The Board of Trustees of the Virginia Retirement System (VRS) is required by Code of Virginia § 51.1-126.F.3 to review contribution rates for the Optional Retirement Plan for Higher Education (ORPHE) at least once every six years. The previous periodic contribution rate review was completed in 2019.

To support the review process, VRS staff gathered employer and employee contribution data from peer institutions across the country designated by the State Council of Higher Education for Virginia (SCHEV). This data was used to calculate the average contribution rate for the salary peer group as of July 2025.

VRS reviewed contribution rates for faculty members participating in ORPHE, a defined contribution plan. Under § 51.1-126, faculty members contribute 5% and employers contribute 8.5%. This rate structure has been in place for eligible new hires since July 1, 2010. Employers may choose to make an additional employer contribution of up to 0.4%, totaling 8.9%. Currently, the only institution doing so is the University of Virginia.

The results of the analysis determined that the current employee and employer contribution rate was competitive with the peer group average. At this time, a revision to the current rates is not recommended.