The Virginia Retirement System reached an agreement with Genworth Financial to provide long-term care insurance under the Commonwealth of Virginia Voluntary Group Long Term Care Insurance Program.

The group insurance, underwritten by Richmond, Va.-based Genworth Life Insurance Co., is open to all 600,000 VRS members, retirees and their families. Active employees include state and local government employees, teachers, judges and law enforcement officers.

Other local governments that do not participate in VRS also may offer the programs to employees and their families.

Under the agreement, Genworth Life will become the underwriter of this employee-paid, voluntary group long-term care insurance program, which ranks 24th among the largest public or private pension fund in the United States.

“With 35 years of experience providing long term care coverage and more than one million policyholders, Genworth has shown a deep commitment to the long term care market,” said Robert P. Schultze, director of the Virginia Retirement System, in a statement. “We selected Genworth because of its strong track record of paying claims and dedication to customer service. In this current economy and with long-term care costs on the rise in Virginia, VRS has made providing quality long term care coverage to members and their families a priority.”

VRS’ new relationship with Genworth Life will provide a portfolio of long-term care planning solutions with flexible features and benefits, according to the two parties.

“This new relationship will provide us with the opportunity to educate VRS members and their families about long term care insurance,” said Peter Lucas, vice president of Genworth’s group long term care insurance business. “It will help them decide whether long term care insurance should be part of their retirement plan – protecting assets and preserving funding sources for future family needs.”

In December, those insured under the Commonwealth of Virginia Voluntary Group Long Term Care Insurance plan with Aetna Life Insurance Co. will be given a one-time opportunity to transfer to a Genworth Life plan.

The new Commonwealth of Virginia Voluntary Group Long Term Care Insurance Program will be available during the enrollment period, beginning in March 2010. Active VRS members will receive an opportunity to obtain coverage with reduced underwriting during the initial enrollment period.