VRS Contribution Rate Information

Attention Retirees:
The article in today’s paper references funding issues for those actively employed in a VRS-covered position. These funding issues do not impact retirees. Retirees can anticipate receiving their monthly benefit checks without any problems for the remainder of their retirement.

Attention Members/Employers:
The VRS Board met October 8, 2003 to certify member contribution rates for the period July 1, 2004 through June 30, 2006. These contribution rates only include the larger systems: state, teacher, SPORS, VaLORS and JRS. Individual political subdivision rates are not yet available.

VRS has sent the Governor the recommended contribution rates for the system. The VRS rates will be part of the budget and will be reviewed during the next General Assembly session.

The VRS portfolio stands at $35 billion. The state and teacher systems are well funded currently. The rate increase will fund the system for the future retirement needs of VRS members.

The Richmond Times-Dispatch article mentions two items:

Members paying their own 5% contribution:
This was not discussed during the board meeting and VRS is not aware of any recommendation that members pay their 5% member contribution.
Developing a defined contribution plan for employees:
This was not discussed during the meeting and VRS is not aware of any recommendation that calls for beginning a defined contribution plan for new employees.

VRS is the 30th largest public or private pension fund in the U.S. and the 41st largest internationally. (30) (8.13.02)

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