The Investment Decisionmaking Process in Two Virginia Public Employee Retirement Plans

The Virginia Supplemental Retirement System originated in 1908 primarily as a benefit to teachers, but now has 214,000 active and retired members, and incorporates the State Police Officers Retirement System and the Judicial Retirement System in its management and investment activities. The Employees' Retirement System of the City of Roanoke, created by city ordinance in 1946, had, in fiscal year (FY) 1975, 2,503 active and retired members. Membership in the Virginia System is limited generally to full time, salaried employees of state and local government entities and school boards. Membership in the Roanoke System is open to all city employees not covered by a state plan. Funding for the Virginia System is obtained from employers and employees, but in the Roanoke System only the employers pay. Both Systems provide retirement income for life, and financial protection in the event of disability or death. Both Systems also have cost-of-living annuity increases.