RD176 - Virginia Retirement System (VRS) Stress Test and Sensitivity Analysis – June 2017

Executive Summary:
House Bill 1768 (Chapter 639 of the 2017 Acts of Assembly) requires the Virginia Retirement System to formally adopt a policy to regularly report sensitivity and stress testing analyses for members of the General Assembly. (Appendix A) The analyses shall include projections of benefit levels, pension costs, liabilities, and debt reduction under various economic and investment scenarios.

This report provides a risk assessment of VRS-administered retirement plans and supports the General Assembly’s efforts to increase information related to the future health of the retirement system under various scenarios.

This initial report focuses on identification, quantification, and analysis of financial risks.