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2002 SESSION

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SB 351 Creditable service; purchase by localities terminating emp. positions.

Introduced by: W. Roscoe Reynolds | all patrons    ...    notes | add to my profiles

SUMMARY AS PASSED SENATE: (all summaries)

Creditable service; purchased by local governments terminating employment positions. Authorizes any locality (i) in which the civilian labor force equals less than 90 percent of the civilian labor force in the locality in 1993, as determined by the Virginia Employment Commission, and (ii) that is participating directly in the Virginia Retirement System ("VRS"), to purchase up to five years of creditable service for any of its employees, concurrently with the termination of the employee's employment by the locality. The bill only applies to employees whose employment position is terminated on or before July 1, 2004. Creditable service may be purchased only for employees whose position is terminated in the implementation of a plan to reduce the locality's workforce. The plan must be filed with the Virginia Employment Commission. For each year of service purchased, the locality shall pay the sum of the member contribution charged pursuant to § 51.1-144 plus the employer contribution charged pursuant to § 51.1-145, both as in effect at the time of purchase. The locality may not rehire the employee until a period of at least two years has expired subsequent to the employee's termination. The provisions of the bill will become effective only if an Internal Revenue Service ruling determines that the qualified plan status of VRS is not adversely affected by the provisions of the bill.


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