51.1-126.5 - Defined contribution plan for eligible members.
§ 51.1-126.5. Defined contribution plan for eligible members.
A. As used in this section, unless the context requires otherwise:
"Eligible member" means a member who holds an eligible position.
"Eligible position" means a position designated in subdivision 3, 4, or 20of § 2.2-2905 or an officer or employee appointed by the Attorney General orLieutenant Governor to a position designated as a deputy, counsel or directorposition.
"Participating member" means an eligible member who elects to participatein the plan.
"Plan" means the defined contribution plan established pursuant to thissection.
B. The Board shall establish a plan covering any eligible member who electsto participate in the plan. The plan shall be in lieu of the serviceretirement allowance provided by the retirement system under § 51.1-155.Participating members shall be deemed to be members of the retirement systemto the extent consistent with the provisions of this section.
C. Any person who becomes an eligible member after July 1, 1998, shall electupon accepting an eligible position to participate in either (i) theretirement system or (ii) the plan. Such election shall be made in accordancewith guidelines established by the Virginia Retirement System.
D. Upon ceasing to be employed in an eligible position but continuing to bean employee of the Commonwealth, a participating member may elect to:
1. Maintain the accrued contributions and earnings in his definedcontribution account; or
2. Use the accrued contributions and earnings in his defined contributionaccount to purchase service credit in the retirement system as provided insubsection F.
E. After termination of employment, a participating member may withdraw theaccrued contributions and earnings from his defined contribution account,subject to applicable state and federal law and regulation.
F. Upon an election under subsection D by a participating member who hasceased to be employed in an eligible position, the accrued contributions andearnings in such electing person's defined contribution account shall be usedto purchase service credit in the retirement system at a rate to beestablished by the Board. Such rate shall cover the actuarial cost ofproviding the creditable service. If the account is less than the actuarialcost of the total time worked in the eligible position, the employee may usehis own funds to purchase the remaining time. In no event shall the amount ofservice credit purchased in the retirement system exceed the time that wasserved in an eligible position while participating in the plan. Any amount ofaccrued contributions and earnings in such electing person's definedcontribution account in excess of the amount required to purchase servicecredit in the retirement system for the time served in an eligible positionwhile participating in the plan shall be forfeited to the Virginia RetirementSystem.
G. The contribution by the Commonwealth to a participating member's definedcontribution account shall be determined by the Board of Trustees of theVirginia Retirement System in consultation with its actuary. Contributions tothe defined contribution account and all earnings thereon shall be creditedto an account to be maintained for each participating member. Contributionsby the Commonwealth to a participating member's defined contribution accountshall be in lieu of contributions to the retirement system required pursuantto § 51.1-145.
H. If a member of the optional retirement plan maintained under this sectionis at any time in service as an employee in a position covered for retirementpurposes under the provisions of this chapter, Chapter 2 (§ 51.1-200 etseq.), Chapter 2.1 (§ 51.1-211 et seq.), or Chapter 3 (§ 51.1-300 et seq.) ofthis title, his benefit payments under the optional retirement planmaintained under this section shall be suspended while so employed; provided,however, reemployment in such position shall have no effect on the paymentunder the optional retirement plan maintained under this section if thebenefits are being paid in an annuity form under a lifetime annuity contractpurchased with the member's account balance.
I. The Virginia Retirement System shall (i) develop policies and proceduresfor the administration of the plan and (ii) provide a program of educationand support for participating members.
(1998, c. 661; 1999, c. 111; 2001, c. 691; 2002, c. 668; 2004, c. 206; 2006,c. 639.)