February 1, 2011

This op/ed originally appeared in the Richmond Free Press

The Virginia Retirement System (VRS) provides the resources for pensions for the thousands of Virginia state employees. Because of the diligence of the VRS, the Commonwealth is able to provide generous pensions to its long term state workers to ensure a reasonable income for them in their retirement. While state employees are frequently paid less than in the private sector, access to this strong pension fund is one asset to working for the Commonwealth. The VRS has been able to provide these pensions, even in these difficult economic times, because of wise and prudent investments. The VRS hires outstanding money managers and money management firms to ensure that pension funds are invested sensibly, but with the best return. As Virginians, we can be very proud and confident of the job VRS has been doing and continues to do.

However, over the past year, I became aware of a situation at VRS that has concerned me. While Virginia has a very diverse population, VRS was using very, very few minority money managers. Although other states have found that a diverse money management system has led to beneficial returns, Virginia had not diversified in the same way. I contacted the leadership of VRS and introduced a study in the General Assembly to research the potential use of minority money managers. I am very pleased to say that VRS has been and continues to be very responsive to my inquiries. Even as hearings were initiated and meetings instigated, VRS began to seek out new money management firms. Obviously, VRS continues to be very careful to ensure that these are most reliable, well-reputed firms that will bring a healthy income to the state. Just in the time from my initial query, over $100,000 has now been invested with minority money management firms.

I am confident, as discussions with VRS and the study are ongoing, that this number will continue to grow. As a Commonwealth, we benefit when we take a new approach, consider a situation from a different perspective. While it may be easier to do what we have always done, especially, in this case, where it had been so successful, we are now finding we can increase those levels of success by engaging new people and situations. Without our monies even more diversified in safe funds, we can increase our gains. This will help us ensure that the VRS will be solvent for years to come and that we will be able to offer state employees the pensions they have so deservedly earned.

Serving you in the General Assembly is not just about introducing bills, but it is about trying to help our communities and search for solutions. The success of the VRS is just one example of how we can make changes in the state, changes that can benefit many people and help our Commonwealth become a stronger, better place for all of us.

If you would like further information on the VRS fund or on other state issues, please feel free to contact me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it or at (804) 698-7509. Additional information on the General Assembly Session can be found on my website at www.donaldmceachin.com.