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1995 SESSION

LD3229681
SENATE BILL NO. 959
AMENDMENT IN THE NATURE OF A SUBSTITUTE
(Proposed by the Senate Committee on Finance
on January 31, 1995)
(Patron Prior to Substitute--Senator Holland, R.J.)
A BILL to amend and reenact § 2.1-391 of the Code of Virginia and to amend the Code of Virginia by adding in Title 2.1 a chapter numbered 10.5, consisting of sections numbered § 2.1-116.20 through § 2.1-116.25, relating to the Workforce Transition Act of 1995.

Be it enacted by the General Assembly of Virginia:

1. That § 2.1-391 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding in Title 2.1 a Chapter numbered 10.5, consisting of sections numbered § 2.1-116.20 through § 2.1-116.25 as follows:

§ 2.1-391. Duties of Department.

The Department shall have the following duties:

1. Development and direction of an integrated policy analysis, planning, and budgeting process within state government.

2. Review and approval of all sub-state district systems boundaries established or proposed for establishment by state agencies.

3. Formulation of an executive budget as required in this chapter. In implementing this provision, the Department of Planning and Budget shall (i) utilize the resources and determine the manner of participation of any executive agency as the Governor may determine necessary to support an efficient and effective budget process notwithstanding any contrary provision of law and (ii) make an appropriate reduction in the maximum employment level of any state agency or institution in the executive branch of government which reports involuntary separations from employment with the Commonwealth due to budget reductions, agency reorganizations, or workforce down-sizings.

4. Conduct of policy analysis and program evaluation for the Governor.

5. Continuous review of the activities of state government focusing on budget requirements in the context of the goals and objectives determined by the Governor and the General Assembly and monitoring the progress of agencies in achieving goals and objectives.

6. Operation of a system of budgetary execution to assure that agency activities are conducted within fund limitations provided in the appropriations act and in accordance with gubernatorial and legislative intent.

7. Development and operation of a system of standardized reports of program and financial performance for management.

8. Coordination of statistical data by reviewing, analyzing, monitoring, and evaluating statistical data developed and used by state agencies and by receiving statistical data from outside sources, such as research institutes and the federal government.

9. Assessment of the impact of federal funds on state government by reviewing, analyzing, monitoring, and evaluating the federal budget, as well as solicitations, applications, and awards for federal financial aid programs on behalf of state agencies.

10. Review and verification of the accuracy of agency estimates of receipts from donations, gifts or other nongeneral fund revenue.

CHAPTER 10.5.
WORKFORCE TRANSITION ACT OF 1995.

§ 2.1-116.20. Short title; purpose.

This chapter shall be known as the Workforce Transition Act of 1995.

The purpose of this chapter is to provide a transitional severance benefit, under the conditions specified, to eligible state employees who are involuntarily separated from their employment with the Commonwealth. “Involuntary separation” includes, but is not limited to, terminations and layoffs from employment with the Commonwealth due to budget reductions, agency reorganizations, workforce down-sizings, or other causes not related to the job performance of the employee, but shall not include voluntary resignations.

§ 2.1-116.21. Management responsibility to employees of the executive branch of government who are terminated from their employment with the Commonwealth.

A. Prior to terminating any employee in the executive branch of government, the management of the terminating agency shall make every effort to place such employee in any vacant position within the terminating agency for which the employee is qualified. If reemployment within his agency is not possible because there is no available position for which the employee is qualified or the position offered to the employee requires relocation or a reduction in salary, the name of the employee shall be forwarded to the Department of Personnel and Training.

B. Any preferential employment rights vested in the employee under the Commonwealth's layoff policy shall not be denied, abridged, or modified in any way by the Department of Personnel and Training. The Department shall coordinate the preferential hiring of the employee, at the same salary classification, in any agency or institution of the executive branch of government. The Department shall also establish a program to assist employees in finding employment outside of state government.

C. If, as of the employee's termination date, reemployment within his agency or any agency or institution of the executive branch of government is not possible because there is no available position for which the employee is qualified or the position offered to the employee requires relocation or a reduction in salary, then the employee shall be deemed to be involuntarily separated. If such employee is otherwise eligible, he shall be entitled, under the conditions specified, to receive the transitional severance benefit conferred by this chapter.

D. The Department of Personnel and Training shall report all involuntary separations in the executive branch of government to the Department of Planning and Budget, which shall make an appropriate reduction, pursuant to § 2.1-391, in the terminating agency's maximum employment level in preparing its executive budget for the next session of the General Assembly.

§ 2.1-116.22. Eligibility.

A. Any full-time employee of the Commonwealth (i) whose position is covered by the Virginia Personnel Act (§ 2.1-110 et seq.) or (ii) whose position is exempt from the Virginia Personnel Act pursuant to subdivision A 2, A 3, A 4 (except those persons specified in subsection D of this section), A 7, A 13, A 14, A 15, A 16, A 17, or A 19 of § 2.1-116 and (a) who, on or after January 1, 1995, is involuntarily separated and (b) for whom reemployment with the Commonwealth is not possible because there is no available position for which the employee is qualified or the position offered to the employee requires relocation or a reduction in salary, shall be eligible, under the conditions specified, for the transitional severance benefit conferred by this chapter.

B. An otherwise eligible employee whose position is contingent upon project grants as defined in the Catalogue of Federal Domestic Assistance, shall not be eligible for the transitional severance benefit conferred by this chapter unless the funding source had agreed to assume all financial responsibility therefor in its written contract with the Commonwealth.

C. An otherwise eligible employee who is dismissed due to (i) receipt of at least one annual performance evaluation and subsequent reevaluation as provided for in applicable policy indicating that the employee “does not meet minimum expectations” or equivalent rating, unless a court or administrative officer or panel rules in the employee's favor on an employment issue related to job performance or (ii) conviction for a felony or a crime involving moral turpitude or dishonesty, shall not be eligible for the transitional severance benefit conferred by this chapter.

D. Members of the Judicial Retirement System (§ 51.1-300 et seq.) and officers elected by popular vote shall not be eligible for the transitional severance benefit conferred by this chapter.

E. Eligibility shall commence on the date of termination.

§ 2.1-116.23. Transitional severance benefit conferred.

A. On his date of termination, an eligible employee with (i) two years' service or less to the Commonwealth shall be entitled to receive a transitional severance benefit equivalent to two pay periods or (ii) more than two years of service to the Commonwealth shall be entitled to receive a transitional severance benefit equivalent to one pay period for each year of service, not to exceed eighteen pay periods.

B. Transitional severance benefits shall be computed by the terminating agency's payroll department. Partial years of service shall be rounded up to the next highest year of service. Employees whose pay cycle is not semi-monthly shall receive a transitional severance benefit equivalent to but not exceeding the amounts specified in subsection A.

C. Transitional severance benefits shall be paid in the same manner as normal salary. In accordance with § 60.2-229, transitional severance benefits shall be allocated to the date of termination. The right of any employee who receives a transitional severance benefit to also receive unemployment compensation pursuant to § 60.2-100 et seq. shall not be denied, abridged, or modified in any way due to receipt of the transitional severance benefit; however, any employee who is entitled to unemployment compensation shall have his transitional severance benefit reduced by the amount of such unemployment compensation. Any offset to a terminated employee's transitional severance benefit due to reductions for unemployment compensation shall be paid in one lump sum at the time the last transitional severance benefit payment is made.

D. For twelve months after the employee's date of termination, the employee shall continue to be covered under the (i) health insurance plan created in § 2.1-20.1 for the Commonwealth's employees, if he participated in such plan prior to his termination date, and (ii) group life insurance plan administered by the Virginia Retirement System pursuant to Chapter 5 (§ 51.1-500 et seq.) of Title 51.1. During such twelve months, the terminating agency shall continue to pay its share of the terminated employee's premiums. Upon expiration of such twelve month period, the terminated employee shall be eligible to purchase continuing health insurance coverage under COBRA.

E. Transitional severance benefit payments shall cease if a terminated employee is reemployed by any agency or institution of the Commonwealth during the time he is receiving such payments.

F. All transitional severance benefits payable pursuant to this section shall be subject to applicable federal laws and regulations.

§ 2.1-116.24. Retirement program.

A. In lieu of the transitional severance benefit provided in § 2.1-116.23, any otherwise eligible employee who is also (i) a vested member of the Virginia Retirement System or the State Police Officers' Retirement System and (ii) at least fifty years of age, may elect to add five years to either his age or creditable service or a combination of age and creditable service, except that any member of the Virginia Retirement System or the State Police Officers' System who is eligible for unreduced retirement shall add five years to his creditable service and not his age. Deferred retirement under the provisions of § 51.1-153 C shall not be available under this section.

B. In lieu of the (i) transitional severance benefit provided in § 2.1-116.23 and (ii) the retirement program in subsection A, any employee who is otherwise eligible may take immediate retirement pursuant to § 51.1-155.1.

C. The retirement allowance for any employee electing to retire under this section who, by adding five years to his age, is between ages 55 and 65, shall be reduced on the actuarial basis provided in subdivision 2 of § 51.1-155.

§ 2.1-116.25. Costs associated with this chapter; payment.

A. The Virginia Retirement System shall determine the present value of all retirement allowances payable pursuant to section § 2.1-116.24 and shall promptly provide such information, or a summary thereof, to the terminating agency, the Comptroller, and the Department of Planning and Budget. Such present-value determinations shall not be included by the Virginia Retirement System in its computation of employer contribution rates pursuant to § 51.1-137.

B. The costs associated with the provisions of this chapter shall be paid first from appropriations available to the terminating agency. If such sums are insufficient, then from the unexpended year-end balances, less mandated uses as set out in the Appropriations Act, of all other state agencies and institutions in the terminating agency's branch of government (i.e., judicial, legislative, or executive).

C. Costs due and payable to the Virginia Retirement System under the provisions of this chapter shall be paid within twelve months from the effective date of the terminated employee's retirement.

2. That in keeping with the purposes of this act and to induce eligible state employees to voluntarily leave their employment with the Commonwealth, any full-time employee of the Commonwealth (i) whose position is covered by the Virginia Personnel Act (§ 2.1-110 et seq.) or (ii) whose position is exempt from the Virginia Personnel Act pursuant to subdivision A 2, A 3, A 4 (except those persons specified in subsection D of § 2.1-116.22), A 7, A 13, A 14, A 15, A 16, A 17, or A 19 of § 2.1-116, may elect to receive the transitional severance benefit conferred by § 2.1-116.23 of this act, plus an amount, payable to the employee by the terminating agency on the employee's date of termination, equal to the present value of the maximum unemployment compensation the employee would have received pursuant to Title 60.2 (§ 60.2-100 et seq.) of the Code of Virginia, not to exceed $5000. The additional terms and conditions specified in § 2.1-116.23 shall apply to those eligible state employees making such election and to the transitional severance benefit payable hereunder. Written application of an eligible employee's election to participate in this incentive program shall be made to his employing agency no earlier than April 1, 1995, and no later than June 1, 1995.

3. That in lieu of receiving a transitional severance benefit under the second enactment of this act, but in keeping with the purposes of this act and to induce eligible state employees to voluntarily retire from their employment with the Commonwealth, any full-time employee of the Commonwealth (i) whose position is covered by the Virginia Personnel Act (§ 2.1-110 et seq.) or (ii) whose position is exempt from the Virginia Personnel Act pursuant to subdivision A 2, A 3, A 4 (except those persons specified in subsection D of § 2.1-116.22), A 7, A 13, A 14, A 15, A 16, A 17, or A 19 of § 2.1-116 and (a) who is a vested member of the Virginia Retirement System and (b) at least fifty years of age, may elect to add up to five years to both his age and creditable service, except that any member of the Virginia Retirement System who is eligible for unreduced retirement shall add five years to this creditable service and not his age. The additional terms and conditions specified in § 2.1-116.24 shall apply to those eligible state employees making such election and to the retirement allowance payable hereunder. Written notification of an eligible employee's election to participate in this retirement incentive program shall be received by the Virginia Retirement System no earlier than April 1, 1995, and no later than June 1, 1995.

4. That the following employees shall not be eligible for the incentive programs described in the second and third enactments of this act: (i) members of the Judicial Retirement System (§ 51.1-300 et seq.) or the State Police Officers' System (§ 51.1-200 et seq.), (ii) “law-enforcement officers” as defined in § 9-169 and “correctional” and “jail officers” as defined in § 53.1-1, (iii) presidents and full-time teaching and research staffs at state educational institutions, (iv) employees whose positions are contingent upon project grants as defined in the Catalogue of Federal Domestic Assistance, and (v) employees who are identified by their agencies as serving in key positions. “Key positions” means those positions that are clearly necessitated by interests of public health or safety or the performance of critical governmental functions of the Commonwealth. On or before April 1, 1995, all agencies and entities of the Commonwealth shall: (i) provide written notice to their employees identifying key positions and (ii) report key positions to the Department of Planning and Budget, the Department of Personnel and Training, the Virginia Retirement System, and the Chairmen of the House Committee on Appropriations and the Senate Committee on Finance. No position identified as a key position shall, in any way, be abolished, re-assigned, or transferred for one year from the date of being so identified.

5. That any eligible employee who elects to participate in an incentive program described in the second or third enactments of this act shall not be employed by the Commonwealth in any capacity for two years after his date of termination.

6. That in keeping with the purposes of this act, an otherwise eligible employee who, on or after January 1, 1995, elects to participate in any other incentive plan provided by the Commonwealth, shall be eligible, under the conditions specified, for the benefits conferred by this act, but in no event shall an employee receive the benefits of more than one such incentive plan.

7. That any employee who leaves his employment with the Commonwealth pursuant to this act shall be paid for his annual and sick leave balances, if any, in accordance with the applicable administrative policies and procedures in effect on July 1, 1994.

8. That as part of the restructuring plan pursuant to Item 183 E.1.-3 of .Chapter 966 of the Acts of Assembly of 1994, the Board of Visitors of any state educational institution may elect to provide the benefits of the voluntary incentive program described in the second and third enactments of this act for full-time teaching and research staffs at the state educational institution. Upon election of the Board, written application of an eligible employee's election to participate in this incentive program shall be made no later than June 30, 1996.

9. That as part of the restructuring plan of the Department of State Police and upon approval of the Governor, members of the State Police Officers' Retirement System may participate in the voluntary incentive program described in the second and third enactments of this act. Upon approval by the Governor of a restructuring plan, written application of an eligible employee's election to participate in this incentive program shall be made no later than June 30, 1996.

10. That any employee of the Commonwealth who applied for retirement with the Virginia Retirement System or the State Police Officers' Retirement System on or before December 1, 1994, shall not be eligible for the incentive programs described in the second and third enactments of this act, or for the benefits provided by Chapter 10.5 (§ 2.1-116.20 et seq.) of the Code of Virginia.

11. That an emergency exists and this act is in force from its passage.