The investment team manages the VRS Trust Fund with our members in mind. Investment earnings fund about two-thirds of pension benefit payments. Decisions made today must support current and future needs of Virginia’s teachers, local government workers and state employees.

Investment Objectives

Learn how VRS manages investments with an eye toward long-term returns.

Step 1

VRS collects contributions from Virginia's public employees and their employers.

Step 2

VRS invests those contributions to maximize returns while managing risk.

Step 3

VRS pays a monthly benefit to retirees.

To fulfill our mission of delivering benefits through sound financial stewardship, VRS strategically manages the trust fund to maximize returns while targeting an acceptable level of risk. VRS investment professionals are highly skilled with advanced degrees and specialized investment certifications. On average, team members have 18 years of investment experience and more than 10 years of service with VRS.

With a focus on long-term returns and performance, the VRS Board of Trustees, governed by the Code of Virginia, sets the portfolio policy. Our professional investment team executes the board’s policy through external investment manager selection, active management of in-house portfolios and active management of overall investment exposures.

Other contributions to the fund come from members and employers.

  • Members contribute a percentage of their compensation each month.
  • Employers make monthly contributions based on their total employee population.

In addition to a long-term investment strategy, VRS implements other policy and legislatively driven measures to ensure the long-term health of the fund:

  • Introducing pension plan design changes, such as VRS Plan 2 and the Hybrid Retirement Plan, which have lowered the future cost of benefits.
  • Ensuring a plan is in place to pay down unfunded liabilities for the state employee and teacher plans.
  • Conducting experience studies, which compare actual economic and demographic experiences in recent years with VRS’ earlier projections. Experience studies help VRS estimate future costs based on recent experience and emerging trends.
  • Certifying employer contribution rates with the goal of providing budget stability for employers and helping ensure sufficient funds are available to pay employees throughout retirement.