What's New?

The Nevada Public Employees’ Deferred Compensation Program (NDC) welcomes the summer with important news for participants and employees as you NV Your Retirement.

It’s Official — Voya is Retained as the NDC’s Contracted Recordkeeper

The NDC Program and State of Nevada conducted a very extensive and complex Request for Proposal (RFP) for Recordkeeping Services utilized by the NDC Program. At its June 12, 2024 Quarterly Committee Meeting, the NDC Committee voted unanimously to retain Voya, the highest scoring vendor that proposed in the RFP, as our contracted recordkeeper for another contract term. A successful contract was negotiated and will next go to the Board of Examiners for final approval. We look forward to sharing the details of the new contract in the coming months.

It’s a Great Time to Be a State Employee

Thanks to Governor Lombardo, his administration, the Department of Administration Leadership, and the State Legislature, most State of Nevada employees have seen some hefty salary modifications (and/or cost of living increases) as of July 1. We encourage you to be smart with this incredible opportunity! Now is a great time to consider how you will put that money to work for you and your family. I often recall an employee that came into our office in late 2014. She was a seasoned tenured classified employee who had dedicated nearly 36 years to State public service and was finally ready to retire. I reviewed her NDC account to assist with contributing the “Final Payout” leave balances she qualified for at the end of State service. With an accumulated NDC account value of nearly $2.4 million, she had done an amazing job at saving for retirement and putting her money to work for her. I commended her for her diligence and dedication, and asked her, “Would you share with me how you did this?” She was happy to share (and rightfully so). She explained that the day she started her career she enrolled in NDC and started contributing just $12.50 per pay period. She said, “even back when I started my career, that amount seemed small.” Every time she would receive a merit step increase, cost of living increase, or changed job classification through a promotion, she would always increase her NDC contribution by a minimum of 50% of what the increase was. So, if her increase was $80 more per paycheck, at least $40 of that went to her NDC account. This approach to saving became easier and like second nature to her over time. She explained that even when she got married, had children, and tragically lost her husband to cancer when she was just 29 years old, she continued to live her life and consistently contribute to her NDC account. She said, “I’m not going to lie to you, there were a few years throughout my career that were hard to manage at times. By the grace of God, I seemed to endure and never went without anything essential to living a great life. I still feel that way.” Her story has always stayed with me, and I share it quite often as I present to the thousands of government employees throughout the State. It’s a reminder that starting early, saving consistently, and increasing your savings when possible will help you achieve your retirement goals. Our office has never once heard a participant say, “I saved too much for retirement.” Unfortunately, the opposite is all too often the case. Please keep that in mind this summer as you consider how to make your salary increase work for you.

Mark Your Calendars Now

Annual Retirement Evaluations will be sent out to active participants this summer. The evaluation offers you a snapshot of where you stand in your retirement journey now and offers opportunities to better your current situation, get professional guidance on achieving your goals, and help to improve your financial self-reliance.

Finally, we are preparing our educational offerings for October’s Nevada Saves Month as part of National Retirement Security Month. Make note that the last week of October will be the NDC’s 18th Annual Financial Education & Literacy Days. You’ll have the opportunity to attend one of many virtual workshop sessions that will be available for all State employees and their families. More information about the workshops will be sent out in the months to come and detailed in October’s The Deferred Word.

In closing, we hope you and your family enjoy a safe and relaxing summer.

The do’s and don’ts of investing

You don’t need to be a financial professional to learn how to invest for your future. Consider these do’s and don’ts to help you feel confident and remain committed to your long-term goals.

Do – Start with a plan. When investing, it’s important to have a clear plan in place. This should include your long-term financial goals, risk tolerance, and investment timeline. That way, you’ll be able to make informed decisions about where to put your money and how much risk you’re willing to take on.

Don’t – Invest in something you don’t understand. If you’re not familiar with a particular investment, consider taking the time to research it so you better understand the risks and potential rewards before putting any money into it.

Do – Diversify your portfolio. Diversification is key when it comes to investing.¹ By spreading your money across a range of investments, you can potentially reduce your risk and increase your chances of positive returns over the long term. This could include investing in stocks, bonds, mutual funds, and other asset classes.

Don’t – Try to time the market. Experts say that predicting the market is like predicting the weather — you never know what will happen. Without knowing the exact moment to buy or sell, it would be easy to miss the market. That could be costly.

Do – Think about fees. When choosing investments, consider the fees you’ll be charged and look for similar options that may offer lower fees. Over time, these small savings can potentially add up to a significant amount of money.

Don’t – Panic when the market dips. The stock market is designed to move, so it’s normal for it to go through ups and downs. But don’t panic when the market dips. Remember that market fluctuations are a natural part of the investment process.

Do – Invest for the long term. Long-term investing can help reduce stress because you’re giving investments more time to grow and recover from short-term losses. More time for your investment interest to compound can also help you accumulate more savings.

Investing can be intimidating. An important responsibility of the NDC Committee and Administration is managing and monitoring the investments in the NDC Program and educating you about your investment options. Investing is a journey, not a destination, and the most successful investors tend to be those who are patient, disciplined, and committed to the long term.

To learn more about investing concepts and steps you can take to be a more confident investor for your future, visit voya.com/page/steps-to-invest. Then log into your NDC account at nevada.beready2retire.com, go to Investments & Research, and commit to reviewing your NDC investments periodically. Call (775) 886-2402 or visit nvdeferredcomp.timetap.com to schedule an appointment with one of Voya’s local financial professionals to review and discuss your investment allocation or performance.

1 While using diversification and/or asset allocation as part of your investment strategy neither assures nor guarantees better performance and cannot protect against loss in declining markets, they are well-recognized risk management strategies.

This information is provided for your education only through the Voya® family of companies. This information is not intended to be considered tax or investment advice. Neither Voya or its affiliated companies or representatives offer legal or tax advice. Consult your tax and legal advisors regarding your individual situation.

5 reasons for all State employees to start saving more this month

The latest pay increase for State employees, in recognition of their dedication and commitment to public service, gives NDC participants a savings opportunity that doesn’t come around often. Make sure you use your increase with your future retirement needs in mind while managing the financial needs of today. Here is how the NDC Program can help.

1. The NDC Program is flexible. You can change or stop your NDC contributions at any time as your financial needs change.
   
   
2. The NDC Program is automatic. Since your contributions are automatically deducted each pay period, you can increase your NDC savings any time you expect a salary increase before getting used to the extra money in your paycheck.
   
   
3. Your NDC contributions provide tax advantages. You can contribute on a pre-tax or Roth after-tax basis, which determines when your contributions and retirement income will be subject to federal income tax. Both have benefits that you should discuss with a tax professional before making changes to your account.
   
   
4. The costs to participate in the NDC Program are low. The NDC Administrative Office and NDC Committee help to ensure that the investments offered are competitively priced while maintaining their stated investment objectives. The annual cost to administer the Program is also low due to institutional pricing for a plan as large as NDC. This allows you to keep more of your investment dollars in your account and working toward your retirement goals.
   
   
5. The NDC Program offers local support. Saving for retirement doesn’t have to be complicated. Local representatives¹ from the NDC’s contracted recordkeeper, Voya Financial^®, can help you decide how much to save per pay period, determine if saving on a pre-tax or Roth after-tax basis is best for you, build a custom portfolio of investments, and develop a retirement saving strategy on the journey to and through retirement.

It’s never been a better time to participate in the NDC Program. Thousands of current and former State employees are on a similar journey, and we want to see you all achieve your retirement goals. Visit defcomp.nv.gov to download and complete the Payroll Contribution Form to increase your NDC contributions and help create the peace of mind for you and your loved ones that comes with having a plan to secure your financial future.

Do you have questions about using your pay increase to save in the NDC Program? We want to help. Call the NDC Administrative Office at (775) 684-3398 or visit nvdeferredcomp.timetap.com to schedule an appointment with Voya. Thank you for your service to the State of Nevada.

This information is provided for your education only through the Voya® family of companies. This information is not intended to be considered tax or investment advice. Neither Voya or its affiliated companies or representatives offer legal or tax advice. Consult your tax and legal advisors regarding your individual situation.

1 Information from registered Plan Service Representatives is for educational purposes only and is not legal, tax or investment advice. Local Plan Service Representatives are registered representatives of Voya Financial Advisors, Inc., member SIPC.

Actions today to help you plan for tomorrow

Part 1: Get Started
In the first part of our three-part series for NDC participants who are within 10 years of retirement, learn more about what you should start thinking about now as you take specific, simple steps towards retirement.

1. Set your retirement goals

• Create your vision for retirement. Consider how you’ll spend your days and what you want to accomplish.
• Pick your retirement dream date. The sooner you hope to retire, the more you’ll have to save and manage your spending now.

2. Organize your finances

• Gather your financial documents. This may include account statements, insurance policies, investment information, wills, trust documents, and more.
• Determine your net worth by totaling up what you own (real estate, vehicles, bank accounts, retirement savings, etc.) and what you owe (mortgage, loans, credit cards, other debts, etc.).

3. Estimate your expenses in retirement

• Write down what you expect to spend each month in retirement. While some expenses may go down in retirement, remember that your healthcare costs in retirement are likely to increase compared to what they are now.
• Consider planning to need at least 70% of your current income for each year in retirement.

Visit voya.com/page/on-demand/nearing-retirement-series-getting-started to learn more about each of these steps and ways to get started. For help getting organized and making a plan to achieve your retirement goals, schedule an appointment with your local Voya financial professional by calling (775) 886-2402 or visiting nvdeferredcomp.timetap.com.

Part 2, coming next quarter in The Deferred Word, will focus on checking your progress, learning more about other retirement income sources, and expenses to expect in retirement.

This material has been provided for educational purposes only. This material was created to provide accurate and reliable information on the subjects covered. It is not intended to provide specific legal, tax or other professional advice.

Planning for long-term care

Consider the following statistics:

• Every day until 2030, 10,000 Baby Boomers will turn 65¹
• 7 out of 10 people over age 65 will require long-term care in their lifetime²
• About 34.2 million Americans have provided unpaid care to an adult age 50 or older in the last 12 months³
• Americans living with Alzheimer’s disease could more than double by 2050 to 13.8 million, from 5.8 million today⁴

These statistics indicate that the nation is aging and, as life expectancy increases, the possibility that Americans will face a physical or mental decline some time in their lives is a very real one. Care in retirement can require considerable resources – physical, mental and financial. We encourage you to consider a plan now to manage the potential need for care and the associated costs, when the time comes, for yourself or an aging loved one.

It’s important to plan ahead for long-term and medical care, housing needs, income needs, health care costs, and transitioning assets to future generations. Most people agree that everyone deserves the right to make these types of decisions for themselves when they have the legal capacity to do so. Whether planning ahead for your own future incapacity or planning for the needs of a loved one with declining capacity, the most important thing is to start the process before capacity is questioned. 

It can be difficult for family members who see you every day to recognize declines in capacity. But it’s critical to make sure that plans are in place before capacity declines past the point where you can legally sign documents and affect transactions.

Well-qualified legal and financial professionals, educational resources, and services can help you put the right legal structures in place to help make the most of family resources, government and employer benefits. Visit voyacares.com for more information.

1 2020 Census Will Help Policymakers Prepare for the Incoming Wave of Aging Boomers” (census.gov).
2 2020 U.S. Department of Health and Human Services (https://acl.gov/ltc/basic-needs/how-much-care-will-you-need).
3 2021 Genworth Cost of Care Study by Carescout® https://www.genworth.com/aging-and-you/finances/cost-of-care.html
4 “Caregiver Resources & Long-Term Care”, U.S. Department of Health & Human Services, 2017

Advisory Services provided by Voya Retirement Advisors, LLC (VRA). VRA is a member of the Voya Financial (Voya) family of companies. For more information, please read the Voya Retirement Advisors Disclosure Statement, Advisory Services Agreement and your plan’s Fact Sheet. These documents may be viewed online by accessing the advisory services link(s) through your plan’s website at [org_provider_url]. You may also request these from a VRA Investment Advisor Representative by calling your plan’s information line at [org_callcenter_phonenumber]. Financial Engines Advisors L.L.C. (FEA) acts as a sub advisor for Voya Reeditstirement Advisors, LLC. Financial Engines Advisors L.L.C. (FEA) is a federally registered investment advisor. Neither VRA nor FEA provides tax or legal advice. If you need tax advice, consult your accountanted or if you need legal advice consult your lawyer. Future results are not guaranteed by VRA, FEA or any other party and past performance is no guarantee of future results. Edelman Financial Engines® is a registered trademark of Edelman Financial Engines, LLC. All other marks are the exclusive property of their respective owners. FEA and Edelman Financial Engines, LLC are not members of the Voya family of companies. ©2024 Edelman Financial Engines, LLC. Used with permission.

This material is provided for general and educational purposes only; it is not intended to provide legal, tax or investment advice. All investments are subject to risk. Please consult an independent legal or financial advisor for specific advice about your individual situation.

THE DEFERRED WORD   |  Second Quarter 2024

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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