If investment returns for Virginia’s pension system come in around negative 6%, the commonwealth’s unfunded liabilities could nearly triple for Fiscal Year 2022, according to a report from the Reason Foundation.
Virginia’s unfunded liabilities for FY2021 were slightly less than $6 billion, but early indicators estimate an average negative 6% return on investments for FY2022. If the commonwealth’s returns are at that rate, its unfunded liabilities would increase to slightly more than $17 billion.
Unfunded liabilities are costs that the Virginia Retirement System must eventually pay out to people, but does not yet have the assets to provide to them. Consistently […]