CHAPTER 211
An Act to amend and reenact § 51.1-155 of the Code of Virginia and to amend and reenact the fifth enactment of Chapters 689 and 700 of the Acts of Assembly of 2001, relating to the Virginia Retirement System; continuation of retirement benefits for retired teachers who resume teaching.
Approved March 16, 2003
Be it enacted by the General Assembly of Virginia:
1. That § 51.1-155 of the Code of Virginia is amended and reenacted as follows:
§ 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
thirty 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 thirty 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 of this subsection.
3. Early retirement; applicable to employees of certain political subdivisions.
- 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
thirty 30 or more years but the sum of his age at retirement plus his
creditable service at retirement is less than ninety 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 ninety
90 or more had he remained in service until such date. If the member has
less than thirty 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 thirty 30 years of creditable service and his then creditable
service plus his then attained age would have been equal to ninety or more.
The provisions of this subdivision shall apply to the employees of any political subdivision that participates in the retirement system. The participating political subdivision may, however, elect to provide its employees with the early retirement allowance set forth in subdivision 2 of this subsection. Any election pursuant to this subdivision shall be set forth in a legally adopted resolution.
4. Additional allowance. - In addition to the allowance payable under subdivisions 1, 2, and 3 of this subsection, 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 fifty-five 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 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 7 (§ 51.1-700 et seq.) of this title, 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. (Effective if contingency is met and expires July 1, 2006 - See note) 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's retirement allowance is based in whole or in part on service as a local school board instructional or administrative employee required to be licensed by the Board of Education; and
b. The person has been receiving such retirement allowance for a period of at
least thirty 30 days preceding his employment; 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; and
d. The person is hired pursuant to a contract that does not exceed one year in
duration; and
e. The person hired may only be employed for a single year period.
Nothing in this subdivision shall be construed to restrict the total number of years that any one person may participate under the provisions of this subdivision, provided that all applicable conditions are met.
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.
3. (Effective if contingency is not met and expires July 1, 2006 - See note) 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's retirement allowance is based in whole or in part on service as a local school board instructional or administrative employee required to be licensed by the Board of Education;
(b) The person has been receiving such retirement allowance for a certain period of time preceding his employment as provided by law;
(c) The person is not receiving a retirement benefit pursuant to an early retirement incentive program from any local school division within the Commonwealth; and
(d) 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.
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.
2. That the fifth enactment of Chapters 689 and 700 of the Acts of Assembly of 2001 is amended and reenacted as follows:
5. That the provisions of this act shall expire on July 1, 2006 2005.