The Virginia Retirement System Board of Trustees (VRS) took actions to certify employer contribution rates on June 19.
The 2015 General Assembly modified the total employer contribution rates for several employee plans. The contribution rate for the teacher plan will decrease from 14.50 percent to 14.06 percent, effective July 1 as a result of an accelerated state payment of approximately $193 million against the 10-year outstanding deferral of contribution payments.
VACo members played a major role in raising the profile of unfunded teacher pension liabilities and appreciated the support of the Governor and General Assembly in adopting this accelerated state payment which will lower teacher contribution rates for both the state and localities.
Contribution rates for state employees, the State Police Officers’ Retirement System (SPORS), the Virginia Law Officers’ Retirement System (VaLORS) and the Judicial Retirement System (JRS) were increased to 90 percent of the VRS board-certified rates. These rates become effective August 10, contingent on fiscal year-end state revenue forecasts. Because the effective date falls in the middle of a reporting period, the August rates will be blended with the preceding month’s rates. The new rates become effective September 1.
Contribution rates for political subdivisions are not affected. See the rate chart on the VRS website.
VACo Contact: Erik Johnston, CAE