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2000 SESSION
Be it enacted by the General Assembly of Virginia:
1. That §§ 51.1-126, 51.1-126.3 and 51.1-502.2 of the Code of Virginia are amended and reenacted as follows:
§ 51.1-126. Employees of institutions of higher education.
A. Any institution of higher education which has established, or establishes, a
retirement plan covering in whole or in part its employees who are engaged in
the performance of teaching, administrative, or research duties is hereby
authorized to make contributions for the benefit of its employees who elect to
participate in such plan rather than in the retirement system established by
this chapter. Any present or future employee of such institution may elect to
participate in either the retirement system established by this chapter or the
plan provided by the institution employing him, in accordance with guidelines
established by the Virginia Retirement System. The election herein provided
shall, as to any future employee, be exercised not later than ninety days from
the time of entry upon the performance of his duties. The University of
Virginia is authorized on and after July 1, 1996, to transfer any University of
Virginia Medical Center employee who is a participant in a retirement plan
established pursuant to this section to any retirement plan established
pursuant to § 51.1-126.3 as an alternative to the retirement system established
by this chapter, provided that the employee has elected to transfer to the plan
established pursuant to § 51.1-126.3. All University of Virginia Medical Center
employees who are (i) first employed by the Medical Center on or after the
effective date of any retirement plan established pursuant to § 51.1-126.3 July
1, 2000, and (ii) engaged in the performance of teaching, administrative or
research duties, shall be afforded the retirement plan election options
coverage provided by § 51.1-126.3 rather than the election options
provided by this section.
B. No employee of an institution of higher education who is an active member in a plan established under this section shall also be an active member of the retirement system or beneficiary other than a contingent annuitant.
C. 1. The contribution by the Commonwealth to such employee's retirement plan
shall be 10.4 percent of creditable compensation. An institution of higher
education may adopt a supplementation program for participants who, before
January 1, 1991, exercise or have exercised the election to participate in the
plan provided by the institution employing him as referred to in subsection A.
Under such supplementation program, the institution may supplement such
contribution using funds other than general funds, tuition or fees, up to an
additional 2.17 percent of creditable compensation. Any employee of the
University of Virginia Medical Center who participated in a retirement plan
established pursuant to this section prior to the effective date of such employee's
transfer to a retirement plan established under § 51.1-126.3 shall continue to
receive the contribution by the Commonwealth, and any supplementation thereof by the
University, at the contribution and supplementation rates which were in effect on
the effective date of such transfer.
2. These contribution rates shall be examined by the Secretary of Administration prior to July 1, 1996, and at least once every six years thereafter. The Secretary shall consider the salary peer group mean contribution as determined by the State Council of Higher Education and the position of the Virginia Retirement System actuary, and, if necessary, recommend a revision to the rate of contribution by the Commonwealth.
D. The Virginia Retirement System shall develop policies and procedures, as approved by the Secretaries of Administration and Education, for the administration of all retirement plans established pursuant to this section. Such policies and procedures shall not, under any circumstances, result in the elimination of any benefit program at any institution as such benefit program existed on June 30, 1991.
§ 51.1-126.3. Employees of the University of Virginia Medical Center.
A. The University of Virginia Medical Center, hereafter referred to as the
Medical Center, may establish one or more retirement plans covering in whole or
in part its employees, including employees who, prior to the effective date of
any plan established pursuant to this section, had been participants in any
plan established pursuant to § 51.1-126 or § 51.1-126.1. The Medical Center is
authorized to make contributions for the benefit of its employees who elect to
participate in are covered by any plan established pursuant to this section
rather than in any other retirement plan established by this chapter. Any such
alternative retirement plans for Medical Center employees shall not become effective
until such time as the Board of Visitors of the University of Virginia may determine.
Any employee of the Medical Center may make an irrevocable election to
participate in the retirement system established by this chapter or any plan
provided by the Medical Center in accordance with guidelines established by the
University of Virginia Board of Visitors. The election herein provided shall,
as to any Medical Center employee commencing employment following the effective
date of any plan established pursuant to this section, be exercised not later
than ninety days following the date the employee commences performing his
duties. All employees of the Medical Center who are first employed by the
Medical Center on or after July 1, 2000, shall be participants in a Medical
Center retirement plan established pursuant to this section, with a
contribution by the Medical Center at a rate to be determined by the University
of Virginia Board of Visitors. However, new Medical Center employees who are
current members of the retirement system established by this chapter, including
any person covered under a retirement plan established pursuant to § 51.1-126,
may elect to either: (i) remain in the retirement system established by this chapter
or the retirement plan established pursuant to § 51.1-126, in accordance with
prior election or (ii) choose the plan provided by the Medical Center with a
contribution by the Medical Center at a rate to be determined by the University of
Virginia Board of Visitors. Such election shall be exercised not later than
one hundred and eighty days from the time of the employee’s entry into the
performance of his duties for the Medical Center, and the election shall be
irrevocable. Additionally, employees of the Medical Center who were employed by
the Medical Center prior to July 1, 2000, and who are current members of the
retirement system established by this chapter, including any person covered
under a retirement plan established pursuant to § 51.1-126, may elect to
either: (i) remain in the retirement system established by this chapter or the
retirement plan established pursuant to § 51.1-126, in accordance with prior
election or (ii) choose the plan established by the Medical Center pursuant to this
section to which the contribution by the Medical Center shall be eight percent
of creditable compensation. Such election shall be exercised not later than one
hundred and eighty days from the time of the establishment of a retirement plan
authorized by this section, and the election shall be irrevocable. During such
one hundred and eighty day periods up until the time of an election of a
retirement plan, all such employees of the Medical Center who have been
provided with an election under this section, shall remain, in the retirement
system established by this chapter or the retirement plan established pursuant
to § 51.1-126, in accordance with prior election. If an election is not made
within the time periods provided in this section by an employee entitled to make
such election, such employee shall be deemed to have elected to remain in his
current retirement system and such election shall be irrevocable.
With respect to any employee who elects to remain a member of the Virginia Retirement System or other such authorized retirement plan, the Medical Center shall collect and pay all employee and employer contributions to the Virginia Retirement System or other such authorized retirement plan for retirement and group life insurance in accordance with the provisions of Chapter 1 (§ 51.1-124.1 et seq.) of this title for such employees. For current and new Medical Center employees who are current members of the retirement system established by this chapter, including any persons covered under a retirement plan established pursuant to § 51.1-126, who elect to become members of the retirement program established by the Medical Center, the Virginia Retirement System or other such authorized plan shall transfer to the retirement plan established by the Medical Center assets equal to the actuarially determined present value of the accrued basic benefit as of the transfer date. For purposes hereof, the basic benefit shall be the benefit accrued under the Virginia Retirement System or other such authorized retirement plan, based on creditable service and average final compensation, as defined in § 51.1-124.3 and determined as of the transfer date. The actuarial present value shall be determined on the same basis, using the same actuarial factors and assumptions used in determining the funding needs of the Virginia Retirement System or other such authorized retirement plan, so that the transfer of assets to the retirement plan established by the Medical Center will have no effect on the funded status and financial stability of the Virginia Retirement System or other such authorized retirement plan.
B. No employee of the Medical Center who is an active member of any plan established under this section shall also be an active member of the retirement system established by this chapter or a beneficiary of such other plan other than as a contingent annuitant.
C. The contribution by the Medical Center to any retirement plan established on
behalf of employees of the Medical Center as provided in subsection A shall be eight
percent of creditable compensation.
D. C. The University of Virginia Board of Visitors shall adopt guidelines for
the implementation of the provisions of this section. The guidelines adopted by
the Board of Visitors under subsection A shall be filed with the Board of
Trustees of the Virginia Retirement System.
§ 51.1-502.2. Employees of the University of Virginia Medical Center.
The University of Virginia Medical Center, hereafter referred to as the Medical
Center, may purchase basic group life, accidental death and dismemberment, and
disability insurance policies covering in whole or in part any of its employees
who have elected to participate in any retirement plan established pursuant to
§ 51.1-126.3. In addition, the Medical Center may establish, administer
and make available to each active insured employee who has elected to
participate in any such retirement plan employees a program of optional
insurance, including life, accidental death and dismemberment, and disability
insurance. All Employees of the Medical Center who have elected to
participate in any Medical Center retirement plan established pursuant to §
51.1-126.3 shall be eligible to obtain coverage covered under the aforesaid
basic insurance policies purchased by the Medical Center and to obtain coverage
under the optional insurance program at the employee's expense as soon as such
policies become effective and may not thereafter shall not be covered by the
insurance program established pursuant to § 51.1-501 or be considered “eligible
employees” under § 51.1-1100, unless the University of Virginia Board of
Visitors, or a duly authorized agent or representative of the Board, purchases such
insurance policies from the Virginia Retirement System. Nor shall they be
required to present at their own expense evidence of insurability satisfactory
to an insurance company upon changing from one form of coverage to another form
of coverage provided pursuant to this section. No other section of this chapter
shall apply to any insurance coverage offered by the Medical Center except §§
51.1-510 and 51.1-511; provided that any administrative or ministerial functions
performed by or on behalf of the Board of the Virginia Retirement System under
§§ 51.1-510 and 51.1-511 shall be performed by the Medical Center.
Any Medical Center employee who elects to participate in the retirement system
established by Chapter 1 (§ 51.1-124.1 et seq.) of Title 51.1 may not be
covered by any basic group life, accidental death and dismemberment, and disability
insurance policies purchased by the Medical Center pursuant to this section,
but shall continue to be eligible to obtain coverage under the insurance
program established pursuant to § 51.1-501.
Notwithstanding the definition of "state employee" contained in § 51.1-124.3,
all employees of the Medical Center may be enrolled in a health care plan other than
that provided for in § 2.1-20.1 at the election of the Medical Center and
subject to the review and approval of the Board of Visitors of the University of
Virginia; provided, however, that any Medical Center employee who was first
employed by the Medical Center prior to July 1, 1996, and who had not been classified as a health
care provider under the provisions of § 51.1-502.1 prior to July 1, 1996, shall
be provided the option of enrolling in a health care plan elected by the Medical
Center or enrolling in the health care plan established pursuant to § 2.1-20.1
until such time as the University of Virginia Board of Visitors may determine that
it is not in the best interest of the University to continue to provide that
option to any employees of the Medical Center. If the Board of Visitors
determines that such health plan option will not continue to be provided, any
Medical Center employees who must reenroll in a different health plan shall be
allowed to do so with a waiver of preexisting medical conditions for the
employees and, if applicable, their spouses and dependents.
Subject to such eligibility criteria as it may establish, the Medical Center
may make available to any of its employees the insurance programs established
pursuant to this section, including health plan coverage, notwithstanding the
fact that such employees may not be eligible for participation in any
retirement plan established pursuant to § 51.1-126.3 or the retirement system
established pursuant to Chapter 1 of Title 51.1 of the Code of Virginia (§
51.1-124.1 et seq.) of this title.
The eligibility of any employee of the Medical Center for participation in any insurance program established pursuant to this section shall not of itself render such employees eligible for participation in the Virginia Retirement System or any optional retirement program.