CHAPTER 557

4N ACT to amend and reenact an act entitled “An Act to incor-
porate the City of Newport News in the County of Warwick,
and to provide a charter therefor’, approved January Siz-
teen, Eighteen Hundred Ninety-six, as amended, by adding
thereto a new chapter to be known as Chapter 1A, provid-
ing fora retirement plan for city employees.
Be it enacted by the General Assembly of Virginia: _
1. That an act entitled “An Act to incorporate the City of
Newport News in the County of Warwick, and to provide a
charter therefor”, approved January Sixteen, Eighteen Hundred
Ninety-six, as amended, be amended by adding thereto a new
chapter to be known as Chapter 1A, as follows:

CHAPTER 1A

Retirement Pension Plan for city employees, including re-
tired teachers and other retired employees of the city school board.
Such Retirement Pension Plan shall be as follows:

PART I. ESTABLISHMENT.

§ 1. Name and date operative—An Employee’s Retire-
ment Fund is hereby created, which shall be known as the City
of Newport News Employees’ Retirement Fund and shall be-
come operative as of January 1, 1950, when contributions to the
fund shall begin.

§ 2. 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 affect-
ing economy and efficiency in the administration of the City
government.

PART II. DEFINITIONS

§ 3. Words and phrases wherever used in this chapter,
unless a different meaning is clearly indicated by the context,
shall have the following meaning.

“Fund” shall mean the ‘“‘City of Newport News Employees’
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 City of Newport News, the
Newport News Waterworks Commission, the Newport News
School Board, the Newport News Public Library, Incorporated,
and the elective officials of the City of Newport News. The elec-
tive 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 employed by an employer whose services are compen-
sated in whole or in part by an employer and who are employed
on a permanent basis.

“‘Member” shall mean any employee included in the mem-
bership 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
$500.00 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 compul-
sorily included 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;

(c) School teachers and clerical employees who are now
members of the retirement system operating under the “Vir-
ginia Retirement Act” by whatever name called, who shall be
members of the Fund to the extent herein provided; and

(d) Elective officials of the City, including the Clerk of the
Corporation 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.

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 §§ 51-3
to 51-11 inclusive of the Code of Virginia, as amended, or here-
after amended.

The Newport News Waterworks Commission, the Newport
News School Board, the Newport News Public Library, Incor-
porated, and the elective officials herein defined as employers,
whether or not such elective officials personally become members
of the Fund, shall have the privilege of electing to provide mem-
bership for their employees in this Fund by a resolution or peti-
tion filed with the Board agreeing to abide by all of the duties
and obligations imposed upon an employer under the provisions
of this chapter.

§ 5. Exclusion from Membership. — The following em-
ployees of an employer shall not be members of the Fund:

(a) Persons whose services are compensated on a contrac-
tual 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 Re-
serve 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, namely: (1) six per cent of salary in the case of all
members except teachers and clerical employees of the school
board; and (2) one per cent of salary of teachers and clerical
employees of the school board. 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 (including the partial ha-
bility on account of teachers), 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 contributions by the mem-
bers, except that of the Waterworks Commission shall make the
appropriate contribution 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 nonoccu-
pational disability benefit, which will amortize the remaining
prior service credit over the remainder of the specified period
determined by the Board for liquidation of prior service liabili-
ties (including the partial liability on account of teachers), but
not to exceed thirty-five years following the operative date, ex-
cept 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, occu-
pational death and nonoccupational death benefits.
P (e) All interest earned on investments made by the Fund;
an

(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

erve.

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 De-
cember 31, 1949 (including employees on approved leave of ab-
sence 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
2redit 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 al-
owed for such time as a member shall have been in the service
yf the armed forces of the United States during War, provided
uch member shall have been an employee of an employer at the
ime of entry into military service by enlistment or induction
nd shall reenter or shall have reentered the service of an em-
oyer within a period of six months from the date of termina-
ion of his military service.

Membership service shall be allowed for such time as a mem-
er shall have been in the service of the armed forces of the
Jnited States by enlistment or induction, in time of War, pro-
ided such member shall reenter the service of an employer
rithin a period of six months from the date of termination of
is military service.
PART VI. BENEFITS

§ 10. Conditions for Retirement.—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 mem-
ber has rendered at least 10 years of service.

§ 11. Vesting of service retirement allowance. — Any
member who shall withdraw from service prior to the attain-
ment 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 minimum age of
retirement of the amount earned at the date of withdrawal from
service.

§ 12. Compulsory retirement.—On or after January Il,
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 provi-
sion 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 com-
pulsory retirement, but in no case shall such extension exceed
a total of two years. ,

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 allow-
ance 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 allow-
ance 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 lifetime, with the pro-
viso that upon his death his surviving spouse shall receive a
reversionary annuity as may be provided, according to the actu-
arial tables in use by the Fund, from the remainder of his
equity as determined at the time of retirement. The reversion-
ary annuity resulting from such election shall not be less than
one hundred twenty dollars per year, nor more than the amount
of reduced retirement allowance to which the member may be
entitled under his election. The amount of reversionary annuity
shall be that determined by the Board in accordance with the
written direction of the member. Any such reversionary annuity
shall begin as of the day following the date of death of the mem-
ber receiving a retirement allowance, provided that if the spouse
does not survive the member at the date of his death, no rever-
sionary 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 member 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 compensation at
date of disability, payable until his recovery or until attainment
of the age specified above, whichever 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 disabil-
ity of a member arising from any cause other than occupational
disability as defined in § 15, occurring while a member is under
the age of 60 years, or under the age of 55 years in the case of
a policeman 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 disability bene-
fit 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 allow-
ance shall be increased from 85 per cent to 100 per cent of such
allowance. If disability occurs after the attainment of the fore-
going 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 arising out of and in the course of employment from a
cause compensable under “The Virginia Workmen’s Compensa-
tion 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 the age of 18, the benefit shall be paid to
the surviving child or children until their attainment of age 18,
death or marriage, whichever even 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.
This benefit shall be subject to reduction by workmen’s compen-
sation or by amounts otherwise paid by the employer to the
above survivors under any applicable rule or order.

§ 19. Nonoccupational death benefits.— (a) Upon death of a
member while in active employment of the City 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 the Fund, including regular interest; and (2) an amount pay-
able from employer’s contribution equal to $500.00 for each full
year of service of the member, subject to a total of $3,000.00. 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 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 con-
tributions to the credit of the member at the date of retirement,
without interest, a refund of the remainder of such contribu-
tions 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 employment with all employers included under this chapter
shall be entitled to a refund of his total contributions, without
interest. Any member receiving 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 contributions shall
reenter the service of an employer and render at least three
years of service following his reentry, 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.

§ 21. Modifications governing teachers—Any member
occupying the position of school teacher or as a clerical employee
of the school board who is a member of the retirement system
established and maintained under the “Virginia Retirement
Act” shall be subject to all the provisions of this chapter, under
the conditions and limitations herein prescribed. Such member
shall be eligible for all benefits provided herein and shall be
governed by all conditions imposed for the receipt thereof, and
shall be granted these benefits, upon application, in the same
manner as in the case of any other member included under the
provisions hereof subject, however, to the following conditions:
(1)that any amounts received by such member under or by
virtue of the provisions of the “Virginia Retirement Act” as a
service retirement allowance, disability allowance or death bene-
fil, by whatever name called, shall be applied to reduce the
amounts of like benefits provided hereunder and such member
shall receive only the excess, if any, of the benefits provided by
this Fund over the amounts received under the said Act; and (2)
that any such member shall have fulfilled the qualifying condi-
tions under said Act at the time of apphcation for benefits under
the provisions of this Chapter. The annuity under this
Chapter upon such retirement shall be reduced by the amount
of like benefit or annuity provided under the “Virginia Retire-
ment Act” for such member upon the basis of the maximum
rate of contribution for service retirement annuity permitted
to be made by the said member under such Act; and (3) the
minimum retirement age shall be the age provided under the
‘Virginia Retirement Act” which is in effect at the time of
application for retirement and also provided that this age shall
not be less than 60 years and (4) and the time of compulsory
retirement shall be the end of the school year in which the
member attains the age of 65 years.

PART VII. ADMINISTRATION

§ 22. Board of trustees.—The Fund shall be administered
as a trust for the exclusive benefit of the participating employees
»9y a Board of Trustees of seven (7) members consisting of
hhree persons residing in the City appointed by the City Council,
yne of whom shall be the City manager and four members rep-
‘esenting the employees, one from each of the following occu-
yational groups: (1) policemen and firemen; (2) Waterworks
Yommission employees; (3) teachers and school board em-
yloyees; and (4) all other employees included in the Fund. In
he occupational group hereto listed as Policemen and Firemen,
he 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, begin-
ning 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 em-
ployee 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 terms 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 member 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 succes-
sor 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 repre-
sented by such member, which election shall be held concurrently
with the regular annual election for members of the Board of
Trustees. The Board shall prescribe rules and regulations for
the conduct of the annual election for trustees. (Sept. 26, 1949)

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

§ 23. Depositories—The moneys constituting the Fund
being created 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 6 of the Newport News
City Code.

§ 24. 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 subdivision within the State of Virginia.

§ 25. 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 recommenda-
tions to the Board of Trustees for investments of the reserves
and sale of the securities of the Fund, and the Board of Trus-
tees shal] not make any investment nor sell any securities of the
Fund unless recommended 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.

§ 26. Administrative personnel.—For the purposes of ad-
ministering the Fund in accordance with the terms of this chap-
ter and to execute the orders and directions of the Board of
Trustees and the Committee on Investments there shall be cre-
ated in the Department of Finance a Division 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 Bu-
reaus 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 together with the
City Manager and City Treasurer sign vouchers for the pay-
ment of moneys by the Fund in accordance with authorization of
the Board; and shall perform such other duties as may be as-
signed 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 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 regu-
lations governing the employment of personnel, may employ
actuarial, medical, clerical and other assistants as may be re-
quired in the operation of the Fund and to effectuate the pur-
poses of this Chapter.

(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.

§ 27. Administrative expense.—All costs and expenses in-
curred in the administration of the Fund shall be paid by the
City, and no part of such expenses shall be charged to the Re-
tirements and Benefits Reserve.

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

§ 29. Annual report.—An annual report shall be prepared
as of the close of each fiscal year for submission to the City Coun-
cil, showing the assets and liabilities of the Fund at the end of
such year and the income and expenditures for the year, includ-
ing detailed schedules on purchases and sales of investments, a
statement of securities owned by the Fund and other data per-
tinent to the operations of the Fund. A synopsis of such report
shall, ‘be prepared for distribution among the members of the

§ 30. Rules and regulations.—The Board shall from time
to time establish rules and regulations implementing the provi-
sions hereof, for the proper administration of the Fund and for
the transaction of its business consistent with the provisions
of this Chapter.

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

PART VIII. GENERAL PROVISIONS

§ 31. 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 beneficiary under the provisions of this Chapter
shall be unassignable and not be subject to sale, execution, gar-
nishment or attachment, or any other legal process whatsoever.

§ 32. Legislative intent.—It is the legislative intent and
purpose of this Chapter to provide certain retirement, disability,
death and other benefits 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 the further legislative in-
tent and purpose of this Chapter 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.
§ 33. Savings clause—If any provision, section, sub-
section, paragraph, word, clause or phrase of this Chapter 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.