#1V Virginia Retirement RS System VRS Overview Presented to the Joint Legislative Audit and Review Commission July 5, 2022 Presenters: A. Scott Andrews, Chair, VRS Board of Trustees Ronald D. Schmitz, Chief Investment Officer Patricia S. Bishop, Director // 225 INDEX 30.630350#22 Agenda 25 INDEX CLO 6430.63 VRS Overview A. Scott Andrews Chair, VRS Board of Trustees Investments Overview Ronald D. Schmitz Chief Investment Officer Administration Overview Patricia S. Bishop Director RS Virginia Retirement System#3V Virginia RS Retirement System VRS Overview Virgins Retirement System 1300 East Main Street#4Board Members A. Scott Andrews, Chair Joseph W. Montgomery, Vice Chair Northern Contours & Harvest Equity Investments The Optimal Service Group, Wells Fargo Advisors RS Virginia Retirement System The Hon. J. Brandon Bell II, CRPC Brandon Bell Financial Partners John M. Bennett VCU (Retired) Michael P. Disharoon Principal, Palladium Registered Investment Advisors 4 William A. Garrett Chief, Manassas Fire and Rescue Department Susan T. Gooden, Ph.D. Dean, L. Douglas Wilder School of Government and Public Affairs, VCU W. Brett Hayes Wells Fargo Advisors Financial Network Troilen Gainey Seward, Ed.S. Dinwiddie County Public Schools (Retired)#55 VRS Overview RS Virginia Retirement System 751,471 active and retired members As of June 30, 2021 46th largest public or private pension system in the world* 17th largest public or private pension system in the United States* * As ranked by Pensions & Investments in 2022#6VRS Celebrates 80 Years LO 6 VRS was created July 1, 1942, succeeding the Retired Teachers' Fund that traced its origins to 1908. Early VRS membership was limited to teachers, school administration employees and state employees, though eligibility soon expanded to include employees of political subdivisions. RS Virginia Retirement System Virginia Retirement System 80 YEARS Since 1942 80 Years of Serving Those Who Serve Others.#77 Collaboration in Service RS Virginia Retirement System Board Investments Members Retirees Survivors Employers Administration my VRS#8Where VRS Retirees Live 80 86% RS of VRS retirees remain in Virginia Virginia Retirement System Maryland: 1% Tennessee: 1% North Carolina: 3% South Carolina: 1% Florida: 2% VRS paid $5.5 billion to retirees in FY 2021. Other States/Territories: 6%#99 New Chief Investment Officer RS Virginia Retirement System Andrew H. Junkin has been appointed as VRS chief investment officer by the VRS Board of Trustees and will begin serving in that role in September. Joins VRS from Rhode Island where he serves as the chief investment officer managing a team that oversees the state's pension plan, a defined contribution plan and other funds. Previously served as president of Wilshire Consulting, where he worked with public and corporate pension funds, foundations, endowments and insurance companies.#10V Virginia RS Retirement System Investments 225 INDEX LO 7264 30.63#1111 Investments Agenda RS Virginia Retirement System ■ Performance Long-term results Second quarter update Public Equity performance Asset Allocation as of 3/31/22 Board Policy Changes Staff Value Add ☐ Internal management Cost-effective implementation Markets & Economy#1212 -30 1990 % Return -10 0 10 20 30 VRS Fiscal Year Returns RS Virginia Retirement System II -20 Investment Return Assumption (current assumption is 6.75%) 1992 1994 1996 1998 2000 2002 2004 2006 Fiscal Year 2008 2010 2012 2014 ויווי 2016 2018 FYTD 2022 return, as of 3/31/22, is 6.07% 2020 2022#1313 Virginia Total Fund Performance* as of March 31, 2022 RS Retirement System VRS Return Benchmark 1-year 12.3 7.4 + 3-year 12.1 10.5 + 5-year 10.2 9.0 + 10-year 9.2 8.4 15-year 6.7 6.0 + 20-year 7.7 7.0 + 25-year 8.0 7.3 + *Percent; net of fees Source: Bank of New York Mellon#14Virginia Retirement Total Fund Performance* as of March 31, 2022 RS System Market Value ($MM) 10 Year 5 Year 3 Year 1 Year Total Public Equity Strategies 10.0 10.3 12.2 4.9 35,475 Benchmark 10.2 11.4 13.7 6.7 Total Investment-Grade Fixed Income 3.0 3.3 3.3 -3.4 12,818 Benchmark 2.3 2.2 1.7 -4.1 Total Credit Strategies 6.8 7.2 8.5 8.3 14,779 Benchmark 5.4 5.0 4.9 1.3 Total Real Assets 10.9 9.9 10.4 22.4 14,579 Benchmark 9.0 7.8 8.1 17.4 Total Private Equity 18.1 22.9 27.4 43.6 18,856 Benchmark 15.8 17.2 22.5 19.0 Total Private Investment Partnerships n/a 11.2 12.9 25.2 2,458 Benchmark n/a 10.1 12.8 12.8 Total Multi-Asset Public Strategies n/a n/a 6.5 5.8 3,982 Benchmark n/a n/a 7.7 3.4 Total Fund 9.2 10.2 12.1 12.3 106,289 VRS Custom Benchmark 8.4 9.0 10.5 7.4 *Percent; net of fees Source: Bank of New York Mellon 14#15Total Fund Performance* as of April 30, 2022 Virginia Retirement RS System 10 Year 5 Year 3 Year 1 Year Fiscal YTD Market Value ($MM) Total Public Equity Strategies 9.4 8.5 8.9 -5.3 -7.6 33,119 Benchmark 9.4 9.3 9.4 -5.9 -8.4 Total Investment-Grade Fixed Income 2.5 2.3 1.9 -8.0 -9.2 12,835 Benchmark 1.7 1.2 0.4 -8.7 -9.7 Total Credit Strategies 6.7 6.8 7.8 6.4 3.2 14,614 Benchmark 5.2 4.5 4.0 -0.7 -1.8 Total Real Assets 10.8 9.7 10.2 20.4 16.9 14,477 Benchmark 9.0 7.9 8.4 17.2 15.4 Total Private Equity 18.0 22.5 27.3 40.8 26.6 18,815 Benchmark 14.6 15.5 17.7 13.0 6.9 Total Private Investment Partnerships n/a 11.2 12.9 25.2 15.1 2,482 Benchmark n/a 9.8 10.7 10.6 7.4 Total Multi-Asset Public Strategies n/a n/a 5.0 1.2 -0.5 3,887 Benchmark n/a n/a 5.7 -2.8 -4.4 Total Fund 8.9 9.3 10.6 6.8 3.1 102,714 VRS Custom Benchmark 7.9 7.8 8.1 0.6 -1.8 *Percent; net of fees Source: Bank of New York Mellon 15#16Insights on Public Equity Performance Excess returns as of April 30 10 Yr 5 Yr 3 Yr 1 Yr FYTD Public Equity -0.8% -0.5% +0.6% +0.8% V Virginia Retirement RS System 16 Looking at returns by calendar year ◉ For the 10-year period, 2013-2022, VRS outperformed in 7 out of 10 years. VRS outperformed in every year post-GFC (2008) through 2017. Performance is typically within +/- 1% of benchmark. As the pandemic inception year, 2020 was an exception, with the bulk of market returns driven by five to six tech stocks. Our disciplined approach to portfolio management impacted performance in 2018- 2020 (especially 2020) and will continue to affect longer-term results for a few more years. The portfolio has resumed its pattern of outperformance relative to the benchmark for the most recent periods.#1717 Asset Allocation as of March 31, 2022 RS Total Fund Market Value = $106.3 billion (Dollar Amounts in Billions/Percent of Total Fund) Virginia Retirement System Credit Strategies $14.8 / 13.9% Fixed Income $13.1 / 12.4% Real Assets $14.6 / 13.7% Private Equity $18.9 / 17.7% Public Equity $35.5 / 33.4% Private Investment Partnerships $2.5 / 2.3% Multi-Asset Public Strategies $4.0/3.7% Exposure Mgmt. Portfolio Cash $2.1 / 1.9% $1.0 / 0.9% Difference in totals are due to rounding Source: Bank of New York Mellon#18Trust Universe Comparison Services RS Virginia Retirement System 18 Annualized Rate of Return (%) 20 More Return, Less Risk 14 229 29 00 18 16 12 10 8 10 J Risk vs Total Return 5 Years Ending March 31, 2022 VRS Total Fund Total Fund Benchmark NCREIF Property Index Less Return, Less Risk Median Risk More Return, More Risk S&P 500 Stock Index Median Return Less Return, More Risk ■MSCI EAFE (Net) 2 Bloomberg Bond Index 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Risk (Historical Standard Deviation of Return) 14 15 16 17 18 19 20 21 22 23 Source: Staff Analysis of Wilshire Trust Universe Comparison Service® (TUCS®)#1919 Asset Liability Study Implementation Asset Class Phase-in V Virginia Retirement RS System Current FY 2022 Proposed FY Long Term Allowable Ranges Target 2023 Target Target Min Max Public Equity 36% 34% 34% -5% +5% Fixed Income 15% 15% 15% -3% +5% Credit Strategies 14% 14% 14% -5% +5% Real Assets 14% 14% 14% -5% +5% Private Equity 14% 16% 14% -5% +5% PIP 2% 2% 3% -2% +2% MAPS 4% 4% 6% -2% +2% Exposure Management 0% 0% 0% +3% Cash 1% 1% 0% -1% +4% Total Fund 100% 100% 100%#2020 Internal Asset Management (IAM) RS Virginia Retirement System Asset Class Objective $MM Core 11,147.8 Fixed Income Non-Core 882.1 Subtotal 12,029.9 Low Tracking Error 10,550.8 Low Volatility 4,488.4 Equity Other 2,158.5 As of March 31, 2022 Subtotal Total 17,197.7 29,227.6#2121 IAM Track Record as of March 31, 2022 RS Virginia Retirement System 1 Yr 3 Yrs 5 Yrs 10 Yrs 15 Yrs 20 Yrs Return -3.4% 3.2% 3.2% 3.0% 4.6% 4.7% Fixed Benchmark -4.2% 1.7% 2.1% 2.2% 3.9% 4.2% Income* Excess 0.8% 1.5% 1.1% 0.8% 0.7% 0.5% Return 12.2% 13.1% 11.4% 11.6% 8.5% 8.3% Equity Benchmark 9.7% 13.6% 12.0% 11.4% 7.9% 7.8% Excess 2.5% -0.5% -0.6% 0.2% 0.6% 0.5% *Core only#22Adding Value Multiple Ways Total Fund 10-Year Value Add As of 3/31/2022 Cost Savings Implementation As of 3/31/2022 RS Virginia Retirement System 80 Basis Points Source: BNY Mellon Data, 3/31/22 Effective Cost Management As of 12/31/2020 7.3 6,644 $MM Source: BNY Mellon Data, 3/31/22 61.0 ■Public External ■Public In-House ■Private Fee-Advantaged Implementation Private Traditional In-House Management Fee Savings As of 12/31/2020 4.9 40.9 Basis Points SMM Basis Points SMM Source: CEM, CY2020 Source: CEM, CY2020 22#2323 Markets & Economy Interest Rates RS Virginia Retirement System Fed interest rate hikes triggered repricing of stocks as future earnings are worth less. The war in Ukraine continues, keeping upward pressure on energy and food prices. STOCK MARKET ST Analysts still predicting strong revenue and earnings growth; could dampen price declines. Labor market is strong and balance sheets are healthy. FOR Housing showing signs of a slowdown as mortgage applications are down SALE through May. OUT OF STOCK Supply chain issues are TEMPORARILY easing in some areas but OUT OF STOCK are only improving slowly in others.#2424 Summary RS Virginia Retirement System The VRS portfolio is positioned defensively - underweight both stocks (given current uncertainty) and bonds (in the face of rising interest rates). Private markets are performing very well, largely offsetting losses in public stocks and bonds. ■ Uncertainty has increased as the magnitude of Fed hikes and the possible slowdown in corporate earnings create unknowns. The Board has continued its measured pace of evolution in its long- term risk/reward policy. Staff continues to add value through strong performance and by cost- effective implementation practices.#25V Virginia RS Retirement System Administration Overview#2626 VRS Overview RS Virginia Retirement System Health of plans improves with commitment of the General Assembly and Governor to maintaining budget efforts to support contribution rates. St $ One-time infusion of $750 million and additional budgeted one-time payments reduce unfunded liabilities, generate longer-term savings, reduce rate volatility and improve plan health. ■ Funded status of the plans has improved over time: Portfolio experienced exceptional FY 2021 return. FY 2021 return will serve to mitigate future market fluctuations. Unfunded liabilities from prior periods remain.#2727 VRS Overview RS Virginia Retirement System % $ $ ■ Two-thirds of benefit funding comes from investment income; receiving timely contributions is critical. ■ Hybrid Retirement Plan becoming dominant plan for most employees: • • • Created risk-sharing model between the employer and employee. Reduced longevity and investment risk for the employer. Lowered the future cost of the plan. Increased portability for plan participants.#2828 VRS Total Membership as of May 31, 2022 Virginia Retirement RS System Plan 1 Plan 2 Hybrid Total Teachers 61,741 28,891 67,017 157,649 Political Subdivision Employees 35,026 30,535 43,996 109,557 State Employees 26,929 13,098 33,925 73,952 State Police Officers' Retirement System (SPORS) 971 882 1,853 Virginia Law Officers' Retirement System (VaLORS) 2,153 5,069 Judicial Retirement System (JRS) 156 46 7,222 255 457 Total Active Members 126,976 78,521 Total Active Members 350,690 Retirees/ Inactive/Deferred Beneficiaries Members 234,181 187,186 145,193 350,690 VRS Total Population 772,057#29V Virginia RS Retirement System Funded Status and Contribution Rates#30100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% Funded Status: State 83.3% 85.1% 88.0% 84.0% 75.2% 70.6% 65.6% beginning in 2014 New GASB accounting rules reflect funded status on the market value basis 10.0% 0.0% 2006 2007 up to 2013 & Market Value of Assets 2014 Forward Notes: 2008 Historical Funded Status - Actuarial Value of Assets 2009 2010 2011 2012 2013 2014 Projected Funded Status using Market Value of Assets (New GASB Standard) Projected funded status based on assumed investment returns of 6.75% and inflation of 2.5%. GASB Accounting rules reflect funded status using Market Value of Assets effective 6/30/14 for Plan Reporting and 6/30/15 for Employer Reporting. Projections do not include the impacts of additional payments included in the Appropriation Act. 65.1% 74.1% 71.2% 71.5% 76.3% 76.8% 75.2% 86.5% 72.9% 87.2% 88.0% 88.8% The funded status for FY 2021 based on the actuarial value of assets was 77.1% 89.2% RS Virginia Retirement System 89.7% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Market Assets $3.6 Billion using State Plan Unfunded Liability as of 6/30/2021 $6.1 Billion using Actuarial Assets 30#31Funded Status: Teachers 100.0% 90.0% 80.0% RS Virginia Retirement System 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 76.0% 78.2% 0.0% 2006 2007 2008 2009 2010 Projections do not include the impacts of additional payments included in the Appropriation Act. 31 2011 2012 2013 Notes: Historical Funded Status - Actuarial Value of Assets up to 2013 & Market Value of Assets 2014 Forward Projected Funded Status using Market Value of Assets (New GASB Standard) Projected funded status based on assumed investment returns of 6.75% and inflation of 2.5%. GASB Accounting rules reflect funded status using Market Value of Assets effective 6/30/14 for Plan Reporting and 6/30/15 for Employer Reporting. 2014 79.8% 76.1% 68.6% 66.6% 62.4% 62.1% 65.4% 71.3% 69.2% 73.6% 75.1% 74.1% 71.7% New GASB accounting rules reflect funded status on the market value basis beginning in 2014 The funded status for FY 2021 based on the actuarial value of assets was 77.2% 86.5% 87.1% 87.5% 88.0% 88.1% 88.3% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 $7.1 Billion using Market Assets Teacher Plan Unfunded Liability as of 6/30/2021 $12.0 Billion using Actuarial Assets#32Funded Status: Political Subdivisions in Aggregate 120.0% 100.0% 80.0% 60.0% New GASB accounting rules reflect funded status on the market value basis beginning in 2014 86.5% 88.2% 88.7% 85.1% V Virginia Retirement RS System 40.0% 20.0% 77.7% 76.3% 73.3% 87.6% 75.3% 86.9% 84.2% 89.3% 0.0% 2006 2007 2008 2009 2010 Projected years' investment returns assume 6.75% with 2.5% inflation rate. 2011 2012 2013 2014 2015 Historical Funded Status - Actuarial Value of Assets up to 2013 & Market Value of Assets 2014 Forward Notes: " New GASB Accounting Rules will reflect funded status using Market Value of Assets effective 6/30/14 for Plan Reporting and 6/30/15 for Employer Reporting. 90.0% 87.0% 97.8% 83.9% 98.4% actuarial value of assets was 87.2% 99.3% The funded status for FY 2021 based on the 100.2% 100.6% 101.2% 2016 2017 2018 2019 2020 2021 2022 2023 Projected Funded Status using Market Value of Assets (New GASB Standard) 2024 2025 2026 Assets Market $0.6 Billion using Political Subdivisions in Aggregate Unfunded Liability as of 6/30/21 $3.5 Billion using Actuarial Assets 32#3333 Appropriation Act Maintains Prior Contribution Rates V Virginia Retirement RS System Teacher Plan Appropriation Act Rates FY 23/24 VRS Board Certified Appropriation Act 14.46% Rates FY 23/24 14.78% Rates FY 23/24 16.62% State Plan VRS Board Certified Rates FY 23/24 14.13% ■ Requires $32 million in additional ☐ contributions: " $13.9 million General Fund $18.1 million Non-General Fund ■ Lowers Unfunded Liability by nearly $34 million over two years ■ Lowers future rates annually by approximately 5 basis points. • Approximately $48 million in additional savings over next 15 years Requires $345 million in additional contributions: ⚫ $138 million General Fund • $207 million Non-General Fund ■ Lowers Unfunded Liability by nearly $382 million over two years ■ Lowers future rates annually by approximately 30 basis points. Approximately $500 million in additional savings over next 15 years#3434 Appropriation Act - Cash Infusions The Appropriation Act provides over $1 billion to reduce unfunded liabilities of state pension and OPEB plans. $750 million appropriation in June 2022 Estimated cost savings of $1.4 billion over next 20 years ■ $250 million contingent appropriation in June 2023* Estimated cost savings of $509 million over next 20 years RS $80.4 million appropriation in total for State HIC plans paid in two installments (June 2023 and June 2024) Estimated cost savings of $99 million over next 20 years Virginia Retirement System * Allocation of contingent $250 million appropriation has not been set forth in the Act. Savings estimate assumes the contingent $250 million will be allocated in similar fashion to the $750 million appropriation.#35V Virginia RS Retirement System Enhancing the Customer Service Experience#3636 myVRS Features Goal-based retirement planner Benefit estimator my VRS Beneficiary designation One unified system RS Virginia Retirement System Self-service purchase of prior service Online retirement Security enhancements Financial wellness with a host of features: resources Direct deposit management Survivor accounts Annual Statement/ Member Benefit Profile (MBP) New features for retirees#3737 Online Retirement RS Virginia Retirement System my VRS 3,700+ online retirements submitted since launch in December 2020 ■ Holistic approach with built-in education tips and tools at every step of the process ■ Efficient, convenient and paperless from start to finish Includes retirement process tracking One of three systems in our peer group with a true online retirement experience#38myVRS Financial Wellness my VRS 回 my VRS RS my VRS Virginia Retirement System Risks ove When Using Cante Interactive learning resources Personalized content in myVRS, including videos to get you started Everything You Need to Know About Financially Going Green Easy access to courses for your needs and interests 38 H + Courses Educational Games Budgeting Tools Calculators#3939 Financial Planning Services RS Virginia Retirement System ■ Complements the existing myVRS Financial Wellness program. ■ Available to all VRS members and retirees, regardless of participation in a DC plan, through Mission Square Retirement. ■ Dedicated financial planners for VRS membership; no investment advice provided. ACCORDING TO AN OCTOBER/NOVEMBER 2020 SURVEY OF 1,205 STATE AND LOCAL GOVERNMENT WORKERS CFP professionals offer guidance and support to help you feel confident about your financial security and find a path forward. 54% HAVE BEEN NEGATIVELY IMPACTED FINANCIALLY BY THE COVID-19 PANDEMIC 40% ARE CONCERNED ABOUT BEING ABLE TO RETIRE WHEN THEY WANT 60% SAY DEBT IS A PROBLEM FOR THEM AND THEIR FAMILY varetire.org/make-a-plan#40V Virginia RS Retirement System Peer Comparison#4141 External Benchmarking - VRS Cost RS Virginia Retirement System Your total pension administration cost of $81 per active member and annuitant was $26 below the peer average of $107. $450 Pension Administration Cost Per Active Member and Annuitant $400 $350 $300 $250 $200 $150 $100 $50 $0 You Peer All Peer Avg All Avg © 2022 CEM Benchmarking Inc.#42External Benchmarking - VRS Service RS Your total service score was 81. This was above the peer median of 79. Total Service Score Virginia Retirement System 42 100 90 80 70 60 60 50 50 40 40 30 T T T T 20 20 10 You Peer Peer Median All Median All Peer Avg. © 2022 CEM Benchmarking Inc.#43V Virginia RS Retirement System 80 years of serving those who serve others. Helping members plan for tomorrow, today.#44V Virginia RS Retirement System Appendix 4.00 672.00 3,345,345.00 23,442.00 34,557.00 7,566,00 345.00 234,768.00 534,454.00 42,343.00 34,534 42,456.00 234,234.00 5,564.00 342.00 23,442.00 38,484.00 5,345.00 634,567.00 234,676.00 46,456.00 16,164.00 16,164.00 10,776.00 234,423.00 4,234,467.00 33,245.00 3,423.00 34.422.9 54,322.00 2,342.00 42,234.00 00 34,233.00 564,523.00 23,312.00 3,423.00 23,423.00 1478 246,723.00 9,220.00 234,423 234,233.00 45,344.0 24,423.00 31,428.00 31,400 534,457.00 45,573.00 442,344.00 14,772.00 10 DO 14,772.00 14,772.00 10,334.00 16,392.00 92.00 16,392.00 16,392.00 ,744.00 15,168.00 168.00 15,168.00 15,168.00 096.00 58,680.00 680.00 58,680.00 58,680.00 100.00 13,704.00. 8,704.00 13,704.00 13,704.00 562.00 15,924.00 ,924.00 15,924.00 15,924.00 3 465.00 51,000.00 000.00 51,000.00 51,000.00 1,7 000.00 46,884.00 884.00 46,884.00 46,884.00 1 448.00 37,872.00 32.00 37,872.00 37,872.00 3,184.00 550,009.00 3,955 00 2,580,255.00 1,835,094.00 $8,520.00 10 11 12 13 14 15 16 17 18 co co 1270 15.02#4545 Constitutional Duties and U.S. Code: Exclusive Benefit Rule Retirement V Virginia RS System Constitution of Virginia, Article X, Section 11: "The funds of the retirement system shall be deemed separate and independent trust funds, shall be segregated from all other funds of the Commonwealth, and shall be invested and administered solely in the interests of the members and beneficiaries thereof." [Emphasis added.] 26 United States Code § 401(a): "A trust ... shall constitute a qualified trust under this section ... if under the trust instrument it is impossible... for any part of the corpus or income to be (within the taxable year or thereafter) used for, or diverted to, purposes other than for the exclusive benefit of his employees or their beneficiaries...." [Emphasis added.]#46VRS Fiduciary Duty RS Virginia Retirement System Administer the trust fund solely in the interests of VRS members, retirees and beneficiaries Constitution of Virginia ◉ Code of Virginia Internal Revenue Code 46 Manage assets with care, skill, prudence and diligence Trustees carry out the Board's fiduciary duties and responsibilities Protect long-term value of investment portfolio Provide benefit security to members and rate stability for employers Maintain broadest possible opportunity set in the investment portfolio Divesting from/not investing in certain sectors may contradict fiduciary requirements Investment income has historically funded two-thirds of benefit payments#47Unfunded Pension Liabilities and Funded Status by Plan (Dollars in Thousands) V Virginia Retirement RS System 47 2020 2021 System UAAL based on AVA (Dollars in Thousands) Funded Status UAAL based on AVA (Dollars in Thousands) Funded Status State $ 6,417,661 75.1% $ 6,112,670 77.1% Teachers $ 13,278,662 73.9% $ 12,021,814 77.2% SPORS $ 325,590 73.0% $ 389,314 70.7% VALORS $ 712,025 68.5% $ 738,351 69.3% Judicial $ 111,633 83.5% $ 132,738 81.9% Total State-wide systems $ to 20,845,571 74.2% $ 19,394,887 76.9% Political Subdivisions 3,437,211 86.4% $ 3,480,933 87.2% Total Fund $ 24,282,782 77.1% $ 22,875,820 79.4% System State 2020 UAAL based on MVA (Dollars in Thousands) $ 6,981,267 Funded Status 72.9% 2021 UAAL based on MVA (Dollars in Thousands) $ Funded Status 3,615,554 86.5% Teachers SPORS VALORS Judicial Total State-wide systems sssss $ 14,385,554 71.7% $ 351,662 70.9% $ 758,084 66.4% $ 128,417 81.1% $ 22,604,984 72.0% $ ttttt $ 7,129,718 86.5% $ 276,498 79.2% $ 538,229 77.6% $ 60,256 91.8% 11,620,255 86.2% Political Subdivisions $ Total Fund $ 4,073,047 26,678,031 83.9% 74.8% บทบ $ 609,465 97.8% $ 12,229,720 89.0%#48Unfunded OPEB Liabilities and Funded Status by Plan (Dollars in Thousands) 48 V Virginia Retirement RS System 2020 2021 System UAAL based on MVA (Dollars in Thousands) Funded Status UAAL based on MVA (Dollars in Thousands) Funded Status Group Life $ 1,728,029 51.8% $ 1,111,390 68.5% HIC State $ 899,066 12.2% $ 836,804 19.9% HIC Teachers VSDP $ SS $ 1,286,380 10.1% $ 1,277,095 13.2% (241,350) 197.0% $ (361,816) 244.7% HIC Locals in Aggregate HIC Constitutional Officers SS $ 52,204 31.9% $ 27,069 15.9% HIC Social Services $ 12,646 13.3% HIC Registrars $ 450 21.9% VLDP Teachers $ 447 86.6% VLDP Political Subdivisions $ 433 88.5% ssssss $ 49,490 40.1% $ 26,572 20.1% $ 12,488 15.8% $ 421 28.6% $ (486) 109.5% $ (1,163) 123.2% Note: Unfunded liabilities and funded status using market value of plan assets.#49Employer Contribution Rates and Funding Requirements for Statewide Plans RS Virginia Retirement System Plan Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2023 Appropriation Act 14.46% State 14.46% 14.46% 14.13% SPORS 26.33% 26.33% 29.98% 29.98% VaLORS 21.90% 21.90% 24.60% 24.60% JRS 29.84% 29.84% 30.67% 30.67% Teachers 16.62% 16.62% 14.76% 16.62% Total Estimated Employer Contributions $2,238,472,000 $2,351,408,000 $2,233,507,000 $2,426,173,000 General Fund $977,577,000 $1,027,328,000 $990,033,000 $1,067,437,000 Non-General Fund $1,260,895,000 $1,324,080,000 $1,243,474,000 $1,358,736,000 49 Estimated funding for FY 2022 is based on actual FY 2021 payroll with increases as outlined in the 2022 Appropriation Act. Estimated funding for FY 2023 is based on estimated FY 2022 payroll projected forward with plan assumptions. Actual funding will be based on payrolls in effect at time of billing. Maintaining higher rates would collect an additional $345 million for the Teacher plan over the biennium which could increase funded status by nearly 70 basis points and lower unfunded liabilities by nearly $382 million without increasing budget. Maintaining higher rates would collect an additional $32 million for the State plan over the biennium which could increase funded status by nearly 15 basis points and lower unfunded liabilities by nearly $34 million without increasing budget.#5050 OPEB Contribution Rates RS 2019 Actuarial System Fiscal Years 2021/2022 2021 Actuarial Fiscal Years 2023/2024 Appropriation Act Fiscal Year 2023 1.34% 1.19% 1.34% 1.12% 1.04% 1.12% 1.21% 1.21% 1.21% 0.61% 0.56% 0.61% Group Life HIC State HIC Teachers VSDP HIC Locals in Aggregate 0.59% 0.72% 0.72% HIC Constitutional Officers 0.36% 0.36% 0.36% HIC Social Services 0.38% 0.37% 0.37% HIC Registrars 0.39% 0.32% 0.32% VLDP Teachers 0.47% 0.47% 0.47% VLDP Political Subdivisions 0.83% 0.85% 0.85% Virginia Retirement System