COMMONWEALTH OF VIRGINIA

The General Assembly took significant steps this year to strengthen VRS, fully funding the annual required contribution and fully repaying previously deferred payments to VRS. While this is good news, there is significantly more work to be done. Our retirement system is only 71 percent funded, with unfunded liabilities exceeding $23 billion. The hybrid system reforms enacted several years ago were necessary changes, but the hybrid plan faces challenges of its own. Voluntary contribution rates are low, resulting in lower income replacement rates for employees. These are important issues that the Commission will have the opportunity to address... The strength of our retirement system is also directly connected to the strength of our workforce. About 30 percent of our workforce is eligible to retire now or within the next five years. The five-year turnover rate for state employees is 54 percent. Retaining and attracting high-quality state employees requires a strong and modern retirement..

Also known as: retirement commission