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1998 SESSION
Be it enacted by the General Assembly of Virginia:
1. That § 51.1-168 of the Code of Virginia is amended and reenacted as follows:
§ 51.1-168. Maximum benefits; mandatory payment of allowance.
A. Notwithstanding any other provision of law, earned compensation for any
employee who becomes a member of the Retirement System (i) prior to the
ninetieth day after the opening date of the 1996 Session of the General
Assembly, on whose behalf employee or employer contributions are made into the
Retirement System, and for whom annual compensation is used for computing any
benefit, shall not exceed $235,840 265,000, the amount
determined by the Commissioner of the Internal Revenue Service pursuant to
I.R.C. § 401 (a) (17) as the limitation on earned compensation; or (ii) on
or after the ninetieth day of the opening date of the 1996 Session of the
General Assembly, on whose behalf employee or employer contributions are made
into the Retirement System, and for whom annual compensation is used for
computing any benefit, shall not exceed $150,000 160,000,
or any amount determined by the Commissioner of the Internal Revenue Service
pursuant to I.R.C. § 401 (a) (17) as the limitation on earned compensation
in effect in subsequent calendar years.
B. Notwithstanding any other provision of law, the annual benefit payable
on behalf under the Retirement System of a member and any
related death or other benefit shall, if necessary, be reduced to the
extent required by § 415 (b) and (e) of the Internal Revenue
Code, as adjusted by the Secretary of the Treasury pursuant to § 415 (d)
of the Internal Revenue Code. If an employee participating in the
Retirement System is also a participant in another retirement plan sponsored or
maintained by an employer participating in the Retirement System and subject to
the limitations under § 415 of the Internal Revenue Code, such employer
shall apply the combined limit test required by § 415 (e) of the Internal
Revenue Code, until the repeal of such section is effective. Whenever a
reduction in annual additions or benefits is required to meet the annual
benefit limit required by § 415 (b) of the Internal Revenue Code or the
combined limit test, the annual additions or annual benefits under such
employer's other plan or plans will be reduced before benefits under the
Retirement System.
C. Notwithstanding any other provision of law, the annual additions to the optional retirement plans described in Article 4 (§ 51.1-125 et seq.) of Chapter 1 of this title shall be reduced, if necessary, to the extent required by § 415 (c) of the Internal Revenue Code, as adjusted by the Secretary of the Treasury pursuant to § 415 (d) of the Internal Revenue Code. If an employee participating in an optional retirement plan is also a participant in another retirement plan sponsored or maintained by an employer participating in the Retirement System and subject to the limitations under § 415 of the Internal Revenue Code, such employer shall apply the combined limit test required by § 415 (c) of the Internal Revenue Code and the combined limit test required by § 415 (e) of the Internal Revenue Code, until the repeal of such section is effective to all such plans, to the extent required by § 415 of the Internal Revenue Code. Whenever a reduction in annual additions or annual benefits is required to comply with the limitations of § 415 of the Internal Revenue Code, the annual additions or annual benefits under such employer's other plan or plans will be reduced before benefits under the optional retirement plan.
D. Any vendor for an optional retirement plan established by Article 4 (§ 51.1-125 et seq.) of Chapter 1 of this title shall (i) request and maintain the records needed, (ii) perform the testing services required to assure compliance with the limitations described in § 415 (c) of the Internal Revenue Code, including testing required where the employer maintains or sponsors another plan that must be tested together with the optional retirement plan, and (iii) advise the employer of any contribution or benefit that exceeds the applicable limitation.
C. E. On and after January 1, 1989, the retirement
allowance of a member who has terminated employment shall begin no later than
the later of (i) April 1 of the calendar year following the calendar year that
the member attains seventy and one-half years of age or (ii) April 1 of the
calendar year following the calendar year in which the member terminates
employment.