Employer Update

VRS will provide informational actuarial valuations for pensions and the health insurance credit to participating political subdivisions in the coming weeks.

Based on June 30, 2022 data, the valuations provide key information regarding political subdivisions' pension and other post-employment benefit (OPEB) plans, funded status and emerging trends in contribution rates. The VRS plan actuary presented informational valuations to the VRS Board of Trustees last fall.

Although not a rate-setting year, the 2022 informational valuations prepared by VRS plan actuary Gabriel, Roeder, Smith & Company (GRS) show progress on funded status. On an actuarial value of assets basis, the aggregate funded status for all political subdivision plans rose to 89% as of June 30, up from 87% the previous year.

• 545 political subdivision plans (91%) now have a funded status greater than 80%.
• 418 plans (70%) are funded at 90% or higher.
• 240 plans (40%) are fully funded at 100% or more.

The informational valuations your locality will soon receive include:

• Updated demographic information about plan participants.
• Locality-specific information about the contribution rates, featuring a breakdown of the components that make up the employer cost. This information includes the employer's normal cost rate, administrative expense, as well as the adjustment amount for amortizing the employer's Unfunded Actuarial Accrued Liability.
• Other supporting information regarding the plan, including the current benefit structure and the actuarial assumptions used in the rate calculation.

The June 30, 2023 actuarial valuations to be presented to the board in the fall will be used to set contribution rates for the next biennium.

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Refer to the Financial Reporting page for resources and links that will assist you with financial reporting related to VRS-administered benefit plans. The page includes current contribution rates for state employees and teachers as well as OPEB contribution rates.