HB1830: State employees; changes participation in deferred compensation plan.
Be it enacted by the General Assembly of Virginia:
1. That §§ 51.1-600 and 51.1-601 of the Code of Virginia are amended and reenacted and that the Code of Virginia is amended by adding a section numbered 51.1-601.1 as follows:
§ 51.1-600. Definitions.
As used in this chapter, unless the context requires a different meaning:
"Act" means the Government Employees Deferred Compensation Plan Act.
"Board" means the Board of Trustees of the Virginia Retirement System.
"Deferred compensation plan" means a plan which
allows an employee to elect to deferby which an
employee defers some portion of income until some stated time in
the future; provides that the federal and state income tax on such income will
be deferred until the actual receipt of such income; and is established
pursuant to the provisions of § 457 of the Internal Revenue Code of 1986, as amended.
"Employee" means, in the case of the plan described in § 51.1-602, all persons employed by a participating employer, including appointed or elected officials. In the case of a plan adopted by a county, municipality, authority or other political subdivision pursuant to § 51.1-603, an employee shall be defined by such county, municipality, authority or other political subdivision.
"Participating employer" means the Commonwealth or any political subdivision that has elected pursuant to § 51.1-603.1 to participate in the deferred compensation plan established by the Board pursuant to this chapter.
§ 51.1-601. Contract for deferred compensation.
In accordance with a plan of deferred compensation, the
Commonwealth, or any state agency, county, municipality, authority, or other
political subdivision may, by contract, agreemay
contract with any employee to defer all or any portion of that
employee's otherwise payable compensation and, pursuant to the terms of the
plan and in such proportions as may be designated or directed under the plan,
place such deferred compensation in investment products selected by the
Commonwealth and its agencies, county, municipality, authority, or other
political subdivision. All investment products shall be offered in compliance
with applicable federal and state laws and regulations by persons who are duly
authorized by applicable state and federal authorities.
§ 51.1-601.1. Participation in plan by certain employees.
All employees of the Commonwealth and its agencies commencing employment or who are reemployed on or after January 1, 2008, in a position covered by the Virginia Retirement System, and who have not elected to participate in a plan established pursuant to § 403(b) of the Internal Revenue Code of 1986, as amended, shall participate in the plan described in § 51.1-602, unless such employee elects, in a manner prescribed by the Board, not to participate in such plan. The amount of the deferral for any such employee participating in the plan shall equal, on a semimonthly basis, $20 of otherwise payable compensation, unless the employee elects to defer a different amount.