RD87 - Comprehensive Annual Report on the Virginia Retirement System (2004)


Executive Summary:
[This report also includes the reporting requirements of § 51.1-605 and 51.1-613.]

We are pleased to submit to you the Comprehensive Annual Financial Report (CAFR) of the Virginia Retirement System (System) for the fiscal year ended June 30, 2004.

The System administers benefits and services for more than 521,000 members, retirees and beneficiaries covered under VRS, the State Police Officers’ Retirement System (SPORS), the Virginia Law Officers’ Retirement System (VaLORS), Special Benefits for Local Law Enforcement Officials and Firefighters (LEOS/FIRE) and the Judicial Retirement System (JRS). Benefits include the traditional defined benefit plan; defined contribution plans; the Basic Group Life Insurance Program and the Optional Group Life Insurance Program for members and retirees; the Retiree Health Insurance Credit Program; and the Virginia Sickness and Disability Program (VSDP) for state employees, which includes minimum employer-paid long-term care coverage. Nearly 800 state agencies, school boards, political subdivisions and special authorities participate in VRS on behalf of their employees.

VRS’ Comprehensive Annual Report for FY 2004 has been prepared in accordance with Section 51.1-1003 of the Code of Virginia (1950), as amended, and Section 4-9.00 of Chapter 1042 of the 2003 Virginia Acts of Assembly requiring every retirement system to publish an annual report. The report has been mailed to the Governor and the members of his Cabinet, the members of the Virginia General Assembly, VRS’ participating employers and other interested parties. It also is available on the VRS Web site at www.varetire.org.

The report consists of the following sections:

• Introductory Section: letter from the Chairman of the VRS Board of Trustees; letter of transmittal; the identification of the organization.

• Financial Section: the opinion of the Auditor of Public Accounts; Management’s Discussion and Analysis; the financial statements; required supplementary data; additional financial information.

• Investment Section: letter from the Chief Investment Officer; review of investment activity and performance for the fiscal year.

• Actuarial Section: certification letter of the independent consultant actuary, Gabriel, Roeder, Smith & Company; summary of the results of the most recent actuarial valuations; plan summary.

• Statistical Section: tables of significant data pertaining to the system; list of participating employers; information on other programs.