Fairfax County’s lack of funding to pay for projected obligations arising from the pension plans for county employees has been a matter of longstanding concern for the MCA. On January 6, 2021, the MCA Board of Directors passed the latest of several resolutions on this issue, urging Fairfax County to address these liabilities for county school employees. The resolution notes that the Virginia state government had implemented changes to limit the growth of the Virginia Retirement System, but Fairfax County had undertaken only limited reform efforts. As a result, Virginia experienced limited growth in unfunded debt over the past decade, but the unfunded liability of Fairfax County’s school employee plan grew from half a billion dollars in 2010 to nearly a billion dollars in 2020. MCA urged the County School Board to hire an independent actuarial firm to undertake a sensitivity and stress test of the school employee plan and implement the resulting recommendations for reform no later than Fiscal Year 2023. Click the following link to see the resolution:
ERFC and VRS Pension Plan Resolution