Bill Text: VA SB1383 | 2011 | Regular Session | Comm Sub
Bill Title: Retirement System; certain retirees hired as law-enforcement officers of certain towns.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2011-02-22 - House: Left in Appropriations [SB1383 Detail]
Download: Virginia-2011-SB1383-Comm_Sub.html
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11104987D
Be it enacted by the General Assembly of Virginia: 1. That § 51.1-155 of the Code of Virginia is amended and reenacted as follows: § 51.1-155. Service retirement allowance. A. Retirement allowance. - A member shall receive an annual retirement allowance, payable for life, as follows: 1. Normal retirement. - The allowance shall equal 1.70 percent of his average final compensation multiplied by the amount of his creditable service. 2. Early retirement; applicable to teachers, state employees, and certain others. - The allowance shall be determined in the same manner as for normal retirement with creditable service and average final compensation being determined as of the date of actual retirement. If the member has less than 30 years of service at retirement, the amount of the retirement allowance shall be reduced on an actuarial equivalent basis for the period by which the actual retirement date precedes the earlier of (i) his normal retirement date or (ii) the first date on which he would have completed a total of 30 years of creditable service. The provisions of this subdivision shall apply to teachers and state employees. These provisions shall also apply to employees of any political subdivision that participates in the retirement system if the political subdivision makes the election provided in subdivision 3. 3. Early retirement; applicable to employees of certain political subdivisions and any person who becomes a member on or after July 1, 2010. - The allowance shall be determined in the same manner as for normal retirement with creditable service and average final compensation being determined as of the date of actual retirement. If the creditable service of the member equals 30 or more years but the sum of his age at retirement plus his creditable service at retirement is less than 90, the amount of the retirement allowance shall be reduced on an actuarial equivalent basis for the period by which the actual retirement date precedes the earlier of (i) his normal retirement date or (ii) the first date on which the sum of his then attained age plus his then creditable service would have been equal to 90 or more had he remained in service until such date. If the member has less than 30 years of creditable service, the retirement allowance shall be reduced for the period by which the actual retirement date precedes the earlier of (i) his normal retirement date or (ii) the first date on which he would have completed a total of at least 30 years of creditable service and his then creditable service plus his then attained age would have been equal to 90 or more. The provisions of this subdivision shall apply to the employees of any political subdivision that participates in the retirement system and any other employees as provided by law. The participating political subdivision may, however, elect to provide its employees with the early retirement allowance set forth in subdivision 2. No such election shall be made for a person who becomes a member on or after July 1, 2010. Any election pursuant to this subdivision shall be set forth in a legally adopted resolution. 4. Additional allowance. - In addition to the allowance payable under subdivisions 1, 2, and 3, a member shall receive an additional allowance which shall be the actuarial equivalent, for his attained age at the time of retirement, of the excess of his accumulated contributions transferred from the abolished system to the retirement system, including interest credited at the rate of two percent compounded annually since the transfer to the date of retirement, over the annual amounts equal to four percent of his annual creditable compensation at the date of abolishment for a period equal to his period of membership in the abolished system. 5. 50/10 retirement. - The allowance shall be payable in a monthly stream of payments equal to the greater of (i) the actuarial equivalent of the benefit the member would have received had he terminated service and deferred retirement to age 55 or (ii) the actuarially calculated present value of the member's accumulated contributions, including accrued interest. B. Beneficiary serving in position covered by this title. 1. Except as provided in subdivisions 2 2. Active members of the General Assembly who are eligible to receive a retirement allowance under this title, excluding their service as a member of the General Assembly, shall be eligible to receive a retirement allowance based on their creditable service and average final compensation for service other than as a member of the General Assembly. Such members of the General Assembly shall continue to be reported as any other members of the retirement system. Upon ceasing to serve in the General Assembly, members of the General Assembly receiving a retirement allowance based on their creditable service and average final compensation for service other than as a member of the General Assembly shall have their retirement allowance recomputed prospectively to include their service as a member of the General Assembly. Active members of the General Assembly shall be prohibited from receiving a service retirement allowance under this title based solely on their service as a member of the General Assembly. 3. (Expires July 1, 2015) Any person receiving a service retirement allowance under this chapter, who is hired as a local school board instructional or administrative employee required to be licensed by the Board of Education, may elect to continue to receive the retirement allowance during such employment, under the following conditions: (a) The person has been receiving such retirement allowance for a certain period of time preceding his employment as provided by law; (b) The person is not receiving a retirement benefit pursuant to an early retirement incentive program from any local school division within the Commonwealth; and (c) At the time the person is employed, the position to which he is assigned is among those identified by the Superintendent of Public Instruction pursuant to subdivision 4 of § 22.1-23, by the relevant division superintendent, pursuant to § 22.1-70.3, or by the relevant local school board, pursuant to subdivision 9 of § 22.1-79. If the person elects to continue to receive the retirement allowance during the period of such employment, then his service performed and compensation received during such period of time will not increase, decrease, or affect in any way his retirement benefits before, during, or after such employment. 4. Any person receiving a service retirement allowance pursuant to the benefits permitted under § 51.1-138, Chapter 2 (§ 51.1-200 et seq.), or Chapter 2.1 (§ 51.1-211 et seq.) who is hired by a town with a population of less than 10,000 as the full-time chief law-enforcement officer of the town may elect to continue to receive the retirement allowance during such employment, under the following conditions: a. The person has attained age 50 and the person's effective date of retirement is at least one full calendar year (or such longer period of time as adopted by the Board in its policies and procedures) prior person's commencing employment as the full-time chief law-enforcement officer of the town; b. The person is not receiving a retirement benefit pursuant to an early retirement incentive program from any employer as defined in § 51.1-124.3; c. The person did not participate in any incentive program established under the second or third enactment of Chapters 152 and 811 of the Acts of Assembly of 1995; and d. The hiring town agrees to and shall pay to the Virginia Retirement System, during such person's employment as described in subdivision a, the employer share of the retirement funding contribution that would otherwise be due if the person were a covered employee. If the person elects to continue to receive the retirement allowance during the period of such employment, then his service performed and compensation received during such period of time will not increase, decrease, or affect in any way his retirement benefits before, during, or after such employment. 2. That the Board of the Virginia Retirement System and the Joint Legislative Audit and Review Commission shall jointly determine the period of time preceding employment, required pursuant to subdivision B 4 a of § 51.1-155 of the Code of Virginia, that (i) will result in there being no negative fiscal impact to the Commonwealth pursuant to the provisions of this act and (ii) shall be consistent with the federal tax qualification of the relevant retirement plans administered by the Virginia Retirement System. Such determination shall be made in consultation with the actuary of the Virginia Retirement System, the actuary of the Joint Legislative Audit and Review Commission, and the Chairmen of the Senate Committee on Finance and the House Committee on Appropriations. The Board shall adopt such jointly determined period of time, and no other, for purposes of providing for the persons described in subdivision B 4 of § 51.1-155 of the Code of Virginia to continue to receive their retirement allowances while employed as provided in such subdivision. Only if such persons have been retired for such jointly determined period of time shall such persons be permitted to elect to continue to receive their retirement allowances while employed as provided in subdivision B 4 of § 51.1-155, unless the general appropriation act in effect at the relevant time provides a required period of retirement that is less than such jointly determined period of time. The Board of the Virginia Retirement System shall promulgate all reasonable and necessary policies and procedures to carry out the provisions of this act. |
