VRS Board Approves Rates for Localities

RICHMOND, Va., Dec. 18-- Today, the Virginia Retirement System (VRS) Board of Trustees approved employer contribution rates for participating political subdivisions across the state. For most political subdivisions, the rate paid to VRS will increase, beginning July 1, 2004.

"The rate increase for localities can be attributed to three primary factors. First, the financial markets have performed poorly over the past couple of years. Secondly, some localities have increased their payrolls beyond projections by adding positions and providing pay increases to staff. Finally, some localities will experience increases based on their individual demographics, such as a locality providing a new benefit to employees," said VRS Board Chairman Alfonso I. Samper.

Of the 405 localities that provide their employees' retirement benefits through VRS, approximately 72 percent will experience a rate increase and about 28 percent will see their rate stay the same or decline.

Contact: Jeanne Chenault (804)697-6665

News is archived every four months.