All unrepresented employees hired on or after July 1, 2013, with estimated annual wages of $75,000 or more are eligible to join the VDC (Voluntary Defined Contribution). Persons employed on a permanent full-time basis must join a retirement plan within 30 days of their date of appointment. If an employee fails to make a timely election, state law requires placement in TRS (Teacher's Retirement System) or ERS (Employee's Retirement System), depending on title. Once an election is made, it cannot be changed during any period of public NYS employment, and is retroactive to the date of appointment. A newly hired state employee whose immediate preceding employment was with another department, division, or agency of the state is not eligible to enroll in the VDC.

The VDC is a defined contribution retirement program. Benefits are determined by the amount contributed each year and the success of the investments. The contribution rates to the VDC are as follows:

EMPLOYER CONTRIBUTION
An Employer Contribution of 8% of salary will be made for the duration of employment.

EMPLOYEE CONTRIBUTION
An employee contribution will be required for the duration of employment based upon estimated gross annual wages in a given calendar year, as follows:

Annual Wages	Percentage
Wages of $45,000 or less	3%
Wages of $45,000.01 to $55,000	3.5%
Wages of $55,000.01 to $75,000	4.5%
Wages of $75,000.01 to $100,000	5.75%
Wages of more than $100,000	6%

Salary rate will be considered in reaching the $75,000 threshold. For example, if a part-time employee makes $45,000 working 60% of a full-time schedule, then the salary rate would be $75,000, and would qualify the employee to enroll in the VDC Program.

VDC employee contributions are made through payroll deduction on a pre-tax basis. Contributions are not subject to Federal income tax until withdrawn but are subject to State and local income taxes in the year in which they are made. All earnings on contributions are tax deferred until they are withdrawn.

All contributions are made based upon IRS compensation and contribution limits, which are determined annually.

Upon completion of 366 days of service (waived for employees who enter service with employer-funded retirement contracts from any of the VDC investment providers) the participant has full and immediate vesting in all retirement and death benefits provided by the retirement annuities purchased through the employee and the employer contributions.

Contributions will begin upon Plan entry, but are held by the employer until completion of the vesting period. Once vested, the employer will make a single lump sum contribution of applicable employer and employee contributions plus interest to the investment provider(s) selected by the participant. A participant who does not complete the vesting period is entitled to a refund of his or her own contributions plus interest.

There is a 366-day vesting period except for:
1. The employees who come to eligible employment with vested employer funded retirement contracts from any of the VDC investment providers vesting is immediate.
2. The employees who are active members of ERS or TRS with at least 366 days of service credit; vesting is immediate. If less than 366 days in ERS/TRS, service credit may be applied against the VDC vesting period.

Note: The VDC vesting period is on a calendar basis.

*If you invest in the Voluntary Defined Contribution (VDC) Program through Fidelity you will be investing in a variable group annuity contract issued by Massachusetts Mutual Life Insurance Company ("MassMutual"), 1295 State Street, Springfield, MA 01111-0001 and administered by Fidelity Investments. If benefit payments are annuitized under the group annuity contract issued by MassMutual, those benefit guarantees are subject to the claims paying ability of MassMutual.

MassMutual and Fidelity Investments are not affiliated.

You may decide to keep some or all of your existing VDC balances currently held at one of the Authorized Investment Providers (TIAA, Valic and VOYA). Or, you may decide to transfer some or all of your VDC account balances to Fidelity Investments. In that event, you must first set up a VDC account with Fidelity Investments.

Once your account has been established, if you have any questions, call Fidelity at 844-FOR-SUNY (844-367-7869) and a benefits representative will assist you.

The third parties mentioned herein and Fidelity Investments are independent entities and are not legally affiliated.

If you have not already selected your beneficiaries, or if you have experienced a life-changing event such as a marriage, divorce, birth of a child, or a death in the family, it’s time to consider your beneficiary designations. Fidelity’s Online Beneficiaries Service offers a straightforward, convenient process that takes just minutes. To make your elections, click on the “Profile” link, then select “Beneficiaries” and follow the online instructions.

The VDC is designed to allow retirement at any age. Distributions from VDC contracts are permitted any time after separation from services, and are generally subject to an IRS 10% penalty for distributions prior to age 59½, unless separating from service after reaching the normal retirement age of 55.

As a New York State Public Retirement Plan, distributions from the VDC are exempt from New York State Income Taxes. Please consult your tax professional for further information and guidance on how to report distributions on your personal income tax return.

The VDC includes several flexible options designed to allow participants to plan their retirement income distribution according to their own individual needs and preferences. These include periodic and systematic cash withdrawals, guaranteed lifetime annuity payments, and a variety of blended options and lifetime annuity dependent survivor payment levels.

Although your plan account is intended for the future, you may borrow from your account for any reason. Generally, plan rules allow you to borrow up to 50% of your vested account balance.

The minimum loan amount is $1,000, and a loan must not exceed $50,000. Any outstanding loan balances from the previous 12 months may reduce the amount you have available to borrow. You then pay the money back into your account, plus interest, through ACH deductions from your bank account.

You may have one loan outstanding at a time.

Note: If you fail to repay your loan (based on the original terms of the loan), it will be considered in "default" and treated as a distribution, making it subject to income tax and possibly to a 10% early withdrawal tax penalty. Defaulted loans may also impact your eligibility to request additional loans.

If you have retirement savings in another employer's plan or in an IRA, consolidating accounts may help make it easier to manage your savings but there are several options. Be sure to consider all your available options and the applicable fees and features of each before moving your retirement assets.

If you're not sure about the options for you, talk to a Fidelity representative today. They can explain each option in greater detail so you can make the best choice for your specific needs.

Online, on the phone, or in person, you have access to your account the way you want it. Log in online to NetBenefits.com virtually 24/7 or call Fidelity at 844-FOR-SUNY (844-367-7869) to speak with a representative or use the automated voice response system.

Fidelity financial professionals provide complimentary one-on-one consultations for participants in your plan. You can also contact Fidelity for a statement of your account by calling 844-FOR-SUNY (844-367-7869) or at NetBenefits.com.