News Article

Moody's Investor Services Applauds Virginia Pension System Reforms as "Credit Positive"

Influential Bond-Rating Agency writes that changes build on previous reforms and put Virginia on a more sustainable path to funding its pension commitments

Monday, April 16, 2012
Jeff Caldwell
Office of the Governor

RICHMOND - Moody's Investor Services issued its Weekly Credit Outlook briefing today highlighting Governor Bob McDonnell's efforts to reform and strengthen the Virginia Retirement System (VRS). The bond-rating agency found the recently passed reforms to be "credit positive" and noted that Virginia estimates that its reforms, "lower total unfunded liabilities for state and local employee plans by nearly $9 billion by 2031."

Speaking about the briefing, Governor McDonnell noted, "We owe it to our dedicated and hard working teachers, police officers and state employees to ensure that their retirements will be there for them when their public service concludes. They serve us every day, we must serve them by passing smart reforms to strengthen and stabilize the retirement system they will depend upon in the years ahead. This is not easy work. It can be contentious and difficult. But we're all in this together. And in order to build a retirement system for the 21st Century, we must all, employers and employees, work together. That's what we've done in Virginia. We've come together across party lines to reform our system, and our new measures will lower unfunded liabilities in the system by nearly $9 billion by 2031. That is significant, real reform. It brings new accountability to the system, and is a major step forward in ensuring we have a retirement system that our employees can count upon, and our state can afford."

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For additional information contact Ibbie Hedrick at 804-225-2487 or ibbie.hedrick@ltgov.virginia.gov.