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 for participants to assist them on their financial wellness journey to and through retirement.

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 competitive pricing structure and guaranteed interest rate. Many times, it's more fiscally beneficial to continue managing the money in your NDC account. Everyone is different, though, so evaluating your unique situation is essential. Here are some things to remember if you go forward with a purchase:

1. Contact NVPERS to obtain a contract. It should include:
   • The amount of time being purchased
   • The due date for the purchase (contract termination date)
   • A completed Tax Deferred Administrator Certification Form
   
   
2. Request, complete, and submit the required NDC Service Credit Purchase Withdrawal Form. Contact our office to request this form.
   
   
3. Complete Section 2 of the Tax Deferred Administrator Certification Form and return it with the NDC Service Credit Purchase Withdrawal Form by 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.

Important Plan News: Our Stability of Principal crediting rate continues to stand strong

NDC is pleased to announce that the crediting rate of the stability of principal investment option, the Voya Fixed Account - 457/401 II, remains at a minimum of 3.00% through 2024.¹

1 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.

Start the New Year out with a check up!

NDC participants, and all government employees and their families, are encouraged to start 2023 with a financial wellness check up. NDC participants who have not registered their NDC account through our secure login portal can make it happen by scanning the QR code on page 4 of this quarter's newsletter. By registering your account, we can implement all of the enhanced security features that are in place for NDC participants. If you've already registered your NDC account online, log into your account regularly to use all of the tools that are available to you. The new year is also a great time to review and evaluate your beneficiary designation(s) associated with your NDC account. While conducting a beneficiary designation review, make sure you also access all your accounts that may have a beneficiary on file. This may include any life insurance policies, your NVPERS account, and your State or agency personal profile. Finally, start the New Year by evaluating your tax planning for the upcoming year and consider your estate planning needs for you and your family. Feel free to contact our office for guidance or reach out to your agency’s Employee Assistance Program for assistance.

2023 contribution limits announced

We previously communicated the increase to the annual contribution limits that was announced by the IRS in mid-November. See the Actively Participating section of this quarter's newsletter for details and more information.

In closing, we wish you and your family a happy New Year from all of us here at the Nevada Public Employees' Deferred Compensation Program.

Ring in the New Year with a retirement checkup

With every new year, you have the chance to start fresh and change something for the better. Is getting “serious” about your retirement planning and long-term financial goals on your resolution list for 2023?

With every new year, you have the chance to start fresh and change something for the better. Is getting “serious” about your retirement planning and long-term financial goals on your resolution list for 2023?

While most resolutions fade over time, having very clear financial goals and regularly checking in on your progress can help to make your retirement dreams a retirement reality. Having the confidence to retire on your terms means having enough monthly retirement income to fund your future.

Remember, how much you contribute to your NDC account each paycheck and how your NDC account assets are invested is up to you. You’re not alone in the retirement planning process, though. Start by thinking about your spending habits to determine if there are opportunities to spend less and save more. Visit voya.com/tool/budget-calculator for help with managing your saving and spending so you can get and stay on track for retirement. Then visit resourcecenter.voya.com/tools/type-of-investor for a brief quiz that can help you better understand your risk tolerance and how you might build a well-diversified portfolio of different asset classes. For questions about your retirement saving or investment strategy, schedule a personal appointment with a local Voya^® representative by calling (775) 886-2402.

This year, focus more on your future self. It may be the best reason to celebrate this season. Here’s to saving more this year.

Annual contribution limits have increased for 2023

This year, the IRS has increased the retirement savings contribution limits to help you maximize your money so you can retire well. Visit voya.com/irslimits for more information about the annual contribution limits for all tax-deferred accounts and income thresholds for 2023.

If you are contributing less than the limit to the Nevada Deferred Compensation Program for 2023, you can increase or change the amount you save at any time during the year.

Visit defcomp.nv.gov to download and complete the Payroll Contribution Form to change your paycheck deduction. Send the form back to NDC by fax or email as noted on the form. The change will take effect the first payroll period of the month following the date the form is received and processed by the payroll department. Please call the NDC Plan Information Line at (855) GO-RET-NV (467-3868) for questions about your current NDC savings or to request a copy of the Special 457(b) Catch-up calculation sheet.

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

3 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.

When saving for retirement, you get what you give

C.S. Lewis once said, “You can’t go back and change the beginning, but you can start where you are and change the ending.”

As you near retirement and think about your future, start from where you are. It’s never too late to change your habits to increase your savings in your remaining working years, but the sooner you start the better. Preparing for the future takes thought and planning, but can be as easy as 1—2—3.

1. Visualize your retirement
When you picture yourself in retirement, what do you see? Once you envision what your time in retirement looks like, then you’ll need to estimate the monthly income needed to enjoy it. myOrangeMoney^® can help you estimate your future monthly retirement income and can also help you get back and stay on track for retirement.

2. Know where you stand financially
Once you visualize retirement and understand how much you’ll need to achieve that goal, you can explore other elements of financial planning and preparedness by taking a financial wellness assessment. Visit nevada.beready2retire.com to log into your account, then click Financial Wellness at the top of the homepage. The assessment consists of a brief set of questions aligned with the six pillars of foundational financial wellness. Once completed, you’ll learn more about where you stand financially, how to take your next best step to improve your situation and discover ways to save more.

3. How much is enough?
How much retirement income is enough? Although different for everyone, you’ll likely need to replace at least 70% of your current income annually in retirement. Once you know your number and know where you stand financially, you can manage your budget and spending to help find ways to save more.

Start now to understand where you are, where you want to be, and how you can get there by saving more on the journey to and through retirement. Visit nevada.beready2retire.com today for more information and to log into your account.

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.

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.

With investing, like life, the one constant is change

For some of us, change is good. For others, not so much. When it comes to this past year and the financial markets – we’ve all been challenged by the uncertainty and underperforming investments.

Like most things in life, though, market downturns are only temporary. It is waiting for the upturn that can be rough. None of us has a crystal ball to know when things will look up again. What you can do, though, is look back at history and what has been proven over time – that investing is truly for the long-term. Wealth is not built overnight. It takes planning, setting short- and long-term goals, and sticking to the plan in the face of volatility.

Why are investments generally recommended for the long-term? Even the strongest stocks may take a hit in the short-term if the market dips but, over time, they’re likely to recover. By holding your investments regardless of what the market does, you can ride out the storm. Remember, the stock market has had countless corrections over the years and has managed to recover from even the hardest hits.⁴

If you’re anxious about how much your account lost last year, remember that those losses are only realized if you sell out of those investments. Stocks generally recover from bear markets within about two years, and the market has never had a negative annualized return over a 20-year period.⁵ It takes time for markets to rebound, but they always have. So take a moment to breathe when investing makes you anxious, don’t overreact to the short-term performance of any investment, and remember that investing is a marathon, not a sprint.

4 www.fool.com, Worried about the stock market? , Katie Brockman, March 16, 2022, Worried About the Stock Market? Here's Warren Buffett's Advice. | The Motley Fool

5 blog.voya.com, Voya consumer blog, Licensed content, article was written by Sarah Hansen from Money and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to legal@industrydive.com, “A bear market can also be a buying opportunity. “If you’re anxious about your portfolio losing value this year, remember that these losses are only realized if you sell. Thinking about the long-term horizon of your investments can help too. Stocks generally recover from bear markets within about two years, and the market has never had a negative annualized return over a 20-year period.” The stock market downturn isn’t as bad as you think (probably) | Voya.com

THE DEFERRED WORD   |  Fourth 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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