> How's VRS in Today's Market?

How’s VRS in Today’s Market?

VRS understands that the current financial markets have created concerns among our members and retirees regarding VRS investments and benefits.

Unlike some other types of retirement plans, VRS is a defined benefit plan. When you retire your benefit is based on a formula using your years of service, age and average final compensation at retirement. Average final compensation is the average of the 36 consecutive months of highest compensation in your history of VRS-covered employment. Your retirement benefit amount is not affected by the ups and downs in the market.

Your employer funds your future benefit with a monthly amount paid to VRS. VRS invests this money over your career to fund your future retirement benefit. VRS holds these funds in a trust that is protected by Article X, Section 11 of the Constitution of Virginia. The constitution states that this trust may be used only to pay benefits for VRS members, retirees and beneficiaries.

VRS has endured market downturns in the past and has continued to provide benefits to members, retirees and beneficiaries. Although it is difficult to predict market fluctuations, VRS has highly skilled investment professionals managing the portfolio with an excellent track record.