Chief Patron: Landes
Modifications to VRS Investment Staff Incentive Pmt. Calculation (language only)

Item 487 #1h

Language

Page 430, line 15, before "By" insert "A."

Page 430, after line 20, insert:

"B. The Virginia Retirement System (VRS) shall make the following changes to the absolute return adjustment that is applied to incentive pay for investment professionals. VRS shall not provide an absolute return adjustment to incentive pay for investment professionals for fiscal years in which the total fund return is greater than zero but less than or equal to the assumed long-term rate of return. For years in which the total fund return is greater than the assumed long term rate of return, the absolute return adjustment shall be equal to the absolute percentage point difference between the total fund return and the assumed long-term rate. For years in which the total fund return is negative, the absolute return adjustment shall be negative, and equal to the absolute percentage point difference between the total fund return and zero. The Board shall update language in the Investment Professionals' Pay Plan to incorporate these changes."