TITLE 51.1. PENSIONS, BENEFITS, AND RETIREMENT.

§§ 51.1-126.5 and 51.1-126.6 amended.
Retirement; defined contribution plan. Eliminates (i) the requirement that withdrawals from the plan must be made within 90 days of termination by participating political appointees and (ii) the requirement that newly hired school superintendents must make their elections to participate in the plan within 30 days of being hired. SB 176; CH. 668.

§§ 51.1-138, 51.1-205, 51.1-216, and 51.1-217 amended.
Virginia Retirement System; retirement benefits for law- enforcement employees. Clarifies (i) that the enhanced retirement benefits for a law-enforcement employee are available only after the employee has earned five or more years of creditable service in a law-enforcement position and (ii) that a retired law-enforcement officer cannot return to work as a law-enforcement officer and then choose to retire with different retirement benefits, unless he returns to work for at least five years. The bill also conforms the death in service benefits for local law-enforcement and fire employees with those provided to state law-enforcement employees. SB 565; CH. 466.

§ 51.1-144 amended.
Virginia Retirement System; employer payment of member contributions. Increases from three years to six years (or for such other period of time as approved by VRS upon request) the period of time within which employers choosing to pay a portion of members' contributions must begin paying the entire amount of members' contributions. HB 26; CH. 307.

§ 51.1-155 amended.
Retirement; teachers. Changes the conditions under which retired teachers are permitted to return to teaching without interrupting their retirement benefits by (i) permitting such even if the retiree is receiving retirement benefits from an early retirement incentive program, (ii) specifying that such retirees must have been receiving retirement benefits for a period of at least 30 days before returning to a teaching position, and (iii) requiring that the teacher be hired pursuant to a contract that does not exceed one year in duration. Current law (a) prohibits such continuation of retirement benefits if any portion of the retirement benefits is based on an early retirement incentive program, (b) directs the Joint Legislative and Audit Review Commission and the Board of Trustees of the Virginia Retirement System to determine the period of time for eligibility that a retiree must have received retirement benefits before returning to teach; and (c) does not specify the duration of the teacher's contract. The provisions of the bill are made subject to the receipt of a written ruling from the Internal Revenue Service that affirmatively states that the provisions of the bill will not in any way adversely affect the qualified plan status of the Virginia Retirement System under federal law. HB 1137; CH. 778 (effective - see bill)/HB 1320; CH. 781 (effective - see bill).

§§ 51.1-162, 51.1-207, 51.1-218, 51.1-505, 51.1-505.01, and 51.1-511 amended.
Virginia Retirement System; payment of life insurance and retirement benefits. Makes technical changes to the life insurance and retirement programs administered by the Virginia Retirement System. HB 80; CH. 313.

§ 51.1-165.01 amended.
Virginia Retirement System; partial lump-sum payment option. Provides that lump-sum distributions of retirement benefits, elected by certain eligible retirees under VRS, shall be paid without regard to limitations on the annual benefit amount that can be received under VRS. The bill also provides that no member of VRS may make an election for a lump-sum distribution more than once in his lifetime. HB 578; CH. 404.

§ 51.1-168 amended; § 51.1-126.8 added.
Pensions; Virginia Retirement System. Makes technical changes to the retirement plans administered by the Virginia Retirement System to comply with federal tax and pension laws. SB 121; CH. 435.

§§ 51.1-600, 51.1-601, 51.1-604, and 51.1-605 amended; §§ 51.1-607 through 51.1-613 added; § 51.1-606 repealed.
Virginia Retirement System; deferred compensation plan and cash match plan. Makes numerous technical amendments to the Government Employees' Deferred Compensation Plan and creates a new, separate chapter for state and local cash match plans. HB 71; CH. 311.

§§ 51.1-1103, 51.1-1106, and 51.1-1140 amended; § 51.1-1135.2 added.
Virginia Sickness and Disability Program. Enrolls certain state employees into the Virginia Sickness and Disability Program (VSDP) unless such employees opt not to be enrolled. Members of the Virginia Retirement System, the State Police Officers' Retirement System, the Virginia Law Officers' Retirement System, certain part-time employees of the Commonwealth, and employees of higher education participating in the Retirement System, who are not already participating in the program, will be automatically enrolled into the VSDP unless such persons provide written notice to VRS of their decision not to participate. In general, the opt-out period will run from October 1, 2002, through December 31, 2002, and VSDP coverage will be effective January 10, 2003. Employees of higher education commencing employment on or after October 1, 2002, who are employed in a faculty position performing teaching, research or administrative duties, who elect to participate in VRS for their pension plan, have 60 days to elect participation VSDP or the institution's sickness and disability program beginning with their first date of employment. Any person enrolled into the VSDP will have his sick leave balances converted to disability credits at the rate of one hour of disability credit for each hour of sick leave. The bill only applies to employees who currently are not participating in the VSDP; the bill does not affect employees who previously elected to enroll in the VSDP or who were enrolled by effect of law. The bill also authorizes VRS to provide a long-term care insurance program for members of the VSDP. HB 197; CH. 697/SB 120; CH. 663.

§§ 51.1-1203, 51.1-1205, 51.1-1206, 51.1-1207, and 51.1-1210 amended.
Volunteer Firefighters' and Rescue Squad Workers' Service Award Fund. Makes several changes to the Fund including (i) providing that general fund contributions made on behalf of members shall be distributed based upon the number of years of a member's service as a volunteer rescue squad member or firefighter; (ii) changing from 20 to 10 the years of service required for maximum distributions from the Fund; (iii) changing the cost to purchase prior service from $10 per month for every month purchased to an amount as established by the Volunteer Firefighters' and Rescue Squad Workers' Service Award Fund Board; and (iv) eliminating the requirement that prior eligible service be purchased within 180 days of the date of the establishment of the Fund. HB 1332; CH. 349.

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