> How's VRS in Today's Market? - FAQs

How’s VRS in Today’s Market?

VRS understands that the current financial markets have created concerns among our members and retirees. We would like to share the answers to some of the questions we have received.

Frequently Asked Questions

Will the market changes affect my benefit when I retire?

No. Your benefit amount is based on a formula, not on investment gains or losses. The formula uses your age, years of service and average final compensation. The ups and downs in the market do not affect the amount of your benefit at retirement. To estimate your benefit, please visit myVRS.

Will the market changes affect my VRS benefit as a retiree?

No. Investment performance in no way affects your benefit amount. You will continue to receive your benefit payment each month. If you are eligible for a cost-of-living adjustment (COLA), you will continue to receive the COLA.

Do you think the market will improve and VRS' return improve in the future?

It is difficult to predict market fluctuations. However, VRS has highly skilled investment professionals managing the portfolio and an excellent track record that consistently beats industry benchmarks for return on investments.

How does VRS view the market downturn?

VRS is a long-term investor with a 85-year planning horizon to pay member benefits. VRS has experienced market down turns in the past, such as that experienced after 9/11 and the "tech bubble" in 2001-2002. Those years were followed by double-digit gains. Actually, VRS sees opportunities in this market environment and will make adjustments to the portfolio to maximize those opportunities.