Retirement System; hybrid retirement program created, optional defined retirement plan created, etc. (HB1130)

Introduced By

Del. Bill Howell (R-Fredericksburg) with support from co-patron Del. Chris Jones (R-Suffolk)

Description

Virginia Retirement System; optional hybrid retirement plan.  Creates a new optional hybrid retirement plan with a defined benefit retirement plan component and a defined contribution retirement plan component for all state employees except judges and employees currently eligible for optional retirement plans. The plan will be available beginning January 1, 2014.

The defined benefit component has a multiplier of 1.0 and a required employee contribution of 4%, and the employer's contribution is actuarially determined using the same methodology used for the current defined benefit retirement plan. The defined contribution component includes a required employee contribution of 2% and a corresponding mandatory contribution from the employer of 1%, with optional additional employee contributions of up to 4% which could be matched by another 2.5 % from the employer. Maximum contributions to the defined contribution plan are 6% from the employee and 3.5% from the employer, for a total of 9.5%.

If a current employee elects to participate in the new plan, his accrued service in the defined benefit plan at the time of his election would transfer with a multiplier of the defined benefit plan from which he is leaving, but his service thereafter would accrue with a 1.0 multiplier. Read the Bill »

Outcome

History