Chap. 278.—An ACT to provide for employee’s pension and benefits in certain
counties. [S B 225]

Approved March 26, 1946

Be it enacted by the General Assembly of Virginia :

1. Section 1. Each county in this State having a population in
excess of one thousand per square mile according to the last United
States census, shall have the authority to create and establish, in the
manner hereinafter provided, a pension and retirement plan and a board
to be known as the “Pension and Retirement Board” of such County and
any such board when so created shall be a body corporate and shall con-
sist of five members. If there already exists in any county a “Pension and
Retirement Board,” for police and firemen, then the administration of
this pension and retirement plan may be assigned to the existing board,
subject to the powers, authority and duties of such board.

If a new board 1s created for the administration of the plan then
the members shall be residents of the county and shall be selected as fol-
lows:

(1) The county treasurer shall be treasurer of the board and ex-
officio a member thereof.

(2) Two members elected by the employees by a majority vote, for
terms of four years.
(3) Two members elected by the county board by a majority vote,
for terms of four years.

When any such board shall be so created and constituted it shall at
its first meeting, and annually thereafter, elect one of its members as
president, and one as vice-president and one as secretary.

The terms of office of the members, first elected, shall begin on the
thirtieth day after the date on which the governing body of such county
shall pass the resolution of approval as provided in section ten hereof.

Section 2. The general powers, authority and duties of such board
shall be as follows:

(a) To adopt by-laws, rules and regulations lawful to be made which
it may deem necessary for the proper conduct of its affairs, including
the fixing of physical requirements and standards for such employees.

(b) To conduct hearings, make investigations and determine the
amount of awards or pensions or retirement benefits to be paid here-
under.

(c) To provide for such clerical, medical and other services as it
may deem necessary in the conduct of its duties and provide for the pay-
ment of suitable compensation for such services. Such legal advice or
aid as may be necessary shall be rendered by the Attorney for the Com-
monwealth of said county. |

(d) To provide for and require deductions from the salaries of
employees and to cause the amounts deducted to be paid into its treasury
for its use in carrying out the purposes of this act.

(e) To draw warrants signed in its name and countersigned by its
president or vice-president and secretary on its treasurer for the payment
of pensions, retirement and benefits hereunder and the costs of admin-
istration hereof.

Section 3. The treasurer of the board shall be the custodian of all
of its funds and securities and shall give bond, payable to the board, in
such amount and with such surety as the board requires, conditioned for
the faithful performance of his duties and the proper accounting of all
funds and securities coming into his hands, the cost of the bond to be
paid out of the funds of the board. He shall deposit all monies in the
name of the board and disburse the same only on warrants signed and
countersigned as aforesaid.

Section 4. Any employee who has completed thirty years of service
for the county and who has attained the age of sixty years, or who has
a service record of twenty-five years and has attained the age of sixty-
five years, shall be eligible to retirement and to receive the pension and
benefits herein specified. In making allowances under this section the
time of continuous service of any employee immediately preceding the ef-
fective date of this act shall be placed to his credit on his service record for
the purposes of this act; and further provided that any such employee
who resigned his position to enter the military or naval service and re-
turned to his duties within six months after his discharge shall receive
credit on his service record for the time spent in the military or naval
service. After retirement such employee shall receive a pension here-
under to be arrived at as follows: the average annual salary he has earned
during the five years of his service for which he has received the highest
pay shall first be ascertained.

(a) The said average annual salary shall be divided by one hun-
dred and twenty and the result multiplied by the number of years on his
service record prior to the effective date of this act.

(b) The said average annual salary shall then be divided by sixty
and the result multiplied by the number of years on his service record after
the effective date of this act.

- The amounts arrived at under subsections a and b shall be added
together and the total shall be his annual pension and shall be paid him in
monthly installments, but in no case shall the annual benefit be in excess
of fifty per cent of the average annual salary.

Provided, however, that the amount to be paid monthly to anyone
receiving a pension hereunder shall be not less than the following:

For retirement at end of twenty-five years service sixty dollars.

For retirement at end of twenty-six years service sixty-four dollars.

For retirement at end of twenty-seven years service sixty-eight
dollars.

For retirement at end of twenty-eight years service seventy-two
dollars.

For retirement at end of twenty-nine years service seventy-six
dollars.

For retirement at end of thirty years service eighty dollars.

Section 5. Should any such employee become totally disabled so as
to incapacitate him for the performance of duty he shall receive a mini-
mum sum equal to ten per centum of his salary during such disability if
he becomes a disability beneficiary at any time during his first five years
of service and an additional amount equal to two per cent of his salary
for each additional year of service over five years but at no time shall
said amount exceed one-half of his salary.

Section 6. (a) Prior to retirement—should any such employee be
separated from the service before becoming eligible for pension or retire-
nent the principal sum of his salary deductions shall be paid to him:
and should any such employee die while in active service the principal
sum of his salary deductions shall be paid to any beneficiary designated by
um and if no such beneficiary is designated such deductions shall be paid
o his personal representative.

(b) After retirement—Upon the death of an employee after his
etirement under the plan, any excess of the amount which would have
een payable under “a” of this section if death had occurred just prior
o his retirement, over the aggregate sum of any retirement benefits paid
o him before his death, shall be paid to the member’s designated bene-
iclary or estate.

Section 7. All employees shall be retired at the age of sixty-five
ears, provided, however, that on the written recommendation of the
-ounty Manager the Board may grant extensions of the said age limit
n individual cases.

Section 8. For the purpose of raising funds for the payment of such
ensions and benefits and the costs and expenses of administering the
affairs of the board there shall be levied monthly and deducted from the
salaries of such employees three and one-half per cent of the amount of
their salaries and all such amounts so levied and deducted shall be paid
into the treasury of the board. The said board shall have the right to
receive contributions into its treasury and disburse the same under this
act.

In addition to the deductions aforesaid and as a supplement thereto
the county board or other governing body of said county shall have the
power to make provision in the county levy, for the adequate and proper
financing of the pensions, retirements and benefits under this act, the
same to be paid into the treasury of said Pension and Retirement Board
in annual installments and to be disbursed as hereinbefore provided.

Section 9. Any and all cash assets and funds on hand at any time
not necessary for immediate payment of pensions or benefits hereunder
may be invested in bonds of the United States, of the State of Virginia, or
of any political subdivision thereof, or invested in bonds and negotiable
notes directly secured by first lien on improved real estate or farm prop-
erty in Virginia, the amount of all outstanding bonds or notes so secured
not to exceed sixty per centum of the fair appraised value of the real
estate and any improvements thereon at the time of making the invest-
ments as ascertained by an appraisal thereof made by twg competent,
reputable and disinterested persons.

Any and all funds raised by any board created under this act for the
payment of pensions and benefits shall be paid over to the treasurer of the
board and deposited by him to its credit and paid out by him as hereinbe-
fore provided.

Section 10. At any time after the effective date of this act any such
county may come under the provisions of this act and establish such a
pension and retirement plan if and when the governing body of the
county so orders by a resolution approved by a majority of all members
by a record yea and nay vote. Upon the adoption of such a resolution,
and unless the administration of such plan is assigned to an existing
board, a pension and retirement board shall be constituted and organized
as hereinbefore provided, and when so constituted and organized shall
be vested with all the power and authority and charged with all the duties
herein prescribed.

Section 11. An appeal of right from the action of the board on
any matter in which the board is given discretionary power shall lie to the
circuit court of the county within whose jurisdiction the board is. Such
appeal shall be by petition filed with said court and a copy thereof served
on said board within thirty days from the time said action is taken and
shall be forthwith docketed and heard by the judge of said court with-
out the intervention of a jury.

Section 12. Wherever the word board is used herein without
further designation it shall be taken to mean the Pension and Retire-
ment Board.

Section 13. The provisions of this act shall not apply to any coun-
ty having in operation on the date this act becomes effective any system
of pensions or retirement benefits for its employees unless the governing
body of the county elects to come under the provisions of this act.
Section 14. If any section, clause or.phrase of this act is for any
reason held unconstitutional the holding shall not affect the validity
of the remaining portions thereof.

Section 15. Benefits provided in this act shall be in addition to any
other benefits to which any beneficiary hereunder shall be entitled from
any other source.

2. An emergency exists and this act is in force from its passage.