FY22 financial report print.indd
Virginia Tech Financial Report 2021-2022
the fiscal year ending June 30, 2021, the rate contributed by Virginia Tech for the VRS State Employee Retirement Plan and the VaLORS Retirement Plan will be subject to the portion of the VRS Board-certified rates that are funded by the Virginia General Assembly which was 100% of the actuarially determined contribution rate. From July 1, 2021, on, all agencies are assumed to continue to contribute 100% of the actuarially determined contribution rates. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of Virginia Tech’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents Virginia Tech’s proportionate share of the VRS State Employee Retirement Plan (SERP) and the VaLORS Retirement Plan net pension liability using the discount rate of 6.75%, as well as what Virginia Tech’s proportionate share of the net pension liability would be if it were calcu lated using a discount rate that is one percentage point lower (5.75%) or one percentage point higher (7.75%) than the current rate (all dollars in thousands): 1.00% Decrease (5.75%) Current Discount Rate (6.75%) 1.00% Increase (7.75%) Pension Plan Fiduciary Net Position Detailed information about the VRS State Employee Retirement Plan’s Fiduciary Net Position or the VaLORS Retirement Plan’s Fiduciary Net Position is available in the separately issued VRS 2021 Annual Report . A copy of the VRS 2021 Annual Report may be downloaded from the VRS website at https://www.varetire.org/pdf/publications/2021-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 Pension Plan The amount of payables outstanding to the VRS State Employee Retirement Plan (SERP) and the VaLORS Retirement Plan at June 30, 2022, was approx imately $2.4 million for legally required contributions into the plans. Virginia Tech’s proportionate share of the VRS SERP net pension liability Virginia Tech’s proportionate share of the VaLORS net pension liability $ 426,360 $ 227,619 $ 61,084 $ 5,531 $ 3,436 $ 1,718
19. Defined Contribution Plans Optional Retirement Plans
Federal Pension Plans Certain Cooperative Extension Service (CES) professional employees are participants in either the Federal Employee Retirement System (FERS) or the Federal Civil Service Retirement System (CSRS). The FERS and CSRS are defined benefit plans in which benefits are based upon the highest base pay over any three consecutive years and the years of creditable service. The costs under these plans were approximately $79,000 for the year ended June 30, 2022. Contributions to the FERS and CSRS were calculated using the base salary amount of approximately $373,000 for the fiscal year 2022. In addition, the university contributed $19,000 in employer contributions to the Thrift Savings Plan for the year ended June 30, 2022. The Thrift Savings Plan is a defined contribution plan in which the university matches employee contributions within certain limitations.
Full-time faculty and certain administrative staff may participate in option al retirement plans as authorized by the Code of Virginia rather than the VRS retirement plan. These optional retirement plans are defined contri bution plans offered through Teachers Insurance and Annuity Association – College Retirement Equities Fund (TIAA-CREF), and Fidelity Invest ments Tax-Exempt Services Company. There are two defined contribution plans. Plan 1 is for employees hired prior to July 1, 2010, and retirement benefits received are based upon the employer’s 10.4 percent, plus net investment gains or losses. Plan 2 is for employees hired on or after July 1, 2010, and retirement benefits received are based upon the employer’s 8.5 percent contribution and the employee’s 5.0 percent contribution plus net investment gains or losses. Individual contracts issued under the plan provide for full and immediate vesting of both the university’s and the employees’ contributions. Total pension costs under this plan were approximately $34,835,000 for year ended June 30, 2022. Contributions to the optional retirement plan were calculated using the base salary amount of approximately $379,393,000 for this fiscal year. Deferred Compensation Plan Employees of the university are employees of the Commonwealth of Virginia. State employees may participate in the commonwealth’s deferred compensation plan. Participating employees can contribute to the plan each pay period with the commonwealth matching up to $20 per pay period. The dollar amount match can change depending on the funding available in the commonwealth’s budget. The deferred compensation plan is a qualified defined contribution plan under Section 401(a) of the Internal Revenue Code. The university expense for matching contributions to this plan, which is an amount assessed by the commonwealth, was approxi mately $2,444,000 for the fiscal year 2022.
Notes to Financial Statements
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