SB1173: Virginia Retirement System; revocation of participation by Town of Damascus.
Be it enacted by the General Assembly of Virginia:
1. § 1. That notwithstanding the provisions of § 51.1-139 of the Code of Virginia and based on its not having made contributions to the Virginia Retirement System for a period of 25 consecutive years, the Town of Damascus may revoke, in writing, its agreement to contribute to the Virginia Retirement System on behalf of any eligible employees for creditable service rendered on or after the date of the revocation.
Be it enacted by the General Assembly of Virginia:
1. § 1. That notwithstanding the provisions of § 51.1-139 of the Code of Virginia and based on its not having made contributions to the Virginia Retirement System for a period of 25 consecutive years, the Town of Damascus may revoke, in writing, its agreement to contribute to the Virginia Retirement System on behalf of any eligible employees for creditable service rendered on or after the date of the revocation.
SENATE BILL NO. 1173
Be it enacted by the General Assembly of Virginia:
1. That § 51.1-139 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding in Article 5 of Chapter 1 of Title 51.1 a section numbered 51.1-139.1 as follows:
§ 51.1-139. Procedure when employer in default.
An employer's agreement to
contribute on behalf of its employees who become members shall be irrevocable. If
an employer for any reason becomes financially unable to make the contributions
payable on behalf of the members, the employer shall be deemed to be in default
and the employees' membership in the Retirement System shall be terminated. As
of the date of the default, (i) each member or beneficiary whose coverage under
the Retirement System is affected by such default shall become fully vested,
(ii) the actuary of the Retirement System shall determine by actuarial
valuation the amount of the reserves held on behalf of each then member and
each then beneficiary, and (iii) the Retirement System shall credit to each
member and each beneficiary the amount of reserve so held. The reserve so
credited together with the amount of the accumulated contributions of each
member, shall be disbursed in a manner prescribed by the Board consistent with
the applicable tax qualification rules of the Internal Revenue Code, whereupon
the rights and privileges of the members and beneficiaries shall terminate.
§ 51.1-139.1. Participation irrevocable; exception.
A. Except as provided in subsection B, an employer's agreement to contribute on behalf of its employees who become members shall be irrevocable.
B. Notwithstanding the provisions of subsection A, an employer that has agreed to make retirement contributions on behalf of its employees but has not made any contributions for 25 or more consecutive years may revoke, in writing, its agreement to contribute on behalf of its employees. Upon such notice of revocation, the employer shall have no further obligations to the Retirement System, and the provisions of § 51.1-139 shall apply.