Employer Update

At its October 19 meeting, the VRS Board of Trustees will certify to the governor and the General Assembly fiscal year 2025 and 2026 contribution rates for the following:

• State employee plan.
• Teacher plan.
• State Police Officers’ Retirement System (SPORS).
• Virginia Law Officers’ Retirement System (VaLORS).
• Judicial Retirement System.
• Other post-employment benefit plans, including group life insurance, the health insurance credit and the Virginia Sickness and Disability Program.

Here’s a timeline for the rate-setting cycle:

October

The plan actuary will present to the VRS board the recommended contribution rates for the next biennium based on rate-setting valuations conducted every two years.

Following board action, VRS will update the contribution rates page on the employer website with the VRS board-certified rates. However, state and teacher plans and other post-employment benefit plan rates could undergo further revision during the 2024 General Assembly session, as part of the state budgeting process.

November

The VRS board will certify contribution rates for all political subdivisions, the Virginia Local Disability Program (VLDP) and the Line of Duty Act (LODA).

In late January 2024, VRS will send actuarial reports, including the retirement contribution rate, to all political subdivisions, along with rates for the health insurance credit, if applicable.

Employer contribution rates provided for non-professional school board and political subdivision plans, including VLDP and the health insurance credit for political subdivisions, are final once certified by the VRS board.

Important Reminder About Hybrid Rate Separation

Beginning July 1, 2024, the board-certified employer rates for the retirement plans will apply only to the defined benefit portion of the benefits. Previously, the board-certified employer rates included an estimate of the voluntary defined contributions for Hybrid Retirement Plan members. However, as VRS separates the defined benefit and defined contribution rates for reporting purposes, only the defined benefit contribution rate will appear. Employers will continue to provide required matching contributions to the defined contribution component of the hybrid plan. This contribution amount will vary based on each members’ voluntary contributions election amount.

December

The governor will present his fiscal year 2025-2026 budget, including a recommendation regarding the funding of the VRS-certified contribution rates for statewide plans and other post-employment benefits.

Spring 2024

Final VRS contribution rates will be available at the conclusion of the General Assembly session next spring.