The 2012 Executive Budget Document
Virginia Retirement System
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http://www.varetire.org/
]
Mission Statement
The Virginia Retirement System’s mission is to provide superior customer service in the delivery of retirement related benefits on behalf of participating Virginia public employers and their employees and to serve as stewards of the funds in our care.
Operating Budget Summary
| General Fund | Nongeneral Fund | Personnel Cost | |
|---|---|---|---|
| 2009 Appropriation | $ 28,000 | $ 57,733,797 | $ 32,532,334 |
| 2010 Appropriation | $ 0 | $ 61,643,297 | $ 32,632,334 |
| 2011 Appropriation | $ 0 | $ 59,943,622 | $ 31,936,731 |
| 2012 Appropriation | $ 0 | $ 53,845,797 | $ 31,906,532 |
| 2013 Base Budget | $ 0 | $ 53,845,797 | $ 31,962,828 |
| 2013 Addenda | $ 0 | $ 5,784,797 | $ 2,599,758 |
| 2013 Total | $ 0 | $ 59,630,594 | $ 34,562,586 |
| 2014 Base Budget | $ 0 | $ 53,845,797 | $ 31,962,828 |
| 2014 Addenda | $ 0 | $ 4,483,547 | $ 2,599,758 |
| 2014 Total | $ 0 | $ 58,329,344 | $ 34,562,586 |
| General Fund | Nongeneral Fund | Total Positions | |
|---|---|---|---|
| 2009 Appropriation | 0.00 | 300.00 | 300.00 |
| 2010 Appropriation | 0.00 | 301.00 | 301.00 |
| 2011 Appropriation | 0.00 | 301.00 | 301.00 |
| 2012 Appropriation | 0.00 | 301.00 | 301.00 |
| 2013 Base Budget | 0.00 | 301.00 | 301.00 |
| 2013 Addenda | 0.00 | 13.00 | 13.00 |
| 2013 Total | 0.00 | 314.00 | 314.00 |
| 2014 Base Budget | 0.00 | 301.00 | 301.00 |
| 2014 Addenda | 0.00 | 13.00 | 13.00 |
| 2014 Total | 0.00 | 314.00 | 314.00 |
Recommended Operating Budget Addenda
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Provide funding for litigation and trial costsProvides additional funding in order to reimburse the Office of the Attorney General for litigation and trial costs related to the Virginia Fraud Against Taxpayers Act lawsuit against Bank of New York Mellon. While the agency is not a party to the lawsuit, it is responsible for litigation and trial costs related to the case.
FY 2013 FY 2014 Nongeneral Fund $ 588,600 $ 0
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Lease additional office space and upgrade furnishingsProvides additional funding for office space and furnishings. The funding would cover replacement of 150 agency chairs that are an estimated 25 years old; leasing additional office space to be used for customer support and member counseling; security services for the additional office space; expenses to build out the new office space; additional office space for the investments staff; and replacement of nine old cubicles in poor condition.
FY 2013 FY 2014 Nongeneral Fund $ 400,700 $ 233,200
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Reconcile appropriation to agency general ledgerAn adjustment to reconcile the agency's appropriation to its general ledger.
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Establish backup disaster recovery site and update risk assessmentProvides funding to lease space at an existing disaster recovery site in Raleigh, North Carolina. This site will be a backup to the existing data center operations site in Henrico County. Funding would cover building rental and additional communications circuits/long distance costs. The funding also would cover an update to the agency's risk assessment. This assessment, which is done every three years, includes evaluating and recommending controls to mitigate risks to sensitive systems.
FY 2013 FY 2014 Nongeneral Fund $ 172,000 $ 247,000
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Provide funding and positions to internally manage the international small cap allocationProvides additional funding to internally manage the international small cap allocation in order to significantly reduce external investment management fees. The funding would cover fees for research materials as well as two additional positions for research, portfolio management, and back-office support.
FY 2013 FY 2014 Nongeneral Fund $ 573,500 $ 573,500 Authorized Positions $ 2 $ 2
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Provide funding for costs associated with required quadrennial auditProvides funding to reimburse the Joint Legislative Audit and Review Commission (JLARC) for the costs associated with an actuarial report concerning the Virginia Retirement System. JLARC is required under the Code of Virginia to publish, with the assistance of an actuary, the report once every four years.
FY 2013 FY 2014 Nongeneral Fund $ 0 $ 110,850
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Replace Microsoft Outlook programProvides additional funding to replace the Investment Department's Microsoft Outlook program with software that enables searching public folders for e-mails, contacts, meetings, and other documents.
FY 2013 FY 2014 Nongeneral Fund $ 110,000 $ 110,000
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Provide funding to implement new defined benefit plan (Plan 2)Provides additional funding and positions to support the new defined benefit plan created during the 2010 Session of the General Assembly (Chapter 737) for employees hired on or after July 1, 2010. The funding would be used to hire an e-Learning Developer-Designer to support course development when modernization courses are integrated into the products and services curriculum; a Communications Specialist to meet the increased expectation of interaction with the Virginia Retirement System through social media, new modernization tools, and Web pages; increased costs associated with publications for Plan 2 employees; and conversion of a current wage position to a full-time classified position to support increased responsibilities of the External Knowledge Center, employer registrations, learning events, etc.
FY 2013 FY 2014 Nongeneral Fund $ 325,964 $ 325,964 Authorized Positions $ 3 $ 3
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Replace obsolete components to bring elevators up to current building codesProvides funding to replace obsolete components to bring four elevators up to current building codes.
FY 2013 FY 2014 Nongeneral Fund $ 498,000 $ 0
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Provide funding and positions to internally manage the emerging markets allocationProvides additional funding to internally manage the emerging markets allocation in order to significantly reduce external investment management fees and develop greater insights into the various markets around the world. Emerging markets are an increasingly important allocation. The funding would cover fees for research materials as well as two additional positions for research, portfolio management, and back-office support.
FY 2013 FY 2014 Nongeneral Fund $ 623,500 $ 623,500 Authorized Positions $ 2 $ 2
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Provide funding to fill vacant investment positionsProvides funding to fill eight vacant positions that are responsible for fund investments. Funding these positions will allow the Virginia Retirement System (VRS) to manage more funds internally and to continue to develop its research capabilities to make better and more informed investment decisions. In addition, the agency will continue to enhance its monitoring and compliance efforts to help safeguard VRS investments.
FY 2013 FY 2014 Nongeneral Fund $ 1,360,798 $ 1,360,798
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Implement remote desktop accessProvides funding for hardware and software to allow employees to access their work computers from any remote device. The agency would use a virtual desktop solution that is accessible via a secure VPN web link from any personal computer. There can be significant productivity gains by providing employees with access to their work computers from remote devices.
FY 2013 FY 2014 Nongeneral Fund $ 75,000 $ 28,000
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Increase nongeneral fund appropriationProvides additional nongeneral fund appropriation to cover increased actuarial costs.
FY 2013 FY 2014 Nongeneral Fund $ 271,000 $ 285,000
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Develop more efficient research technology and processesProvides initial funding to cover the costs for a consultant to assist in defining the system requirements to develop more efficient technology to aid in the analysis of new investment strategies.
FY 2013 FY 2014 Nongeneral Fund $ 200,000 $ 0
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Distribute Central Appropriation amounts to agency budgetsAdjusts the agency budget to reflect amounts moved to or from Central Appropriations to cover the costs of items such as changes in retirement and other benefit contribution rates, as well as the distribution of other centrally funded items.
FY 2013 FY 2014 Nongeneral Fund $ 262,035 $ 262,035
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Increase member counseling specialistsProvides funding for an additional six member counseling specialists to address the projected increase in call volumes and counseling support needs; a "call abandon rate" that exceeded the goal of five percent or less; the need for agents to serve in a retirement counseling role; and to provide new counseling support related to the modernization project. The number of retirees continues to increase every year, generating additional calls and the need for more retirement counseling. In addition, the agency's modernization project is increasing the focus on retirement counseling and support.
FY 2013 FY 2014 Nongeneral Fund $ 323,700 $ 323,700 Authorized Positions $ 6 $ 6