Gov. Bob McDonnell is tackling the under-funding of the Virginia Retirement System by proposing the largest employer contribution in state history. His proposed biennial budget will recommend a total of $2.2 billion in employer contributions by state and local governments in addition to fully funding the next installments of the 10-year payback of previously deferred contributions.
Said McDonnell in a press release issued this morning: ““The plain truth is our state retirement system is underfunded, and this situation threatens the system’s long term solvency. We must fund VRS at substantially higher levels so benefits will be there for the hardworking teachers, police officers, firefighters, state employees – our neighbors, friends and family members – who are depending on the system for their retirements. ”
(See “State Pension Liabilities Still Growing” for details from the latest JLARC report.)
Is this package enough to close the $19.9 billion gap between VRS assets and liabilities? I’m no actuary but it looks like a step in the right direction.
— JAB
