was a Certified Financial Planner (CFP) and was Series 6 and 63 licensed. Susie will occupy one of the positions pursuant to NRS 287.325(a).

Mr. Jeff Ferguson is a recently retired participant from the Legislative Counsel Bureau (LCB) where he spent the majority of his career in the Fiscal Analysis division and the end of his career serving with the LCB Audits division. Mr. Ferguson brings a plethora of fiscal management and administrative knowledge as well as legislative process and budget management skills and knowledge. Additionally, Mr. Ferguson is an avid fly fisherman and outdoor enthusiast. Jeff will occupy the retiree position pursuant to NRS 287.325(d).

We are so excited to have both Ms. Susie Chang and Mr. Jeff Ferguson join the Deferred Compensation Committee and look forward to their participation in the governance of the NDC Program now and into the future.

Nevada SAVES Month in October

Each fall, the NDC Program organizes and hosts workshops in preparation for National Retirement Security Month (NRSM). This year, due to the State’s COVID gathering restrictions we invited all government employees and their families to participate in activities during the State of Nevada’s first ever Nevada SAVES Month.

The first Nevada SAVES Month focused on educating employees about financial wellness, cybersecurity, beneficiary maintenance, emergency savings, and retirement savings to the NDC Plan. For copies of the Nevada SAVES Month materials sent out this October, please contact the NDC Administrative Office.

In closing, all of us here at NDC wish you and your family a safe and enjoyable start to the Fall and Holiday Season.

Here's to your financial health.

The NDC Plan is committed to helping you achieve financial wellness, the healthy balance of living for today, preparing for tomorrow and feeling confident about the future. Financial stress, caused by financial unwellness, can overwhelm workers. In fact, financial stress is the leading stressor in the workplace — more than all of the other stressors combined.

Financial stress can impact your mental and physical well-being, how you perform at work, postpone your retirement and extend your working years. So what can you do about it?

It all begins with you.

The first step on the journey to financial wellness is available right now in your NDC account. Log into your account at nevada.beready2retire.com for a financial wellness assessment that consists of a brief set of core questions that are aligned with the six pillars of financial wellness and vary based on your life stage and job status. After completing the assessment, you’ll receive a personalized summary of your results in real time. The scoring system is easy to understand, and helps you see where you are today and what you can do to improve your financial situation.

We know your time is valuable, so the financial wellness experience in your NDC account makes it as easy as possible for you to find the resources, tools and topics most relevant to you. After completing the assessment, your financial wellness dashboard will be fully personalized based on your results to help you take the next best action on your journey.

Additional resources are also available through NDC’s contracted recordkeeper, Voya Financial®, to help you explore a wide array of financial wellness topics. The Voya Blog (blog.voya.com) delivers fresh, timely content on a weekly basis. Voya Learn (voya.com/voyalearn) provides you with financial education anytime, anywhere with virtual, on-demand personal training and retirement planning resources. Live webinars and on-demand vides are available on a variety of financial topics to help you along the way.

Now is a great time to spend some time thinking about your future. Log into your account today at nevada.beready2retire.com and click Financial Wellness to get started.

Name your beneficiaries, for life.

“Bene” is Latin for good or well. When you designate a beneficiary, the one who will receive your assets after your death, you are giving the priceless gift of financial well-being to a loved one (or ones).

Have you thought about who will inherit your assets?

If you want your loved ones to avoid conflict and costly probate, when the courts will decide and distribute your assets to whomever they choose, then you’ll want to protect your legacy and leave it according to your wishes. This means designating beneficiaries in each financial, retirement savings, annuity and life insurance account to direct the assets into the hands of the one(s) you love.
Even if you have a will, not all your assets pass through at the direction of your will. If an account is jointly owned, has a named beneficiary or has a “payable on death” title, its assets will often supersede any will.¹

The NDC Plan requires you to designate a beneficiary for the assets in your account. You should consider working with a financial professional to help navigate your particular circumstance of designating a beneficiary. A beneficiary may be a person, trust, or organization, although naming someone other than an individual may have implications for the IRS minimum distribution requirements. Designating a beneficiary will help ensure that your assets are in good hands long after you’re gone. Remember, beneficiary designations need ongoing maintenance. Whenever you have a life changing event such as a marriage, divorce, birth or death, you may want to update who will benefit so you can protect your promise to everyone who matters most to you.

Be good to the ones you love.

Visit nevada.beready2retire.com and log into your account and review or name your NDC account beneficiary. If beneficiaries are already listed, no action is needed unless you want to make changes. If no beneficiary is listed, don’t wait any longer. Designating a beneficiary is easy. Do it today!

Sources:

¹ Voya.com https://resourcecenter.voya.com/articles/wills-and-trusts-two-ways-help-ensure-you-have-last-word

Hello, retirement

You’ve been working your whole life for this. Let’s make sure you’re ready.

Will you have enough to cover your expenses in retirement? If you’re planning to retire in the next five years, let’s review your financial plan to make sure it’s working as expected so you can live comfortably in retirement. Having a plan is one thing, but executing on it is just as important. Consider these steps as you get ready for retirement:

Organize your finances and establish a budget. Understand what your financial picture looks like and what your goals are. Create a feasible budget and practice living on it for a few years before you retire. Then do what you can to pay off your home, car loan and credit cards before you say hello to retirement.

Create a clearly defined financial plan. It’s never too late to prepare. Start by making sure your financial plan includes all sources of retirement income, including Social Security, and how you will maximize them in retirement. Be sure to factor in any life insurance, long-term care coverage and estate planning. It’s also a good idea to update your will and healthcare proxies.

Set aside an emergency fund. Whether it’s a health concern, car repair or leaky roof, you never know what surprises life will bring. To cover unexpected expenses, set aside 3 to 6 months of cash. This way you won’t have to depend on credit cards and incur debt. You can’t put a price on the secure feeling that comes from being prepared for the unexpected.

Max out your NDC Plan contributions. Get retirement ready by giving your savings a boost. Increasing your NDC pre-tax contributions reduces your taxable income, and additional catch-up options are available for those over age 50 and within three years of the normal retirement age. Visit voya.com/irslimits for the annual contribution limits for 2020, look for an IRS announcement soon regarding 2021 limits, and contact the NDC Administrative Office to discuss your options for how the NDC Plan can help you plan today to be ready for tomorrow.

Align your investments with your risk tolerance. As retirement gets closer, your investment priorities might change. Consider shifting assets in your NDC account to get the most return for the amount of risk you want to take. A financial professional can help you select investments that help protect your portfolio and generate retirement income.

There’s probably something each of us can do a little more of or be a little better at doing. As you near retirement, what do you need to focus on? As Benjamin Franklin once said, “don’t put off until tomorrow what you can do today.” Take the next step now on your road to retirement!

What you need to know before taking money from your NDC account

The Nevada Deferred Compensation Plan offers the ability to take a distribution from your account when you permanently leave work with the State of Nevada, NSHE, or a qualified political subdivision. If you’ve chosen to defer payments until retirement, you may be thinking of how to have your retirement benefits paid to you. One option is a lump sum cash-out withdrawal, but just because it’s available doesn’t mean it is a wise decision. There may be extreme financial circumstances in your life, but it’s important to understand all of the implications before you take action.

If you are thinking about taking a lump-sum cash distribution of the total account balance from your NDC account:

• A sizable portion of the lump-sum distribution will go to taxes.
• The distribution is subject to a mandatory 20% federal income tax withholding.
• Distributions of pre-tax money will always be subject to taxation.
• If you made any Roth after-tax contributions, your distribution of those contributions and any earnings may come out tax-free if it meets certain distribution criteria.
• The lump sum distribution could even move you into a higher tax bracket, costing you more.¹

To initiate a payout for any reason, call the NDC Plan Information Line toll-free at (855) GO-RET-NV (467-3868) to discuss all of your options and to receive the necessary forms to complete the withdrawal. You may receive benefits in a variety of eligible ways besides a lump-sum cash out. You may:

• Take a partial withdrawal of your NDC account as needed.
• Establish a regular period payment of benefits to be paid monthly, quarterly, semi-annually or annually.

As long as there is a balance in your account, you may change your benefit payment option at any time. For more information on the distribution option that best applies to your unique situation, please call the NDC Plan Information Line before taking any action. As always, our goal remains to keep you well planned, well protected and well invested for your future.

Sources:

¹ Voya Learn video: Distribution Options, 2019
CARES Act offers economic relief to employers and individuals, http://voyainsights.voya.com/whats-new/cares-act-offers-economic-relief-employers-and-individuals, 2020

THE DEFERRED WORD   |  Third Quarter 2020

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

Plan administrative services are provided by Voya Institutional Plan Services, LLC (VIPS). VIPS is a member of the Voya^® family of companies and is not affiliated with the State of Nevada Public Employees’ Deferred Compensation Program.

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