Annual Financial Report 2024 2025

Virginia Tech Financial Report 2024-2025

At June 30, 2025, Virginia Tech reported deferred outflows/inflows of resources related to these programs from the following sources (all dollars in thousands): Program Source Deferred Outflow Deferred Inflow PMRH Difference between expected and actual experience $ 669 $ 4,016 Change in assumptions 654 11,740 Changes in proportion 3,353 268 Amounts associated with transactions subsequent to measurement date 3,035 - Total PMRH $ 7,711 $ 16,024 VSDP Difference between expected and actual experience $ 545 $ 1,340 Net difference between projected and actual earnings on investments - 581 Change in assumptions 16 40 Changes in proportion 547 28 VT contributions subsequent to measurement date 1,056 - Total VSDP $ 2,164 $ 1,989 GLI Difference between expected and actual experience $ 5,473 $ 848 Net difference between projected and actual earnings on investments - 2,925 Change in assumptions 198 1,720 Changes in proportion 884 28 VT contributions subsequent to measurement date 4,035 - Total GLI $ 10,590 $ 5,521 HIC Difference between expected and actual experience $ - $ 4,933 Net difference between projected and actual earnings on investments - 211 Change in assumptions 1,005 - Changes in proportion 817 99 VT contributions subsequent to measurement date 9,550 - Total HIC $ 11,372 $ 5,243 LODA Difference between expected and actual experience $ 38 $ 265 Net difference between projected and actual earnings on investments - 4 Change in assumptions 200 218 Changes in proportion 197 54 VT contributions subsequent to measurement date 53 - Total LODA $ 488 $ 541 The following amounts reported as deferred outflows of resources related to each program, resulting from Virginia Tech’s contributions subsequent to the measurement date, will be recognized as a reduction of each program’s net liability (asset) in the fiscal year ending June 30, 2025 (all dollars in thousands): PMRH $ 3,035 VSDP $ 1,056 GLI $ 4,035 HIC $ 9,550 LODA $ 53 Other amounts reported as deferred outflows/inflows of resources related to the OPEB programs will be recognized in each program’s expense in future reporting periods as follows (all dollars in thousands): Year ended June 30: PMRH VSDP GLI HIC LODA 2026 $ (6,200) $ (661) $ (1,203) $ (1,075) $ (5) 2027 $ (3,655) $ (37) $ 853 $ (687) $ (2) 2028 $ (1,679) $ (110) $ 272 $ (878) $ (5) 2029 $ 131 $ (62) $ 494 $ (599) $ (17) 2030 $ 54 $ 49 $ 619 $ (183) $ (25) Thereafter $ - $ (59) $ - $ - $ (52) Actuarial Assumptions PMRH program actuarial assumptions The total Pre-Medicare Retiree Healthcare OPEB liability was based on an actuarial valuation with a valuation date of June 30, 2024. The Department of Human Resource Management selected the economic, demographic, and healthcare claim cost assumptions. The actuary provided guidance with respect to these assumptions. Initial healthcare costs trend rates used were 7.50 percent for medical and pharmacy and 4.00 percent for dental. The ultimate trend rates used were 4.50 percent for medical and pharmacy and 4.00 percent for dental. Valuation Date Actuarially determined contribution rates calculated as of June 30, one year prior to the end of the fiscal year in which contributions are reported. Measurement Date June 30, 2024 (one year prior to the end of the fiscal year) Actuarial Cost Method Entry Age Normal Amortization Method Level dollar, Closed Effective Amortization Period 5.80 years Discount Rate 3.93% Projected Salary Increases 5.35% to 3.50% based on years of service from 1 year to 20 years or more Medical Trend Under 65 Medical and Rx: 7.50% to 4.50%, Dental: 4.00% Year of Ultimate Trend 2034 Mortality rates • Pre-Retirement: Pub-2010 Benefits Weighted General Employee Rates projected generationally with a Modified MP-2021 Improvement Scale; females set forward 2 years. • Post-Retirement: Pub-2010 Benefits Weighted General Healthy Retiree Rates projected generationally with a Modified MP-2021 Improvement Scale; 110% of rates for females.

49