Virginia

Overview

The Virginia Retirement System is the sole state retirement system in Virginia, administering retirement benefits for all employees of the state, public school teachers, and employees of political subdivisions that have elected to participate. The VRS board administers four systems: the VRS, the State Police Officers’ Retirement System; the Law Enforcement Officers’ Retirement System, and the Judicial Retirement System; and three plans that comprise the VRS, for state employees, teachers, and employees of political subdivisions. All assets are managed by Virginia Retirement System board.

Plan Design

Most employees hired into the VRS since 1/1/14 participate in a hybrid, DB-DC plan. This does not include public safety officers and judges, who participate in defined benefit plans.
 

According to the US Government Accountability Office, 98 percent of employees of state and local government in Virginia participate in Social Security.

Access plan design detail

Authorizing Statutes and Board Structure

Virginia Code Title 51.1 establishes the Virginia Retirement System Board, which is made up of nine members.

Details regarding the composition of these and other retirement boards is accessible via the Retirement and Investment Board Characteristics search tool located at the bottom of this page.

Fiduciary Duty/Prudence Standard

Virginia Code Title 51.1 describes the board’s investment standard of care, as follows:
The Board shall discharge its duties with respect to the Retirement System solely in the interest of the beneficiaries thereof and shall invest the assets of the Retirement System with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. The Board shall also diversify such investments so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so.

Legal Protections of Retirement Benefits

No explicit constitutional protection for public pension benefits, but courts provide limited protection based on impairment of contract principles for fully vested employees who performed all employee obligations. Pitts v. City of Richmond, 366 S.E.2d 56 (Va. 1988) (holding that inchoate rights to retirement benefits do not vest until a member qualifies for retirement). (VA CONST., Article 1, §11) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits
 

See also the following search tools:

Retirement System Account Interest Policies Economic Actuarial Assumptions Retirement and Investment Board Characteristics
Information about interest rates applied to account balances of inactive plan participants Assumed rates of investment return and inflation Composition and characteristics of public retirement and investment oversight boards
Mortality Assumptions Plan Design Features Post-retirement Employment Policies
Public retirement system actuarial assumptions for mortality Numerous elements of retirement plan design Policies governing return-to-work for retirement system annuitants

More Data

Flag of Virginia (January 31, 1861)

Population (2024) 8,811,195

Virginia public pension statistics, per U.S. Census Bureau as of FY 2024

Assets

$133.8 billion

Active Members

429,554

Annuitants

302,199

Benefits Paid

$8.0 billion

Employee Contributions

$1.3 billion

Employer Contributions

$4.5 billion

Systems

One state retirement system that administers four systems--the VRS; the State Police Officers' Retirement System; the Law Enforcement Officers' Retirement System; and the Judicial Retirement System--and three plans that account for 83 percent of assets and 86 percent of all public pension plan participants in the state. There also are 30 local retirement systems sponsored by several counties and cities.

Other Resources


Become A Member

Becoming a member of NASRA offers a unique opportunity to join a community committed to the sound, efficient, and innovative stewardship of public retirement systems. Membership connects you with a network of professionals and experts, providing valuable insights into managing public retirement systems with a focus on sustainability and risk-averse strategies.

By joining NASRA, you gain the tools and resources to enhance the management of public retirement systems, ensuring their long-term success and reliability for generations to come.

What's New at NASRA: Updated Cost of Living Issue Brief

Cost-of-Living Adjustments (COLAs) play a significant role in public pensions. They help retirees keep up with rising prices, but they also add costs to pension plans. Policymakers and plan sponsors are tasked with balancing three things: benefits adequacy, plan sustainability, and affordability for members and plan sponsors.
The recent increase in inflation caused many policymakers and, in some cases pension trustees, to review how benefits are designed and paid for, including the way COLAs are granted and funded. NASRA’s recently updated issue brief on the lates trends in COLAs is available in the NASRA Research Center.