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2003 SESSION
039039260Be it enacted by the General Assembly of Virginia:
1. That §§ 51.1-126 and 51.1-126.3 of the Code of Virginia are amended and reenacted as follows:
§ 51.1-126. Employees of institutions of higher education.
For purposes of this section, "optional retirement plan" means a retirement plan covering the employee for retirement purposes other than the Virginia Retirement System defined benefit retirement plan established under this chapter.
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 sixty 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 July 1, 2000, and (ii) engaged in the performance of
teaching, administrative or research duties, shall be afforded the retirement plan
coverage provided by § 51.1-126.3 rather than the election options provided by
this section. 1. The Board shall maintain an optional retirement plan covering
employees engaged in the performance of teaching, administrative, or research
duties with an institution of higher education and any institution of higher
education is authorized to make contributions to such plan for the benefit of
its employees participating in such plan. Except (i) as provided in subsection
B for institutions of higher education that have established their own optional
retirement plan and (ii) for employees described in subdivision A 2,
every employee hired by an institution of higher education on or
after July 1, 2003, engaged in the performance of teaching, administrative, or research
duties shall make an irrevocable election to participate in either (i) the
Virginia Retirement System defined benefit retirement plan established by this
chapter or (ii) an optional retirement plan maintained by the Board.
Such election shall be exercised no later than 60 days from the time
of the employee's entry upon the performance of his duties. If an election is
not made within such 60 days, such employee shall be deemed to have elected to participate in the
Virginia Retirement System defined benefit retirement plan.
2. Any employee (i) hired on or after July 1, 2003, by an institution of higher education engaged in the performance of teaching, administrative, or research duties and (ii) who at the time of hiring is in continuous service in the performance of such teaching, administrative, or research duties, shall participate in the optional retirement plan maintained by the Board if the most recent retirement plan covering the employee prior to such hiring was an optional retirement plan. If the most recent retirement plan covering the employee prior to such hiring was the Virginia Retirement System defined benefit retirement plan, such person shall participate in such defined benefit retirement plan from the time of his entry upon the performance of his duties.
B. 1. Any institution of higher education, upon receipt of approval by the Board, may establish and maintain its own optional retirement plan covering its employees who are engaged in the performance of teaching, administrative, or research duties. Upon such approval, such institution is authorized to make contributions to its own optional retirement plan for the benefit of its employees who elect to participate or who are required to participate in such plan as provided in this subsection.
2. Every employee, with the exception of employees described in subdivision B 3, (i) hired on or after July 1, 2003, by an institution of higher education that has established and is maintaining its own optional retirement plan pursuant to this subsection and (ii) engaged in the performance of teaching, administrative, or research duties, shall make an irrevocable election to participate in either: (a) the Virginia Retirement System defined benefit retirement plan established by this chapter or (b) such optional retirement plan of the institution of higher education. Such employee shall not be provided any election to participate in an optional retirement plan maintained by the Board.
The election shall be exercised no later than 60 days from the time of the employee's entry upon the performance of his duties. If an election is not made within such 60 days, such employee shall be deemed to have elected to participate in the Virginia Retirement System defined benefit retirement plan established by this chapter.
3. Any employee (i) hired on or after July 1, 2003, by an institution of higher education engaged in the performance of teaching, administrative, or research duties and (ii) who at the time of hiring is in continuous service in the performance of such teaching, administrative, or research duties, shall participate in the optional retirement plan established by the institution of higher education pursuant to this subsection if the most recent retirement plan covering the employee prior to such hiring was an optional retirement plan. If the most recent retirement plan covering the employee prior to such hiring was the Virginia Retirement System defined benefit retirement plan, such person shall participate in such defined benefit retirement plan from the time of his entry upon the performance of his duties.
C. Any employee engaged in the performance of teaching, administrative, or research duties at an institution of higher education who was covered under an optional retirement plan for retirement purposes, other than the optional retirement plan established by such institution pursuant to subdivision B 1, shall, at the time such institution establishes its own optional retirement plan pursuant to subdivision B 1, automatically and immediately begin to participate in the optional retirement plan established pursuant to subdivision B 1, notwithstanding such employee's prior election to participate in a different optional retirement plan.
BD. No employee of an institution of higher education who is an active member
in a any plan maintained by the Board or established by an institution of
higher education, pursuant to under this section, shall also be an active
member of the retirement system or beneficiary other than a contingent annuitant.
CE. 1. The contribution by the Commonwealth on behalf of an employee
participating in an optional retirement plan maintained
by the Board or on behalf of an employee participating in an optional
retirement plan established by his institution of higher education under this
section to such employee's retirement plan shall be 10.4 percent of creditable
compensation. An institution of higher education may adopt a supplementation
program make an additional contribution 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
Such additional contributions shall be made using funds other than
general funds, tuition or fees, up to an additional 2.17 percent of creditable compensation.
2. These contribution rates shall be examined by the Secretary of
Administration prior to July 1, 1996, and Board at least once every six 6 years
thereafter. The Secretary examination shall consider the salary peer group mean
contribution as determined by the State Council of Higher Education and the Virginia Retirement System
actuary, and, if necessary deemed advisable, recommend a revision to the rate
of contribution by the Commonwealth.
DF. With respect to any employee who elects pursuant to subsection A or B to
participate in the Virginia Retirement System defined benefit
retirement plan established by this chapter, the institution of higher education
shall collect and pay all employee and employer contributions to the
Virginia Retirement System 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.
G. The Virginia Retirement System shall develop policies and procedures for the
administration of all retirement plans established pursuant to this section the
optional retirement plan it maintains. To assist the Virginia Retirement System
in developing such policies and procedures, the Board may appoint an advisory
committee of higher education employees to supply guidance in the process. 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.
H. Any institution of higher education that establishes and maintains its own optional retirement plan for its employees pursuant to this section shall develop policies and procedures for the administration of such plan. Once the optional retirement plan of the institution is approved by the Board, the Board shall have no duties and responsibilities with respect to such plan except to establish guidelines for the employee elections referred to in subdivision B 2 and to review and, if deemed advisable, recommend revisions to the contribution rates as described in subsection E.
§ 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 are covered by any plan established pursuant to
this section. 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. All Except as provided herein, 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 an employee hired by the
Medical Center on or after July 1, 2003, who are current members , as of the
first day of such employment, is a current member of the Virginia Retirement
System defined benefit retirement system plan established by this chapter,
including any person covered under a retirement plan established pursuant to §
51.1-126, may shall 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 continue to participate in such
defined benefit retirement plan 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 60 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. During such 60-day period, up
until the time of such election, such employee shall participate in the
Virginia Retirement System defined benefit retirement plan established by this chapter. If
such election is not made within the time period provided in this subsection, such
employee shall be deemed to have elected to participate in the retirement plan
established by the Medical Center.
B. With respect to any employee of the Medical Center who elects to remain a
member of continue to participate in the Virginia Retirement System or other
such authorized retirement plan defined benefit retirement plan, the Medical
Center shall collect and pay all employee and employer contributions due 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 or who are required pursuant to
subsection A 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.
BC. 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.
CD. The University of Virginia Board of Visitors shall adopt guidelines for the
implementation of the provisions of this section, including guidelines for the
administration of any retirement plan established pursuant to this section. The
Board shall have no duties and responsibilities with respect to such plan. The
guidelines adopted by the Board of Visitors shall be filed with the Board of Trustees of the Virginia
Retirement System.
2. That the provisions of this act in subsection C of § 51.1-126 requiring certain employees engaged in the performance of teaching, administrative, or research duties at an institution of higher education to participate in an optional retirement plan established by such institution shall apply to both (i) any such employee who elected prior to July 1, 2003, to participate in an optional retirement plan pursuant to § 51.1-126 and who is covered by an optional retirement plan at the time such institution establishes its own optional retirement plan and (ii) any such employee who on or after July 1, 2003, elected to participate in an optional retirement plan maintained by the Board.
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