CHAPTER 581

AN ACT to amend and reenact §§ 51-81, 51-47, 51-62, 51-82,
51-99 and 51-101 of the Code of 1950 relating, respectively,
to definitions under the Virginia Retirement System, prior
service credit, prior service credit certificates, rates of con-
tribution, service retirement benefits and disability retire-
ment benefits.

[ H 122 ]

Approved April 11, 1950

Be it enacted by the General Assembly of Vriginia:

1. That §§ 51-31, 51-47, 51-62, 51-82, 51-99 and 51-101 of the
Code of 1950 be amended and reenacted, as follows:

§ 51-31. Definitions—As used in this chapter unless a
different meaning is plainly required by the context:

(1) “Retirement system” means the Virginia Retirement
System provided for in § 51-32;
(2) “Board” means the board of trustees as provided by § 51-38;
(3) ‘Medical board” means the board of physicians provided for
in § 51-45;

(4) “Teacher” means any person who is regularly employed
on a salary basis as a professional or clerical employee of a
county, city or other local public school board;

(5) “State employee” means any person who is regularly
employed on a salary basis in the service of, and whose compen-
sation is payable, not oftener than semimonthly, in whole or in
part, by the Commonwealth or any department, institution or
agency thereof, except (a) an officer elected by popular vote or,
with the exception of the Auditor of Public Accounts and the
Director of the Division of Statutory Research and Drafting, by
the General Assembly or either House thereof, (b) a county or
city treasurer, commissioner of the revenue, Commonwealth’s
attorney, clerk, sheriff, sergeant or constable, and a deputy or
employee of any such officer, and (c) any employee of a political
subdivision of the Commonwealth ;

(6) “Employee” means any teacher or State employee;

(7) “Employer” means Commonwealth, in the case of a
State employee, or, in the case of a teacher, the local public school
board by which the salary is paid;

(8) “Member” means any person included in the member-
ship of the retirement system as provided in §§ 51-46 to 51-49;

(9) “Service” means service as an employee;

(10) “Prior service’? means service as an employee ren-
dered prior to the date of establishment of the retirement system
for which credit is allowable under §§ 51-60 to 51-67, and any
other employment occurring prior to the date of establishment
of the retirement system for which credit is allowable under
such sections;

(11) “Membership service” means service as an employee
rendered while a member of the retirement system;

(12) “Creditable service’ means prior service plus mem-
bership service for which credit is allowable under § 51-65;

(13) “Beneficiary” means any person entitled to receive an
annuity, retirement allowance, or other benefit as provided by
this chapter ;

(14) “Regular interest’? means interest at such rate as is
fixed from time to time by the Board in accordance with § 51-78;

(15) “Accumulated contributions” means the sum of all
amounts deducted from the salary of a member, exclusive of
contributions against administrative expenses, and credited to
his individual account in the employee annuity savings fund, pro-
vided for in § 51-81, together with regular interest on such
amounts;

(16) “Earnable compensation” means the full compensa-
tion payable to an employee working the full working time for
his position, but compensation of more than two thousand dollars
per annum shall be considered as two thousand dollars per
annum under this chapter, and, in cases where compensation
includes maintenance or other perquisites, the Board shall fix the
value of that part of the compensation not paid in money; pro-
vided, however, that on and after July first, nineteen hundred
and fifty, compensation of more than three thousand six hundred
dollars per annum (except as to any person retired prior to such
date) shall be considered as three thousand six hundred dollars
per annum under this chapter, and, in cases where compensation
includes maintenance or other perquisites, the Board shall fix the
value of that part of the compensation not paid in money;

(17) “Average final compensation” means the average an-
nual earnable compensation of a member during his last jive
years of service or, if he should have less than five years of
service, his average annual earnable compensation during the
entire period of his service;

(18) “Employee annuity’ means annual payments for life
derived as provided in this chapter from the accumulated con-
tributions of a member;

(19) “Employee annuity reserve’ means the current value,
computed at regular interest upon the basis of such mortality
tables as shall be adopted by the Board, of all payments to be
made on account of an employee annuity, or benefit in lieu of
an employee annuity;

(20) “State annuity” means annual payments for life de-
rived as provided in this chapter from contributions made, and
any other money provided, by the Commonwealth or any other
contributor to the State annuity accumulation fund;

(21) “State annuity reserve” means the current value,
computed at regular interest upon the basis of such mortality
tables as shall be adopted by the Board of all payments to be
made on account of a State annuity;

(22) “Retirement allowance” means the employee annuity
plus the State annuity; and

(23) ‘Actuarial equivalent” means a benefit of equal value
when computed at regular interest upon the basis of the mortal-
ity tables adopted by the Board.

§ 51-47. Election not to be included in membership.— (1)
Any person who was an employee upon July first, nineteen
hundred and forty-two, and any person who was a teacher at any
time during the school year immediately preceding such date,
within the period of one hundred and fifty days next succeeding
such date and any person on leave from service at the time of
such date, within one hundred and fifty days next succeeding the
termination of such leave, may file with the Board, on forms
prescribed by it, a notice of his election not to be included in the
membership of the retirement system and a waiver of all present
and prospective benefits which would inure to him as a member,
and in such case the Board shall exclude him from membership.
Any employee so excluded, however, may thereafter become a
member by making application for membership to the Board, in
which case he shall be included in the membership, but no such
employee shall receive prior service credit unless he makes his
application for membership within one hundred and fifty days
after such date, or unless, in the case of a person on leave from
service on such date, he makes his application for membership
within one hundred and fifty days after the termination of such
leave; provided, however, the status of persons who were in the
armed forces of the United States on July first, nineteen hundred
forty-two shall be as declared by § 51-50.
*

* * * *

(3) Notwithstanding the provisions of the first paragraph
of this section, any person in active service as a teacher or State
employee who filed a notice of election not to be included in the
membership of the retirement system and in consequence was
excluded from membership in such system, and who has become
or may hereafter elect to become a member of the retirement
system on or before November one, nineteen hundred fifty, shall
receive prior service credit, provided he would be entitled to prior
service credit had he not filed the notice of election not to be
included in the membership of the retirement system.

§ 51-62. Prior service credit.—Subject to the above restric-
tions, and to such other rules and regulations as are prescribed
by the Board, the Board shall ascertain, as soon as practicable
after such statement is filed, the amount of prior service, if any,
to which each member is entitled. If a member is an employee
who was in service on, or a person who was a teacher during any
part of the school year next preceding, or a person who was on
leave from service on July first, nineteen hundred and forty-two,
and if such employee or person, in the case of a person who has
once elected not to become a member, has filed his application
for membership within one hundred and fifty days after such
date, or, in the case of a person on leave from service on such
date of establishment, within one hundred and fifty days afte.
the termination of such leave, the Board shall issue to such mem:
ber a prior service certificate certifying the length of service
rendered by him.

The Board shall also issue a prior service certificate to a mem:
ber who filed an election not to be included in membership of the
Virginia Retirement System but who subsequently meets the
conditions set forth in paragraph (8) of § 51-47 of this chapter

Any period or periods during which any such member ha:
been on leave from service shall not be counted in his prio)
service credit. The Board may issue prior service certificates tc
any other member who was an employee at any time during the
three-year period next preceding such date and who re-enter:
service within the three-year period next following such date.
The Board may likewise issue prior service certificates to
any other member who was a division superintendent of schools
or school teacher in the public schoo] system for at least thirty
years prior to July first, nineteen hundred forty-two, regardless
of when such prior service terminated.

In addition to any prior service credit certified on his prior
service certificate for service rendered as an employee, as that
term is defined in this chapter, a member shall also be entitled to
have certified on his prior service certificate, as a part of his
prior service credit, one year’s credit for each year prior to such
date during which he was regularly and continuously employed
by the Commonwealth, or by any department, institution or
agency thereof, and not compensated on a salary basis, regardless
of the method upon which he was compensated and of the in-
tervals at which his compensation was paid; provided that any
person who has been a continuous employee of the Department
of Highways since the establishment of the secondary system ot
State highways, and who was, at that time and prior thereto,
under employment by any county for work on any road which
became a part of such secondary system, shall be entitled to have
one year’s credit on his prior service certificate for each year he
was continuously so employed by such county; provided further
that whatever contributions are required to be made to entitle
the employee to such credits, shall be made by the Department
of Highways out of funds appropriated to that department.

Any person who has become a permanent employee of the
Department of Highways by reason of and at the time of the
acquisition of the Chesapeake Ferry properties by the Depart-
‘ment of Highways and who was formerly continuously employed
by the Department of Highways or by the Chesapeake Ferry
Corporation shall be entitled to one year of prior service credit
for each year so employed except that no prior service credit for
employment with the Chesapeake Ferry Corporation shall be
allowed prior to the date that the employee became covered by
the provisions of the Federal Social Security Act.

§ 51-82. Determining employee contributions.—Upon the
basis of such tables, for teachers and for State employees, re-
spectively, as the Board shall adopt, and regular interest, the
Board shall cause to be determined, for each member, the propor-
tion 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 regu-
lar interest until such age, upon computation will provide at such
age an annuity equal to one-one hundred sixtieth of his average
final compensation multiplied by the number of his years of
membership service; except that for the period or periods be-
ginning July one, nineteen hundred fifty, upon the basis of such
tables, for teachers and for State employees, respectively, as the
Board shall adopt, and regular interest, the Board shall cause to
be determined, for each member, the proportion of earnable com-
pensation which, when deducted from each payment of his pros-
pective 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 fortieth (1/140) of his average final
compensation multiplied by the number of his years of member-
Ship service. To this proportion shall be added not: exceeding
twenty-five ten-thousandths, as determined by the Board, to
cover the members’ contribution toward the expense of adminis-
tering 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 com-
puted for the age one year younger than his minimum service
retirement age.

§ 51-99. Service retirement allowance.—Upon retirement
as provided in the two preceding sections a member shall receive
a service retirement allowance which shall consist of:

(1) An employee annuity which shall be the actuarial
equivalent of his accumulated contributions at the time of his
retirement ;

(2) A State annuity of one-one hundred sixtieth of his
average final compensation multiplied by the number of his years
of membership service since he last became a member;

(214) Notwithstanding the provisions of paragraph (2)
above, upon retirement under this section and the two preceding
sections subsequent to June thirty, nineteen hundred fifty, in lieu
of the State annuity provided in paragraph (2) above the State
annuity shall be one-one hundred fortieth, (1/140) of his average
final compensation multiplied by the number of his years of
membership service since he last became a member;

(3) If the member has a prior service certificate in full
force and effect, an additional State annuity of one-eightieth of
his average final compensation multiplied by the number of years
of service certified on his prior service certificate. This paragraph
shall apply to annuity payments due and payable subsequent to
July first, nineteen hundred and forty-five, to members of the
Virginia Retirement System who hereafter retire, and to former
members of the Virginia Retirement System who have heretofore
retired, but no such retired former member of the Virginia
Retirement System shall be entitled to any increased payment
because of this paragraph for any period prior to July first,
nineteen hundred and forty-five.

(314) Notwithstanding the provisions of paragraph (38)
above, upon retirement under this section and the two preceding
sections subsequent to June thirty, nineteen hundred fifty if the
member has a prior service certificate in full force and effect in
lieu of the additional State annuity provided in paragraph (3)
above, the additional State annuity shall be one seventieth (1/70)
of his average final compensation multiplied by the number of
years of service certified on his prior service certificate.

(4) In the case of a teacher, if the member has a prior
service certificate in full force and effect, an additional State
annuity which shall be the actuarial equivalent of the aggregate
amount of all contributions made by him, or on his behalf, under
the provisions of Chapter 36 of the Code of 1919 as it existed
immediately prior to July first, nineteen hundred and forty-two,
as though such aggregate amount had been paid into the State
annuity accumulation fund on the date of establishment of the
retirement system and credited to the individual account of such
member at regular interest.

If a teacher retires after thirty years of creditable service
and prior to his attaining age sixty-five, in lieu of the State
annuity and the additional State annuities which he would have
received pursuant to this section had he remained in service until
attaining sixty-five years of age, he shall receive a State annuity
which shgll be the actuarial equivalent of such State annuity and
additional State annuities computed on the basis of his attained
age at the time of his retirement. In any event, however, a
teacher shall receive, upon retirement under any of the provisions
of the two preceding sections, a total State annuity which shall
be at least sufficient to provide, together with his employee an-
nuity, a service retirement allowance equal to the pension which
he would receive were he pensioned under the provisions of
Chapter 36 of the Code of 1919 as it existed immediately prior
to July first, nineteen hundred and forty-two, subject to the pro-
visions of the following paragraph.

In no event shall the total State annuity, in the case of any
employee who has a prior service certificate in full force and
effect at the time of his retirement, be more than sufficient to
provide, together with his employee annuity less any excess
which he may have accumulated pursuant to the provisions of
§ 51-84, a total service retirement allowance of more than one-
half of his average final compensation.

§ 51-101. Disability retirement allowance.—Upon retire-
ment on account of disability, a member shall receive a disability
retirement allowance which shall consist of:
(1) An employee annuity which shall be the actuarial equi-
valent of his accumulated contributions at the time of retire-
ment; and

(2) A State annuity which, together with his employee an-
nuity, shall provide a total disability retirement allowance equal
to one ninetieth of his average final compensation multiplied by
the number of years of his membership service at retirement,
plus one-ninetieth of his average final compensation multiplied
by the number of years of service certified on his prior service
certificate. If, however, such disability retirement allowance
does not exceed twenty-five per centum of his average final com-
pensation, the State annuity shall be in an amount sufficient to
provide, together with his employee annuity a total retirement
allowance of twenty-five per centum of his average final com-
pensation, provided that in case of a teacher the State annuity
shall be in an amount at least sufficient to provide, together with
his employee annuity, a disability retirement allowance equal to
the pension which he would receive were he retired for disability
under the provisions of Chapter 36 of the Code of 1919 as it
existed immediately prior to July first ,nineteen hundred and
forty-two. This paragraph shall apply to annuity payments due
and payable subsequent to July first, nineteen hundred and forty-
five, to members of the Virginia Retirement System who retire
after such date, and to former members of the Virginia Retire-
ment System who have retired before such date, but no such
retired former member of the Virginia Retirement System shall
be entitled to any increased payment because of this paragraph
for any period prior to July first, nineteen hundred and forty-
five. In no event, however, shal] the disability retirement allow-
ance, in the case of any employee, exceed one-ninetieth of his
average final compensation multiplied by the number of years of
total service with which the member would be credited were his
service continued to his minimum age for his service retirement.

(214) Notwithstanding the provisions of paragraph 2)
above, upon retirement on account of disability subsequen: to
June thirty, nineteen hundred fifty, in lieu of the State annuity
provided in paragraph (2) above, a State annuity, which, to-
gether with his employee annuity, shall provide a total disability
retirement allowance equal to one-eightieth (1/80) of his average
final compensation multiplied by the number of years of his
membership service at retirement, plus one-eightieth (1/80) of
his average final compensation multiplied by the number of years
of service certified on his prior service certificate. If, however,
such disability retirement allowance does not exceed twenty-five
ner centum of his average final compensation, the State annuity
hall be in an amount sufficient to provide, together with his
employee annuity, a total retirement allowance of twenty-five
per centum of his average final compensation, provided that :n
case of a teacher the State annuity shall be in an amount at least
suficient to provide, together with his employee annuity, a dis-
ability retirement allowance equal to the pension which he would
receive were he retired for disability under the provisions of
Chapter 36 of the Code of 1919 as it existed immediately vrior
to July first, nineteen hundred and forty-two. In no event shall
the disability retirement allowance, in the case of any employee,
exceed one-eightieth of his average ‘final compensation multiplied
by the number of years of total service with which the inember
would be credited were his service continued to his minimum age
for service retirement.

2. These sections shall become effective on and after July one,
nineteen hundred fifty.