SB738: Virginia Sickness and Disability Program; open enrollment period for certain members of VRS.
Be it enacted by the General Assembly of Virginia:
1. That §§ 51.1-1103, 51.1-1110, and 51.1-1112 of the Code of Virginia are amended and reenacted as follows:
§ 51.1-1103. Participation in the program.
A. All prior elections to participate in the program shall be irrevocable.
B. 1. Except for eligible employees who are employed by an institution of higher education in a faculty position performing teaching, research or administrative duties, all eligible employees commencing employment or who are reemployed on or after January 1, 1999, shall participate in the program. The effective date of participation in the program for such employees shall be their first day of employment.
2. Except for (i) an employee as defined in § 51.1-201 or (ii) such employees of an institution of higher education, all eligible employees not participating in the program prior to October 1, 2002, shall participate in the program effective January 10, 2003, unless such employee elects not to participate in the program as provided herein. An election not to participate shall be in writing, and on forms prescribed by the Retirement System, and shall be received by the Retirement System during the period commencing on October 1, 2002, but before January 1, 2003. An election not to participate in the program shall be irrevocable and such employee shall be ineligible to participate in the program for the period of his continued employment by the Commonwealth except that any such employee who elects to participate in the hybrid retirement program described in § 51.1-169 shall participate in the program.
C. Any eligible employee who is employed by an institution of higher education in a faculty position performing teaching, research or administrative duties may elect to participate in the program established under this chapter or under an existing program provided by the institution. Any eligible employee who is (i) employed by an institution of higher education in a faculty position performing teaching, research or administrative duties prior to October 1, 2002, and (ii) not participating in the program, shall participate in the program established under this chapter effective January 10, 2003, unless such employee elects not to participate in the manner provided in subdivision B 2. Any eligible employee of an institution of higher education in a faculty position performing teaching, research or administrative duties employed or reemployed on or after October 1, 2002, shall participate in the program unless such employee elects not to participate in the program, in writing and on such forms as prescribed by the Retirement System, within 60 days from the time of entry upon the performance of his duties. The effective date of participation in the program for such employee shall be the first day following the expiration of such 60-day period or January 10, 2003, whichever is later.
Any eligible employee under this subsection shall participate in the sickness and disability program established by his institution of higher education until such time as the employee participates in the program established under this chapter. If the institution of higher education has not established its own sickness and disability program, such eligible employee shall participate in the program established under this chapter effective on his first day of employment.
An election not to participate in the program established under this chapter shall be irrevocable and such employee shall be ineligible to participate in the program for the period of his continued employment by the Commonwealth.
D. 1. All eligible employees who are employees as defined by § 51.1-201 and who are not participating in the program as of September 30, 2015, may elect to participate in the program. Any election to participate shall be in writing, on forms prescribed by the Virginia Retirement System, and shall be received by the Retirement System during the period commencing October 1, 2015, but before January 1, 2016. The election to participate shall be irrevocable. The effective date of participation in the program for such employee shall be the first day of the pay period following the delivery of the notice of the election to the Retirement System.
2. An eligible employee who elects to participate in the program pursuant to subdivision 1 shall convert his sick leave balance as of the effective date of coverage to service credit under the Retirement System on the basis of one month of service for each 173 hours of sick leave, rounded to the next highest month.
E. Notwithstanding any provision to the contrary, no
participating employee commencing employment or reemployment on or after July
1, 2009, shall receive benefits under Article 3 of this Chapter (Nonwork
Related Disability Benefits) (§ 51.1-1109 et seq.) until the
participating employee completes one continuous year of active employment or
reemployment.
E. F. The provisions of this subsection shall
apply to any eligible employee who participates in the program under the
provisions of subdivision B 2 or subsection C. Any eligible employee, including
a person employed by an institution of higher education in a faculty position
performing teaching, research or administrative duties, who (i) is a member of
the Retirement System, and (ii) commenced employment or was reemployed prior to
January 1, 1999, shall have his sick leave balances, as of the effective date
of coverage in the program, converted to disability credits, as provided in
subsection F G.
F. G. Any eligible employee converting his sick
leave balance as provided in subsection E F shall receive one
hour of disability credit for each hour of sick leave. Disability credits shall
be used to continue periods for which the participating employee receives
income replacement during periods of short-term and long-term disability at 100
percent of creditable compensation. Disability credits shall be reduced by one
day for each day that the participating employee receives short-term or
long-term disability benefits.
G. H. Upon retiring directly from state service
and receiving an immediate annuity, the eligible employee's unused disability
credits shall be converted to service credit under the Retirement System at the
rate of one month of service for each 173 hours of disability credits, rounded
to the next highest month, unless the employee elects to be paid for the
balance of such disability credits under the same terms and subject to the same
conditions as are in effect for the payment of sick leave benefits in the
employee's agency on December 31, 1998. Upon leaving state service under any
other circumstances, the employee shall be paid for the balance of such
disability credits under the same terms and subject to the same conditions as
are in effect for the payment of sick leave benefits in the employee's agency
on December 31, 1998, unless he elects to have such credits converted to
service credit under the Retirement System at the rate of one month of service
for each 173 hours of disability credits, rounded to the next highest month.
Upon entry into long-term disability, the employee may be paid for the balance
of such disability credits under the same terms and subject to the same
conditions in effect for payment of sick leave benefits in the employee's
agency as of December 31, 1998.
H. I. Eligibility for participation in the
program shall terminate upon the earliest to occur of an employee's (i)
termination of employment, (ii) death, or (iii) retirement from service.
Eligibility for participation in the program shall be suspended during periods
that an employee is placed on nonpay status, including leave without pay, if
such nonpay status is due to suspension pending investigation or outcome of
employment-related court or disciplinary action.
§ 51.1-1110. Short-term disability benefit.
A. Except as provided in subsection D E of §
51.1-1103, short-term disability benefits for participating employees shall
commence upon the expiration of a seven-calendar-day waiting period. The
waiting period shall commence the first day of a disability or of maternity
leave. If an employee returns to work for one day or less during the
seven-calendar-day waiting period but cannot continue to work, the periods
worked shall not be considered to have interrupted the seven-calendar-day
waiting period. Additionally, the seven-calendar-day waiting period shall not
be considered to be interrupted if the employee works 20 hours or less during
the waiting period. Short-term disability benefits payable as the result of a
catastrophic disability or major chronic condition shall not require a waiting
period.
B. Except as provided in subsections C and E of this section and § 51.1-1131, short-term disability coverage shall provide income replacement for a percentage of a participating employee's creditable compensation during the period specified below that an employee is disabled, on maternity leave, or takes periodic absences due to a major chronic condition, as determined by the Board or its designee, based on the number of months of state service as an eligible employee, as follows:
Work days of 100% Work days of 80% Work days of 60%replacement replacement replacement
Months of of creditable of creditable of creditable
state service compensation compensation compensation
Less than 60 5 20 100
60 to 119 25 25 75
120 to 179 25 50 50
180 or more 25 75 25
C. For all eligible employees commencing employment or reemployment on or after July 1, 2009, except as provided in subsections B and E of this section and § 51.1-1131, short-term disability coverage shall provide income replacement for (i) 60 percent of a participating employee's creditable compensation for the first 60 months of continuous state service after employment or reemployment and (ii) thereafter, a percentage of a participating employee's creditable compensation during the periods that he is disabled, on maternity leave, or takes periodic absences due to a major chronic condition, based on the number of months of continuous state service, as determined by the Board or its designee, as follows:
Work days of 100% Work days of 80% Work days of 60%replacement replacement replacement
Months of of creditable of creditable of creditable
state service compensation compensation compensation
60 to 119 25 25 75
120 to 179 25 50 50
180 or more 25 75 25
D. Creditable compensation during periods an employee receives short-term disability benefits shall include general salary increases awarded during the period of short-term disability coverage.
E. An employee's disability credits may be used, on a day for day basis, to extend the period an employee receives short-term disability benefits paid at 100 percent of replacement of creditable compensation.
F. Short-term disability benefits shall be payable only during periods of (i) total disability, (ii) partial disability, (iii) maternity leave, or (iv) periodic absences due to a major chronic condition as defined by the Board or its designee.
§ 51.1-1112. Long-term disability benefit.
A. Except as provided in subsection D E of §
51.1-1103, long-term disability benefits for participating employees shall
commence upon the expiration of the maximum period for which the participating
employee is eligible to receive short-term disability benefits under §
51.1-1110.
B. Except as provided in subsection D and § 51.1-1131, long-term disability benefits shall provide income replacement in an amount equal to 60 percent of a participating employee's creditable compensation.
C. Creditable compensation during periods an employee receives long-term disability benefits shall (i) not include salary increases awarded during the period covered by long-term disability benefits and (ii) be increased annually by an amount recommended by the actuary of the Virginia Sickness and Disability Program and approved by the Board.
D. An employee's disability credits shall be used, on a day-for-day basis, to extend the period an employee receives long-term disability benefits paid at 100 percent of replacement of creditable compensation.
E. Long-term disability benefits shall be payable only during periods of (i) total disability or (ii) partial disability.
F. Unless otherwise directed, to be eligible for benefits under this section, the employee must apply for Social Security disability benefits.
G. An employee who is approved for disability benefits on or after the date that is five years prior to his normal retirement date shall be eligible for five years of disability benefits before the employee is required to retire under a service retirement. The five years includes short-term disability and long-term disability.
[ 2. That the provisions of this act shall not become effective unless an appropriation of at least $10.7 million to the State Police Officers Sickness and Disability Program Unfunded Liability Special Reserve Fund (for the Virginia Retirement System) is included in a general appropriation act passed in 2015 by the General Assembly that becomes law. ]
SENATE BILL NO. 738
Be it enacted by the General Assembly of Virginia:
1. That §§ 51.1-1103, 51.1-1110, and 51.1-1112 of the Code of Virginia are amended and reenacted as follows:
§ 51.1-1103. Participation in the program.
A. All prior elections to participate in the program shall be irrevocable.
B. 1. Except for eligible employees who are employed by an institution of higher education in a faculty position performing teaching, research or administrative duties, all eligible employees commencing employment or who are reemployed on or after January 1, 1999, shall participate in the program. The effective date of participation in the program for such employees shall be their first day of employment.
2. Except for (i) an employee as defined in § 51.1-201 or (ii) such employees of an institution of higher education, all eligible employees not participating in the program prior to October 1, 2002, shall participate in the program effective January 10, 2003, unless such employee elects not to participate in the program as provided herein. An election not to participate shall be in writing, and on forms prescribed by the Retirement System, and shall be received by the Retirement System during the period commencing on October 1, 2002, but before January 1, 2003. An election not to participate in the program shall be irrevocable and such employee shall be ineligible to participate in the program for the period of his continued employment by the Commonwealth except that any such employee who elects to participate in the hybrid retirement program described in § 51.1-169 shall participate in the program.
C. Any eligible employee who is employed by an institution of higher education in a faculty position performing teaching, research or administrative duties may elect to participate in the program established under this chapter or under an existing program provided by the institution. Any eligible employee who is (i) employed by an institution of higher education in a faculty position performing teaching, research or administrative duties prior to October 1, 2002, and (ii) not participating in the program, shall participate in the program established under this chapter effective January 10, 2003, unless such employee elects not to participate in the manner provided in subdivision B 2. Any eligible employee of an institution of higher education in a faculty position performing teaching, research or administrative duties employed or reemployed on or after October 1, 2002, shall participate in the program unless such employee elects not to participate in the program, in writing and on such forms as prescribed by the Retirement System, within 60 days from the time of entry upon the performance of his duties. The effective date of participation in the program for such employee shall be the first day following the expiration of such 60-day period or January 10, 2003, whichever is later.
Any eligible employee under this subsection shall participate in the sickness and disability program established by his institution of higher education until such time as the employee participates in the program established under this chapter. If the institution of higher education has not established its own sickness and disability program, such eligible employee shall participate in the program established under this chapter effective on his first day of employment.
An election not to participate in the program established under this chapter shall be irrevocable and such employee shall be ineligible to participate in the program for the period of his continued employment by the Commonwealth.
D. 1. All eligible employees who are employees as defined by § 51.1-201 and who are not participating in the program as of September 30, 2015, may elect to participate in the program. Any election to participate shall be in writing, on forms prescribed by the Virginia Retirement System, and shall be received by the Retirement System during the period commencing October 1, 2015, but before January 1, 2016. The election to participate shall be irrevocable. The effective date of participation in the program for such employee shall be the first day of the pay period following the delivery of the notice of the election to the Retirement System.
2. An eligible employee who elects to participate in the program pursuant to subdivision 1 shall convert his sick leave balance as of the effective date of coverage to service credit under the Retirement System on the basis of one month of service for each 173 hours of sick leave, rounded to the next highest month.
E. Notwithstanding any provision to the contrary, no
participating employee commencing employment or reemployment on or after July
1, 2009, shall receive benefits under Article 3 of this
Chapter (Nonwork Related Disability Benefits) (§ 51.1-1109 et seq.) until
the participating employee completes one continuous year of active employment
or reemployment.
E. F. The provisions of this
subsection shall apply to any eligible employee who participates in the program
under the provisions of subdivision B 2 or subsection C. Any eligible employee,
including a person employed by an institution of higher education in a faculty
position performing teaching, research or administrative duties, who (i) is a member
of the Retirement System, and (ii) commenced employment or was reemployed prior
to January 1, 1999, shall have his sick leave balances, as of the effective
date of coverage in the program, converted to disability credits, as provided
in subsection F G.
F. G. Any
eligible employee converting his sick leave balance as provided in subsection E F
shall receive one hour of disability credit for each hour of sick leave.
Disability credits shall be used to continue periods for which the
participating employee receives income replacement during periods of short-term
and long-term disability at 100 percent of creditable compensation. Disability
credits shall be reduced by one day for each day that the participating
employee receives short-term or long-term disability benefits.
G. H. Upon
retiring directly from state service and receiving an immediate annuity, the
eligible employee's unused disability credits shall be converted to service
credit under the Retirement System at the rate of one month of service for each
173 hours of disability credits, rounded to the next highest month, unless the
employee elects to be paid for the balance of such disability credits under the
same terms and subject to the same conditions as are in effect for the payment
of sick leave benefits in the employee's agency on December 31, 1998. Upon
leaving state service under any other circumstances, the employee shall be paid
for the balance of such disability credits under the same terms and subject to
the same conditions as are in effect for the payment of sick leave benefits in
the employee's agency on December 31, 1998, unless he elects to have such
credits converted to service credit under the Retirement System at the rate of
one month of service for each 173 hours of disability credits, rounded to the
next highest month. Upon entry into long-term disability, the employee may be
paid for the balance of such disability credits under the same terms and
subject to the same conditions in effect for payment of sick leave benefits in
the employee's agency as of December 31, 1998.
H. I. Eligibility for
participation in the program shall terminate upon the earliest to occur of an
employee's (i) termination of employment, (ii) death, or (iii) retirement from
service. Eligibility for participation in the program shall be suspended during
periods that an employee is placed on nonpay status, including leave without
pay, if such nonpay status is due to suspension pending investigation or
outcome of employment-related court or disciplinary action.
§ 51.1-1110. Short-term disability benefit.
A. Except as provided in subsection D E of § 51.1-1103, short-term
disability benefits for participating employees shall commence upon the
expiration of a seven-calendar-day waiting period. The waiting period shall
commence the first day of a disability or of maternity leave. If an employee
returns to work for one day or less during the seven-calendar-day waiting
period but cannot continue to work, the periods worked shall not be considered
to have interrupted the seven-calendar-day waiting period. Additionally, the
seven-calendar-day waiting period shall not be considered to be interrupted if
the employee works 20 hours or less during the waiting period. Short-term
disability benefits payable as the result of a catastrophic disability or major
chronic condition shall not require a waiting period.
B. Except as provided in subsections C and E of this section and § 51.1-1131, short-term disability coverage shall provide income replacement for a percentage of a participating employee's creditable compensation during the period specified below that an employee is disabled, on maternity leave, or takes periodic absences due to a major chronic condition, as determined by the Board or its designee, based on the number of months of state service as an eligible employee, as follows:
Work days of 100% Work days of 80% Work days of 60%
replacement replacement replacement
Months of of creditable of creditable of creditable
state service compensation compensation compensation
Less than 60 5 20 100
60 to 119 25 25 75
120 to 179 25 50 50
180 or more 25 75 25
C. For all eligible employees commencing employment or reemployment on or after July 1, 2009, except as provided in subsections B and E of this section and § 51.1-1131, short-term disability coverage shall provide income replacement for (i) 60 percent of a participating employee's creditable compensation for the first 60 months of continuous state service after employment or reemployment and (ii) thereafter, a percentage of a participating employee's creditable compensation during the periods that he is disabled, on maternity leave, or takes periodic absences due to a major chronic condition, based on the number of months of continuous state service, as determined by the Board or its designee, as follows:
Work days of 100% Work days of 80% Work days of 60%
replacement replacement replacement
Months of of creditable of creditable of creditable
state service compensation compensation compensation
60 to 119 25 25 75
120 to 179 25 50 50
180 or more 25 75 25
D. Creditable compensation during periods an employee receives short-term disability benefits shall include general salary increases awarded during the period of short-term disability coverage.
E. An employee's disability credits may be used, on a day for day basis, to extend the period an employee receives short-term disability benefits paid at 100 percent of replacement of creditable compensation.
F. Short-term disability benefits shall be payable only during periods of (i) total disability, (ii) partial disability, (iii) maternity leave, or (iv) periodic absences due to a major chronic condition as defined by the Board or its designee.
§ 51.1-1112. Long-term disability benefit.
A. Except as provided in subsection D E of § 51.1-1103, long-term disability
benefits for participating employees shall commence upon the expiration of the
maximum period for which the participating employee is eligible to receive
short-term disability benefits under § 51.1-1110.
B. Except as provided in subsection D and § 51.1-1131, long-term disability benefits shall provide income replacement in an amount equal to 60 percent of a participating employee's creditable compensation.
C. Creditable compensation during periods an employee receives long-term disability benefits shall (i) not include salary increases awarded during the period covered by long-term disability benefits and (ii) be increased annually by an amount recommended by the actuary of the Virginia Sickness and Disability Program and approved by the Board.
D. An employee's disability credits shall be used, on a day-for-day basis, to extend the period an employee receives long-term disability benefits paid at 100 percent of replacement of creditable compensation.
E. Long-term disability benefits shall be payable only during periods of (i) total disability or (ii) partial disability.
F. Unless otherwise directed, to be eligible for benefits under this section, the employee must apply for Social Security disability benefits.
G. An employee who is approved for disability benefits on or after the date that is five years prior to his normal retirement date shall be eligible for five years of disability benefits before the employee is required to retire under a service retirement. The five years includes short-term disability and long-term disability.