What Funds Your Monthly Benefit? Learn About the VRS Trust Fund’s Role
VRS reported a 9.9% return, net of fees, on its investment portfolio for fiscal year 2025, ending the year at a record high of $122.8 billion. Investment earnings fund about two-thirds of benefit payments to VRS retirees and beneficiaries, making strong returns like this essential to the long-term health of the system.
The VRS Board of Trustees sets the portfolio policy, asset allocation and benchmarks that guide how retirement funds are invested. VRS follows a broad, diversified strategy aimed at minimizing risk and maximizing returns over time. The board and investment team also receive insights from the Investment Advisory Committee, which includes professionals with institutional financial expertise.
VRS invests across multiple asset classes — public and private equity, fixed income, real assets, credit and more — to reduce risk and make the fund more resilient during market changes. Over the past decade, the investment team has added about $7.1 billion in value beyond what a passive, indexed portfolio would have produced.
How Your Benefit Is Funded
1. Your Contributions
During your career, you contributed a percentage of your compensation to your defined benefit plan. These contributions earned interest and helped build your member contribution account.
2. Employer Contributions
Your employer submitted monthly contributions to help fund your future retirement benefit.
3. Investment Earnings
VRS invests contributions from you and your employer. After retirement, your pension is first paid from your member contribution account. When that account is exhausted, your benefit is paid from the VRS Trust Fund.
With a long-term view of 20 to 40 years, VRS works to grow the fund steadily. The investment strategy is designed to support retirees today and strengthen the system for the future.
