State and local employees who use 401(k)-style contribution plans will have a new investment option later this year.

The Virginia Retirement System plans to create a "target date fund" for employees who want the state to decide how their contributions should be invested. The change is effective July 1.

The Richmond Times-Dispatch (http://bit.ly/xLiA5j ) reports that retirement system staff gave a presentation on the change to the board of trustees Thursday.

Director Robert P. Schultze told the board there also will be new investment options for employees who want the state's help in making investment decisions, along with brokerage accounts for others who want to make their own decisions.