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1999 SESSION

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HB 1756 Deferred compensation; benefits for state employees and teachers.

Introduced by: Lacey E. Putney | all patrons    ...    notes | add to my profiles | history

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION:

Retired state employees, and teachers health insurance credit; health insurance program; deferred compensation program. Allows former state employees andteachers with at least 15 years of creditable service to receive the retiree health insurance credit if, after leaving state service, they worked for a local government which does not elect to provide a retiree health insurance credit. Persons who have been ineligible to receive the credit under the existing law, but would have been eligible if this measure had been in effect, may enroll within 180 days following this measure's effective date to receive the credit prospectively. The measure also allows any former state employee who is receiving VRS annuity payments and participating in the state retiree health benefits program on July 1, 1999, to elect to cease receiving the VRS annuity payments until reapplying for such benefits at a later date and to continue participating in the retiree health insurance program. Technical and clarifying changes are made to the provisions relating to the health insurance credit for state retirees. The bill also authorizes the Virginia Retirement System to establish a plan into which employers can make contributions to deferred compensation accounts. Effective January 1, 2000, the Commonwealth, political subdivisions participating in the VRS-administered deferred compensation plan, and sponsors of a plan established under § 403 (b) of the Internal Revenue Code shall transfer funds to the institution holding investments under the plan. The amounts credited to accounts of participants in the deferred compensation plan shall not exceed, on a semi-monthly basis, the lesser of $50 or 50 percent of the participants contribution, provided the employee is contributing at least $10 per pay period in the plan.

SUMMARY AS PASSED:

Deferred compensation; contributions by Commonwealth; health insurance program for retired state employees. Allows any former state employee who is eligible to receive VRS annuity payments to participate in the state retiree health benefits program upon leaving state service without starting to receive the retirement payments if the employee was involuntarily separated from state service. Currently, state retirees who do not elect to participate in the state health plan within 31 days of the effective date of retirement are thereafter barred from participating in the retiree health benefits program. Any state retiree who is receiving retirement benefit payments and participating in the retirees’ health benefits program on July 1, 1999, may make an election, by September 1, 1999, to continue participating in the health benefits program but defer further retirement benefit payments, or to defer continued participation in the health benefits program and receipt of retirement benefit payments, until a later date. Technical and clarifying changes are made to the provisions relating to the health insurance credit for state retirees. The bill also authorizes the Virginia Retirement System to establish a plan into which employers can make contributions to state employees’ deferred compensation accounts. The employer’s match will not exceed the lesser of 50 percent of the employee’s contribution or $50, per semi-monthly pay period. The amount to be contributed is subject to approval by the General Assembly.

SUMMARY AS PASSED HOUSE:

Deferred compensation; benefits for state employees. Provides that the Commonwealth shall make contributions to state employees deferred compensation accounts.

SUMMARY AS INTRODUCED:

Deferred compensation; benefits for state employees. Provides that the Commonwealth shall deposit five dollars per pay period to the deferred compensation plan accounts of state employees who have 12 consecutive months of service and contribute at least five dollars per pay period to such plan.