The Virginia Retirement System's assets dropped by $12 billion, or 20 percent, in the first half of this year, the Joint Legislative Audit and Review Commission was told today.
A. Marshall Acuff Jr., chairman of the system's board of trustees, described the investment environment as "the most challenging" he has encountered in 43 years in the investment business.
The VRS has 600,000 members, including state and local government employees and retirees and teachers and retired teachers. It is the 24th largest public or private pension system in the United States.
Because of the asset loss, the state will probably have to pony up more money in the next fiscal year to cover employer contribution rates, said Robert Schultze, VRS director. He estimated the budget for fiscal 2010-2012 would need about $63 million a year in general fund money to cover state employees and $139 million a year to cover teachers.
The pension fund has about $43 billion in assets, down from a high of almost $60 billion reached in 2007. Still, it is up about $4 billion in the second quarter. The stock market tanked in 2008, but has shown some improvement this year.
-- Tyler Whitley
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