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I am writing to you, our retirees, because you may be concerned about all the turbulence in the financial markets right now. Like you, I plan on and count on receiving a retirement benefit some day myself. So I understand and share your concerns. I want to assure you that your Fairfax County retirement benefits are safe and in good hands - even with all that you may be hearing about the markets these days. I say so for the following reasons.
Our Investments are Well Diversified
The assets of the three Fairfax County Retirement Systems, namely the Employees,’ Police Officers, and Uniformed Retirement Systems, are invested in a wide array of investment types. These so-called asset classes include stocks, bonds, corporate debt, mortgages, US Treasury securities, real estate, commodities and other real assets, hedge funds, private equity, private debt, and other types of investments. Furthermore, the investments in each asset class are invested with 60-plus professional investment managers and ultimately into a great number of individual investments. This diversification means that the assets needed to fund your retirement benefits are not just invested in a few big companies but are spread out over many different types of assets. This means that we don't have just "one basket, "such as the oft-referenced S&P 500 or Dow Jones Industrial Average.
We Are Investing for the Long Term
Because the benefits that we owe all of you, as well as to the other employees who will retire in the future, will come due over the next 30 to 50-plus years, we have the luxury of being long-term investors. While it is challenging to see short-term market indicators go down as they have the last few days, these fluctuations tend to be averaged out over longer periods of time. As shown in the chart below, our three systems have earned an average investment return of between 7.3% and 7.8% over the most-recent 30 year period.
During this time there were several major market downturns; such as during the great financial crisis of 2008 and the COVID-19 crisis. Even with those market fluctuations, our three systems have earned in excess of the 6.75% investment return assumed by the systems’ actuary for funding purposes.
You Have a Defined Benefit Pension
This means that your retirement benefit is set (defined) in County Code and will be paid for as long as you live. Furthermore, depending on the beneficiary or survivor options you elect, your spouse may also receive a benefit (if they outlive you) for as long as they live.
This differs from Defined Contribution retirement plans (401 (k), etc.) where retirement benefits depend on the amount contributed by the employee and employer, the earnings on these funds, and the duration of the retiree's or beneficiary's life.
The County Has a Long History of Funding Its Retirement Systems
The Board of Supervisors is responsible for funding its three retirement systems. It has always provided the level of funding recommended by the system’s actuary every year. In some years, in fact, they have provided more funding than required by the funding policy that is documented in County Code. In years when investment returns were less than the 6.75% annual return assumed by the actuary, the County has always made up any shortfall by increasing its annual contribution.
Bottom line, please know that the assets in your retirement system are managed by a great group of investment professionals, led and overseen by each system's dedicated Board of Trustees.
I hope that this addresses any concerns that you might have. But please feel free to reach out to me directly if you have any questions. My contact information is below.
 Jeff Weiler
Executive Director - Fairfax County Retirement Systems
703-279-8255
jeffrey.weiler@fairfaxcounty.gov
Some time between now and April 15th, we will find out from the US Department of Labor how much the Consumer Price Index increased from March of 2024 to March of 2025. This is what your annual retiree cost-of-living adjustment (COLA) is based on. We will send out a special newsletter as soon as we know what it is.
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