CHAPTER 75

An Act to amend Chapter 64 of the Acts of Assembly of 1896, approved
January 16, 1896, which provided a charter for the city of Newport
News by adding thereto sections numbered 188 and 184 relating to
retirement funds.

[H 248]

Approved February 27, 1954
Be it enacted by the General Assembly of Virginia:

1. That Chapter 64 of the Acts of Assembly of 1896, approved January
16, 1896, be amended by adding thereto sections numbered 133 and 134
as follows:

§ 133. City of Newport News Employees’ Retirement Fund: |

The Retirement Fund for city employees, adopted by the Council of
the City of Newport News, on February 11, 1952, by “An Ordinance
creating an employees’ retirement fund for city employees; defining
terms; providing qualifications for membership in the fund; providing
for service credits; qualifying conditions for retirement, disability, death
benefits and refund payments; providing for contributions by employees
and by the city; providing for the administration of the funds and the
duties and powers of the board of trustees; and making such other pro-
visions as are necessary to effectuate the intents and purposes of this
ordinance’, operative as of February 11th, 1952, shall continue in force
and effect, as a new section of the charter of the City of Newport News
with the same force and effect as all other sections of the charter of the
City of Newport News.

The said City of Newport News Employees’ Retirement Fund shall

be as follows:
PART I. ESTABLISHMENT
§ 1. Name and Date Operative-—An Employees’ Retirement Fund
is hereby created, which shall be known as the City of Newport News
Employees’ Retirement Fund and shall become operative as of January 1,
1950, when contributions to the Fund shall begin.

Purpose.—The purpose of the Fund is to provide an orderly
means whereby employees of the City of Newport News who become
superannuated or otherwise incapacitated as the result of age or disability,
may be retired from active service without prejudice and without inflicting
a hardship upon the employees retired, and to enable such employees to
accumulate reserves for themselves and their dependents to provide for
old age, disability, death and termination of employment, thus affecting
economy and efficiency in the administration of the City government.

PART II. DEFINITIONS
§ 8. Words and phrases wherever used in this Act, unless a different
meaning is clearly indicated by the context shall have the following
meaning:
“Fund” shall mean the “City of Newport News Employees’ Retire-
ment Fund.”
“City” shall mean the City of Newport News. _

“City Council’ shall mean the City Council of Newport News,
Virginia.

“Employer” shall mean the City of Newport News, the Newport News
School Board, the Newport News Waterworks Commission, the Newport
News Public Library, Incorporated, and the elective officials of the City
of Newport News. The elective officials of the City of Newport News as
herein defined shall not include officers of the City elected by the City
Council. (Sept. 26, 1949). ;

“Board” shall mean the Board of Trustees provided for herein to
administer the Fund.

“Employee” shall mean any person now or hereinafter directly em-
ployed by an employer whose services are compensated in whole or in
part by an employer and who are employed on a permanent basis.

“Policeman” shall mean an officer in the police division but shall not
include clerical employees who are not sworn in as officers and shall not
include juvenile officers, probation officers, guards and watchmen who
have police powers but are members of other city divisions than the police

ivision.

“Fireman” shall mean a member of the Fire Division but shall not
include clerical employees who are not sworn-in firemen.

‘“‘Member” shall mean any employee included in the membership of
the Fund.

“Salary” shall mean the amount of compensation earned by a member
provided that the maximum amount of compensation to be considered for
various purposes of the Fund shall be $1,000 per month.

‘“‘Average Final Salary” shall mean the average annual rate of salary
for the last five years of service.

“Regular Interest”? shall mean interest at the rate fixed by the board
from time to time based upon the rate of income received on investments,
but such rate shall be not less than 2% nor more than 4% per annum.

PART III. MEMBERSHIP

§ 4. The following described employees shall be compulsorily in-
cluded as members of the Fund:

(a) All employees and officials, including firemen and policemen, and
custodial employees of the school board, who are employed by an employer
on a permanent basis, on or after January 1, 1950;

(b) All employees and officials, including firemen and policemen, and
custodial employees of the school board, in the service of an employer on
December 31, 1949, who are employed on a permanent basis.

Membership shall be optional in the case of the following:

(a) Elective officials of the City, including the Clerk of the Corpora-
tion and Circuit Courts of the City, who make written application to be
included as members within a period of 90 days from the operative date
if in service at such time or within 90 days from the date of taking office
if elected subsequent to such date.

(b) The Newport News Waterworks Commission, the Newport News
Public Library, Incorporated, and the elective officials herein defined as
employers, whether or not such elective officials personally become mem-
bers of the Fund, shall have the privilege of electing to provide member-
ship for their employees in this Fund by a resolution or petition filed with
the Board agreeing to abide by all of the duties and obligations imposed
upon an employer under the provisions of this Act.

The retirement of the Judge of the Corporation Court of Newport
News, Virginia, and the Judge of the Circuit Court of Newport News,
Virginia, shall be in accordance with §§ 5978a and 5978b of the Code of
Virginia, as amended, or hereafter amended.
§ 5. Exclusion from Membership.—The following employees of an
employer shall not be members of the Fund:

_ (a) Persons whose services are compensated on a contractual or fee
basis; seasonal or part time employees; and elective officials unless they
make application as herein provided.

(b) Members of the City Council shall not be members of the Fund.
(Sept. 26, 1949)

PART IV. RETIREMENT AND BENEFITS RESERVE

§ 6. Revenue.—There is hereby created a Retirement Reserve to
which shall be credited the following amounts of revenue:

(a) An amount to be contributed by the members to be deducted
from their salary by an employer at regular payroll periods, equal to six
per cent of salary in the case of all members. In the case of elective
officials and employees whose compensation is derived in its entirety from
fees, the officials concerned shall deduct the amount of contribution herein
provided from the compensation paid to such employees.

(b) An amount to be contributed by the City for service retirement
allowance, reversionary annuity and nonoccupational disability benefit,
equal to the present value of the liability for membership service of the
members, less the present value of the amounts contributed or to be con-
tributed under paragraph (a) above, according to the actuarial tables in
use by the Fund, such amount to be determined by the Board annually
and paid by the City concurrently with the contributions by the members,
except that the Waterworks Commission shall make the appropriate con-
tribution on account of its employees from its own funds.

(c) The annual amount to be contributed by the City for service
retirement allowance, reversionary annuity and non-occupational dis-
ability benefit, which will amortize the remaining prior service credit over
the remainder of the specified period determined by the Board for liquida-
tion of prior service liabilities, but not to exceed thirty-five years follow-
ing the operative date, except that the Waterworks Commission shall
make the required contribution on account of its employees from its own
funds, either in a lump sum or on an amortized basis as herein provided.

(d) The amounts required for occupational disability, occupational
death and non-occupational death benefits.

(e) All interest earned on investments made by the Fund; and

(f) All other miscellaneous income accruing to the Fund.

The Board shall certify annually to the City Council on or before
September 15th in each year, the amount necessary to meet the employer’s
prospective liabilities to the Fund for the following fiscal year. ;

§ 7. Expenditures.—All payments to members or their beneficiaries
on account of superannuation, disability, death or other cause made by
the Fund shall be charged to the Retirement Reserve.

PART V. CREDITABLE SERVICE

§ 8. Service Credits——Each member shall receive credit for service
rendered as an employee as follows:

(a) Prior service credit. Any employee in service on December 31,
1949 (including employees on approved leave of absence for military
service for the United States, or for sickness or other cause), shall be
entitled to credit for service rendered as an employee of an employer
prior to January 1, 1950, for which he shall have received salary from
the employer.

(b) Membership service. Each person becoming a member of the
Fund shall be entitled to credit as membership service for all service
rendered an employer on or after January 1, 1950, for which he shall
have received salary.

(c) Measure of service credit. In computing prior service credit or
membership service credit, 12 months of service shall constitute a year
and 15 days or more of service during any month shall constitute a month
of service.

§ 9. Military Service.—Prior service credit shall be allowed for
such time as a member shall have been in the service of the armed forces
of the United States during war, provided such member shall have been
an employee of an employer at the time of entry into military service by
enlistment or induction and shall re-enter or shall have re-entered the
service of an employer within a period of six months from the date of
termination of his military service.

Membership service shall be allowed for such time as a member shall
have been in the service of the armed forces of the United States by
enlistment or induction, in time of war, provided such member shall re-
enter the service of an employer within a period of six months from the
date of termination of his military service.

PART VI. BENEFITS

§ 10. On or after January 1, 1950, any member in active service may
retire at his option, upon or after attainment of the age of 60 years, or
the age of 55 years in the case of policemen and firemen, provided such
member has rendered at least 10 years of service. A member with 30 or
more years of creditable service may retire at his option before attaining
the minimum age retirement.

§ 11. Vesting of Service Retirement Allowance.—Any member who
shall withdraw from service prior to the attainment of the minimum age
of retirement specified in § 10, who shall have completed at least 20 years
of service, and shall not have received a withdrawal benefit, shall have
the right to receive a service retirement allowance beginning at the mini-
mum age of retirement of the amount earned at the date of withdrawal
from service.

§ 12. Compulsory Retirement.—On or after January 1, 1952, any
member except a policeman or fireman who shall have attained the age
of 68 years, or the age of 63 years if a policeman or fireman, shall be
retired, except that this provision shall not apply to elective officials and
officials appointed by the City Council. Upon written request of the
member and approval of the appropriate department head, the Board may
continue a member in service beyond the applicable age for compulsory
retirement.

Any member whose employment is terminated under the conditions
of this section and who has less than 10 years of total service shall
receive in lieu of a service retirement allowance, hereinafter described,
a refund of his total contributions to the Fund, without interest.

13. Service Retirement Allowance.—Upon retirement a member
shall be entitled to receive a service retirement allowance equal to one-
sixtieth of his average final salary for each year of service. Proportional
credit shall be granted for any fractional part of a year of service. The
maximum amount of allowance shall be sixty per cent of such average
final salary.

§ 14. Reversionary Annuity.—With the condition that this option
shall not become effective in the event a member dies within 30 days
after filing an application for a retirement allowance or before the first
payment of his allowance is due, a member may elect at the time of
retirement to take a lesser retirement allowance payable during his life-
time, with the proviso that upon his death his surviving spouse shall
receive a reversionary annuity as may be provided, according to the
actuarial tables in use by the Fund, from the remainder of his equity
as determined at the time of retirement. The reversionary annuity
resulting from such election shall not be less than one hundred twenty
dollars per year, nor more than the amount of reduced retirement allow-
ance to which the member may be entitled under his election. The amount
of reversionary annuity shall be that determined by the Board in accord-
ance with the written direction of the member. Any such reversionary
annuity shall begin as of the day following the date of death of the
member receiving a retirement allowance, provided that if the spouse
does not survive the member at the date of his death, no reversionary
annuity shall be payable under the provisions hereof, nor shall any change
be permitted by the Board in the written direction filed by the member
after the retirement allowance has been granted and has become effective.

§ 15. Occupational Disability Benefit—Upon disability of a mem-
ber arising out of and in the course of employment and occurring while
a member is under the age of 68, or under age of 63 in the case of a
policeman or fireman, and if such disability is of the type compensable
under “The Virginia Workmen’s Compensation Act,” a member shall be
entitled to receive a benefit equal to sixty per cent of his rate of compen-
sation at the date of disability, payable until his recovery or death, which-
ever applies. This benefit shall be subject to reduction by any amounts
received by the member as workmen’s compensation or salary under any
applicable rule or order.

§ 16. Nonoccupational Disability Benefits—Upon permanent and
total disability of a member arising from any cause other than occupa-
tional disability as defined in § 15, occuring while a member is under
the age of 60 years, or under the age of 55 years in the case of a police-
man or fireman, if such member shall have completed at least 10 years of
total service, he shall be entitled to a benefit equal to eighty-five per cent
of the amount of service retirement allowance to which such member
would be entitled on the basis of his total service, subject to a minimum
of twenty-five per cent of his average final salary in any case. This dis-
ability benefit shall continue until the member is able to return to work,
dies or attains the minimum age of retirement. Upon attainment of the
minimum age of retirement the service retirement allowance shall be
increased from 85 per cent to 100 per cent of such allowance. If dis-
ability occurs after the attainment of the foregoing ages, whichever
applies, the member shall be entitled to a service retirement allowance if
he shall have rendered the minimum period of service provided for the
receipt of such allowance. (May 9, 1949).

§ 17. The Board shall prescribe rules and regulations governing
the payment of the disability benefits herein provided, prescribing the
requirements for periodic investigations and medical examinations in the
interest of an effective and efficient administration of these benefits.

§ 18. Occupational Death Benefits—Upon death of a member aris-
ing out of and in the course of employment from a cause compensable
under “The Virginia Workmen’s Compensation Act,” a surviving widow
shall be entitled to a benefit equal to fifty per cent of the member’s final
rate of salary, payable during her widowhood. If there is no surviving
widow, or if the widow dies or remarries before any child of the deceased
member has attained age 18, the benefit shall be paid to the surviving
child or children until their attainment of age 18, death or marriage,
whichever event shall first occur. If there be no widow, child or children
under age 18, the benefit shall be payable to a dependent father or
mother, to continue for life. In case there are no total dependents a sum
equal to the nonoccupational death benefit as defined in § 19 shall be paid
the beneficiary or estate of the deceased member. This benefit shall be
subject to reduction by workmen’s compensation or by amounts otherwise
paid by the employer to the above survivors under any applicable rule
or order.

§ 19. Nonoccupation Death Benefits.—(a) Upon death of a mem-
ber while in active employment of the City, on vacation, on sick leave,
or in the case of school employes, on summer vacation, from any cause
other than occupational disability, the beneficiary designated by the
member, or the estate of the member if no such designation shall have
been made, shall be entitled to receive a death benefit consisting of: (1)
the accumulated contributions of the member of the Fund, including
regular interest; and (2) an amount payable from employer’s contribu-
tion equal to $500 for each full year of service of the member, subject
to a total of $3,000. In any case in which the service of the member has
been less than one year, the payment under (2) hereof shall be that pre-
scribed for one year of service.

(b) If the member and surviving spouse, or either or both, have
not received in the form of service retirement allowance or reversionary
annuity payments, prior to the death of the last survivor thereof, an
amount at least equal to the total contributions to the credit of the mem-
ber at the date of retirement, without interest, a refund of the remainder
of such contributions shall be payable to such person as he shall have
nominated by written direction duly acknowledged and filed with the
Board or to the estate of the member.

§ 20. Withdrawal Benefit—Any member who shall sever his em-
ployment with all employers included under this act shall be entitled to
a refund of his total contributions, without interest. Any member receiv-
ing a refund of contributions shall thereby waive, forfeit and relinquish
all accrued rights in the Fund including all accumulated creditable
service, provided that if any member who has withdrawn his contribu-
tions shal] re-enter the service of an employer and render at least three
years of service following his re-entry, he shall have the right to make
a repayment of the refund including regular interest for the period of
his absence from service of the employer, and thereby have restored to
him all his previous creditable service.

PART VII. ADMINISTRATION

§ 21. Board of Trustees.—The Fund shall be administered as a
trust for the exclusive benefit of the participating employees by a Board
of Trustees of seven (7) members consisting of three persons residing
in the City, appointed by the City Council, one of whom shall be the City
Manager and four members representing the employees, namely: one
member representing the policemen and firemen, one member represent-
ing the Waterworks Commission employees, one member representing the
employees of the Department of Public Works, and one member repre-
senting and elected by all other employees. In the occupational group
hereto listed as policemen and firemen, the Trustee may be elected for
the first term from either the police department or fire department. The
second term the Trustee must be elected from the department that was
not represented the first term. Thereafter, the Trustee for this group
shall be elected alternately from each department, beginning with the
department from which the Trustee was first elected. The members of
the police and fire departments shall have the right to vote in all elections
for the Trustee of this occupational group. Every employee trustee shall
be an employee of the City and shall be actively employed within the
group he represents. The first four employee trustees shall be named by
the City Council to serve until an election is held by the Board among
the employees of the respective groups to elect members of the Board.
This election shall be held within six months from the operative date. The
terms of office of the appointive members (except the City Manager)
shall be for two years except that the terms of the original appointees
shall be as follows: one appointee for one year and one appointee for two
years. The term of office of the employee trustees shall be for four years
except that the terms of the original elected members which shall be as
follows: one member for one year, one member for two years, one mem-
ber for three years and one member for four years. In case of a vacancy
occurring in an appointive membership, the City Council shall appoint
a successor for the unexpired term of the office so vacated; in the case of
a vacancy occurring in an elective membership (other than the original
members) such vacancy shall be filled at an election to be held among
the occupational group of employees represented by such member, which
election shall be held concurrently with regular annual election for mem-
bers of the Board of Trustees. The Board shall prescribe rules and regu-
lations for the conduct of the annual election for trustees. (September
26, 1949).

All trustees shall serve without compensation but shall be reim-
bursed for any expense incurred in connection with service as members
of the Board.

§ 22. Depositories——The moneys constituting the Fund being cre-
ated shall be deposited by the Treasurer in an account entitled “City of
Newport News Employees’ Retirement Fund” and shall be subject to the
laws and regulations that apply to other city funds as contained in
Chapter 15 of the Newport News City Code, 1950.

§ 28. Investments.—The reserves of the Fund shall be invested in
interest bearing bonds or other obligations of the United States or the
State of Virginia, or in general obligation bonds of any political sub-
division within the State of Virginia.

§ 24. Committee on Investments.—The Board of Trustees shall
nominate annually, for the approval of the City Council, a Committee on
Investments, consisting of three members, one of whom shall be the City
Manager, one a representative of the employees participating in the Fund
and a member of the Fund, and the third member shall be an officer of
a bank in the City. The function of this committee shall be to make
recommendations to the Board of Trustees for investments of the reserves
and sale of the securities of the Fund, and the Board of Trustees shall
not make any investment nor sell any securities of the Fund unless rec-
ommended in writing by the Committee on Investments. Such members
shall serve without compensation but shall be reimbursed for any
expenses incurred while serving as members of the committee.

§ 25. Administrative Personnel.—For the purposes of administering
the Fund in accordance with the terms of this Act and to execute the
orders and directions of the Board of Trustees and the Committee on
Investments there shall be created in the Department of Finance a Divi-
sion of Pensions.

(a) The Director of Finance shall be the Administrative head of
this Division which shall be subject to all the laws, rules and regulations
governing all Departments, Divisions and Bureaus of the City Govern-

ment.

(b) The City Auditor shall be ex officio Secretary of the Board and
shall be in charge of the books, records, accounts, files and all papers and
documents belonging to the Board other than those in the possession or
under the control of the City Treasurer; shall receipt for all payments
made to the Fund and deposit same with the City Treasurer; shall
together with the City Manager and City Treasurer sign vouchers for
the payment of moneys by the Fund in accordance with authorization of
the Board; and shall perform such other duties as may be assigned to him
by the Board.

(c) The City Treasurer shall be ex officio Treasurer of the Fund
and shall be the official custodian of all cash and securities belonging to
the Fund which shall be maintained in a special trust fund for the account
of the Fund. He shall receive all moneys and securities for the account
of the Fund and shall make payments for purposes specified in this Act
upon voucher signed by the City Manager and City Auditor in accord-
ance with authorization of the Board.
(d) The City Attorney shall be legal advisor to the Board.

(e) The City Manager, subject to applicable rules and regulations
governing the employment of personnel, may employ actuarial, medical,
clerical and other assistants as may be required in the operation of the
Fund and to effectuate the purposes of this Act.

(f) A separate corporate surety bond shall be furnished by the
Treasurer, acceptable by the Board, of such amount as the Board shall
designate, and surety bonds shall be taken out covering the Chairman and
ey of the Board, in favor of the Fund, in amounts stipulated by

e Board.

§ 26. Administrative Expense.—All costs and expenses incurred in
the administration of the Fund shall be paid by the City, and no part of
such expenses shall be charged to the Retirement and Benefits Reserve.

§ 27. Records and Accounts.—Proper and adequate records and
accounts shall be established and maintained which will give full effect
to the requirements of this Act. An annual audit of the books, accounts
and records of the Fund shall be made by a certified public accountant
selected by the Board.

§ 28. Annual Report.—An annual report shall be prepared as of
the close of each fiscal year for submission to the City Council, showing
the assets and liabilities of the Fund at the end of such year and the
Income and expenditures for the year, including detailed schedules on
purchases and sales of investments, a statement of securities owned by
the Fund and other data pertinent to the operations of the Fund. A
synopsis of such report shall be prepared for distribution among the
members of the Fund.

§ 29. Rules and Regulations.—The Board shall from time to time
establish rules and regulations implementing the provisions hereof, for
the proper administration of the Fund and for the transaction of its
business consistent with the provisions of this Act.

All meetings of the Board shall be open to the public.

PART VIII. GENERAL PROVISIONS

§ 80. Assignments Prohibited.—The right of a member to a service
retirement allowance, disability benefit, death benefit or withdrawal
benefit, or any other right accrued or accruing to any member or bene-
ficiary under the provisions of this Act shall be unassignable and not be
subject to sale, execution, garnishment or attachment, or any other legal
process whatsoever. :

§ 31. Legislative Intent.—It is the legislative intent and purpose
of this Act to provide certain retirement, disability, death and other bene-
fits to officers and employees of the City of Newport News, Virginia, in
the amounts and under the terms and conditions herein set forth. It is
further the legislative intent and purpose of this Act that when and if the
Federal Social Security Act shall be amended so as to permit the inclu-
sion of municipal employees therein, then and in that event the City of
Newport News may, at its election, through appropriate legislative action,
adjust the benefits and contributions herein provided so that the Fund
hereby created may become integrated with the system maintained under
the said Act.

§ 32. Savings Clause.—If any provision, section, subsection, para-
graph, word, clause or phrase of this Act is for any reason found to be
invalid or inoperative, or shall be held by any court to be unconstitu-
tional, the remainder hereof shall nevertheless continue in full force and
effect.

§ 134. City of Newport News Teachers’ and Clerical School Em-
ployees’ Supplemental Retirement Fund.

The Retirement Fund for teachers and clerical school employees,
adopted by the Council of the City of Newport News, on April 7th, 1952,
by ‘An ordinance creating a supplemental retirement fund for teachers
and clerical employees of the Newport News School Board; defining
terms; providing qualifications for membership in the fund; providing
for service credits; qualifying conditions for retirement, disability, death
benefits and refund payments; providing for contributions by employees
and by the city; providing for the administration of the fund and the
duties and powers of the Board of Trustees; and making such other pro-
visions as necessary to effectuate the intents and purposes of this ordi-
nance,” operative as of April 7th, 1952, shall continue in force and effect,
as a new section of the charter of the City of Newport News with the
same force and effect as all other sections of the charter of the City of
Newport News.

The said City of Newport News Teachers’ and Clerical School Em-
ployees’ Supplemental Retirement Fund shall be as follows:

PART I. ESTABLISHMENT

§ 1. Name and Date Operative.—A retirement Fund for teachers
and clerical school employees is hereby created, which shall be known as
“The City of Newport News Teachers’ and Clerical School Employees’
Supplemental Retirement Fund” and shall become operative as of April
7, 1952, when contributions to the Fund shall begin.

§ 2. Purpose.—The purpose of the Fund is to provide benefits to
teachers and clerical school employees of the City of Newport News, sup-
plementary to the provisions made for these employees under any applic-
able system or systems operating as State agencies pursuant to the laws
of Virginia, to the end that the benefits previously provided for these
employees in the City of Newport News Employees’ Retirement Fund
may be continued at substantially the same rates and conditions pre-

viously in effect.
PART II. DEFINITIONS

§ 3. Words and phrases wherever used in this Act, unless a differ-
ent meaning is clearly indicated by the context, shall have the following
meaning:

“Fund” shall mean the City of Newport News Teachers’ and Clerical
School Employees’ Supplemental Retirement Fund.

“City” shall mean the City of Newport News.

“City Council’ shall mean the City Council of Newport News,
Virginia.

“Employer” shall mean the Newport News School Board.

“Board” shall mean the Board of Trustees provided for herein to
administer the Fund.

“Employee” shall mean any teacher or clerical employee now or here-
inafter directly employed by the employer whose services are compen-
sated in whole or in part by the employer and who are employed on a
permanent basis. |

‘““Member” shall mean any employee becoming a member of the Fund.

“Salary” shall mean the amount of compensation earned by a mem-
ber provided that the maximum of compensation to be considered for
various purposes of the Fund shall be $1,000 per month.

“Average Final Salary” shall mean the average annual rate of salary
for the last five years of service.

“Regular Interest’? shall mean interest at the rate fixed by the Board
from time to time based upon the rate of income received on investments,
but such rate shall be not less than 2 per cent nor more than 4 per cent
per annum.

“Total Service’”’ shall mean service credited as a member of the City
of Newport News Employees’ Retirement Fund and service credited in
the Fund hereby created.
§ 4. All school teachers and clerical employees of the Newport
News School Board shall be subject to membership under the conditions
herein stated.

Membership shall be open only to: (a) any employee in the service
of the employer on April 7th, 1952, who has established a credit in the
City of Newport News Employees’ Retirement Fund in an account en-
titled “Reserve for the Equities of School Teachers and Clerical Em-
ployees of the School Board” who on or before May Ist, 1952, affirma-
tively authorizes and directs the transfer of such account to this Fund
on a form provided for this purpose; and (b) any person becoming an
employee for the first time after April 7th, 1952.

§ 5. Exclusion from Membership.—Persons whose services are
compensated on a fee basis, seasonal or part time employees shall not be
members of the Fund.

PART IV. RETIREMENT AND BENEFIT RESERVE

§ 6. Revenue.—tThere is hereby created a Retirement Reserve to
which shall be credited the following amounts of revenue:

(a) An amount to be contributed by the members to be deducted
from their salary by the employer at regular payroll periods equal to
one-half of one per cent of salary in the case of all members on account
of service rendered on or after April 7th, 1952, and an amount contrib-
uted by members to the City of Newport News Employees’ Retirement
Fund prior to such date which forms a part of the equity previously
established for the employee in such Fund which has been transferred in
full to this Fund upon authorization and direction of the employee. Such
contributions shall be credited to individual accounts to be maintained
for the members of this Fund.

(b) An amount to be contributed by the City for service retirement
allowance and disability benefits, equal to the present value of the lia-
bility for membership service of the members, less the present value of
the amounts contributed or to be contributed under paragraph (a) above,
such amount to be determined by the Board annually and paid by the
City concurrently with the contribution by the members.

(c) The annual amount to be contributed by the City for service
retirement allowance and disability benefits, which shall amortize the
remaining prior service credit over the remainder of the specified period
determined by the Board for liquidation of prior service liabilities, but
not to exceed thirty-five years following the operative date.

(d) The amounts required for death benefits as herein provided.

(e) All interest earned on investments made by the Fund; and

(f) All other miscellaneous income accruing to the Fund.

The Board shall certify annually to the City Council on or before
September 15th in each year, the amount necessary to meet the em-
ployer’s prospective liabilities to the Fund for the following fiscal year.

§ 7. Expenditures.—All payments to members or their beneficiaries
on account of superannuation, disability, death of other cause made by
the Fund shall be charged to the Retirement Reserve.

PART V. CREDITABLE SERVICE

§ 8. Service Credits.—Each member shall receive credit for service
rendered as an employee as follows:

(a) Prior service credit. Any employee in service on April 7th, 1952
(including employees on approved leave of absence for military service
for the United States, or for sickness or other cause), shall be entitled
to credit for service rendered as an employee of an employer prior to
April 7th, 1952, for which he shall have received salary from the employer,
provided that such employee affirmatively authorizes the transfer to this
Fund of the equity as determined for the employee in the City of Newport
News Employees’ Retirement Fund and credited to the employee in
such Fund as of February 11th, 1952, in the account of “Reserve for the
Equities of School Teachers and Clerical Employees of the School Board.

Such equity when transferred shall become a liability in this Fund on
account of prior service of the employee to be discharged by the City in
the manner prescribed in § 6 (c), only to the extent that such liability
exceeds the amount of the contributions made by the member to such

und.

(b) Membership service. Each person becoming a member of the
Fund shall be entitled to credit as membership service for all service
rendered the employer on or after April 7th, 1952, for which he has
received salary and for which he shall have made contributions to this

und.

(c) Measure of service credit. In computing prior service credit or
membership service credit, 15 days or more of service during any month
shall constitute a month of service, and the school employment year, be it
10, 11 or 12 months, shall constitute a year of service.

§ 9. Military Service.—Prior service credit shall be allowed for such
time as a member shall have been in the service of the armed forces of
the United States during war, provided such member shall have been an
employee of the employer at the time of entry into military service by
enlistment or induction and shall re-enter or shall have re-entered the
service of the employer within a period of six months from the date of
termination of his military service.

Membership service shall be allowed for such time as a member shall
have been in the service of the Armed Forces of the United States by
enlistment or induction, in time of war, provided such member shall
re-enter the service of the employer within a period of six months from
the date of termination of his military service.

PART VI. BENEFITS

§ 10. Conditions for Retirement.—On or after April 7th, 1952, any
member in active service may retire at his option, upon or after attain-
ment of the age of 60 years, provided such member has rendered at least
10 years of total service. A member with 30 or more years of total service
may retire at his option before attaining the minimum age of retirement.

§ 11. Vesting of Service Retirement Allowance.—Any member who
shall withdraw from service prior to the attainment of the minimum age
of retirement specified in § 10, who shall have completed at least 20 years
of total service, and shall not have received a withdrawal benefit, shall
have the right to receive a service retirement allowance beginning at the
age of 60 years of the amount earned at the date of withdrawal from
service.

§ 12. Compulsory Retirement.—On or after June 80, 1952, any
member shall retire at the end of the school year in which such member
attains the age of 65 years. Upon written request of the member and
approval of the appropriate department head, the board may continue a
member in service beyond the applicable age for compulsory retirement.

Any member whose employment is terminated under the conditions
of this Section and who has less than 10 years of total service shall receive
in lieu of a service retirement allowance, hereinafter described, a refund
of his total contributions to the Fund, without interest.

§ 18. Service Retirement Allowance.—Upon retirement a member
shall be entitled to receive a service retirement allowance consisting of
the following:

(a) The excess, if any, of an amount equal to 1/60 of average final
salary for each year of total service, over

(b) An amount equal to 1/70 of average final salary for each year
of total service, excluding in such computation the first $1200.00 of such
average final salary, plus, in the case of a member who at the date of
retirement shall have attained the status of a fully insured individual as
defined in the Federal Social Security Act, the amount of the primary
insurance account of the member payable under Title 11 of the Federal
Social Security Act to which the member may be entitled under the pro-
visions thereof, upon his attainment of the age of 65 years, provided:
(1) that such primary insurance account shall not be considered here-
under nor applied in this calculation until the member attains age 65,
and is in receipt of his service retirement allowance; and (2) that the
total amount to be considered under this paragraph (b) shall not in any
event be less than is payable to the member by a supplemental retirement
system operating as a State agency under the laws of Virginia and pro-
viding membership for school teachers and clerical employees of the school
board, under the Act in effect for such system at the date of retirement of
the member, during the time such retired member shall be under age 65,
nor less than the sum of the amount payable by such system and the
amount of primary insurance account payable under the Federal Social
Security Act during the time the retired member is aged 65 years or over.

In any case in which retirement of a member occurs below the age of
65 years, the amount derived in the first part of paragraph (b) above
shall be reduced to the extent of 1% of 1% thereof for each month that
the age of the member is less than 65 years.

§ 14. Disability Retirement Benefit.—A disability retirement benefit
shall be payable upon permanent and total disability of a member arising
from any cause occurring while a member is under the age of 60 years,
if such member shall have completed at least 10 years of total service.
(a) If a member shall have 10 years or more but less than 15 years of
total service at date of disability he shall be entitled to a benefit equal to
85% of the amount of service retirement allowance for his total service,
but upon attainment by the retired member of the age of 60 years the
benefit shall be increased to 100% of the amount of service retirement
allowance, provided that the minimum benefit in any case shall be 25%
of average final compensation. (b) If a member shall have at least 15
years of total service he shall be entitled to a benefit equal to 1/6 of 1%
of average final salary until the member shall attain age 60, and 14 of 1%
of average final compensation thereafter, provided that such benefit, when
added to a disability retirement allowance payable to the member under
a supplemental retirement system operating as a State agency under the
laws of Virginia and providing membership for school teachers and clerical
employees of the school board, shall not in any event be less than an
amount necessary to bring the combined benefits to a minimum of 25% of
average final compensation. This disability benefit shall continue until
the member is able to return to work or dies. If disability occurs after
the attainment of age 60 the member shall be entitled to a service retire-
ment allowance if he shall have rendered the minimum period of service
provided for the receipt of such allowance.

§ 15. Rules Governing Disability Benefit—The Board shall pre-
scribe rules and regulations governing the payment of the disability
benefits herein provided, prescribing the requirements for periodic investi-
gations and medical examinations in the interest of an effective and effi-
cient administration of these benefits.

§ 16. Nonoccupational Death Benefits.—(a) Upon death of a mem-
ber while in active employment of the City, on vacation, on sick leave, on
summer vacation, from any cause other than occupational disability, the
beneficiary designated by the member, or the estate of the member if no
such designation shall have been made, shall be entitled to receive a death
benefit consisting of: (1) the accumulated contributions of the member to
this Fund, made as a member of the Fund, together with the amount of
member contributions included in the equity, transferred from the City
of Newport News Employees Retirement Fund as herein provided, includ-
ing regular interest; and (2) an amount payable from employer’s contri-
bution equal to $500 for each full year of service of the member, subject
to a total of $3,000. In any case in which the service of the member has
been less than one year, the payment under (2) hereof shall be that
prescribed for one year of service.

(b) If the member did not receive in the form of service retirement
allowance, prior to his death an amount at least equal to the total member
contributions to the credit of the member at the date of retirement, with-
out interest, a refund of the remainder of such contributions shall be pay-
able to such person as he shall have nominated by written direction duly
acknowledged and filed with the board or to the estate of the member.

§ 17. Withdrawal Benefits—Any member who shall sever his em-
ployment with the employer shall be entitled to a refund of his total
contributions, without interest, including contributions to this Fund and
to the City of Newport News Employees Retirement Fund forming a part
of the equity which had been transferred to this Fund. Any member
receiving a refund of contributions shall thereby waive, forfeit and
relinquish all accrued rights in the Fund including all accumulated credit-
able service, provided that if any member who has withdrawn his contri-
butions shall re-enter the service of the employer and render at least three
years of service following his re-entry, he shall have the right to make a
repayment of the refund including regular interest for the period of his
absence from service of the employer, and thereby have restored to him
all his previous creditable service.

PART VII. ADMINISTRATION

§ 18. Board of Trustees.—Thc Fund shall be administered as a trust
for the exclusive benefit of the participating employees by a Board of
Trustees of nine (9) members consisting of the Board of Trustees of the
City of Newport News Employees’ Retirement Fund, together with the
Superintendent of Schools and one member elected by the members of
the Fund, who shall serve for four (4) years.

All trustees shall serve without compensation but shall be reimbursed
ror any expense incurred in connection with service as members of the

oard.

§ 19. Depositories—The moneys constituting the Fund being cre-
ated shall be deposited by the Treasurer in an account entitled “City of
Newport News Teachers’ and Clerical School Employees’ Supplemental
Retirement Fund” and shall be subject to the laws and regulations that
apply to other City Funds as contained in Chapter 15 of the Newport
News City Code of 1950.

§ 20. Investments.—The reserves of the Fund shall be invested in
interest bearing bonds or other obligations of the United States or the
State of Virginia, or in general obligation bonds of any political subdivi-
sion, within the State of Virginia.

§ 21. Committee on Investments.—The Board of Trustees shall nom-
inate annually, for the approval of the City Council, a Committee on
Investments, consisting of the Committee on Investments of the “City of
Newport News Employees’ Retirement Fund.” The function of this com-
mittee shall be to make recommendations to the Board of Trustees for
investments of the reserves and sale of the securities of the Fund, and
the Board of Trustees shal] not make any investment nor sell any securities
of the Fund unless recommended in writing by the Committee on Invest-
ments. Such members shall serve without compensation but shall be
reimbursed for any expenses incurred while serving as members of the
Committee.

§ 22. Administrative Personnel.—For the purpose of administering
the Fund in accordance with the terms of this Act and to execute the
orders and directions of the Board of Trustees and the Committee on
Investments there shall be created in the Department of Finance and
Division of Pensions a Bureau of School Pensions.

(a) The Director of Finance shall be the Administrative head of
this Division which shall be subject to all the laws, rules and regulations
governing all Departments, Divisions and Bureau of the City Government.

(b) The City Auditor shall be ex officio Secretary of the Board and
shall be in charge of the books, records, accounts, files and all papers and
documents belonging to the Board other than those in the possession or
under the control of the City Treasurer; shall receipt for all payments
made to the Fund and deposit same with the City Treasurer; shall to-
gether with the City Manager and City Treasurer sign vouchers for the
payment of moneys by the Fund in accordance with authorization of the
Board; and shall perform such other duties as may be assigned to him by
the Board.

(c) The City Treasurer shall be ex officio treasurer of the Fund and
shall be the official custodian of all cash and securities belonging to the
Fund which shall be maintained in a special trust fund for the account
of the Fund. He shall receive all moneys and securities for the account of
the Fund and shall make payments for purposes specified in this Ordinance
upon voucher signed by the City Manager and City Auditor in accordance
with authorization of the Board.

(d) The City Attorney shall be legal advisor to the Board.

(e) The City Manager, subject to applicable rules and regulations
governing the employment of personnel, may employ actuarial, medical,
clerical and other assistants as may be required in the operation of the
Fund and to effectuate the purposes of this Ordinance.

(f) A separate corporate surety bond shall be furnished by the
Treasurer, acceptable to the Board, of such amount as the Board shall
designate, and surety bonds shall be taken out covering the Chairman and
Secretary of the Board, in favor of the Fund, in amounts stipulated by
the Board.

§ 23. Administrative Expense.—All costs and expenses incurred in
the administration of the Fund shall be paid by the City, and no part of
such expenses shall be charged to the Retirement and Benefits Reserve.

§ 24. Records and Accounts.—Proper and adequate records and
accounts shall be established and maintained which will give full effect
to the requirements of this Act. An annual audit of the books, accounts
and records of the Fund shall be made by a certified public accountant
selected by the Board.

§ 25. Annual Report.—An annual report shall be prepared as of
the close of each fiscal year for submission to the City Council showing
the assets and liabilities of the Fund at the end of such year and the
income and expenditures for the year, including detailed schedules on
purchases and sales of investments, a statement of securities owned by
the Fund and other data pertinent to the operations of the Fund. A
synopsis of such report shall be prepared for distribution among the
members of the Fund.

§ 26. Rules and Regulations.—The Board shall from time to time
establish rules and regulations implementing the provisions hereof, for
the proper administration of the Fund and for the transaction of its
business consistent with the provisions of this Act.

All meetings of the Board shall be open to the public.

PART VIII. GENERAL PROVISIONS

§ 27. Assignments Prohibited.—The right of a member to a service
retirement allowance, disability benefit, death benefit or withdrawal bene-
fit, or any other right accrued or accruing beneficiary under the provi-
sions of this Act shall be unassignable and not be subject to sale, execu-
tion, garnishment or attachment, or any other legal process whatsoever.

§ 28. Legislative Intent.—It is the legislative intent and purpose of
this Act to provide certain retirement, disability, death and other benefits
to school teachers and clerical employees of the School Board of the City
of Newport News, Virginia, in the amounts and under the terms and con-
ditions herein set forth.

29. Savings Clause.—If any provision, section, subsection, para-
graph, word, clause or phrase of this Act is for any reason found to be
invalid or inoperative, or shall be held by any court to be unconstitutional,
the remainder hereof shall nevertheless continue in full force and effect.
2. An emergency exists and this act is in force from its passage.