CHAP. 80.—An ACT to amend the Virginia Retirement Act by adding thereto a new
section to be numbered 6-a, in relation to persons in the armed forces of the
United States; and to amend and re-enact Sections 10, 13 and 20 of the Vir-
ginia Retirement Act, in relation to withdrawal before retirement, and death
benefits ; employee annuity savings fund, and payroll deduction ; and collection of
State contributions, respectively. [H 206]

Approved February 28, 1944

Be it enacted by the General Assembly of Virginia:

1. That the Virginia Retirement Act be amended by adding thereto

a new section, numbered six-a, and that sections ten, thirteen, and twenty
of the said act be amended and re-enacted, which new section and said
amended and re-enacted sections shall read as follows:
_ Section 6-a. Persons in Armed Forces; Membership; Prior Service
Credit—Any person who was in the armed forces of the United States
on July first, nineteen hundred and forty-two, shall have one hundred
and fifty days from the time he re-enters the service of the State in which
to make application for membership so as to entitle him to receive prior
service credit, provided he re-enters the service of the State within five
years from July first, nineteen hundred and forty-two.

Section 10. Withdrawal Before Retirement ; Death Benefits.—Should
a member cease to be an employee, or if a member has ceased to be an
employee since the date of the establishment of the Virginia Retirement
System, otherwise than by death, or by retirement under the provisions
of this act, he shall be paid, on demand, or within thirty days thereafter,
the amount of his accumulated contributions. Should a member die at
any time before retirement, the amount of his accumulated contributions
shall be paid to such beneficiary, if any, as he shall have nominated by
written designation signed and acknowledged by such member before
some person authorized to take acknowledgment and filed with the Board,
otherwise to his executors or administrators. Any beneficiary so desig-
nated may be changed by the written designation of some other benefici-
ary, signed, acknowledged and filed as aforesaid. Any former member
who dies within thirty days after retirement shall be considered an active
member at the time of his death, and the benefits payable on his account
shall be disposed of pursuant to this section, nothwithstanding that he
may have received one or more payments on a retirement allowance, in
which case any sums so received shall be deducted from the benefits pay-
able under this section.

Section 13. I-mployee Annuity Savings Fund; Payroll Deduction.—
(a) The employee annuity savings fund shall be a fund in which shall
be accumulated contributions made from salaries of members under the
provisions of this section on account of employee annuities.
(b) Upon the basis of such tables, for teachers and for State em-
ployees, respectively, as the Board shall adopt and regular interest, the
Board shall cause to be determined, for each member, the proportion of
earnable compensation which, when deducted from each payment of his
prospective earnable annual compensation prior to his minimum service
retirement age and accumulated at regular interest until such age, upon
computation will provide at such age an annuity equal to one-one hundred
sixtieth (1/160) of his average final compensation multiplied by the num-
ber of his years of membership service. To this proportion shall be added
not exceeding twenty-five ten-thousandths (25/10,000), as determined
by the Board, to cover the members’ contribution toward the expense of
administering the retirement system, and the sum of these two items
shall be the proportion of salary contributable by the member. In the
case of any member who has attained his minimum service retirement
age prior to becoming a member, the proportion of salary applicable to
such a member shall be the proportion computed for the age one year
younger than his minimum service retirement age.

(c) The Board shall certify to the Comptroller in the case of all
State employees paid by warrants on the State Treasurer, or to the de-
partment, institution or agency by which the salary of any other State
employee is paid, or to the employer in the case of teachers, the propor-
tion so computed of the earnable compensation of each member, and the
Comptroller, department, institution, agency or employer, as the case may
be, shall cause to be deducted from the salary of each member on each
and every payroll for each and every payroll period the proportion of the
member’s earnable compensation so certified but in no case shall any
deduction be made for employee annuity purposes from the compensation
of a member who has attained his minimum service retirement age if such
member elects not to contribute, nor shall any such deduction in excess
of five per centum of the member’s earnable compensation be made if
such member elects not to contribute more than five per centum thereof.

(d) Each deduction provided for in this section, exclusive of the
member’s contribution towards administrative expenses, which shall be
credited to the expense fund, shall be credited, together with regular in-
terest thereon, to the individual account of the member from whose cony
pensation the deduction was made.

(e) In determining the amount earnable by a member in a payroll
period, the Board may consider the rate of compensation payable to such
member on the first dav of the payroll period as continuing throughout
such payroll period, and it may omit deduction from compensation for
any period less than a full payroll period if an employee was not a mem-
ber on the first day of the payroll period, and, to facilitate the making of
deductions, it may modify the deductions required as to any member by
an amount which shall not exceed one-tenth of one per centum of the
annual salary from which said deduction 1s to be made.

(f) The deductions provided for herein shall be made notwithstand-
ing that the minimum compensation provided by law for any member
shall be reduced thereby. I¢very member shall be deemed to consent and
agree to the deductions made as provided herein; and payment of salary
or compensation less said deductions shall be a full and complete dis-
charge of all claims for services rendered by such person during the
period covered by such payment, except as to benefits provided by this
act.

(g) Notwithstanding any other provision of this section, no deduc-
tion shall be made from any member’s salary if the State’s contribution
to the State annuity accumulation fund on his account is in default.

(h) In addition to deductions from salary as hereinbefore required,
any member may, subject to the approval of the Board, redeposit, in the
employee annuity savings fund, by a single payment or by an increased
rate of contribution, an amount equal to any amount which he may have
previously withdrawn therefrom as provided in this act, or any part of
any such amount; or any member may, subject to the approval of the
Board, deposit in the employee annuity savings fund, by a single payment
or by an increased rate of contribution, amounts for the purpose of an
additional employee annuity, but such additional payments shall not ex-
ceed the amounts computed to provide, with his prospective retirement
allowance, a total retirement allowance of one-half of his prospective aver-
age final compensation at his minimum service retirement age. Such ad-
ditional amounts so deposited shall become a part of his accumulated con-
tributions, except that in the case of disability retirement they shall be
treated as excess contributions returnable to the member in cash or as an
annuity of equivalent actuarial value and shall not be considered in com-
puting his State annuity. .

(i) The accumulated contributions of a member returned to him
upon withdrawal, or paid in the event of his death to his designated bene-
ficiary or to his executors or administrators, shall be paid from the em-
ployee annuity savings fund.

(j) Upon the retirement of a member, his accumulated contribution
shall be transferred from the employee annuity savings fund to the em-
ployee annuity reserve fund.

Section 20. Collection of State Contributions.—(a) At least thirty
days prior to each regular session of the General Assembly, the Board
shall certify to the Governor the respective amounts which will become
due and payable to the retirement system from the several funds in the
State treasury during the biennium next following. The amounts so
ascertained shall be included in the appropriation bill which is submitted
to the General Assembly.

(b) The Board shall certify the total of such amounts so ascertained
and appropriated for each year of the biennium to the Comptroller on or
before the beginning of each fiscal year; whereupon the Comptroller at
the beginning of each fiscal year shall transfer the amount so certified to
the State Annuity Accumulation Fund. At the end of each fiscal year
any amounts determined by the Board to be paid out of any special funds
under subsection (c) of section fifteen of this act shall be transferred by
the Comptroller from such special funds to the general fund.