Virginia Retirement System

The meeting includes a report from the Chief Investment Officer and discussions regarding potential changes to investment benchmarks. Additionally, the committee will review updates on portfolio diversification and asset allocation, conduct a review and roundtable session for the Public Markets Program, and receive an update concerning foreign adversaries. Recommendations will be prepared for the Board of Trustees regarding benchmarks and asset allocation strategies.

The committee meeting covered a comprehensive review of the Chief Investment Officer's report, which included market overviews, total fund performance, and asset allocation analysis. Key discussion topics included potential investment benchmark updates and enhancements, a review of the current portfolio diversification and asset allocation, and an overview of the Public Markets program. Additionally, the committee engaged in a roundtable discussion on private market trends and received an update regarding foreign adversaries.

The committee meeting focused on administrative reports and communication updates, including the status of DC plans and hybrid plan updates, ORPHE developments, and retirement income solutions. The agenda featured performance reports for various investment options, updates to investment policy statements, and an overview of defined contribution plans investment belief statements. Additionally, the committee reviewed legislative updates, discussed future meeting schedules for 2026, and analyzed distribution metrics and retirement income data.

The meeting included an overview of Defined Contribution Plans and administrative reports for the third quarter of 2025. Discussions covered updates on SECURE 2.0 legislation, auto-escalation procedures for the Hybrid Plan, and ORPHE reports. The Committee reviewed the FY 2025 annual administrative expense reports and received presentations on investment performance and the CEM 2024 DC Trends survey. Additionally, members were briefed on upcoming requirements for the annual Code of Ethics and Conduct affirmation.

The Benefits and Actuarial Committee meeting focused on the presentation of the 2025 actuarial valuation results for various Political Subdivision Retirement Plans, the Virginia Local Disability Program (VLDP), the Local Health Insurance Credit (HIC), and the Line of Duty Act (LODA) Fund. The actuarial results, based on valuations as of June 30, 2025, indicated that investment gains exceeded expected losses from salary increases and experience study changes, leading to lower contribution rates for most pension plans and an increased funded status for many. Key pension plans saw an average funded status increase to 92% and a drop in the average contribution rate to 10.46%. OPEB plans, including HIC, also showed funded status increases due to investment returns. The LODA fund premium per full-time equivalent was projected to increase from $1,015 to $1,385 due to rising healthcare costs. The Committee recommended approval of the contribution rates for the upcoming fiscal years 2027 and 2028 for all reviewed plans to the full Board of Trustees.