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VRS funded status improves but $20 billion in liabilities remain; hybrid plan participation low

2110192 · January 13, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Trish Bishop, director of the Virginia Retirement System, told the Tarver subcommittee that VRS’s funded status has improved — about 82.1% for the state‑employee plan and about 83% for the teacher plan — but that roughly $20 billion in unfunded liabilities remain.

Trish Bishop, director of the Virginia Retirement System, told the Tarver subcommittee that VRS’s funded status has improved — about 82.1% for the state‑employee plan and about 83% for the teacher plan — but that roughly $20 billion in unfunded liabilities remain across all plans.

Bishop said the VRS trust reached about $114,000,000,000 at fiscal‑year 2024 year‑end and that investment income funds about two‑thirds of benefits. She reported a 9.9% net return for fiscal 2024 and noted the system uses a 6.75% long‑term assumed rate of return (discount rate) to value liabilities.

Why this matters: Funded status, discount rates and investment returns affect employer contribution rates, budget planning for the Commonwealth and the system’s standing with bond raters.

Bishop summarized plan health and employer…

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