Introduced in House Passed House Introduced in Senate Passed Senate Became Law
01/07/2020     01/29/2020  

Virginia Retirement System; return to employment by certain retired employees.

Provides that a political subdivision participating in the Virginia Retirement System may hire up to two retirees at a time to return to work in full-time positions. Such employees may receive their service retirement allowance during the subsequent period of employment provided that there was a bona fide break in service between retirement and employment in the full-time position and that there was no prearrangement for reemployment.

Date Version PDF TXT
01/30/2020 Senate: Printed as engrossed 20101044D-E Open
01/07/2020 Senate: Prefiled and ordered printed; offered 01/08/20 20101044D Open

            

2020 SESSION

    20101044D
    SENATE BILL NO. 671
    Senate Amendments in [ ] � January 30, 2020
    A BILL to amend and reenact � 51.1-155 of the Code of Virginia, relating to Virginia Retirement System; return to employment by certain retired employees.
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    Patron Prior to Engrossment--Senator Mason
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    Referred to Committee on Finance and Appropriations
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    Be it enacted by the General Assembly of Virginia:

    1. That � 51.1-155 of the Code of Virginia is amended and reenacted as follows:

    51.1-155. Service retirement allowance.

    A. Retirement allowance. � A member shall receive an annual retirement allowance, payable for life, as follows:

    1. Normal retirement. � The allowance shall equal 1.70 percent of his average final compensation multiplied by the amount of his creditable service. Notwithstanding the foregoing, for a member who (i) is a person who becomes a member on or after July 1, 2010, or (ii) does not have at least 60 months of creditable service as of January 1, 2013, the allowance shall equal the sum of (a) 1.65 percent of his average final compensation multiplied by the amount of his creditable service performed or purchased on or after January 1, 2013, and (b) 1.70 percent of his average final compensation multiplied by the amount of all other creditable service.

    2. Early retirement; applicable to teachers, state employees, and certain others. � The allowance shall be determined in the same manner as for normal retirement with creditable service and average final compensation being determined as of the date of actual retirement. If the member has less than 30 years of service at retirement, the amount of the retirement allowance shall be reduced on an actuarial equivalent basis for the period by which the actual retirement date precedes the earlier of (i) his normal retirement date or (ii) the first date on which he would have completed a total of 30 years of creditable service. The provisions of this subdivision shall apply to teachers and state employees. These provisions shall also apply to employees of any political subdivision that participates in the retirement system if the political subdivision makes the election provided in subdivision 3.

    3. Early retirement; applicable to employees of certain political subdivisions, any person who becomes a member on or after July 1, 2010, and any member who does not have at least 60 months of creditable service as of January 1, 2013. � The allowance shall be determined in the same manner as for normal retirement with creditable service and average final compensation being determined as of the date of actual retirement. If the creditable service of the member equals 30 or more years but the sum of his age at retirement plus his creditable service at retirement is less than 90, the amount of the retirement allowance shall be reduced on an actuarial equivalent basis for the period by which the actual retirement date precedes the earlier of (i) his normal retirement date or (ii) the first date on which the sum of his then attained age plus his then creditable service would have been equal to 90 or more had he remained in service until such date. If the member has less than 30 years of creditable service, the retirement allowance shall be reduced for the period by which the actual retirement date precedes the earlier of (i) his normal retirement date or (ii) the first date on which he would have completed a total of at least 30 years of creditable service and his then creditable service plus his then attained age would have been equal to 90 or more.

    The provisions of this subdivision shall apply to the employees of any political subdivision that participates in the retirement system and any other employees as provided by law. The participating political subdivision may, however, elect to provide its employees with the early retirement allowance set forth in subdivision 2. No such election shall be made for a person who becomes a member on or after July 1, 2010, or a member who does not have at least 60 months of creditable service as of January 1, 2013. Any election pursuant to this subdivision shall be set forth in a legally adopted resolution.

    Notwithstanding the foregoing, a political subdivision by legally adopted resolution may declare to the Board that, for purposes of this subdivision, subdivisions B 1 and B 3 and subsection D of � 51.1-153, any person who meets the definition of "emergency medical services personnel" in � 32.1-111.1 or is employed as a firefighter or law-enforcement officer as those terms are defined in � 15.2-1512.2 (i) shall not be considered a person who becomes a member on or after July 1, 2010, and (ii) shall be deemed to have at least 60 months of creditable service as of January 1, 2013. Such resolution shall be irrevocable.

    4. Additional allowance. � In addition to the allowance payable under subdivisions 1, 2, and 3, a member shall receive an additional allowance which shall be the actuarial equivalent, for his attained age at the time of retirement, of the excess of his accumulated contributions transferred from the abolished system to the retirement system, including interest credited at the rate of two percent compounded annually since the transfer to the date of retirement, over the annual amounts equal to four percent of his annual creditable compensation at the date of abolishment for a period equal to his period of membership in the abolished system.

    5. 50/10 retirement. � The allowance shall be payable in a monthly stream of payments equal to the greater of (i) the actuarial equivalent of the benefit the member would have received had he terminated service and deferred retirement to age 55 or (ii) the actuarially calculated present value of the members accumulated contributions, including accrued interest.

    B. Beneficiary serving in position covered by this title.

    1. Except as provided in subdivisions 2 and, 3, and 4, if a beneficiary of a service retirement allowance under this chapter or the provisions of Chapters 2 (� 51.1-200 et seq.), 2.1 (� 51.1-211 et seq.), or 3 (� 51.1-300 et seq.) is at any time in service as an employee in a position covered for retirement purposes under the provisions of this or any chapter other than Chapter 6 (� 51.1-600 et seq.), 6.1 (� 51.1-607 et seq.), or 7 (� 51.1-700 et seq.), his retirement allowance shall cease while so employed. Any member who retires and later returns to covered employment shall not be entitled to select a different retirement option for a subsequent retirement.

    2. Active members of the General Assembly who are eligible to receive a retirement allowance under this title, excluding their service as a member of the General Assembly, shall be eligible to receive a retirement allowance based on their creditable service and average final compensation for service other than as a member of the General Assembly. Such members of the General Assembly shall continue to be reported as any other members of the retirement system. Upon ceasing to serve in the General Assembly, members of the General Assembly receiving a retirement allowance based on their creditable service and average final compensation for service other than as a member of the General Assembly shall have their retirement allowance recomputed prospectively to include their service as a member of the General Assembly. Active members of the General Assembly shall be prohibited from receiving a service retirement allowance under this title based solely on their service as a member of the General Assembly.

    3. (Expires July 1, 2025) Any person receiving a service retirement allowance under this chapter, who is hired as a local school board instructional or administrative employee required to be licensed by the Board of Education, may elect to continue to receive the retirement allowance during such employment, under the following conditions:

    (a) The person has been receiving such retirement allowance for a certain period of time preceding his employment as provided by law;

    (b) The person is not receiving a retirement benefit pursuant to an early retirement incentive program from any local school division within the Commonwealth; and

    (c) At the time the person is employed, the position to which he is assigned is among those identified by the Superintendent of Public Instruction pursuant to subdivision 4 of � 22.1-23, by the relevant division superintendent, pursuant to � 22.1-70.3, or by the relevant local school board, pursuant to subdivision 9 of � 22.1-79.

    If the person elects to continue to receive the retirement allowance during the period of such employment, then his service performed and compensation received during such period of time will not increase, decrease, or affect in any way his retirement benefits before, during, or after such employment.

    4. A political subdivision that participates in the retirement system may employ full-time at any given time up to two people receiving a service retirement allowance. The political subdivision may hire a person receiving a service retirement allowance only if such person has had a bona fide break in service �[ of one year ] between retirement and employment in the full-time position and if there was no prearrangement for reemployment. If the person elects to continue to receive the retirement allowance during the period of such employment, then his service performed and compensation received during such period of time will not increase, decrease, or affect in any way his retirement benefits before, during, or after such employment, nor shall such person be eligible to receive any retirement benefits available to him pursuant to Chapter 6.1 (� 51.1-607 et seq.). In addition, the employer shall include the persons compensation in membership payroll subject to employer contributions under � 51.1-145.

    �[2. That the provisions of this act shall not become effective unless an appropriation effectuating the purposes of this act is included in a general appropriation act passed in 2020 by the General Assembly that becomes law. ]

    Picture Name From Date Type
    T. Montgomery "Monty" Mason D-Richmond Sponsor
    Date Branch Action
    01/31/2020 Senate Senate: Read third time and passed Senate (40-Y 0-N)
    01/30/2020 Senate Senate: Printed as engrossed 20101044D-E
    01/29/2020 Senate Senate: Constitutional reading dispensed (40-Y 0-N)
    01/28/2020 Senate Senate: Reported from Finance and Appropriations with amendments (15-Y 0-N)
    01/07/2020 Senate Senate: Prefiled and ordered printed; offered 01/08/20 20101044D
    01/07/2020 Senate Senate: Referred to Committee on Finance and Appropriations
    Summary
    Congress - Bill Number Major Title
    Branch Vote Date Yes No Not Voting
    Senate 1/1/2111 12:00:00 AM 40 0 0
    Senate 1/1/2111 12:00:00 AM 40 0 0
    Senate 1/28/2020 12:00:00 AM 15 0 0
    Wiki





    Start Description.
    Provides that a political subdivision participating in the Virginia Retirement System may hire up to two retirees at a time to return to work in full-time positions. Such employees may receive their service retirement allowance during the subsequent period of employment provided that there was a bona fide break in service between retirement and employment in the full-time position and that there was no prearrangement for reemployment.
    End Description.

    Bill TEXT Points.
    This Bill has been listed with the following Subjects from Texts:
    Retirement
    1-155 of the Code of Virginia, relating to Virginia Retirement System; return to employment by certain retired employees

    Virginia
    1-155 of the Code of Virginia, relating to Virginia Retirement System; return to employment by certain retired employees


    End Bill TEXT Points.
    Date Bill Major Title
    Committee Name
    Subject Type