PDS

1

Virginia Retirement System
2
VRS 2003 Legislation

• 16 bills were passed by the General Assembly and
  signed by Governor Warner that have an effect on
  the VRS

3
VRS 2003 Legislation

• Senate Bill 857
• Allows the VRS to recover expenses relating to
  the administration of ancillary programs outside
  the benefit plan
• Ensures compliance with IRS regulations relating
  to administrative expenses
• Allows the VRS to charge and collect from
  participating employers any penalties, interest,
  compliance fees, or other charges charged to the
  Retirement System by the Internal Revenue Service
  or other regulatory body
• VRS requested this legislative change

4
VRS 2003 Legislation

• House Bill 2116
• Conforms Title 51.1 to federal rules related to
  plan-to-plan transfers
• VRS requested this legislative change

5
VRS 2003 Legislation

• House Bill 2556
• Provides mechanism for continuing benefits to
  employees of an employer that becomes ineligible
  for participation when there is a replacement
  employer available
• Resolves a long standing problem related to the
  privatization of a home for the elderly indigent
  and provides direction for future occurrences

6
VRS 2003 Legislation

• House Bill 1717
• Codifies the policy of the VRS Board of Trustees
  and conforms Title 51.1 to federal law related to
  members who take military leave and return to
  their covered positions beyond the cessation of
  hostilities
• VRS requested this legislative change

7
VRS 2003 Legislation

• House Bill 2122
• Allows school superintendents with at least 5
  years of service to purchase an additional 10
  years of out of state service
• These 10 years of service are in addition to the
  4 years currently allowed
• To be eligible, the superintendent may not be
  eligible for an out of state benefit

8
VRS 2003 Legislation

• House Bill 2122 (Continued)
• Cost of this service, if purchased within one
  year of becoming eligible, is 10 of the current
  annual salary
• If purchase occurs after the first year of
  eligibility, the cost for these additional years
  of service will be actuarial cost
• The superintendent or his employer may purchase
  this additional service time

9
VRS 2003 Legislation

• House Bill 2122 (Continued)
• Superintendent must remain employed in the school
  district where the service was purchased for a
  period equal to the number of months purchased
• If the superintendent does not remain employed in
  that school district for the same number of
  months for which service was purchased, the
  service is removed from the superintendents
  record and the contributions for service are
  returned

10
VRS 2003 Legislation

• House Bill 2487
• Advance Pension Option
• Allows a temporary increase in the retirement
  benefit
• Benefit decreases at 62 years or older and cannot
  reduce more than 50
• Cost of Living Allowance (COLAs) will be
  calculated on the basic benefit

11
VRS 2003 Legislation

• House Bill 2620
• Removes the cap on the health insurance premium
  credit for state employees
• Legislation must be reenacted by the 2004 General
  Assembly to become effective

12
VRS 2003 Legislation

• House Bill 1038
• Removes the reference to non-monetary perquisites
  in the definition of creditable compensation
• Clarifies that creditable compensation is the
  salary paid to a member for their covered
  position
• VRS requested this legislative change

13
VRS 2003 Legislation

• Senate Bill 905
• Changes the basis for post retirement life
  insurance coverage for retirees with more than 25
  years of coverage under the group life insurance
  program from the final salary earned to the
  highest salary earned over their career
• Legislation applies to those who retired on or
  after July 1, 1999

14
VRS 2003 Legislation

• House Bill 1791
• Changes the eligibility for post retirement life
  insurance coverage from 5 consecutive years of
  service to five years of service that may be
  non-consecutive
• VRS requested this legislative change

15
VRS 2003 Legislation

• House Bill 1622
• Codifies the policy of the VRS Board of Trustees
  and clarifies that military disability payments
  that are part of a regular military retirement
  benefit do not offset payments for long term
  disability

16
VRS 2003 Legislation

• House Bill 2053
• Clarifies that the cost of living adjustment to
  long term disability benefits will be determined
  by the Virginia Sickness and Disability Program
  (VSDP) actuary
• VRS requested this legislative change

17
VRS 2003 Legislation

• Senate Bill 849
• Allows colleges and universities to establish
  local optional retirement plans for faculty
• No longer requires colleges and universities to
  cover eligible employees under the optional
  retirement plan administered by the VRS
• Local optional retirement plans must adhere to
  guidelines established by the VRS

18
VRS 2003 Legislation

• House Bill 1986
• Limits the liability of the VRS for any
  investment losses incurred by participants in
  defined contribution plans
• VRS requested this legislative change

19
VRS 2003 Legislation

• Senate Bill 812
• Allows retired state police officers at least 60
  years of age to return to work without forfeiting
  their retirement benefit
• If approved by the IRS, allows a retired officer
  age 55 to 59 years to return to work without
  forfeiting their retirement benefit
• May return to work for 1 year, extendable for 1
  additional year with approval from the Secretary
  of Public Safety

20
VRS 2003 Legislation

• House Bill 2438
• Changes the period of time that a teacher working
  after retirement can teach from a single year to
  multiple one year periods

21
VRS 2003 Legislation

• Implementation Plans have been developed by the
  VRS Product Administrators and teams are
  currently working to have legislative changes
  implemented by mid-June
• All legislative actions are effective
• July 1, 2003

22
VRS 2003 Legislation

• VRS Studies
• Special Pay Plan
• Appropriations Act
• Deposit annual and sick leave pay into tax
  deferred account
• VSDP
• House Appropriations Committee
• Extend VSDP to political subdivisions

23
VRS 2003 Legislation

• Questions