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2003 SESSION
031962660Be it enacted by the General Assembly of Virginia:
1. That §§ 51.1-155, 51.1-157, 51.1-206, 51.1-217, 51.1-306, and 51.1-308 of the Code of Virginia are 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 (i) 1.70 percent of his the
average final compensation multiplied by the amount of his creditable service
for a member with less than 25 years of creditable service at the time of his
retirement and (ii) 2 percent of the average final compensation
multiplied by the amount of his creditable service for a member with 25 or more years of creditable
service at the time of his retirement.
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 thirty 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 thirty 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 of this subsection.
3. Early retirement; applicable to employees of certain political subdivisions.
- 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
thirty or more years but the sum of his age at retirement plus his creditable
service at retirement is less than ninety, 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 ninety 90 or more
had he remained in service until such date. If the member has less than thirty
30 years of creditable service, the retirement allowance shall be
reduced for the period by which the actual retirement date precedes the earlier of
(ia) his normal retirement date or (iib) the first date on which he would
have completed a total of at least thirty 30 years of creditable service and
his then creditable service plus his then attained age would have been equal to
ninety 90 or more.
The provisions of this subdivision shall apply to the employees of any political subdivision that participates in the retirement system. The participating political subdivision may, however, elect to provide its employees with the early retirement allowance set forth in subdivision 2 of this subsection. 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 of this subsection, 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 4
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 fifty-five55 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 and 3, if a beneficiary of a service retirement allowance under this chapter is at any time in service as an employee in a position covered for retirement purposes under the provisions of this or any chapter other than Chapter 7 (§ 51.1-700 et seq.) of this title, his retirement allowance shall cease while so employed. Any member who retires and later returns to covered employment shall not be entitled to select a different retirement option for a subsequent retirement.
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. (Effective if contingency is met and expires July 1, 2006 - See note) 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's retirement allowance is based in whole or in part on service as a local school board instructional or administrative employee required to be licensed by the Board of Education; and
b. The person has been receiving such retirement allowance for a period of at least thirty days preceding his employment; 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; and
d. The person is hired pursuant to a contract that does not exceed one year in duration; and
e. The person hired may only be employed for a single year period.
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.
3. (Effective if contingency is not met and expires July 1, 2006 - See note) 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's retirement allowance is based in whole or in part on service as a local school board instructional or administrative employee required to be licensed by the Board of Education;
(b) The person has been receiving such retirement allowance for a certain period of time preceding his employment as provided by law;
(c) The person is not receiving a retirement benefit pursuant to an early retirement incentive program from any local school division within the Commonwealth; and
(d) 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.
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.
§ 51.1-157. Disability retirement allowance.
A. Allowance payable on retirement.
1. Upon retirement for disability, a member who has five or more at least 5
years but less than 25 years of creditable service shall receive an
annual retirement allowance during his lifetime and continued disability equal to 1.70
percent of his average final compensation multiplied by the smaller of (i)
twice the amount of his creditable service or (ii) the amount of creditable
service he would have completed at age sixty 60 if he had remained in service
to that age. If a member has already attained age sixty60, the amount of
creditable service at his date of retirement shall be used.
2. Upon retirement for disability, a member who has 25 or more years of creditable service shall receive an annual retirement allowance during his lifetime and continued disability equal to 2 percent of his average final compensation multiplied by the lesser of (i) twice the amount of his creditable service or (ii) the amount of creditable service he would have completed at age 60 if he had remained in service to that age. If a member has already attained age 60, the amount of creditable service at his date of retirement shall be used.
3. For retirements between October 1, 1994, and December 31, 1998, any employee
or local officer who is a member or beneficiary of a retirement system administered by the
Board shall receive an additional retirement allowance equal to three 3 percent
of the disability retirement allowance payable under this section; provided that, for purposes of
this additional retirement allowance, the term employee shall include only
those employees of political subdivisions that have adopted a resolution
providing for such an allowance under subsection B of § 51.1-130. Average final
compensation attributable to service as Governor, Lieutenant Governor, Attorney
General, or member of the General Assembly shall not be included in computing this
additional retirement allowance.
B. Workers' compensation guarantee. - If a member retires for disability from a
cause which is compensable under the Virginia Workers' Compensation Act (§
65.2-100 et seq.), the amount of the annual retirement allowance shall equal
sixty-six and two-thirds percent of the member's average final compensation if the
member does not qualify for primary social security benefits under the provisions of
the Social Security Act in effect on the date of his retirement. If the member
qualifies for primary social security benefits under the provisions of the
Social Security Act in effect on the date of his retirement, the allowance
payable from the retirement system shall equal fifty 50 percent of his average
final compensation. A member shall be entitled to the larger of the retirement allowance as
determined under the provisions of subsection A or under the provisions of this subsection.
C. Reduction of allowance. - Any allowance payable to a member who retires for disability from a cause compensable under the Virginia Workers' Compensation Act shall be reduced by the amount of any payments under the provisions of the Act in effect on the date of retirement of the member and the excess of the allowance shall be paid to the member. When the time for compensation payments under the Act has elapsed, the member shall receive the full amount of the allowance payable during his lifetime and continued disability. If the member's payments under the Virginia Workers' Compensation Act are adjusted or terminated for refusal to work or to comply with the requirements of § 65.2-603, his allowance shall be computed as if he were receiving the compensation to which he would otherwise be entitled.
D. Special retirement allowance guarantee. - Any member retired from a cause
which is not compensable under the Virginia Workers' Compensation Act shall be
guaranteed an annual retirement allowance during his lifetime and continued
disability which equals fifty 50 percent of the member's average final
compensation if the member does not qualify for primary social security benefits under the provisions
of the Social Security Act in effect on the date of his retirement. If the
member qualifies for primary social security benefits under the provisions of
the Social Security Act in effect on the date of retirement, the allowance
payable from the retirement system shall equal thirty-three and one-third
percent of his average final compensation.
E. Determination of retirement allowance. - For the purposes of this section, the retirement allowance shall be determined on the assumption that the retirement allowance is payable to the member alone and that no optional retirement allowance is elected.
§ 51.1-206. Service retirement allowance.
A. A member shall receive an annual retirement allowance, payable for life, as follows:
1. Normal retirement. - The allowance shall equal (i) 1.70 percent of his the
average final compensation multiplied by the amount of creditable service for a
member with less than 25 years of creditable service at the time of his
retirement and (ii) 2 percent of the average final compensation multiplied by
the amount of his creditable service for a member with 25 or more years of
creditable service at the time of his retirement.
For retirements between October 1, 1994, and December 31, 1998, any state
police officer who is a member or beneficiary of a retirement system
administered by the Board shall receive an additional retirement allowance
equal to three 3 percent of the service or disability retirement allowance
payable under this section. Average final compensation attributable to service as Governor,
Lieutenant Governor, Attorney General, or member of the General Assembly shall
not be included in computing this additional retirement allowance.
2. Early retirement. - 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 twenty-five25 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 or after his fiftieth birthday on which he would have
completed a total of twenty-five25 years of creditable service.
3. 50/10 retirement. - The allowance shall be payable in a monthly stream of payments equal to the greater of (i) the amount the member would receive if he had taken early retirement or (ii) the actuarially calculated present value of the member's accumulated contributions, including accrued interest.
B. In addition to the allowance payable under subsection A, a member shall receive annually from the date of his retirement until his retirement age, as such term is defined under the Social Security Act (42 U.S.C. § 416 et seq., as now or hereafter amended), an allowance equal to $9,264. Beginning July 1, 2001, and biennially thereafter, such allowance shall be reviewed and adjusted by the Board to an amount recommended by the actuary of the Virginia Retirement System based upon increases in social security benefits in the interim.
This subsection shall not apply to the following: (i) any member who qualifies for retirement under subsection C of § 51.1-205 and is credited with less than twenty years' service rendered in a hazardous position or (ii) any member employed initially on or after July 1, 1974, who is credited with less than twenty years' service rendered in a hazardous position.
C. If a beneficiary of a service retirement allowance under this chapter is at any time in service as an employee in a position covered for retirement purposes under the provisions of this or any chapter other than Chapter 7 (§ 51.1-700 et seq.) of this title, his retirement allowance shall cease while so employed.
§ 51.1-217. Service retirement allowance.
A. A member shall receive an annual retirement allowance, payable for life, as follows:
1. Normal retirement
a. Notwithstanding the provisions of §§ 51.1-155, 51.1-155.1 and 51.1-155.2,
for any employee commencing employment or reemployment on or after July 1, 2001, and for
any employee who makes the election provided in § 51.1-221, the allowance shall
equal (i) two percent of his average final compensation multiplied by the
amount of creditable service earned pursuant to subdivisions (a), (b), and (c),
multiplied by 2.75 percent of the average final compensation for an employee
retiring with 25 or more years of creditable service, and multiplied by 2.5 percent for
any employee retiring with less than 25 years of creditable service. The
foregoing percentages of average final compensation shall be multiplied by
creditable service earned: (a) as a member in the retirement system established
by this chapter, (b) as a member in the retirement system established by
Chapter 2 (§ 51.1-200 et seq.) of Title 51.1, or (c) while earning the benefits
permitted by § 51.1-138; and (ii) 1.70. All other creditable service, if any,
shall be multiplied by 2 percent of his average final compensation multiplied
by all other creditable service, if any; and.
b. For any other employee, the allowance shall equal (i) 1.70 percent of his
the average final compensation multiplied by the amount of creditable service
for a member with less than 25 years of creditable service at the time of his retirement
and (ii) 2 percent of the average final compensation multiplied by the amount
of his creditable service for a member with 25 or more years of creditable service at the time of his
retirement.
2. Early retirement. - 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.
a. For an individual retiring pursuant to subdivision B 1 of § 51.1-216, who is not retiring directly from service as an employee as defined in § 51.1-212, and who has less than thirty years of service shall retire under the provisions of the retirement system for which he is a member as of his retirement date; and
b. For all other individuals retiring pursuant to subdivision B 1 of §
51.1-216, and for an individual retiring pursuant to subdivision B 2 of §
51.1-216 who has less than twenty-five25 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 or after his fiftieth birthday on
which he would have completed a total of twenty-five25 years of creditable
service.
B. Any person who is an employee on June 30, 2001, and on July 1, 2001, who does not make the election provided in § 51.1-221, shall receive, in addition to the allowance payable under subsection A, from the date of his retirement until his sixty-fifth birthday, an annual allowance equal to $9,264. Beginning July 1, 2001, and biennially thereafter, such allowance shall be reviewed and adjusted by the Board to an amount recommended by the actuary of the Virginia Retirement System based upon increases in Social Security benefits in the interim. This subsection shall not apply to the following: (i) any member who qualifies for retirement under subsection C of § 51.1-216 and is credited with less than twenty years' service rendered in a hazardous position or (ii) any member employed initially on or after July 1, 1974, who is credited with less than twenty years' service rendered in a hazardous position.
C. If a beneficiary of a service retirement allowance under this chapter is at any time in service as an employee in a position covered for retirement purposes under the provisions of this or any chapter other than Chapter 7 (§ 51.1-700 et seq.) of this title, his retirement allowance shall cease while so employed.
D. No person shall be eligible to receive any of the allowances provided in
this section if he receives retirement benefits under Chapter 2 (§ 51.1-200 et
seq.) of Title 51.1 or under § 51.1-138. No person shall receive any allowance
pursuant to subdivision A 1 (i) if he has received an allowance pursuant to
subsection B of § 51.1-206 or subsection B of § 51.1-217, unless, after
receiving the allowance pursuant to subsection B of § 51.1-206 or subsection B
of § 51.1-217, he becomes employed or reemployed as an employee defined in §
51.1-212, and thereafter earns five 5 or more years of creditable service (a)
as a member in the retirement system established by this chapter, (b) as a member in the retirement
system established by Chapter 2 (§ 51.1-200 et seq.) of Title 51.1, or (c)
while earning the benefits permitted by § 51.1-138.
§ 51.1-306. 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 (i) 1.70 percent of his the
average final compensation multiplied by the amount of creditable service for a
member with less than 25 years of creditable service at the time of his
retirement and (ii) 2 percent of the average final compensation multiplied by
the amount of his creditable service for a member with 25 or more years of
creditable service at the time of his retirement. The allowance shall not
exceed seventy-eight 78 percent of the average final compensation of the
member.
For retirements between October 1, 1994, and December 31, 1998, any judge who
is a member or beneficiary of a retirement system administered by the Board
shall receive an additional retirement allowance equal to three 3 percent of
the service retirement allowance payable under this section. Average final compensation attributable
to service as Governor, Lieutenant Governor, Attorney General, or member of the
General Assembly shall not be included in computing this additional retirement
allowance.
2. Early retirement. - 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 not
attained his sixtieth birthday or has less than thirty years of service, 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 or after his
sixtieth birthday on which he would have completed a total of thirty 30 years
of creditable service.
B. Normal and early retirement guarantees. - Any member who was a member of one of the previous systems immediately prior to July 1, 1970, and who would have been eligible for retirement benefits thereunder shall be guaranteed a minimum retirement allowance no less than that for which he would have qualified had he continued to participate therein.
C. Determination of retirement allowance. - For the purposes of subsection B of this section, the retirement allowance shall be determined on the assumption that the retirement allowance is payable to the member alone and that no optional retirement allowance is elected.
D. Beneficiary serving in position covered by this title. - If a beneficiary of a service retirement allowance under this chapter or under any of the previous systems is at any time in service as an employee in a position covered for retirement purposes under the provisions of this or any chapter other than Chapter 7 (§ 51.1-700 et seq.) of this title, his retirement allowance shall cease while so employed.
§ 51.1-308. Disability retirement allowance.
A. Allowance payable on retirement.
1. Upon retirement for disability, a member who has five or more at least 5 but
less than 25 years of creditable service shall receive an annual retirement
allowance, not to exceed seventy-eight78 percent of his average final
compensation, payable during his lifetime and continued disability equal to 1.70 percent of average
final compensation when multiplied by the smaller of (i) twice the amount of creditable service or
(ii) the amount of creditable service he would have completed at age sixty 60
if he had remained in service to that age. If a member has already attained
age sixty60, the amount of creditable service at his date of retirement
shall be used.
2. Upon retirement for disability, a member who has 25 or more years of creditable service shall receive an annual retirement allowance, not to exceed 78 percent of his average final compensation, payable during his lifetime and continued disability equal to 2 percent of average final compensation when multiplied by the smaller of (i) twice the amount of creditable service or (ii) the amount of creditable service he would have completed at age 60 if he had remained in service to that age. If a member has already attained age 60, the amount of creditable service at his date of retirement shall be used.
B. Workers' compensation guarantee. - If a member retires for disability from a cause which is compensable under the Virginia Workers' Compensation Act (§ 65.2-100 et seq.), the amount of the annual retirement allowance shall, subject to the provisions of subsection D, equal sixty-six and two-thirds percent of the member's average final compensation if the member does not qualify for primary social security benefits under the provisions of the Social Security Act in effect on the date of his retirement. If the member qualifies for primary social security benefits under the provisions of the Social Security Act in effect on the date of his retirement, the allowance payable from the retirement system shall equal fifty percent of his average final compensation. A member shall be entitled to the larger of the retirement allowance as determined under the provisions of subsection A of this section or under the provisions of this subsection.
C. General disability retirement guarantee. - The disability retirement allowance payable to a member who immediately prior to July 1, 1970, was a member of one of the previous systems shall be at least an amount equal to the disability retirement allowance to which he would have been entitled under the provisions of the previous system.
D. Determination of retirement allowance. - For the purposes of this section, the retirement allowance shall be determined on the assumption that the retirement allowance is payable to the member alone and that no optional retirement allowance is elected.
E. Reduction of allowance. - Any allowance payable to a member who retires for disability from a cause compensable under the Virginia Workers' Compensation Act shall be reduced by the amount of any payments under the provisions of the Act in effect on the date of retirement of the member and the excess of the allowance shall be paid to such member. When the time for compensation payments under the Act has elapsed, the member shall receive the full amount of the allowance payable during his lifetime and continued disability. If the member's payments under the Virginia Workers' Compensation Act are adjusted or terminated for refusal to work or to comply with the requirements of § 65.2-603, his allowance shall be computed as if he were receiving the compensation to which he would otherwise be entitled.
F. Special retirement allowance guarantee. - Any member retired from a cause which is not compensable under the Virginia Workers' Compensation Act shall be guaranteed an annual retirement allowance during his lifetime and continued disability which equals fifty percent of the member's average final compensation if the member does not qualify for primary social security benefits under the provisions of the Social Security Act in effect on the date of his retirement. If the member qualifies for primary social security benefits under the provisions of the Social Security Act in effect on the date of retirement, the allowance payable from the retirement system shall equal thirty-three and one-third percent of his average final compensation.
2. That the provisions of this act shall apply to retirement benefits payable to applicable employees who retire on or after July 1, 2003.