On November 20, the Virginia Retirement System (VRS) Board of Directors received the 2014 actuarial report regarding the funded status of local pension plans. The report is shared as information to assist localities in their budget planning as this is not a rate setting year for employer contributions.
The report overall provides good news for localities as market gains have improved the funded status of most local plans and lowered the projections for future employer contribution rates. VRS will mail individual reports for each locality in early January.
The average employer contribution rate for local retirement plans decreased from 9.91 percent in 2013 (rate setting year) to 8.83 percent for 2014 (informational purposes only).
However, these rates vary widely among employers with localities that offer enhanced law enforcement benefits (LEOs) having higher employer contribution rates. The funded status (based on actuarial assets) of all local pension plans increased from 75.3 percent to 80.5 percent.
Click here for the full VRS actuarial valuation presentation and here for the report from the VRS Benefits and Actuarial Committee, which summarizes the presentation.
VACo Contact: Erik Johnston