The Virginia Retirement System earned a 12 percent return on investment in fiscal 2005, bringing its total assets to $44 billion. Each of the fund’s asset classes had a positive return. Real estate led the way at 24.4 percent return, closely followed by private equity at 21.5 percent. The portfolio performance represents a big improvement over the 3.0 percent annualized return over the past five years.
According to a VRS press release, a total payment of $1.1 million will be provided to 24 investment professionals, according to their contribution to fund performance. The payment represents a small fraction of the value added to the fund resulting from the staff’s investment decisions, noted Chairman Paul W. Timmreck. Of that amount, $292,000 will be placed in a deferred compensation account for senior investment professionals and used as a retention tool.
I hope no one begrudges the rewarding of VRS employees. State employees should be rewarded for superior performance.
