SB171: Virginia Retirement System; benefits for firefighter, emergency medical technician, etc.
Be it enacted by the General Assembly of Virginia:
1. That §§ 51.1-153 and 51.1-155 of the Code of Virginia are amended and reenacted as follows:
§ 51.1-153. Service retirement.
A. Normal retirement. - Any member in service at his normal retirement date with five or more years of creditable service may retire at any time upon written notification to the Board setting forth the date the retirement is to become effective. Any member in service who was denied membership prior to July 1, 1987, as a result of being age sixty or over when first employed may retire at any time after his normal retirement date and the requirement of having five or more years of service shall not apply.
B. Early retirement. - 1. Any member in service who has attained his fifty-fifth birthday with five or more years of creditable service may retire prior to his normal retirement date upon written notification to the Board setting forth the date the retirement is to become effective.
However, a person who becomes a member on or after July 1, 2010, under this chapter shall be allowed to retire under this subdivision prior to his normal retirement date only if the person is in service and has attained his sixtieth birthday with five or more years of creditable service, and the benefit for such person shall be calculated in accordance with the provisions of subdivision A 3 of § 51.1-155.
2. Subject to the provisions of subdivision 3, any state employee, teacher, or employee of a political subdivision who is a member of the retirement system may retire prior to his normal retirement date after attaining age fifty and thirty years of creditable service, upon written notification to the Board setting forth the date the retirement is to become effective. The benefit for such member shall be calculated in accordance with the provisions of subdivision A 1 of § 51.1-155.
3. A person who becomes a member on or after July 1, 2010, as a state employee, teacher, or employee of a political subdivision may retire prior to his normal retirement date after the sum of his age and years of creditable service equals 90, upon written notification to the Board setting forth the date the retirement is to become effective. The benefit for such member shall be calculated in accordance with the provisions of subdivision A 1 of § 51.1-155.
4. Notwithstanding the foregoing, a political subdivision by legally adopted resolution may declare to the Board that, for purposes of subdivisions 1 and 3 and subdivision A 3 of § 5.1-155, any person who is employed as a firefighter, emergency medical technician, or law-enforcement officer as those terms are defined in § 15.2-1512.2 shall not be considered a person who becomes a member on or after July 1, 2010. Such resolution shall be irrevocable.
C. Deferred retirement for members terminating service. - Any member who terminates service after five or more years of creditable service, regardless of termination date, may retire under the provisions of subsection A, B, or D of this section if he has not withdrawn his accumulated contributions prior to the effective date of his retirement or if he has five or more years of creditable service for which his employer has paid the contributions and such contributions cannot be withdrawn. For the purposes of this subsection, any requirements as to the member being in service shall not apply.
D. 50/10 retirement. - Any member in service on or after January 1, 1994, who has attained his fiftieth birthday with ten or more years of creditable service may retire prior to his normal retirement date upon written notification to the Board setting forth the date the retirement is to become effective. A person who becomes a member on or after July 1, 2010, shall not be allowed to retire pursuant to this subsection.
E. Effective date of retirement. - The effective date of retirement shall be after the last day of service of the member, but shall not be more than ninety days prior to the filing of the notice of retirement.
F. Notification on behalf of member. - If the member is physically or mentally unable to submit written notification of his intention to retire, the member's appointing authority may submit notification on his behalf.
§ 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.
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 and any person who becomes a member on or after July 1, 2010. - 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. 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 and subdivisions B 1 and B 3 of § 51.1-153, any person who is employed as a firefighter, emergency medical technician, or law-enforcement officer as those terms are defined in § 15.2-1512.2 shall not be considered a person who becomes a member on or after July 1, 2010. 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 member's accumulated contributions, including accrued interest.
B. Beneficiary serving in position covered by this title.
1. Except as provided in subdivisions 2 and 3, 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, 2015) 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.
Be it enacted by the General Assembly of Virginia:
1. That § 51.1-138 of the Code of Virginia is amended and reenacted as follows:
§ 51.1-138. Benefits.
A. Employees who become members under this article and on whose behalf contributions are paid as provided in this article shall be entitled to benefits under the retirement system.
B. By resolution legally adopted and approved by the Board,
the employer may elect to provide benefits equivalent to those provided under
the State Police Officers' Retirement System, as set out in Chapter 2 (§
51.1-200 et seq.) of this title
except for § 51.1-209, and except that the employer may elect to establish the
retirement allowance pursuant to the allowance provided in clause (i) or (ii)
in subsection A of § 51.1-206, in lieu of the benefits that would otherwise be
provided hereunder for any employees who are employed in (i) law-enforcement
positions comparably hazardous to that of a state police officer, including any
sworn law-enforcement officer who has the duty and obligation to enforce the
penal and traffic laws of this Commonwealth as directed by his superior
officer, if so certified by his appointing authority, (ii) positions as
full-time salaried fire fighters, (iii) positions as full-time salaried
emergency medical technicians, or (iv) positions as regional jail
superintendents and jail officers of regional jail farms, regional jails or
jail authorities, as approved by the respective jail board or authority and by
the participating political subdivisions of such entities. Sheriffs of
political subdivisions and superintendents of regional jails which participate
in the retirement system shall receive benefits equivalent to those of state
police officers, except for the benefits provided under § 51.1-209, regardless
of whether the employer has elected to provide equivalent benefits as set out
in this subsection.
C. Each employer providing the benefits of subsection B for
its employees prior to July 1, 1990, may elect to provide for the early
retirement of employees as set forth in this subsection in lieu of the early
retirement and death before retirement provisions of the State Police Officers'
Retirement System. Such election must be made to the Board in writing prior to
July 1, 1990. Any member in service on or after his fifty-fifth birthday with
five or more years of creditable service (i) while earning the benefits
permitted by this section, (ii) as a member in the retirement system
established by Chapter 2 (§ 51.1-200 et seq.) of this title, or (iii) as a member
in the retirement system established by Chapter 2.1 (§ 51.1-211 et seq.) of this title may retire upon
written notification to the Board setting forth at what time the retirement is
to become effective. The effective date shall be after his last day of service
but shall not be more than 90 days prior to the filing of such notice. The
member shall receive an allowance that shall be determined in the same manner
as for retirement at an employee's normal retirement with creditable service
and average final compensation being determined as of the date of his 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 (a) the member's normal retirement date or (b) the first date on or after
the member's fifty-fifth birthday on which the member would have completed a
total of 30 years of creditable service. Effective December 31, 2003, any
employee in service on June 30, 2002, and July 1, 2002, who is credited with
five or more years of creditable service rendered under this chapter and
earning the benefits permitted by this section, Chapter 2 (§ 51.1-200 et seq.),
or Chapter 2.1 (§ 51.1-211 et seq.) of this title
shall not be subject to the vesting requirements of this section, and §§
51.1-205 and 51.1-216.
Members retiring under the provisions of this subsection shall be entitled to receive post-retirement supplements as provided in § 51.1-166. In computing the amount of any supplement, any additional allowances being paid under the provisions of subsection B of § 51.1-206 shall be disregarded. In the case of death before retirement, members whose employers elect to provide benefits in accordance with the provisions of this subsection and who have not attained the age of 50 on the date of death shall be assumed to be 50 years of age for the purposes of reducing the benefits on an actuarial equivalent basis.
D. Beginning July 1, 2008, each county and city participating in the Virginia Retirement System shall provide the benefit coverage described in subsection B to each deputy sheriff, regardless of whether the deputy sheriff's salary is funded or reimbursed in whole or in part by the Compensation Board.
E. Notwithstanding the provisions of subsection C, beginning July 1, 2009, the City of Danville shall provide to each deputy sheriff the benefit coverage described in subsection B.
F. Beginning July 1, 2009, each regional jail board and regional jail authority participating in the Virginia Retirement System and each county and city participating in such board or authority shall provide the benefit coverage described in subsection B to each sworn officer of a regional jail, regardless of whether the regional jail officer's salary is funded or reimbursed in whole or in part by the State Compensation Board.
G. 1. Beginning
July 1, 2010, any county or city that (i) participates in the Virginia
Retirement System pursuant to Chapter 1 (§ 51.1-124.1 et seq.), (ii) has in
effect a retirement supplement for deputy sheriffs (in addition to the annual
retirement allowance provided under the Virginia Retirement System) that
exceeds the allowance set forth in subsection B of § 51.1-206 hereof, and (iii) provides the
same level of retirement benefits to all of its deputy sheriffs, may, by
resolution legally adopted, elect to provide the benefits coverage under
subsection B hereof
except for the allowance described in subsection B of § 51.1-206. Notwithstanding
any other provision of law, the additional costs of such election shall be
borne solely by such county or city.
2. Beginning July 1, 2012, any county, city, or town that (i) participates in the Virginia Retirement System pursuant to Chapter 1 (§ 51.1-124.1 et seq.), (ii) has in effect a retirement supplement for employees described in subsection B hereof (in addition to the annual retirement allowance provided under the Virginia Retirement System) that exceeds the allowance set forth in subsection B of § 51.1-206 hereof, and (iii) provides the same level of retirement benefits to all of its employees described in subsection B hereof, may, by resolution legally adopted, elect to provide the benefits coverage under subsection B hereof except for the allowance described in subsection B of § 51.1-206. Such county, city, or town may restrict its election to apply only to any employee who is a person who becomes a member on or after July 1, 2010. Such county, city, or town shall be considered to provide the same level of retirement benefits to all such employees as long as each person who becomes a member on or after July 1, 2010, has the same level of benefits, and all other employees who became members as of a specified date have the same level of benefits, even if the level of benefits for each group differs. Notwithstanding any other provision of law, the additional costs of such election shall be borne solely by such county, city, or town.
H. The retirement system shall not be liable for the payment of any retirement allowances or other benefits on behalf of a member or beneficiary of a member for which reserves have not been previously created from funds contributed by the employer or the members for such benefits.