Source: https://budget.lis.virginia.gov/amendment/2010/1/HB29/Introduced/FA/472.10/1h/
Timestamp: 2020-02-26 19:59:53
Document Index: 654143060

Matched Legal Cases: ['§ 51', '§ 51', '§ 51', '§ 51', '§ 51', '§ 51', '§ 51', '§ 51', '§ 51', '§ 51', '§ 51', '§ 2', '§ 2', '§ 3', '§ 3', '§ 3']

472.10#1h (CA) Transitional Retirement Benefit for Local Employees. HB29 - Floor Approved
Bill Order » Item 472.10 #1h
Item 472.10 #1h
Page 262, strike lines 27 through 54, and insert:
"F. The purpose of this paragraph is to provide a transitional retirement 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.
2.a. For purposes of this paragraph “eligible employee” shall mean any (i) “eligible employee” as defined in § 51.1-132, Code of Virginia, (ii) “teacher” as defined in § 51.1-124.3, Code of Virginia, and (iii) any “local officer” as defined in § 51.1.124.3, Code of Virginia, except for the treasurer, commissioner of the revenue, attorney for the Commonwealth, clerk of a circuit court, or sheriff of any county or city, and (a) for whom reemployment with his employer is not possible because there is no available position for which the employee is qualified or the position offered to the employee requires relocation or a reduction in salary and (b) whose involuntary separation was due to causes other than job performance or misconduct, (c) who is a vested member of the Virginia Retirement System, including a member eligible for the benefits described in subsection B of § 51.1-138, Code of Virginia, and at least 50 years of age, and (d) whose actual age and creditable service when combined with the added benefits provided by subparagraph 4 below qualify such member for retirement benefits under Chapter 1 of § 51.1, Code of Virginia, shall be eligible, under the conditions specified, for the transitional retirement benefit conferred by this paragraph. The date of involuntary separation shall mean the date an employee was terminated from employment or placed on leave without pay-layoff or equivalent status.
3.a. On his date of involuntary separation, an eligible employee with (i) two years' service or less to the employer shall be entitled to receive a transitional retirement benefit equivalent to four weeks of salary; (ii) three years through and including nine years of consecutive service to the employer shall be entitled to receive a transitional retirement benefit equivalent to four weeks of salary plus one additional week of salary for every year of service over two years; (iii) 10 years through and including 14 years of consecutive service to the employer shall be entitled to receive a transitional retirement benefit equivalent to 12 weeks of salary plus two additional weeks of salary for every year of service over nine years; or (iv) 15 years or more of consecutive service to the employer shall be entitled to receive a transitional retirement benefit equivalent to two weeks of salary for every year of service, not to exceed 36 weeks of salary.
4.a. The employer shall purchase on each eligible employee’s behalf years to be credited to either his age or creditable service or a combination of age and creditable service, except that any years of credit purchased on behalf of a member of the Virginia Retirement System, including a member eligible for the benefits described in subsection B of § 51.1-138, Code of Virginia, who is eligible for unreduced retirement shall be added to his creditable service and not his age. The cost of each year of age or creditable service purchased by the employer shall be equal to 15 percent of the employee's present annual compensation. The number of years of age or creditable service to be purchased by the employer shall be equal to the quotient obtained by dividing (i) the present value of the transitional retirement benefit as determined under subparagraphs 3.a. and 3.c. by (ii) the cost of each year of age or creditable service. Partial years shall be rounded up to the next highest year. Deferred retirement under the provisions of subsections C of §§ 51.1-153 and 51.1-205, Code of Virginia, and disability retirement under the provisions of § 51.1-156 et seq., Code of Virginia, shall not be available under this paragraph.
b. In lieu of the transitional retirement benefit provided in this subsection, any employee who is otherwise eligible may take immediate retirement pursuant to §§ 51.1-155.1 or 51.1-155.2, Code of Virginia.
c. The retirement allowance for any employee electing to retire under this paragraph who, by adding years to his age, is between ages 55 and 65, shall be reduced on the actuarial basis provided in subdivision A. 2. of § 51.1-155, Code of Virginia.
e. Costs associated with the provisions of this subparagraph shall be factored into the employer contribution rates paid to the Virginia Retirement System beginning with the June 30, 2011 actuarial evaluation."
Page 263, strike line 1 through 56.
Page 264, strike line 1 through 6.
(This amendment replaces language included in the introduced budget authorizing the provision of WTA benefits to employees of local school divisions and local governments who are subject to layoffs with language giving school boards and localities the option of offering transitional retirement benefit.)
Reversion Clearing Account - Employee Benefits Reversion (23300) -$61,758,944 -$87,203,333
-$156,280,736
General FY2009 -$61,758,944 FY2010 -$87,203,333
2. Retirement contribution rates for the first year, excluding the five percent employee portion, shall be: 8.81 percent for public school teachers, 6.23 percent for state employees, 20.05 percent for state police officers, 14.23 percent for the Virginia Law Officers Retirement System, and 34.51 percent for the Judicial Retirement System. Retirement contribution rates for the second year, excluding the five percent employee portion, shall be: 8.81 percent for public school teachers, 6.26 percent for state employees, 20.05 percent for state police officers, 14.23 percent for the Virginia Law Officers Retirement System, and 34.51 percent for the Judicial Retirement System.
3. Contribution rates paid on behalf of state employees to other programs administered by the VRS in the first year shall be: 0.82 percent for the public employee group life insurance program, 1.79 percent for the Virginia Sickness and Disability Program, and 1.18 percent for the state employee retiree health insurance credit. Contribution rates paid on behalf of state employees to other programs administered by the VRS in the second year shall be: 0.79 percent for the public employee group life insurance program, 1.00 percent for the Virginia Sickness and Disability Program, and 1.00 percent for the state employee retiree health insurance credit.
C.1. The Director of the Department of Planning and Budget shall withhold and transfer general fund amounts estimated at $15,339,402 the first year and $37,540,615 the second year from the appropriations of state agencies and institutions of higher learning to this Item, representing savings from changes in the contribution rates for state employee benefits as provided for in paragraph B of this Item.
D.1 Notwithstanding any provision to the contrary, any references to a period of 14 days or a period of 28 days in §§ 51.1-1111, -1112, -1122, and -1123 of the Virginia Sickness and Disability Program (VSDP) are hereby changed to a period of 45 days. Moreover, the period of 45 days shall be consecutive days that the participating employee is (i) actively at work and (ii) fully released to return to work full time, full duty. The Virginia Retirement System shall develop policies and procedures to administer the effects of the 45-day period in connection with participants who are deemed to have a major chronic condition.
2. Notwithstanding any provision to the contrary, any eligible employee commencing employment or re-employment on or after July 1, 2009, shall not be entitled to receive Virginia Sickness and Disability Program benefits under Article 3, Chapter 11 of Title 51.1 (Nonwork Related Disability Benefits) until the employee completes one continuous year of active employment or re-employment.
4. The Director of the Department of Planning and Budget shall withhold and transfer general fund amounts of $1,279,000 the second year from the appropriations of state agencies and institutions of higher learning to this item, representing savings from reduced expenditures for short-term disability benefits pursuant to the policy changes authorized in this item.
E. Notwithstanding the provisions of § 2.2-3205(A), Code of Virginia, the terminating agency shall not be required to pay the Virginia Retirement System (VRS) the costs of enhanced retirement benefits provided for in § 2.2-3204(A), Code of Virginia. Instead, the entire cost of such benefits for involuntarily separated employees shall be factored into the employer contribution rates paid to VRS beginning with the June 30, 2009 actuarial valuation.
F. 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.
G.1. Notwithstanding the provisions of paragraph B of this Item, beginning with the final five full pay periods of the second year, contribution rates paid on behalf of state employees for retirement, excluding the five percent employee portion, shall be suspended.
2. The Director, Department of Planning and Budget shall withhold and transfer to this Item, amounts estimated at $36,130,506 the second year from the general fund appropriations of state agencies and institutions of higher education, representing savings from the suspension of employer contributions for state employee retirement as provided for in this paragraph.
3. Pursuant to § 3-1.01 of this act, amounts estimated at $18,083,313 the second year shall be transferred from eligible nongeneral fund accounts to the general fund, representing the eligible nongeneral fund savings associated with the suspension of employer contributions for state employee retirement as provided for in this paragraph.
4. Savings associated with reductions in reimbursement to constitutional officers as a result of the state employee retirement rate suspension as provided for in this paragraph are reverted elsewhere in this act under the Compensation Board.
5. Notwithstanding the provisions of paragraph B of this Item, contributions paid by school divisions on behalf of public school teachers, excluding the five percent employee portion, shall be suspended effective April 1, 2010.
6. Savings associated with the public school teacher retirement rate suspension as provided for in this paragraph are reverted elsewhere in this act under Direct Aid to Public Education.
H.1. Notwithstanding the provisions of paragraph B of this Item, beginning with the final five full pay periods of the second year for state employees and effective April 1, 2010 for constitutional officers and public school teachers, contribution rates paid on behalf of employees for public employee group life insurance, the Virginia Sickness and Disability Program, state employee retiree health insurance credit, and the public school teacher retiree health insurance credit, shall be suspended.
2. The Director, Department of Planning and Budget shall withhold and transfer to this Item, amounts estimated at $13,167,093 the second year from the general fund appropriations of state agencies and institutions of higher education, representing savings from the suspension of the contribution rates for state employee benefits as provided for in this paragraph.
3. Pursuant to § 3-1.01 of this act, amounts estimated at $10,456,070 the second year shall be transferred from eligible nongeneral fund accounts to the general fund, representing the eligible nongeneral fund savings associated with the suspension of the contribution rates for state employee benefits as provided for in this paragraph.
4. Savings associated with reductions in reimbursement to constitutional officers as a result of the public employee group life rate suspension as provided for in this paragraph are reverted elsewhere in this act under the Compensation Board.
5. Savings associated with the public school teacher benefit rate suspensions as provided for in this paragraph are reverted elsewhere in this act under Direct Aid to Public Education.
I.1. Notwithstanding any other provisions of law, the State Comptroller shall suspend the transfer of the employer share of retirement contributions under all defined benefit plans administered by VRS for the final five paydays of fiscal year 2010. Additionally, the State Comptroller shall delay the transfer of the employee share of retirement contributions under all defined benefit plans administered by VRS for the same five paydays from fiscal year 2010 to fiscal year 2011. The transfer shall occur no later than July 10, 2010.
2. The Director, Department of Planning and Budget shall withhold and transfer to this Item, amounts estimated at $19,779,804 the second year from the general fund appropriations of state agencies and institutions of higher education, representing savings from the delay of payments as provided for in this paragraph.
3. Pursuant to § 3-1.01 of this act, amounts estimated at $12,766,677 the second year shall be transferred from eligible nongeneral fund accounts to the general fund, representing the eligible nongeneral fund savings associated with the delay of payments as provided for in this paragraph.