Source: https://budget.lis.virginia.gov/amendment/2016/1/HB29/Introduced/FA/467/1h/
Timestamp: 2020-05-26 21:41:12
Document Index: 195444304

Matched Legal Cases: ['§ 51', '§ 51', '§ 2', '§ 2', '§4', '§ 51', '§ 51', '§ 51', '§ 51', '§ 2', '§ 4', '§ 4', '§ 17']

467#1h (CA) Lump Sum Repayment to VRS. HB29 - Floor Approved
Bill Order » Item 467 #1h
Lump Sum Repayment to VRS
Item 467 #1h
Central Appropriations FY2015 $0 FY2016 $188,884,220 GF
Page 174, line 34, strike "$226,659,581" and insert "$415,543,801".
Page 184, after line 39, insert:
"Z. On or before June 30, 2016, the State Comptroller shall deposit $188,884,220 from the general fund into the Virginia Retirement System (VRS) trust fund representing the expedited repayment to the VRS for the contributions that were deferred during the 2010-12 biennium. $161,807,946 from the deposit shall be allocated to the state employee plan, $8,465,759 shall be allocated to the Judicial Retirement System, $16,491,559 shall be allocated to the Virginia Law Officers Retirement System, and $2,118,956 shall be allocated to the State Police Officers Retirement System."
(This amendment provides $188.9 million from the general fund to expedite the repayment to the VRS of the 2010-12 biennium deferred retirement contributions for the four state employee plans.)
Compensation and Benefit Adjustments (75700) $98,525,081 $228,923,535
$226,659,581
Adjustments to Employee Compensation (75701) FY2015 $0 FY2016 $85,746,009
Adjustments to Employee Benefits (75702) FY2015 $98,525,081 FY2016 $143,177,526
$140,913,572
General FY2015 $98,525,081 FY2016 $228,923,535
G.1. Out of the appropriation for this Item, amounts estimated at $22,997,759 the first year and $36,539,221 the second year from the general fund shall be transferred to state agencies and institutions of higher education to support the general fund portion of costs associated with changes in the employer's share of premiums paid for the Commonwealth's health benefit plans.
2. Out of the amounts included in subparagraph 1of this paragraph, $327,646 the first year and $341,891 the second year from the general fund shall be transferred to the University of Virginia to cover the state share of the increases in employer premiums for state employees participating in the University of Virginia's health care plan.
6. The Department of Human Resource Management is prohibited from establishing a retail maintenance network for maintenance drugs that includes penalties for non-use of the retail maintenance network.
7. The Department of Human Resource Management shall not increase the annual out-of-pocket maximum included in the plans above the limits in effect for the plan year which began on July 1, 2014.
2. Retirement contribution rates for the first year and the second year, excluding the five percent employee portion, shall be: 14.50 percent in the first year and 14.06 percent in the second year, for public school teachers, 12.33 percent for state employees, 25.82 percent for state police officers, 17.67 percent for the Virginia Law Officers Retirement System, and 51.66 percent the first year and 49.62 percent the second year for the Judicial Retirement System. These rates include both the regular contribution rate and the rate calculated by the Virginia Retirement System actuary for the 10-year payback of the retirement contribution payments deferred for the 2010-12 biennium.
4.a. Out of the general fund appropriation for this Item is included $71,597,876 the first year and $70,367,427 the second year to support the general fund portion of the net costs resulting from changes in employer contributions for state employee retirement as provided for in this paragraph.
b. Out of the amounts included in subparagraph 4.a of this paragraph, $23,374,502 the first year and $23,374,502 the second year is included for the 10-year payback of the retirement contribution payments deferred for the 2010-12 biennium.
I.1. Except as authorized in Paragraph I.2. of this Item, rates paid to the Virginia Retirement System on behalf of employees of participating (i) counties, (ii) cities, (iii) towns, (iv) local public school divisions (only to the extent that the employer contribution rate is not otherwise specified in this act), and (v) other political subdivisions shall be based on the higher of: a) the contribution rate in effect for FY 2012, or b) seventy percent of the results of the June 30, 2011 actuarial valuation of assets and liabilities as approved by the Virginia Retirement System Board of Trustees for the 2012-14 biennium, eighty percent of the results of the June 30, 2013 actuarial valuation of assets and liabilities as approved by the Virginia Retirement System Board of Trustees for the 2014-16 biennium, ninety percent of the results of the June 30, 2015 actuarial valuation of assets and liabilities as approved by the Virginia Retirement System Board of Trustees for the 2016-18 biennium, one-hundred percent of the results of the June 30, 2017 actuarial valuation of assets and liabilities as approved by the Virginia Retirement System Board of Trustees for the 2018-20 biennium.
2. Rates paid to the VRS on behalf of employees of participating (i) counties, (ii) cities, (iii) towns, (iv) local public school divisions (only to the extent that the employer contribution rate is not otherwise specified in this act), and (v) other political subdivisions may, at each participating employers option, be based on the employer contribution rates certified by the Virginia Retirement System Board of Trustees pursuant to § 51.1-145(I), Code of Virginia.
3. Every participating employer must certify to the board of the Virginia Retirement System by resolution adopted by its local governing body that it: has reviewed and understands the information provided by the Virginia Retirement System outlining the potential future fiscal implications of electing or not electing to utilize the employer contribution rates certified by the Virginia Retirement System Board of Trustees, as provided for in paragraph I.2.
4. Prior to electing to utilize the employer contribution rates certified by the Virginia Retirement System Board of Trustees, as authorized in paragraph I.2, local public school divisions must receive the concurrence of the local governing body. Such concurrence must be documented by a resolution of the governing body.
5. The board of the Virginia Retirement System shall provide all employers participating in the Virginia Retirement System with a summary of the implications inherent in the use of the employer contribution rates certified by the Virginia Retirement System (VRS) Board of Trustees set out in paragraph K.2, and the alternate employer contribution rates set out in paragraph I.1
K.1. Contribution rates paid to the Virginia Retirement System for other employee benefits to include the public employee group life insurance program, the Virginia Sickness and Disability Program, the state employee retiree health insurance credit, and the public school teacher retiree health insurance credit, shall be set at 90 percent of the rate based on a valuation of assets and liabilities that assume an investment return of seven percent and an amortization period of 30 years.
2. Contribution rates paid on behalf of public employees for other programs administered by the Virginia Retirement System in the first year and the second year shall be: 1.19 percent for the state employee group life insurance program, 0.48 percent for the employer share of the public school teacher group life insurance program, 1.05 percent for the state employee retiree health insurance credit, and 1.06 percent for the public school teacher retiree health insurance credit. The contribution rate paid on behalf of public employees for the Virginia Sickness and Disability Program shall be 0.66 percent of covered payroll. Funding for the Virginia Sickness and Disability Program is calculated on a rate of 0.56 percent of total payroll.
3. Out of the general fund appropriation for this Item is included $3,065,528 the first year and $3,065,528 the second year to support the general fund portion of the net costs resulting from changes in employer contributions for state employee benefits as provided for in this paragraph.
4. Out of the general fund appropriation for this Item is included $863,918 the first year and $863,918 the second year to support the general fund portion of the net costs resulting from changes in the retiree health insurance credit contributions for state supported local public employees through the Compensation Board, the Department of Social Services, and the Department of Elections pursuant to § 51.1-1403, Code of Virginia.
L. Notwithstanding the provisions of § 2.2-3205(A), Code of Virginia, the terminating agency shall not be required to pay the Virginia Retirement System the costs of enhanced retirement benefits provided for in § 2.2-3204(A), Code of Virginia for employees who are involuntarily separated from employment with the Commonwealth if the Director of the Department of Planning and Budget certifies that such action results from 1. budget reductions enacted in the Appropriation Act, 2. budget reductions executed in response to the withholding of appropriations by the Governor pursuant to §4-1.02 of the Act, 3. reorganization or reform actions taken by state agencies to increase efficiency of operations or improve service delivery provided such actions have been previously approved by the Governor, or 4. downsizing actions taken by state agencies as the result of the loss of federal or other grants, private donations, or other nongeneral fund revenue, and if the Director of the Department of Human Resource Management certifies that the action comports with personnel policy. Under these conditions, the entire cost of such benefits for involuntarily separated employees shall be factored into the employer contribution rates paid to the Virginia Retirement System.
M. The purpose of this paragraph is to provide a transitional severance benefit, under the conditions specified, to eligible city, county, school division or other political subdivision employees who are involuntarily separated from employment with their employer.
N. The final sentence of § 51.1-145 (N), Code of Virginia providing that the employer contribution rate established for each employer may include the annual rate of contribution payable by such employer with respect to employees enrolled in optional defined contribution retirement plans, shall not apply to optional defined retirement plans established under § 51.1-126 for employees engaged in teaching, administrative or research duties at institutions of higher education, § 51.1-126.1 for employees of teaching hospitals other than VCU and UVA Medical Centers, and § 51.1-126.3 for University of Virginia Medical Center employees.
O.1. The Governor is hereby authorized to allocate a sum of up to $113,912,441 from this appropriation to the extent necessary to offset any downward revisions of the general fund revenue estimate prepared for fiscal years 2015 and 2016 after the enactment by the General Assembly of the 2015 Appropriation Act. If within 5 days of the preliminary close of the fiscal year ending on June 30, 2015, the Comptroller's analysis does not determine that a revenue re-forecast is required pursuant to § 2.2-1503.3, Code of Virginia, then such appropriation shall be used only for employee compensation purposes as stated in paragraphs P., Q., R., S., T., and U. below.
2. Furthermore, the $52,865,368 allocated to support the state share of a one and one-half percent salary adjustment for SOQ funded positions authorized in Item 136 of this act shall be unallotted if the provisions of paragraph O.1. are not met and the actions authorized in paragraphs P., Q., R., S., T., and U. of this item are not effectuated.
P.1. Contingent on the provisions of paragraph O.1. above, the base salary of the following employees shall be increased by two percent on August 10, 2015, for state employees:
c. Any official whose salary is listed in § 4-6.01 of this act, subject to the ranges specified in the agency head salary levels in § 4-6.01 c; and
d. Full-time professional staff of the Governor's Office, the Lieutenant Governor's Office, the Attorney General's Office, Cabinet Secretaries Offices, including the Deputy Secretaries, the Virginia Liaison Office, and the Secretary of the Commonwealth's Office.
f. Full-time employees in the Legislative Department, other than officials elected by popular vote; and
g. Secretaries and administrative assistants as provided for in Item 1 of this act.
i. Heads of agencies in the Judicial Department; and,
j. Full-time employees in the Judicial Department.
k. Commissioners of the State Corporation Commission and the Virginia Workers' Compensation Commission, the Chief Executive Officer of the Virginia College Savings Plan, and the Directors of the Virginia Lottery, and the Virginia Retirement System;
3. The Department of Human Resource Management shall increase the minimum and maximum salary for each band within the Commonwealth's Classified Compensation Plan by two percent on August 10, 2015. The Department of Human Resource Management shall increase the maximum salary for each band within the Commonwealth's Classified Compensation Plan by two percent plus an additional $2,400 on August 10, 2015, for purposes of implementing the salary compression compensation adjustment authorized in paragraph Q. of this item. No salary increase shall be granted to any employee as a result of this action. The department shall develop policies and procedures to be used in instances where employees fall below the entry level for a job classification due to poor performance. Movement through the revised pay band shall be based on employee performance.
4. Out of the amounts for Supplements to Employee Compensation is included $37,847,008 the second year from the general fund to support the general fund portion of costs associated with the salary increase provided in this paragraph.
g. The Executive Director of the Virginia College Savings Plan; and
6. The base rates of pay, and related employee benefits, for wage employees may be increased by up to two percent no earlier than August 10, 2015. The cost of such increases for wage employees shall be borne by existing funds appropriated to each agency.
Q. Contingent on the provisions of paragraph O.1. above and subsequent to effectuating the salary adjustment authorized in paragraphs P. and T. of this item, the base salary of employees listed in P.1. above, except those specifically excluded in subparagraph Q.1, shall be adjusted to address state employee salary compression effective August 10, 2015 as follows:
1. Employees excluded from the compression adjustment include:
a) Faculty at public institutions of higher education;
b) Judges and Justices of the Judicial Department;
c) Commissioners of the State Corporation Commission;
d) Commissioners of the Virginia Workers' Compensation Commission;
e) Employees of public institutions of higher education who are not faculty but are also not subject to the Virginia Personnel Act;
f) Legislative Assistants who are employees of individual members of the General Assembly.
2. Sworn employees of the Department of State Police, who have three or more years of continuous state service shall receive $80 for each full year of service up to thirty years.
3. Except for those listed in subparagraph 2. above, employees who have five years or more of continuous state service shall be increased by $65 for each full year of service up to thirty years.
4. Employees in the Executive Department subject to the Virginia Personnel Act shall receive the salary increases authorized in this paragraph only if they attained at least a rating of "Contributor" on their latest performance evaluation.
5. The Department of Human Resource Management shall develop guidelines and procedures for implementation of this salary compression compensation adjustment.
6. Out of the appropriation Employee Compensation Supplements, $26,277,547 the second year from the general fund is included to support the general fund costs associated with the salary adjustment authorized in this paragraph.
R.1. Contingent on the provisions of paragraph O.1. above, the base salary of the following employees shall be increased by two percent on September 1, 2015:
a. Locally elected constitutional officers;
c. Full-time employees of locally elected constitutional officers and,
2. Out of the appropriation for Supplements to Employee Compensation is included $13,302,324 the second year from the general fund to support the costs associated with the salary increase provided in this paragraph.
S. Contingent on the provisions of paragraph O.1. above, $357,664 from the general fund is provided to support the general fund costs associated with increases in the internal service fund rates for the Virginia Information Technology Agency and the Department of General Services to reflect the impact of the salary actions authorized in paragraphs P and Q of this Item.
T.1. Contingent on the provisions of paragraph O.1. above, and pursuant to the recommendation of the state employee compensation work group established by paragraph B of Item 255, Chapter 806 of the Acts of Assembly of 2013, there is herewith appropriated a sum of $3,786,466 to be used exclusively for a two percent adjustment to the base salary of state employees in the following high turnover job roles effective August 10, 2015 for the purposes of relieving salary compression and maintaining market relevance:
a. Law Enforcement Officer I
b. Direct Service Associate I
c. Direct Service Associate II
d. Direct Service Associate III
e. Housekeeping and/or Apparel Worker I
f. Probation Officer Assistant
g. Emergency Coordinator I
h. Emergency Coordinator II
i. Registered Nurse I
j. Registered Nurse II/Nurse Practitioner I/Physician's Assistant
k. Licensed Practical Nurse
l. Therapy Assistant/Therapist I
m. Therapist II
n. Compliance / Safety Officer II
o. District Court Deputy Clerk, Grade 6
p. District Court Deputy Clerk, Grade 7
q. District Court Deputy Clerk, Grade 8
2.a Employees in the Executive Department subject to the Virginia Personnel Act shall receive the salary increases authorized in this paragraph only if they attained at least a rating of "Contributor" on their latest performance evaluation.
b. Salary increases authorized in this paragraph for employees in the Judicial and Legislative Departments, employees of Independent agencies, and employees of the Executive Department not subject to the Virginia Personnel Act shall be consistent with the provisions of this paragraph, as determined by the appointing or governing authority. The governing authorities of those agencies and state institutions of higher education with employees not subject to the Virginia Personnel Act shall certify to the Department of Human Resource Management that employees receiving the awards are performing at levels at least comparable to the eligible employees as set out in subparagraph 2.a. of this paragraph.
3. The salary increase authorized in this paragraph is intended to be in addition to any other salary increase authorized in this act.
U. Contingent on the provisions of subparagraph O.1. above, included in the amounts appropriated for employee benefits in this item is $32,341,432 from the general fund the second year to increase the employer retirement contribution rates authorized in paragraph H.2. of this item, effective August 10, 2015, up to ninety percent of the board certified rate for state employees (14.22%), state police officers (27.83%), members of the Virginia Law Officers Retirement System (19.00%), and members of the judicial retirement system (50.02%).
V. Out of the appropriation for this item, $3,675,000 the second year shall be transferred to the Department of State Police for salary supplements, subject to the approval by the Secretary of Public Safety and Homeland Security of a salary compression plan for fiscal year 2016. No funds shall be included within such plan for employees of the Department of State Police with less than three years of service as of July 1, 2015. The plan shall be implemented effective August 10, 2015 and the total annualized cost of the pay plan shall not exceed $4,410,000. No employee receiving an adjustment under this plan shall receive a salary adjustment pursuant to the funding provided in this paragraph of more than seven percent. Prior to the implementation of this plan, copies of the approved plan shall be provided to the Chairmen of the House Appropriations and Senate Finance Committees.
W. 1. Notwithstanding the provisions of § 17.1-327, Code of Virginia, any justice, judge, member of the State Corporation Commission, or member of the Virginia Workers' Compensation Commission who is retired under the Judicial Retirement System and who is temporarily recalled to service shall be reimbursed for actual expenses incurred during such service and shall be paid a per diem of $250 for each day the person actually sits, exclusive of travel time.
2. Out of the general fund appropriation for this Item, $500,000 is included in the second year to support the costs resulting from the changes in the per diem amounts provided for in paragraph W.1. The Director, Department of Planning and Budget, shall disburse funding from this Item to all affected judicial and independent agencies upon request.
X. The Director, Department of Planning and Budget, shall withhold and transfer to this Item, an amount estimated at $599,676 the second year from the general fund appropriations of state agencies and institutions of higher education, representing savings from the Line of Duty Act premiums provided by the Virginia Retirement System.
Y. The Director, Department of Planning and Budget, shall withhold and transfer to this Item, an amount estimated at $1,664,278 the second year from the general fund appropriations of state agencies and institutions of higher education, representing savings from the workers' compensation premiums provided by the Department of Human Resource Management.