What's New?

As we welcome the winter season and the New Year begins, the Nevada Public Employees’ Deferred Compensation Program (NDC) prepares to implement some exciting new enhancements and benefits to participants to assist employees with their Financial Wellness Journey to and through retirement.

IMPORTANT Plan News: Our General/Fixed Account Crediting Rate Continues throughout 2022

NDC is pleased to announce that the crediting rate of the Stable Value/General Account investment option, the Voya Fixed Account- 457/401 II, continues at 3.00% through 2024.*

Get Ready To Receive and Review Your Customized Financial Wellness Retirement Evaluation**

NDC participants with accounts that have a $5,000.00 balance or greater will receive a customized and personally tailored Retirement Evaluation designed to help them get on track for retirement and learn simple actions they can do now and throughout their careers to stay on track. In the first half of 2022, participants will again receive a series of NDC authorized and created communications to help them understand where their retirement situation currently stands. Participants are able to customize and better evaluate their financial wellness by providing data from other retirement plans they may have outside the NDC Plan such as NVPERS, Social Security benefits, IRA, 401(k), 403(b), or other 457(b) accounts. As a reminder, the more information you provide to the myOrangeMoney experience on your NDC account homepage, the more complete your retirement evaluation will be from the Plan.

2022 New Deferral Limits

We communicated the increase to the IRS annual contribution limits in mid-November. See further details in the Nearing Retirement section of this quarter’s Deferred Word.

Purchasing Service Credit through NVPERS

Many NDC participants may qualify to purchase service credit through NVPERS. Participants who qualify should always evaluate whether the benefit increase is going to be more beneficial than keeping their assets in the NDC Plan, given our low cost pricing structure and guaranteed interest rate. Many times, it’s more fiscally beneficial to continue managing your money in the NDC Program, but everybody’s situation is different so evaluating is essential. Here are some things to remember if you go forward with a purchase:

• Contact NVPERS to obtain a contract. It should include the following:
• Amount of time being purchased
• Due date for the purchase (contract termination date)
• Tax Deferred Administrator Certification Form
• Request, complete, and submit the NDC-required Service Credit Purchase Withdrawal Form.
• Complete Section 2 of the Tax Deferred Administrator Certification Form and return that along with NDC’s Withdrawal Form via secure email or fax. Once received in good order, NDC will submit the required paperwork for processing.
• Remember: Paperwork must be received in good order at least 14 business days prior to the termination date indicated on your NVPERS contract.

In closing, we wish you and your family a Happy New Year from all of us at the Nevada Public Employees’ Deferred Compensation Program (NDC).

* The Voya Fixed Account is available through an annuity contract issued by Voya Retirement Insurance and Annuity Company (“VRIAC”). The Voya Fixed Account is an obligation of VRIAC’s general account which supports all of the company's insurance and annuity commitments. The interest rate guarantees under the contract are subject to VRIAC’s claims-paying ability.

** IMPORTANT: The illustrations or other information generated by the calculators are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. This information does not serve, either directly or indirectly, as legal, financial or tax advice and you should always consult a qualified professional legal, financial and/or tax advisor when making decisions related to your individual tax situation.

Make this year your best yet.

Whether you are just starting out or rounding out your career — with every new year, there is a chance to begin again. Life has a way of changing and our financial priorities are always shifting. Now is a good time to reflect on how far you’ve come and where you want to go.

Make 2022 the year you revise your financial goals, get on track for retirement, realign your contributions to help meet your savings goals or consider consolidating all of your retirement assets in one place. Finding new ways to get and stay financially healthy is a great resolution for us all.

• Where should you start? First, take stock in all of the benefits that are available to you. Make sure you are properly insured to protect your health and your wealth with the right amounts of life, disability and health insurance. This way, when the unexpected happens, you won’t have to borrow from your savings.
  
  
• Are you saving enough for retirement? Review the 2022 contribution limits and consider increasing your NDC contributions to get closer to the annual limit if your estimated monthly replacement income is lower than you may need in retirement. Getting back on track for retirement and kicking it up a notch is always wise, no matter the year. Visit defcomp.nv.gov and complete the Payroll Contribution Form to update your current payroll deduction.

Pay attention to where you are in life.

• The younger you are, the more time your money has to earn. Saving consistently, even if it’s just a little every month, has the potential to add up over time. As you start making more money, consider saving more too.
  
  
• If you are nearing retirement and over the age of 50, catch-up contribution options are available to help you save thousands more towards retirement.
  
  
• If you’re already retired, you can still actively manage your investments and utilize all of the NDC’s resources and tools to stay on top of changing markets. As part of our Plan family, be sure to tap into these tools and get guidance when needed to help preserve what’s yours and create the income you need for retirement.
  
  
• Finally, if you have multiple retirement savings accounts from previous employers, consider exploring the option to consolidate those assets into your NDC account. This can help keep your investment options consistent within the same account, with one login to make it easier to monitor and manage your retirement savings.

This year, take advantage of every available retirement benefit and resource to put time on your side so you can retire well. Retirement will come faster than you think, so what are you waiting for?

Getting on track with personal finance by making a life, not just a living.

If the last two years have taught us anything, it’s that the future can be unpredictable. One way to prepare for certainty is to be sure you save for the life you envision without letting the inevitable bumps along the way take you off track.

Saving regularly and consistently is one way to make a life — not just a living. You can help achieve this by organizing your money and refocusing on what matters most, then reprioritize your money and reset your goals so the money you’ve worked hard for can work harder for you.

Think about where your money goes. If you don’t have a budget, build one. The NDC’s contracted recordkeeper, Voya Financial^®, has an online budgeting calculator available at voya.com/page/tools that can help you get started. Having a plan to reduce debt and save for an emergency is also a good idea. Here are some simple steps to get you started:

	Set short-term and long-term goals
	Focus on monthly charges
	Review and eliminate any unneeded subscriptions
	Review current insurance policies and compare to get the best rates
	Make savings automatic
	Save for large purchases or recurring large expenses
	Use technology to track your progress

Learn more about spending and saving, managing debt, and your journey to financial wellness with live and on-demand education at Voya Learn. Then start focusing on your finances to achieve tomorrow’s goals.

Invest in yourself and your future.

Every year, the IRS announces the annual contribution limits for retirement savings accounts like the Nevada Deferred Compensation Program. For 2022, some limits have changed, while others remain the same. How much are you contributing to the NDC for your financial future? Remember, your retirement needs you.

To calculate your total annual retirement savings, multiply what you are currently saving per pay period by your number of pay periods for the year. For example, saving $200 per pay period for 24 pay periods will total $4,800 for the year. If the total is less than the annual limit, you can increase the amount you save to the NDC at anytime during the year to get closer to or reach the annual contribution limit.

Annual Deferral and Catch-up Contribution Limits

Carefully consider your personal situation before making investment related decisions. Visit voya.com/irslimits for the latest contribution limits for all tax-deferred accounts and income thresholds for 2022. For more information about the annual contribution limits and your NDC account, you can also call the NDC Plan Information Line at (855) GO-RET-NV (467-3868).

* Age 50 and older before year-end. The Age 50+ Catch-up is only available for plans sponsored by a governmental employer.

** This special election catch-up applies to employees participating in an eligible governmental 457(b) deferred compensation that have elected the special catch-up available in the three years prior to the year of normal retirement age. If you are eligible for both the Age 50 and older catch-up and the special election catch-up under your 457(b) plan, IRS rules do not allow you to use both in the same calendar year. IRS rules permit you to use the catch-up that lets you contribute the greater amount.

What housing needs will you have in retirement?

Even as you enjoy retirement, you may still be thinking about managing your income and the type of lifestyle you want to maintain. Have you considered where you’re living or calculated how much you’re paying for housing expenses?

Housing is a frequently overlooked expense when planning for retirement costs, but it’s a significant component of your expenses and often presents unexpected challenges. Paying for housing in retirement can be challenging, but taking the time to think it through can help you enjoy a smooth, fulfilling retirement.

Develop a Plan for Retirement Housing

Start by evaluating your current housing and expectations for the rest of your retirement. For most people, the crucial decision to make is whether you’ll stay where you are or relocate. As you develop your plan, consider things such as your finances, family situation and responsibilities, your lifestyle in retirement, and the mortgage or rental status of your current or future residence. Once you assess these considerations for your personal situation, you’ll have a great starting point for your retirement housing plan.

Consider Potential Disruptors

The best-laid plans can go awry, and potential disruptors may affect your plans for housing in retirement. For example, having an adult child returning to live with you would definitely impact your housing plan.

Many retirees may feel a responsibility to care for their aging parents or help care for their children or grandchildren—responsibilities would affect your overall housing needs and affordability. Additionally, financial concerns can play an essential role in housing plans—considerations could include expensive home repairs or unexpected healthcare costs.

To learn more and live better in retirement, visit nevada.beready2retire.com to log in to your NDC account and access the Financial Wellness Resource Center for additional tips and tools.

THE DEFERRED WORD   |  Fourth Quarter 2021

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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