SEARCH SITE
VIRGINIA LAW PORTAL
- Code of Virginia
- Virginia Administrative Code
- Constitution of Virginia
- Charters
- Authorities
- Compacts
- Uncodified Acts
- RIS Users (account required)
SEARCHABLE DATABASES
- Bills & Resolutions
session legislation - Bill Summaries
session summaries - Reports to the General Assembly
House and Senate documents - Legislative Liaisons
State agency contacts
ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
2004 SESSION
Be it enacted by the General Assembly of Virginia:
1. That §§ 51.1-1000 through 51.1-1003 of the Code of Virginia are amended and reenacted, and that the Code of Virginia is amended by adding in Chapter 10 of Title 51.1 a section numbered 51.1-1004 as follows:
§ 51.1-1000. All state and local plans included.
All automated retirement systems administered by the Board of Trustees of the
Virginia Retirement System and all automated retirement systems administered by
the localities (hereinafter referred to as retirement systems) have a duty to
report and disclose certain material information and data to the retirement
systems' participants members and beneficiaries. Such retirement systems shall
cause to be furnished to each participant member covered under the retirement
systems' plans and to each beneficiary who is receiving benefits under the retirement systems' plans
the following:
1. A summary plan description (SPD) that contains all or substantially all the
information an average participant member would deem crucial to possess a
knowledgeable understanding of his benefits under the plan;
2. A statement of benefits that indicates, on the basis of the latest available information: (i) his total accrued benefits and (ii) his nonforfeitable accrued retirement benefits, if any, or the earliest date on which benefits will become nonforfeitable; and
3. A document disclosing material soft dollar transactions (arrangements not negotiated at arm's length or dealings between the retirement systems' fund managers and persons providing services to the systems for noncash considerations) in which the fund managers have engaged. "Material" means transactions wherein it could be asserted that a conflict of interests or an appearance of impropriety was a factor in making the determination of which outside provider of services would be contracted and which involved a transaction or course of dealings involving $10,000 or more. This disclosure document shall not be a part of the retirement system's annual report, but shall be prepared as an annual supplement and made available to the public upon request. Local retirement systems may publish such disclosure document with their annual reports.
§ 51.1-1001. Summary plan description.
A. A summary plan description shall contain the following information: the name
and type of administration of the retirement system; the name and address of
the person designated as agent for the service of legal process, if such person
is not the administrator; the name and address of the administrator; names,
titles and addresses of any trustee or trustees (if they are persons different
from the administrator); the retirement system's requirements respecting
eligibility for participation membership and benefits; and description of the
provisions providing for nonforfeitable pension benefits; circumstances which
may result in disqualification, ineligibility, or denial or loss of benefits;
the source of financing of the retirement system and the identity of any
organization through which benefits are provided; the date of the end of the
retirement system plan year and whether the records of the retirement system
are kept on a calendar, policy, or fiscal year basis; the procedures to be
followed in presenting claims for benefits and the remedies available for the
redress of claims which are denied in whole or in part.
B. The summary plan description shall be written in a manner calculated to be
understood by the average retirement system participant member and beneficiary
and shall be sufficiently comprehensive to apprise the participants members and
beneficiaries of their rights and obligations under the retirement system plan.
C. Every participant member and beneficiary shall be furnished a summary plan
description within ninety 90 days of becoming a participant member or
beneficiary, and every participant member and beneficiary shall be furnished an
updated summary plan description within 210 days after the end of the retirement system plan year in
which a material modification or change in the retirement system or its plan
occurs. No charge shall be made for furnishing a copy of the SPD under this
subsection.
D. Upon written request, the latest updated summary plan description shall be
furnished to any participant member or beneficiary. A reasonable charge may be
made to cover the cost of furnishing an SPD under this subsection.
§ 51.1-1002. Annual statement of benefits.
Every participant member or beneficiary shall be furnished with an annual
statement of benefits as provided in § 51.1-1000 after the end of the
retirement system's plan year.
§ 51.1-1003. Financial reports by retirement systems; auditor to promulgate standards.
A. Every retirement system shall publish an annual report, which shall contain
statements prepared in conformance with the standards for public employee
retirement systems issued by the Governmental Accounting Standards Board. Such
annual report need not contain the disclosure document reporting soft dollar
transactions as provided in subdivision 3 of § 51.1-1000, which may be provided
as a separate annual supplemental document, but the annual report shall include a
certification that such system is in compliance with criterion (i) of subsection A
of § 51.1-800. Every retirement system shall transmit its annual report to the
Virginia Retirement System at the same time such report is made available to
participants members and beneficiaries.
B. The Auditor of Public Accounts shall incorporate GASB standards for
financial reporting by public employee retirement systems into the Uniform
Financial Reporting Manual and such incorporation of standards shall be
implemented on or before July 1, 1991. All retirement systems' annual reports
for retirement system plan years beginning on and after January 1, 1992, shall
comply with the Auditor's Uniform Financial Reporting Manual. As GASB
standards are modified or changed, the Auditor and the retirement systems shall
update their standards and reports as may be necessary to ensure accurate and
complete disclosure to participants members and beneficiaries.
§ 51.1-1004. Use of electronic media.
A. The duty to report and disclose material information and data to members and beneficiaries imposed by this chapter on the Virginia Retirement System and other notice requirements imposed by this title on the Virginia Retirement System may be satisfied by use of electronic media if the conditions established by the Board of Trustees of the Virginia Retirement System for this purpose are met.
B. The duty to report and disclose material information and data to members and beneficiaries imposed by this chapter on any "retirement system" other than the Virginia Retirement System may be satisfied by use of electronic media if the conditions established by the board of such retirement system for this purpose are met.
C. The conditions established by any retirement system board shall require that the retirement system take appropriate and necessary measures reasonably calculated to ensure that the electronic media used results in the actual receipt of the transmitted information and protects the confidentiality of personal information relating to the individual's accounts and benefits.