What's New?

With the 2022 New Year off and running, and the first quarter of the year continuing global-economic and health crisis challenges, most Nevadans are excited to bring in the Spring and Summer months. The Nevada Public Employees’ Deferred Compensation Program (NDC) continues working hard to bring the most value to participants while assisting them on their financial wellness journey to and through retirement.

NDC Committee Makes Positive Changes to the NDC Core Investment Lineup, Saving Participants Even More In Annual Costs.

At its January 21st Annual Strategic Planning Meeting, the NDC Committee was presented with data to consider regarding potential changes to a more cost-effective asset class within the asset management categories of the NDC core investment lineup.

The NDC’s contracted Investment Consultant and the Vanguard Group announced that the NDC Program now qualifies for a new stand-alone share class of Target Retirement Funds. They also provided data on the potential of utilizing Collective Investment Trust (CIT) vehicles in multiple investment classes within the NDC core investment lineup to help save participants money and provide more interest-earning potential.

The NDC Committee voted to move the Target Retirement Fund suite to this new Investment Class and requested that the use of CIT investments is considered for adoption at an upcoming Committee meeting.

Be on the Lookout: NDC Participants will Receive a Customized 2022 Retirement Evaluation

Last year, NDC launched an all-new customized Retirement Evaluation to participants. The campaign proved to be successful in helping NDC participants develop a personalized financial wellness plan and will now be an annual benefit for actively participating participants with a balance of at least a $5,000. You will receive your customized Retirement Evaluation by email and U.S. mail in May and June this year. We encourage to prepare for the annual Evaluation by registering your NDC account online if you have not already done so. Providing information like your PERS pension, annual salary, and outside savings accounts into the myOrangeMoney experience on the NDC account homepage will include that data in the Retirement Evaluation. The more information a participant provides, the more detailed and beneficial the Evaluation will be. If you need assistance or guidance, feel free to contact the NDC Plan Information Line at 855-GO-RET-NV (467-3868) or the NDC Administrative Office.

Keep Your NDC Account Secure

NDC Administration continues to remind all participants to utilize the NDC’s proprietary website when logging into their NDC account. YOU CAN NOT ACCESS YOUR NDC ACCOUNT USING ANY OTHER METHOD OR WEB LINK TO VOYA. Visit defcomp.nv.gov, click the green Login to Voya button and register for or log in to your NDC account. If you need assistance with registering or logging into your account, please contact the NDC Plan Information Line toll-free at 855-GO-RET-NV (467-3868).

Shook up by market volatility? Don't panic.

An light of unsettling world events and recent market volatility, you may be feeling uneasy about the impact on your investments and retirement savings. Difficult markets can lead to emotional decisions that might not be in your financial best interest. It is important to keep cool when the market goes on a periodic roller coaster ride and understand that one of the best ways to navigate the swings in the financial markets is to have strategies in place that prepare you both financially and psychologically to handle market volatility. Before making hasty decisions, consider the long-term impact an investment change may have on your ability to achieve financial goals. For personalized investment advice at no additional cost, call 855-GO-RET-NV (467-3868) ask to speak with a VRA Investment Advisor Representative weekdays from 5:00 a.m. – 5:00 p.m. PT, excluding stock market holidays.

Advisory Services provided by Voya Retirement Advisors, LLC (VRA). For more information, please read the Voya Retirement Advisors Disclosure Statement, Advisory Services Agreement and your plan's Fact Sheet.

Special Welcome to New NDC Members from the Kingsbury General Improvement District

At its March 10, 2022 Committee Meeting, The NDC Committee approved that the Kingsbury General Improvement District becomes a member of the NDC Program. We welcome their employees and look forward to serving them.

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

Your financial wellness journey begins with you.

Financial wellness is about balancing the freedom of living for today, saving for tomorrow, and living within your means along the way.

Not sure what the next best step is for you to take on your financial wellness journey? Start by watching the on-demand Foundations of Financial Wellness video to help understand the principles of financial wellness including goal setting, protection, spending and saving, and retirement planning. In less than 30 minutes, the video will also provide helpful tips on actionable steps you can take on your journey to financial health and well-being.

From there, you can experience financial wellness by logging in to your NDC account at nevada.beready2retire.com. In your account, click Financial Wellness at the top of the page to take a financial wellness assessment. The assessment will take less than five minutes to complete and focuses on the six pillars that are key to overall financial wellness.

At the end of the assessment, you will see a summary of where you stand financially right now and resources to help you take action in the areas you need the most help. For example, if you scored “red” in the Spending & Saving financial wellness pillar, you may be directed to a short video on how to create a new budget and spending plan. Then, you may be directed to the online budgeting calculator to help you take control of your money. All of the financial wellness resources are available to you at any time so you can learn to live for today while preparing financially for tomorrow. We encourage you to retake the financial wellness assessment every year as well to see how the steps you’ve taken have improved your results.

The Foundations of Financial Wellness page can help you get started on your wellness journey today. Visit voya.com/page/on-demand/foundations-financial-wellness.

Did you ring in the New Year with a tax refund?

While a tax refund may be a nice way to get some quick cash, did you know that it means you overpaid your taxes and gave the government an interest-free loan for the year?

The average income tax refund in 2021 was $2,775.¹ Think about what an amount like that could do working for you all year instead of for the government. Increasing your contributions to the NDC may be both the tax time and retirement saving strategy you’ve been looking for.

Rather than waiting for a refund next year, increasing your voluntary pre-tax contributions now to save an additional $2,000 for the year could mean much more for you in retirement.²

What about this year’s tax refund? While it may be tempting to treat yourself with the extra cash, what if you paid it forward by taking care of something that hasn’t happened yet? Stashing your refund in an emergency savings fund can give you peace of mind, especially when life hands you an unexpected hard time. With unexpected emergency expenses, it’s a matter of when and not if. Check out these and more ideas for your refund this year so you can breathe easier, save more, and grin from ear to ear.

Save for your best life. Visit blog.voya.com/financial-decisions/save-your-best-life.

¹ IRS, 2021 Filing Season Statistics, October 2021.

² These examples assume retirement age of 65, annual investment of $2,000, average annual return of 7% compounding once annually. These assumptions are meant for educational use and not a guarantee of future results.

Nearing retirement? Plan to stay a while.

As you enter the final years of saving for the retirement you've worked so hard to achieve, we want to remind you that you are part of our NDC family even in retirement.

You saved consistently and invested wisely to help build up your retirement savings, and we want to help you make the most of your retirement. Here are just some of the ways that the Plan can support you to and through retirement.

• For those who are within 5 years of retirement: If retirement is within sight but still a couple years away, special catch-up saving options may be available to help maximize your retirement savings in your final working years. Visit voya.com/irslimits for information about the age 50 and older catch-up^` and the 457 special election catch-up² options.
  
  
• At retirement: Did you know that you can still stay in in the NDC even after you’ve retired? The only thing that has changed in retirement is that you cannot make new contributions to the Plan. You continue to have access to all of the NDC’s financial resources and tools, though, and can actively manage your investments like you were when you were still working.

When you stay with the Plan – to and through retirement – you utilize all of the NDC’s participant benefits to your advantage. NDC’s contracted recordkeeper, Voya Financial, has a variety of videos, workbooks and checklists to prepare and help you to stretch your savings and make it last. Visit voya.com/page/nearing-retirement-10-steps-your-journey.

¹ Age 50 and older before year-end.

² 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.

You’ve earned it – now keep it

Now that you are withdrawing from savings to create regular income for your retirement, it's important to consider all of the ways you can help make the most out of the money you've saved.

We all want to live a long and healthy life, but preferably not on a shoestring budget. That means taking a realistic look at a few factors that may affect your income stream in retirement:

• Market downturns. You’ve probably changed your investment approach to more conservative investments to lower your risk. Poor market performance, though, can still impact the value of your portfolio. To make sure you do not spend down your savings too quickly, it is important to review, re-evaluate and potentially adjust your withdrawal approach after big market swings.
  
  
• Inflation. When you estimate for the long term, always factor in rising costs for food, fuel, housing, healthcare and other necessities. You have probably seen the impact of inflation recently in your own life. Even with a conservative investment portfolio, it’s important that your investments outperform inflation to help maximize the buying power of your retirement income. If your portfolio is heavily invested in stable value, fixed income, or money market instruments, the rate of return may not outperform inflation and would require you to withdraw more monthly retirement income than you anticipated.
  
  
• Taxes. If your income stays about the same in retirement, your taxes may stay the same too. Your retirement accounts, though, may have varying tax requirements. Every decision to withdraw, and from what source, could have a tax impact.
  
  
• Medical expenses. Even though Medicare kicks in when you turned 65, treating unplanned health issues can have a big impact on your finances. Since the cost of Medicare Part B is means tested, the amount of taxable income you have in retirement can affect the cost of your Medicare insurance coverage.
  
  
• Longevity. Life expectancies are increasing — and that’s a good thing. Just make sure your income strategy takes into account that you, and your spouse, could live longer than expected. For example, a couple currently aged 65 has a 50% chance that at least one spouse will live to age 90. Are you prepared to make your retirement savings last for 25 years or more?

As you can see, the work has not ended just because you have retired. The job now is just different. Managing your income in retirement may be a newer challenge but not that different from the challenges you've dealt with and overcome for years. Remain focused on the task at hand, get help from tax and financial professionals as needed, and make adjustments to your income plan as your needs change.

THE DEFERRED WORD   |  First Quarter 2022

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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