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Virginia Government Finance Officers’ Association 2011 Spring Conference Virginia Retirement System Update for Local Government . June 10, 2011 Barry C. Faison, Chief Financial Officer. Agenda. Profile of VRS Members Funding the Benefit 2011 Legislation Review and Contribution Rates

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Virginia Government Finance Officers’ Association2011 Spring Conference Virginia Retirement System Update for Local Government

June 10, 2011

Barry C. Faison, Chief Financial Officer

agenda
Agenda
  • Profile of VRS Members
  • Funding the Benefit
  • 2011 Legislation Review and Contribution Rates
  • Pension Reform Initiatives
  • VRS Modernization
vrs overview
VRS Overview
  • VRS is the 22nd largest public or private pension system in the U.S.
  • There are almost 600,000 members, retirees and beneficiaries.
vrs total membership
VRS Total Membership

As of December 31, 2010

benefit comparison
Benefit Comparison

Information obtained from the June 30, 2010 Actuarial Valuation.

funding vrs benefits
Funding VRS Benefits

C + I = B + E

C = Contributions I = Investment Income

B = Benefits Paid E = Expenses (administration)

Bdepends on: Cdepends on:

- Plan Provisions - Short-term: Actuarial assumptions

- Experience Actuarial cost methods

- Long-term: I, B & E

  • 68% of VRS benefit costs funded by investment earnings
  • 32% of VRS benefit costs funded by employee/employer contributions
net assets available for benefits
Net Assets Available for Benefits

Estimate as of 12/31/2010

asset allocation
Asset Allocation

As of April 5, 2011

funded status teacher and local plans
Funded Status: Teacher and Local Plans

2010 Valuation Assumptions: 7.00% assumed rate of return 2.50% inflation & 20-year amortization period

employer contributions
Employer Contributions

Teacher Contribution Rates

Local Contribution Rates – No change

modernization program goals
Modernization Program Goals

Provide more online tools and services for employers, members and retirees

Streamline business processes

Replace 20-year-old technology infrastructure and eliminate costs to maintain it

Increase VRS and employer staff efficiency while maintaining superior customer service to a growing population

my vrs navigator
myVRS Navigator
  • Builds on the familiarity you already have with myVRS
  • Will replace the current tools you use today, such as the PC Package and WebER
  • Will be Web- and Windows-based
changes to employer reporting
Changes to Employer Reporting
  • You will submit new employees and employee data changes only
  • Using the data you reported, myVRS Navigator will calculate:
    • employees’ creditable compensation and service credit
    • member and employer contributions
    • purchase of prior service costs
  • You will confirm contribution amounts and authorize your payment
modernization timeline
Modernization Timeline
  • Summer 2011
  • Employer pilot
  • Fall 2014
  • Implementation of myVRS Navigator for members and retirees, including:
    • Online retirement application
    • Online refund application
  • Early 2012
  • Employer batch certification begins
  • Employer training begins
  • March 2012
  • Implementation of myVRS Navigator for employers, including:
  • Online enrollment and data maintenance
  • Contribution remittance
  • Contacts management
  • VRS-calculated creditable compensation and contributions

Dates and activities may be added or adjusted as the program progresses.

keeping you informed27
Keeping You Informed
  • Webinars archived at www.varetire.org