The Virginia Supplemental Retirement Plan (the "Supplemental Plan") is a 401(a) defined contribution plan that may be used by school divisions that are eligible to adopt the plan. Employers make contributions to provide enhanced retirement benefits to designated employees. This benefit is in addition to the VRS defined benefit plan in which the employee is a member. You may call the Plan Information Line toll-free at VRS-DC-PLAN1 (877-327-5261) and select Option 2 to speak with a Defined Contribution Plans Retirement Specialist.

Who is eligible to enroll?
The Code of Virginia currently allows local school boards to use the Supplemental Plan to provide enhanced retirement benefits to Turnaround Specialists and the Middle School Teacher Corps. The Virginia Department of Education determines eligibility.

How does a school board make the plan available?
Local school boards choosing to offer this benefit must pass a resolution to that effect and sign an adoption agreement with VRS. The resolution will provide the name and Social Security number of each employee who will be enrolled in the Supplemental Plan; the amount that will be paid into the employee's account; the schedule by which it will be paid; and the beginning and end dates of the employee's participation in the plan. The plan record keeper provides instructions to the school board about to how to remit contributions.

Who contributes?
The school division makes contributions to the Supplemental Plan on behalf of eligible employees who are enrolled in the plan.

What is the contribution amount?
Local school boards determine the amount that will be contributed for each participant. School boards do not receive additional state funding to participate. Possible sources of funding available to local school boards include federal funding, grants and private funding.

How do I enroll in the plan?
Please call the Plan Information Line at VRS-DC-PLAN1 (877-327-5261), press zero and an Participant Services representative will assist you. The representative will explain the investments that are available but cannot give investment advice.

What are my investment option choices?
The plan offers a variety of investment options - from pre-mixed target date portfolios to a menu of options across asset classes - to construct your investment portfolio. Additionally, the plan offers a Self-Directed Brokerage Account (SDBA) for an additional fee. Publicly traded mutual funds, exchange-traded funds (ETFs) and individual securities are offered through the SDBA. You must have $2,500 in the core investments before investing in the SDBA.

Find more information about the plan's investment options here or call the Plan Information Line toll-free at VRS-DC-PLAN1 (877-327-5261). If you have any questions about your brokerage account, please contact Charles Schwab at 1-888-393-7272, Monday through Friday, 8 am to 7:30 pm, excluding market holidays. Please consider the investment objectives, risks, fees and expenses carefully before investing.

Charles Schwab & Co., Inc. and MissionSquare Retirement are not affiliated and are not responsible for the products and services provided by the other. Schwab Personal Choice Retirement Account® (PCRA) is offered through Charles Schwab & Co., Inc. (Member SIPC), the registered broker/dealer, which also provides other brokerage and custody services to its customers.

How do I make investment option changes?
You can make changes to your account online or by phone. Go to the plan website at www.varetire.org, choose the Defined Contribution Plans tab, and select the account login option or call the toll-free Plan Information Line at VRS-DC-PLAN1 (877-327-5261) to:

• Move all or a portion of your existing balances between investment options (subject to plan rules)
• Change how your future contributions are invested

How do I keep track of my account?
You will receive a quarterly account statement showing your account balance and activity for your Plan. You also can check your account balance online at www.varetire.org, select the Defined Contribution Plans tab, and select the account login option or call VRS-DC-PLAN1 (877-327-5261). You may elect to receive an electronic statement.

Are there fees to participate in the plan?
Yes. An annual recordkeeping fee of $30.50 will be deducted from your account on a monthly basis ($2.54 per month). If you participate in more than one Commonwealth of Virginia plan, only one annual fee of $30.50 will be deducted from your account. In addition, each investment option has investment management and other fund costs that vary. Investment option fees and performance are available on the plan website, by calling the Plan Information Line or within the Investment Option Performance report included with your quarterly statement. For more information about fees associated with the Self-Directed Brokerage Account option, refer to the fact sheet online or call the Plan Information Line.

When can I withdraw from my account?
You may begin making withdrawals when you are no longer employed in a position covered for retirement benefits through a plan administered or authorized by VRS. An IRS penalty for withdrawals prior to age 59½ may apply. Withdrawals from all plans are subject to federal income tax and state income tax, depending on your state of residence. You must begin taking required minimum distributions by April 1 of the calendar year following the later of: (1) the calendar year in which you reach 73 or (2) the calendar year in which you retire from the employer sponsoring your plan. At your death, your beneficiary will receive the money remaining in your account.

What are my distribution options?
Keep your money in the plan until a future date (subject to required minimum distribution rules)

Receive:

• A total or partial lump sum
• Annuity payments
• Periodic payments
• Partial lump sum with remainder paid as a periodic payment or annuity

Roll over into an eligible retirement plan such as a 401(a), 401(k), 403(b), governmental 457(b), traditional IRA or Federal Employees Thrift Savings Plan that accepts such rollovers.

Once I receive payments, can I change my payment amount?
Yes. Except for the purchase of an annuity, you may change your distribution option for the balance remaining in your ORPPA account. You can obtain a Distribution Form here or by calling toll-free VRS-DC-PLAN1 (877-327-5261).

May I transfer or roll over my account from another plan into this plan?
Yes. Balances from an eligible retirement plan such as a 401(a), 401(k),403(b), 457(b), traditional IRA or Federal Employees Thrift Savings Plan may be rolled over into the Supplemental Plan. Eligible after-tax rollovers will be accepted. You may take a distribution from your rollover account at any time, even while you are employed by the Commonwealth or a participating employer. For additional information, call the Plan Information Line at VRS-DC-PLAN1 (877-327-5261).

May I transfer or roll over my account if I leave my current employer?
If you leave employment with your employer, you may roll over your account balance into an eligible retirement plan such as a 401(a), 401(k), 403(b), 457(b) or traditional IRA. Note: Check with the plan that you are rolling into to ensure the plan accepts such rollovers.