Substantially all full-time classified salaried employees of the University participate in the defined benefit retirement plan administered by the Virginia Retirement System (VRS). VRS is an agent multiple-employer public employee retirement system (PERS) that acts as a common investment and administrative agency for the Commonwealth of Virginia and its political subdivisions. The University's payroll costs for employees covered by VRS were $164.3 million and $196.5 million for the years ended June 30, 1994 and 1993, respectively. The University's total payroll costs were $436.9 million and $410.5 million for the years ended June 30, 1994 and 1993, respectively. Information regarding types of employees covered, benefit provisions, employee eligibility requirements including eligibility for vesting, and the authority under which benefit provisions as well as employer and employee obligations to contribute are established can be found in the Commonwealth's Comprehensive Annual Financial Report (CAFR).
The University's total VRS contributions were $14.7 million and $17.6 million for the years ended June 30, 1994 and 1993, respectively, which included the 5 percent employee contribution assumed by the employer. These contributions represent 8.9 percent and 9.0 percent of covered payroll for the respective years.
The VRS does not measure assets and pension benefit obligations separately for individual State institutions. The CAFR provides disclosure of the Commonwealth's unfunded pension benefit obligation at June 30, 1993. The same report contains historical trend information showing VRS's progress in accumulating sufficient assets to pay benefits when due.
Substantially all full-time faculty, certain administrative staff, and Health Care Professionals participate in Faculty Optional Retirement Plans. These are fixed-contribution plans where the retirement benefits received are based upon the employer and employee contributions (all of which are paid by the University), and the interest and dividends. Individual contracts issued under the plans for full-time faculty and certain administrative staff provide for full and immediate vesting of both the University's and the participant's contributions. Health Care Professional's employer contributions fully vest after one year of employment. Total pension costs under the plans were approximately $19.5 million and $15.2 million for the years ended June 30, 1994 and 1993, respectively. Contributions to the Optional Retirement Plans were calculated using base salaries of $189.6 million and $134 million for the years ended June 30, 1994 and 1993, respectively. The contribution percentage amounted to 10.3 percent in 1994 and 11.3 percent in 1993.
|Market value of funds held by trustees for the benefit of the University||$86,721||$88,274|
|Income received from funds held by trustees for the benefit of the University||$ 3,461||$ 3,344|
The total rental expense for all property and equipment was approximately $5.3 million and $5.7 million for theyears ended June 30, 1994 and 1993, respectively. The Board of Visitors passed a resolution for the University to participate with the University of Virginia Health Services Foundation in establishing Blue Ridge Health Alliance, Inc., a for-profit corporation. The Alliance will offer a managed health care program in Central Virginia in conjunction with other health care organizations, physicians, and other providers. The University will invest equally with the Foundation up to a maximum of $4.6 million and will receive governing rights and shares of stock commensurate with its investment. The Finance Committee of the Board will determine the actual amount and sources of the funds to be invested, the governance structure of the corporation, the terms of the joint venture agreement between the University and the Foundation, and any other matters necessary to protect the interests of the University.
|Leonard W. Sandridge||Executive Vice President and Chief Financial Officer|
|Colette Capone||Vice President for Management and Budget|
|Charles T. Gillet||Assistant Vice President for Finance and University Comptroller|
|Alice W. Handy||University Treasurer|
|Peter L. Munger||Chief Financial Officer, University of Virginia Medical Center|
This report was published with private funds.
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