State Retiree Benefits Fact Sheet – Virginia

  • December 18, 2007
Virginia has a modest bill coming due for retiree health care benefits for its public sector employees—about $3 billion. With about $682 million socked away, the Commonwealth was one of just 13 states with any funds set aside as of the end of 2006 to cover its non-pension benefit costs over the next 30 years. On the pensions side, Virginia's funds aren't in as healthy shape as they used to be, and the state has stumbled a bit in making its full annual contributions toward its long-term obligation. The funding ratio of Virginia's pension plans dropped fairly substantially between 2001 and 2005, and in the last 10 years, the Commonwealth has frequently made less than the annual required contribution, as set by its own actuaries. Still, the current pension funding level is close to the 50-state mean.