VACo recently received important information from the Virginia Retirement System (VRS) regarding the actuarial valuation reports for all political subdivision employers. As previously reported, these reports are important as they contain the include the retirement contribution rate along with rates for group life insurance and the health insurance credit.
According to VRS:
VRS this month will post online in myVRS Navigator the 2023 actuarial valuation reports for all political subdivision employers. Employers will no longer receive these reports by email.
To access your actuarial valuation:
- Log in to myVRS Navigator.
- Click on the Reports drop-down menu heading.
- Scroll to and click on Generated Reports.
- Type “Valuation” in the report search field to filter the list to include valuation reports for your pension and health insurance credit (if applicable).
The actuarial valuations include the retirement contribution rate along with rates for group life insurance and the health insurance credit, if applicable. The new rates are effective for fiscal years 2025 and 2026, beginning July 1, 2024, and ending June 30, 2026.
Political subdivision plans contribution rates are calculated based on the assets and liabilities of each individual participating employer.
Employer contributions will vary based on:
- Benefit offerings (enhanced hazardous duty coverage, for example).
- Demographics of the employee group covered.
- Current funded level of the political subdivision’s plan.
Overall, the defined benefit rate will increase less than 1% for most political subdivision employers (70%) based on 2023 valuations.
Important reminder about Hybrid Retirement Plan rate separation:
Beginning July 1, 2024, the board-certified employer contribution rates for the retirement plans will apply only to the defined benefit portion of the benefits. Previously, the board-certified employer rates also included an estimate of the defined contributions for Hybrid Retirement Plan members. Moving forward, contribution rates provided to employers no longer will include an estimate of employers’ defined contribution match. Instead, the defined contribution amount will vary based on each member’s voluntary contributions election. Employers with hybrid plan members will also continue to make matching defined contribution hybrid plan contributions based on member elections. See hybrid rate separation.
VACo Contact: Jeremy R. Bennett