51.1-142.3 - Purchase of additional prior service credit by certain school division superintendents.
§ 51.1-142.3. Purchase of additional prior service credit by certain schooldivision superintendents.
A. In addition to the four years of prior service credit that may bepurchased under clause (ii) of subdivision B 1 of § 51.1-142.2, a schooldivision superintendent appointed by a school board pursuant to § 22.1-60,with at least five years of creditable service in the Retirement System, maypurchase up to a maximum of 10 additional years of prior service credit forcreditable service of another state or of a political subdivision, or publicschool system of this or another state, as certified by such state, politicalsubdivision, or public school system. Except as otherwise required by Chapter1223 of Title 10 of the United States Code, the service credit made availableunder this section may not be purchased if, before being purchased or at thetime of such purchase pursuant to this section, the service to be purchasedis service that is included in the calculation of any retirement allowancereceived or to be received by the member from this or any other retirementsystem.
The school board that has appointed such school division superintendent maypurchase such prior service credit on behalf of the school divisionsuperintendent.
B. The cost at the time of purchase for each additional year of servicecredit (or portion thereof) pursuant to this section, shall be 10 percent ofthe school division superintendent's creditable compensation or 10 percent ofthe school division superintendent's average final compensation, whichever isgreater, provided that the service credit to be purchased is paid for in onelump-sum payment within one year after the school division superintendentfirst became eligible to purchase such service credit or by July 1, 2004,whichever is later.
A school division superintendent shall first become eligible to purchaseprior service credit under this section as follows:
1. For members in service on June 30, 2003, and July 1, 2003, upon attainingfive years of creditable service as a school division superintendent in theRetirement System;
2. For members in service on June 30, 2003, and July 1, 2003, who become aschool division superintendent on or after July 1, 2003, upon attaining fiveyears of creditable service as a school division superintendent in theRetirement System; and
3. For members not in service on June 30, 2003, upon the member earning fiveyears of creditable service as a school division superintendent in theRetirement System for service performed after June 30, 2003.
C. In any case in which prior service credit pursuant to this section hasbeen purchased by or on behalf of a school division superintendent, if theschool division superintendent, subsequent to the date of such purchase, doesnot remain in such position with the local school board for at least thenumber of years purchased: (i) the Retirement System shall reduce thecreditable service credited to the school division superintendent by anamount equivalent to the number of years of prior service purchased less thenumber of years served by the person as a school division superintendent withthe local school board subsequent to the date of such purchase. Suchreduction in creditable service shall be deemed to be forfeited by the schooldivision superintendent for purposes of this chapter and the contributionsrepresenting that forfeited service shall be refunded to the school divisionsuperintendent; and (ii) the school division superintendent shall be liableto the local school board for the amount paid by the local school board forpurchasing the forfeited prior service credit.
D. If a school division superintendent does not purchase the prior servicecredit described in subsection A within the timeframe provided in subsectionB, such prior service credit may be purchased at the actuarial equivalentcost, provided that in no case shall any person purchase more than 10 yearsof such prior service credit under this section.
(2003, c. 947.)