Va.'s Retirement System May Need Larger Share of Taxpayer Dollars | WAMU 88.5 - American University Radio

WAMU 88.5 : News

Filed Under:

Va.'s Retirement System May Need Larger Share of Taxpayer Dollars

Play associated audio

The VRS is the 22nd largest public or private pension fund in the U.S., and its diversified portfolio recently earned a return of 18.5 percent. Yet the fund is aging and is now paying out more than it's taking in.

Investment earnings fund two-thirds of the benefits, but Chief Investment Officer Charles Grant said long term gains will be volatile due to macroeconomics.

"We've had massive government policies to try to kickstart this economy. And the problem is the debt load. The problem is we still have too much debt, and we're still de-leveraging," says Grant. "And there's only so much the government can do to fix that."

Employer/employee contributions fund about one-third of the benefits. But while most states give an average of 3.8 percent of their budgets for pension contributions, Virginia's only contributes 1.6 percent of its total budget. VRS officials suggest that Virginia's trend of funding contribution rates below recommended levels will need to be reversed.

NPR

A Cuppa Matcha With Your Crickets? On The Menu In 2015

In the new year we'll be eating pot pesto, pork fat, and pancit along with the newborn progeny of Brussels sprouts and kale.
NPR

A Cuppa Matcha With Your Crickets? On The Menu In 2015

In the new year we'll be eating pot pesto, pork fat, and pancit along with the newborn progeny of Brussels sprouts and kale.
NPR

Tennessee's Medicaid Deal Dodges A Partisan Fight

An agreement between the Tennessee Hospital Association and Republican Gov. Bill Haslam expands Medicaid without tax dollars, an agreement that could be a blueprint for other states.
NPR

Facebook Finds That Not All Users Want To Review Their Year

The social media giant's "Year in Review" app has upset some who prefer to forget 2014's unpleasant memories.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.