Annual Financial Report 2024 2025

Virginia Tech Financial Report 2024-2025

LODA program The discount rate used to measure the total OPEB liability was 3.97%. The projection of cash flows used to determine the discount rate assumed that employer contributions will be made per the VRS Statutes and they will be made in accordance with the VRS funding policy at rates equal to the actuarially determined contribution rates adopted by the VRS Board of Trustees. Through the fiscal year ending June 30, 2024, the rate contributed by Virginia Tech to the LODA OPEB program will be subject to the portion of the VRS board-certified rates that are funded by the Virginia General Assembly. Sensitivity of Virginia Tech’s Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate The following presents Virginia Tech’s proportionate share of the net OPEB liability for PMRH using the discount rate of 3.93%; VSDP, GLI, and HIC using the discount rate of 6.75%; and LODA using the discount rate of 3.97%. As well, Virginia Tech’s proportionate share of the net OPEB liability (asset) is presented as it would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate (all dollars in thousands): Virginia Tech’s Proportionate Share of Net OPEB Liability (Asset) 1.00 % Decrease Current Discount Rate 1.00% Increase 2.93 % 3.93 % 4.93 % PMRH $ 35,393 $ 33,362 $ 31,472 5.75 % 6.75 % 7.75 % VSDP $ (11,346 ) $ (11,793 ) $ (12,924 ) GLI $ 53,966 $ 34,702 $ 19,139 HIC $ 71,506 $ 62,378 $ 54,543 2.97 % 3.97 % 4.97 % LODA $ 1,201 $ 1,083 $ 982 Sensitivity of Virginia Tech’s Proportionate Share of the Net PMRH OPEB and LODA OPEB Liabilities to Changes in the Health Care Trend Rate Because the Pre-Medicare Retiree Healthcare and Line of Duty Act programs contain provisions for the payment of health insurance premiums, the liabilities are also impacted by the health care trend rates. The following presents Virginia Tech’s proportionate share of the net OPEB liability for these programs using health care trend rate of 7.50% decreasing to 4.50% for PMRH and 7.25% decreasing to 4.25% for LODA. As well, Virginia Tech’s proportionate share of the net OPEB liability is presented as it would be if it were calculated using a health care trend rate that is one percentage point lower or one percentage point higher than the current rate (all dollars in thousands): Virginia Tech’s Proportionate Share of Net OPEB Liability Current Health Care 1.00% Decrease Trend Rate 1.00% Increase 6.50% decreasing to 3.50% 7.50% decreasing to 4.50% 8.50% decreasing to 5.50% PMRH $ 30,322 $ 33,362 $ 36,890 6.25% decreasing to 3.25% 7.25% decreasing to 4.25% 8.25% decreasing to 5.25% LODA $ 923 $ 1,083 $ 1,280 Fiduciary Net Position Detailed information about Fiduciary Net Position for each of these programs is available in the separately issued VRS 2024 Annual Comprehensive Financial Report (Annual Report). A copy of the 2024 VRS Annual Report may be downloaded from the VRS website at www.varetire.org/pdf/publications/2024-annual-report.pdf or by writing to the System’s Chief Financial Officer at P.O. Box 2500, Richmond, VA, 23218-2500 . Payables to the VSDP, GLI, and HIC OPEB programs The amount payable outstanding at June 30, 2025 to each of these OPEB programs was as follows: VSDP $ 7,000 GLI $ 617,000 HIC $ 327,000

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