CHAPTER 157

An Act to amend the Code of Virginia by adding in Title 51 a new
Chapter numbered 8.1, containing several new sections; so as to estab-
ystem for certain State employees
nd certain other employees of local
or participation by certain localities

[H 3]
lary 29, 1952

mbly of Virginia:
1ended by adding in Title 51 a new
ral sections numbered from 51-29.1

oR 3.1

el.

‘OVisiONS.

rt title of this chapter is “Virginia

| in this chapter unless a different
text :
the Virginia Supplemental Retire-

’ trustees as provided by § 51-29.9;
board of physicians as provided by

n who is regularly employed on a
rical employee of a county, city or

7 person who is regularly employed
ure is not restricted as to temporary
ervice of, and whose compensation
nthly, in whole or in part by, the
nstitution or agency thereof, except
or, with the exception of the Auditor
f the Division of Statutory Research
bly or either House thereof, (b) a

commissioner of the revenue, Com-
rgeant or constable, and a deputy or
ny employee of a political subdivision

cher, State employee or officer or
. the Retirement System as provided

wealth, in the case of a State em-
ard in the case of a teacher, or the
nt system as provided in Article 4;
on included in the membership of
his chapter;

n employee;

vice aS an employee rendered prior
retirement system for which credit
9.33, 51-29.55 and 51-29.56 or service
vided in § 51-29.24;

ns service as an employee rendered
etirement system except as provided
1-29.56;

prior service plus membership serv-
‘this chapter;

person entitled to receive benefits
(14) “Accumulated contributions” means the sum of all amounts
deducted from the compensation of a member and credited to his indi-
vidual account in the members’ contribution account, together with inter-
est credited on such amounts and also any other amounts he shall have
contributed or transferred thereto including interest credited thereon as
provided in § 51-29.41;

(15) “Creditable compensation” means the full compensation pay-
able to an employee working the full working time for his position which
is in excess of twelve hundred dollars per annum, except when comput-
ing a disability retirement allowance in which event no exclusion shall
apply: in cases where compensation includes maintenance or other per-
quisites, the Board shall fix the value of that part of the compensation
not paid in money;

(16) ‘Average final compensation” means the average annual credit-
able compensation of a member during his last five years of creditable
service or during the entire period of his creditable service if less than
five years;

(17) “Retirement allowance’ means the retirement payments to
which a member is entitled as provided in this chapter ;

(18) “Actuarial equivalent” means a benefit of equal value when
computed upon the basis of such actuarial tables as are adopted by the

oard;
4 (19) “‘Normal retirement date’? means a member’s sixty-fifth birth-
ay; an

(20) ‘Abolished system” means the Virginia Retirement Act repealed
by Chap 1 of the Acts of Assembly 1952 as of February one, nineteen
hundred fifty-two.

§ 51-29.3. Virginia Supplemental Retirement System established.—
There is hereby established a retirement system for teachers, State em-
ployees and employees of participating localities to be known as the “Vir-
ginia Supplemental Retirement System’, by and in which name it shall,
pursuant to the provisions of this chapter, transact all of its business,
for which purpose it shall constitute a body corporate.

§ 51-29.4. Duties of employers, etc.—Each employer shall keep such
records and from time to time shall furnish such information as the
Board may require in the discharge of its duties. Upon employment of
any employee to whom this chapter may apply, he shall be informed by
his appointing authority of his duties and obligations in connection with
the retirement system as a condition of his employment.

§ 51-29.5. Acceptance of employment as consent to provisions of
chapter.—Every employee accepting employment shall be deemed to con-
sent and agree to any deductions from his compensation required by this
chapter and to all other provisions thereof.

§ 51-29.6. Protection against fraud.—Any person who shall know-
ingly make any false statement or shall falsify or permit to be falsified
any record or records of the retirement system in any attempt to defraud
such system, shall be guilty of a misdemeanor and upon conviction thereof
shall be punished accordingly.

§ 51-29.7. Exemption of benefits and funds from taxation, execu-
tion and assignment.—Retirement allowances and other benefits accrued
or accruing to any person under the provisions of this chapter, and the
assets of the retirement system created under this chapter, are hereby
exempted from any State, county, or municipal tax, and shall not be
subject to execution, attachment, garnishment or any other process what-
soever, nor shall any assignment thereof be enforceable in any court.

§ 51-29.8. Alteration, amendment or repeal.—(a) The General
Assembly reserves the right to alter, amend or repeal any provision of
this chapter or any application thereof to any person; provided, however,
that the amount of benefits which at the time of any such alteration, amend-

ment or repeal shall have accrued to the extent provided under subsection

fe) “ this section for the members or beneficiaries shall not be affected
ereby.

(b) If the General Assembly repeals the provisions of this chapter,
the Board shall continue to administer the retirement system in accordance
with the provisions of this chapter for the sole benefit of the then members,
any beneficiaries then receiving retirement allowances, and any future
persons entitled to receive benefits in accordance with subsection (a) (2)
of § 51-29.52 who are designated by any of said members.

(c) In the event of repeal as provided in subsection (b) of this
section the assets of the retirement system shall be allocated by the Board
in an equitable manner to provide benefits for the persons stated in sub-
section (b) of this section in accordance with the provisions of this-chapter
but based on years of creditable service and average final compensation as
of the date of repeal and in the following order:

(1) for the benefit of then members to the extent of their individual
account in the members retirement allowance account. If any funds
remain, then .

(2) for the benefit of then beneficiaries and persons already desig-
nated by former members who are then beneficiaries in accordance with
subsection (a) (2) of § 51-29.52, to the extent of the then actuarial value
of their retirement allowances. If any funds remain, then

(83) for the benefit of members, and persons, if any, designated by
them in accordance with subsection (a) (2) of § 51-29.52, to the extent,
not provided under (1) above, of the then actuarial value of their accrued
future retirement allowances. The allocation under this paragraph (3)
shall be on the basis of the oldest ages first method.

In the event the assets at such date of repeal are insufficient to provide
all of the benefits of (1) and/or (2) above, then the employer will con-
tribute to the assets from time to time, as and when required, the amount
necessary to make up such insufficiency.

(d) The allocation of assets of the retirement system provided for
in subsection (c) of this section shall be carried out through the payment
by the Board of the benefits provided for in this section as they become
due, or by the transfer of such assets to any retirement system replacing
this retirement system provided that such vesting of benefits as provided
by this section shall be fully maintained under such new retirement system.
Any funds remaining in the assets of this retirement system after all of
the vested benefits provided by this section have been paid shall revert to
the general funds.

(e) Any allocation of assets made in accordance with the provisions
of this section shall be final and binding on all persons entitled to benefits
under said provisions.

Article 2.

Board of Trustees and Medical Board.

§ 51-29.9. Board to administer retirement system.—The retirement
system shall be administered by a board of trustees to be known as the
“Board of Trustees of the Virginia Supplemental Retirement System”’,
which Board is hereby established.

§ 51-29.10. Members of Board.—The Board shall consist of five
members to be appointed by the Governor, subject to confirmation by the
General Assembly. Of such members one shall be a teacher, one a State
employee and the others neither teachers nor State employees nor other-
wise in the employ of any government. The first appointment hereunder
shall be for terms as follows: one for one year, one for two years, one
for three years, and two for four years. Thereafter all appointments shall
be made for a term of four years, except an appointment to fill a vacancy
which shall be for the unexpired term. The Governor may suspend or
remove any member at his pleasure. Such appointments shall confer upon
and vest in the Board the powers and duties of the Board of Trustees of
the abolished system to the extent such powers and duties were created
or continued by the act abolishing the said system, or by other legis-
lation; thereupon the Board of Trustees of the abolished system shall be
terminated.

Each member of the Board shall receive as his compensation fifteen
dollars per day for each day actually spent in the discharge of his duties,
but no member shall receive as compensation in the aggregate more than
three hundred dollars in any one year. Members shall be reimbursed for
the expenses incurred by them in the performance of their duties.

§ 51-29.11. Quorum.—A majority of the members of the Board
shall constitute a quorum.

§ 51-29.12. Officers of Board.—The Governor shall, from time to
time, designate the chairman of the Board. The Board shall elect one of
its members vice-chairman, and shall appoint a secretary who may or
may not be a member of the Board.

§ 51-29.18. Actuary and other employees.—The Board shall employ
an actuary as its technical advisor, and may employ such other persons
and incur such expenditures as it deems necessary for the efficient admin-
istration of this chapter. The compensation of the actuary and of other
employees shall be fixed by the Board within the appropriations made
therefor and subject to the current provisions of law as to compensation
of officers and employees of the Commonwealth.

§ 51-29.14. Actuarial investigations and valuations, etc.—At least
once in each two-year period, the Board shall cause an actuarial investi-
gation to be made of all of the experience under the retirement system.
Pursuant to such investigations the Board shall, from time to time, revise
the actuarial bases of the rates of employer contributions prescribed under
this chapter.

The Board shall cause an annual valuation to be made of the assets
and liabilities of the retirement system and shall prepare an annual state-
ment of the amounts to be contributed by the employer under this
chapter.

The Board shall also publish annually such valuation of the assets
and liabilities and a statement of receipts and disbursements, of the
retirement system.

§ 51-29.15. Record of proceedings; public inspection.—The Board
shall keep a record of all of its proceedings and such record shall be open
to inspection by the public.

§ 51-29.16. Board as trustee of funds; investments.—(a) The Board
shall be the trustee of the several funds created by this chapter and of
those resulting from the abolition of the Virginia Retirement System, and
shall have full power to invest and reinvest such funds, subject to the
limitation that no investment shall be made except, upon the exercise of
bona fide discretion, in securities which, at the time of making the invest-
ment, are, by statute, permitted for the investment of reserves of domestic
life insurance companies. Subject to such limitation, the Board shall have
full power to hold, purchase, sell, assign, transfer or dispose of, any of
the securities or investments in which any of the funds created herein
have been invested, as well as of the proceeds of such investments and
any moneys belonging to such funds. The Board may also, in its discre-
tion, invest such trust funds in bonds, notes and other evidences of debt
of the school boards of the several counties, cities and towns of the State
held in the Literary Fund evidencing loans made from such Literary Fund
by the State Board of Education pursuant to the provisions of §§ 22-101
to 22-113 and the State Board of Education is hereby authorized to assign
such bonds, notes and other evidences of debt to the Board whenever the
Board desires to invest any of such trust funds therein and the State
Board of Education consents thereto; and when such bonds, notes or other
evidences of debt are so acquired by the Board the same may not be sold
or otherwise disposed of except to a State governmental agency.

(b) In lieu of exercising all of the powers hereunder with respect
to the investment and reinvestment of the several funds, the Board
may delegate such powers to the Treasury Board, in which event
said Treasury Board shall exercise said investment powers as prescribed
herein.

(c) The Board shall have power to borrow money from time to time
in such amounts as may be necessary to discharge current obligations
under this chapter whenever in its judgment by so doing it would be more
advantageous than by selling securities held by the retirement system.
Any debt so incurred may be evidenced by notes duly authorized by reso-
lution of the Board, but in no case is the due date of any note, notes or
other evidence of debt to be beyond the end of the biennium succeeding
the biennium in which such debt is incurred. Securities held by the
retirement system may be hypothecated by the Board as security for the
payment of any debt incurred under this section.

§ 51-29.17. Prohibited interest of member or employee of Board.—
No member of the Board and no employee of the Board shall have any
interest, direct or indirect, in the gains or profits of any investment made
by the Board, save in so far as any such member may be a member or
beneficiary of the retirement system, and no member of the Board shall
receive, directly or indirectly, any pay or emolument for his services
except as expressly provided in this chapter. No member of the Board
or employee thereof shall, directly or indirectly, for himself or as an
agent, in any manner use the funds or deposits of the retirement system,
except to make such payments therefrom as are authorized by the Board;
nor shall any member or employee of the Board become an endorser or
surety or in any manner an obligor for moneys loaned by or borrowed
from the Board.

§ 51-29.18. Medical Board.—The Board shall appoint a Medical
Board of three physicians not eligible to participate in the retirement
system. Each such physician shall be appointed for a term of four years
to commence at the expiration of the term of his predecessor in office,
except that an appointment to fill a vacancy shall be for the unexpired
term. The Board may remove members of the Medical Board at its
pleasure and fix their compensation.

The Medical Board shall pass upon all medical examinations required
by this chapter or required in connection with the abolished System, shall
investigate all essential health and medical statements and certificates by
or on behalf of a member in connection with disability retirement, and
shall report in writing to the Board its conclusions and recommendations
upon all matters referred to it.

Article 3.
Membership in Retirement System.

§ 51-29.19. Persons composing membership.—Membership in the re-
tirement system shall consist of the following:

(1) All persons who become employees after March one, nineteen
hundred fifty-two; and

(2) All persons who are employees upon such date in service or on
leave from service; provided that a person who is an employee on March
one, nineteen hundred fifty-two, but is not a member of the abolished
system because of having elected not to be included shall become a member
of the retirement system only upon electing coverage therein.

§ 51-29.20. Employees of institutions of higher education.—Any
institution of higher education which, at the time of the establishment of
the retirement system, has established, or which may thereafter establish,
a retirement plan or arrangement covering in whole or in part its em-
ployees engaged in the performance of teaching, administrative or research
duties, is hereby authorized to make contributions for the benefit of its
employees who elect to continue or be under such plan or arrangement
and elect to participate in such plan or arrangement rather than in the
retirement system established by this chapter. Any present or future
employee of such institution shall have the option of electing to participate
in either the retirement system established by this chapter or the plan
or arrangement provided by the institution employing him. The election
herein provided shall, as to any future employee, be exercised not later
than ninety days from the time of entry upon the performance of his
uties.

§ 51-29.21. Cessation of membership.—The membership of any per-
son in the retirement system shall cease (a) if he ceases to be an employee
for a period of five years, or if in any ten-year period after he last became
a member he renders less than five years of service, and in either case
unless the member leaves the service after fifteen or more years of credit-
able service, without withdrawing his accumulated contributions, or (b)
upon the withdrawal of his accumulated contributions, or (c) upon retire-
ment, or (d) upon death.

§ 51-29.22. Limitation on membership.—No provision of any other
statute which provides either entirely or partially at the expense of the
State for retirement benefits for employees, their widows, or other depend-
ents, shall apply to members or beneficiaries of the retirement system, or
to their widows, or other dependents, provided that this shall not apply to
any such benefits extended under any agreement between the State and
the federal government or any agency thereof.

Article 4.
Participation of Localities in Retirement System.

§ 51-29.23. Resolution of governing body or agency and approval
by Board; general provisions.—The governing body of any county, city or
town, and the commission, directing or governing body of any political
entity, subdivision, branch or unit of the Commonwealth or of any com-
mission or public authority or body corporate created by or under an act
9f the General Assembly and subdivision of any of the foregoing, may, by
resolution legally adopted and approved by the Board, elect to have its
2mployees become eligible to participate in the retirement system. Accept-
ance of the employees of such an employer for membership in the
retirement system shall be optional with the Board and if it shall approve
heir participation, then such employees may become members of the
‘etirement system and participate therein as provided in the provisions
f this article. Notwithstanding anything to the contrary, employees
if such employer, who are members of any retirement, pension or
enefit fund partially or wholly supported by public funds shall not be
ntitled to become members of the retirement system on that part of their
compensation covered by such fund except as provided under § 51-29.26.

§ 51-29.24. Optional membership; creditable service.—Membership
n the retirement system for employees who are eligible as provided in
} 51-29.23 shall be optional with such employees in the service on the
late the approval is given, and any such employee who elects to join the
‘etirement system within one calendar year thereafter shall be entitled
© a prior service certificate covering such periods of previous service
433 shall be certified as creditable service by his employer for service
‘endered to such employer, or his predecessor, or the State, or in any
‘ther capacity approved by the employer and the Board, for which the
mployer is willing to make accrued liability contributions. Thereafter
service for such employer on account of which the employer and member
pay contributions, shall be considered also as creditable service.

§ 51-29.25. Compulsory membership.—Membership in the retire-
ment system shall be compulsory for all employees who are eligible as
provided in § 51-29.23 and who enter service of an employer after the
date the approval is given.

§ 51-29.26. Local pension systems.—Should a majority of the mem-
bers of any retirement pension or annuity fund, benevolent association, or
retirement system of any employer, hereafter referred to as a local pension
system, elect to become members of the retirement system, by a petition
duly signed by such members, the participation of such members in the
retirement system may be approved as provided in § 51-29.23 as though
such local pension system were not in operation, and the provisions of this
article shall thereupon apply, except that the existing pensioners or annuit-
ants of the local pension system who were being paid pensions on the date
of the approval shall be continued and paid at their existing rates by the
retirement system and the liability on this account shall be included in
the computation of the accrued liability rate as provided by § 51-29.28.
Any cash and securities to the credit of the local pension system shall be
transferred to the retirement system as of the date of approval. The
trustees or other administrative head of the local pension system as of the
date of the approval shall certify the proportion if any of the funds of the
system that represents the accumulated contributions of the members, and
the relative shares of the members as of that date. Such shares shall be
credited to the respective accounts of such members in the retirement
system. The balance of the funds transferred to the retirement system,
shall be offset against the accrued liability before determining the special
accrued liability contribution to be paid by the employer as provided by
§ 51-29.28. The operation of the local pension system shall be discontinued
as of the date of the approval.

§ 51-29.27. Submitting information and performing duties pre-
scribed by Board.—The chief fiscal officer of the employer, and the heads
of its departments, shall submit to the Board such information and shall
cause to be performed in respect to the employees of the employer such
duties as shall be prescribed by the Board in order to carry out the pro-
visions of this chapter.

§ 51-29.28. Computation of Employer Rates of Contribution. —The
actuary of the retirement system shall compute the rates of contributions
payable annually by the employer on behalf of those employees who become
members under the provisions of this article, which shall be determined
by an actuarial valuation of the retirement allowances and other benefits
which will be payable on account of the employees of such employer
who become members. Such contributions shall be payable in lieu of
contributions payable on account of other members in the system.
The expense of making such initial valuation shall be assessed against
and paid by the employer on whose account it is necessary. The con-
tributions so computed together with a pro rata share of the cost of
the administration of the retirement system, based upon the payroll of
the employer, shall be certified by the Board to the chief fiscal officer of
the employer. The amounts so certified shall be a charge against the
employer. The chief fiscal officer of each such employer shall pay to the
State Treasurer the amount certified by the Board as payable under the
provisions of this article, and the State Treasurer shall credit such amounts
to the appropriate accounts of the retirement system.

§ 51-29.29. Benefits—LEmployees who become members under this
article and on behalf of whom contributions are paid as provided in this
article shall be entitled to benefits under the retirement system.

Notwithstanding anything to the contrary, the retirement system
shall not be liable for the payment of any retirement allowances or other
benefits on account of the members or beneficiaries of any employer under
this article, for which reserves have not been previously created from
funds contributed by such employer or the members for such benefits.

§ 51-29.30. Procedure when employer in default.—The agreement
of any employer to contribute on account of its employees who become
members shall be irrevocable, but should an employer for any reason
become financially unable to make the normal and accrued liability con-
tributions payable on account of such members, then such employer shall
be deemed to be in default. As of the date of such default, the actuary of
the retirement system shall determine by actuarial valution the amount of
the reserves held on account of each then such member and each then
beneficiary and shall credit to each such member and each such beneficiary
the amount of reserve so held. The reserve so credited together with the
amount of the accumulated contributions of each such member, shall be
used to provide for him a retirement allowance beginning at age sixty-five,
and the reserve so credited to each beneficiary shall be used to provide
such part of his existing retirement allowance as such reserve is sufficient,
which part shall thereafter be payable to him. Each such member shall
at any time thereafter be entitled to discontinue membership in the retire-
ment system and to a refund of his previous contributions upon demand.
If any such member receives such a refund of contributions all rights to
a retirement allowance commencing at age sixty-five shall thereupon cease.
The rights and privileges of such members and such beneficiaries shall
thereupon terminate, except as to the payment of the retirement allowance
or parts thereof, or refunds of contributions provided for above.

Article 5.
Statement to Be Filed; Creditable Service.

§ 51-29.31. Statement to be filed——Under such rules and regulations
as are adopted by the Board, each employee upon becoming a member, or
someone on his behalf, shall file with the Board, in such form as the Board
may prescribe, a statement of the facts pertaining to his status as a
member, which shall include a detailed description of all service rendered
as an employee, as that term is defined in this chapter, and any other
employment in which he has been engaged by the Commonwealth, or by
any department, institution or agency thereof, prior to his becoming a
member, if any prior service is claimed, and such other information as
the Board may require. Until such statement is filed, no member or his
beneficiary shall be eligible to receive any benefits under this chapter.

§ 51-29.32. Year of service—The Board shall determine by appro-
priate rules and regulations how much service in any year is the equivalent
of a year of service, but in no case shall it allow credit for more than one
vear of service for all service rendered in any period of twelve consecutive
months.

§ 51-29.33. Prior service credit.—(a) Subject to the above restric-
ions, and to such other rules and regulations as are prescribed by the
Board, the Board shall ascertain, as soon as practicable after such state-
ment is filed, the amount of prior service, if any, to which each member
is entitled. The Board shall issue prior service certificates, covering all
treditable service in the abolished system, to all members who were
members of the abolished system provided such members transfer their
accumulated contributions in the abolished system to the retirement system
by February one, nineteen hundred fifty-three; except that: (i) any such
member on leave of absence from service on March one, nineteen hundred
ifty-two, (ii) any such member not in service and not on leave from
service on such date and, in either case, not transferring their accumulated
sontributions in the abolished system, to the retirement system, nor, in
“ither case, being refunded accumulated contributions in the abolished
system by February one, nineteen hundred fifty-three, may within one
year after re-entry into service, transfer their accumulated contributions
in the abolished system to the retirement system provided, in the case of
a member not in service and not on leave from service, re-entry into
service is within five years after date of last being in service. In any case
in which a member who was a member of the abolished system is in service
on March one, nineteen hundred fifty-two, and has at least ten years
service as a State employee or teacher prior to July one, nineteen hundred
forty-two, with which such member has not been credited, the Board shall
issue a prior service certificate covering such service if since first becoming
a member of such abolished system the member has not withdrawn his
accumulated contributions thereto.

§ 51-29.34. Prior service certificate conclusive-—A prior service
certificate shall be conclusive as to such prior service credit unless and
until it is modified by the Board upon application made by the member to
whom it is issued within one year after the date of its issuance or of any
such modification, or upon discovery by the Board of material error or
raud.

§ 51-29.35. Cessation of membership.—When membership ceases,
except in the case of retirement, an employee shall thereafter lose all rights
to any retirement allowance benefits under this act arising from service
prior to the date of such cessation of membership.

§ 51-29.36. Creditable service at retirement.—Creditable service at
retirement on which the retirement allowance of a member shall be based
shall consist of the membership service credited to him, under this chapter,
and also, if he has a prior service certificate which is in full force and
effect, the service certified on his prior service certificate.

§ 51-29.37. Service in Armed Forces.—Any person who was a mem-
ber of the abolished system and in the Armed Forces of the United States
on March one, nineteen hundred fifty-two, or any member of the retire-
ment system subsequently entering the Armed Forces of the United States,
being on leave of absence from such service of the State or of the Virginia
Public Free Schools and not withdrawing accumulated contributions shall
be entitled to have included as creditable service his period of service in
the Armed Forces of the United States provided his discharge therefrom
was not dishonorable and he reenters service within one year after
discharge.

Article 6.

Contributions.

§ 51-29.38. Member Contributions.—(a) Each member shall con-
tribute for each pay period for which he receives compensation four per
centum of his creditable compensation. _

(b) The Comptroller, in the case of all State employees paid by
warrants on the State Treasurer, or, in the case of any other State
employee, the department, institution or agency by which the salary is
paid, or the employer in the case of teachers and other employees shall
cause to be deducted from the salary of each member for each and every
payroll period subsequent to the date of establishment of the retirement
system, the contribution payable by such member as provided in this
chapter, but in no case shall any deduction be made from the compensation
of a member after his normal retirement date if such member elects not
to contribute.

(c) In determining the creditable compensation of a member in a
payroll period, the Board may consider the rate of compensation payable
to such member on the first day of the payroll period as continuing
throughout such payroll period, and to facilitate the making of deductions
may allow the omission of deductions from compensation for any period
less than a full payroll period if an employee was not a member on the
first day of the payroll period.
(d) The deductions provided for herein shall be made notwithstand-
ing that the minimum compensation provided by law for any member
shall be reduced thereby. Every member shall be deemed to consent and
agree to the deductions made as provided herein; and payment of salary
or compensation less such deductions shall be a full and complete discharge
of all claims for services rendered by such person during the period cov-
ered by such payment, except as to any benefits provided by this chapter.
_ (e) Notwithstanding any other provisions of this section, no deduc-
tion shall be made from any member’s compensation if the employer’s
contribution required hereunder is in default.

Any member who was a former member of the abolished system
and who transferred his accumulated contributions to the retirement
system as provided in § 51-29.33 and who has not withdrawn such con-
tributions may at the time of filing his notice of retirement deposit in his
account in the members’ .contribution account by a single payment such
amount as will increase his total retirement allowance to an amount not
greater than the largest amount obtainable under the applicable provisions
of subsection (e) of § 51-29.47.

(g) The Board may modify the method of collecting the contribu-
tions of members so that the employers, departments, institutions and
agencies required to remit to the State Treasurer as provided in subsection
(b) of this section may retain the amounts deducted by them from mem-
bers’ salaries and have a corresponding amount deducted from State funds
otherwise payable to them. .

§ 51-29.39. Employer contributions.—(a) Each employer shall con-
tribute annually an amount equal to a certain percentage of the creditable
compensation of the members, to be known as the ‘“‘norma! contribution”
and an additional amount equal to a certain percentage of such creditable
compensation, to be known as the “accrued liability contribution’.

(b) Until the accrued liability contribution is no longer required,
the normal contribution shall be determined as such annual amount pay-
able during the members’ periods of membership required to provide the
retirement allowances due to membership service not provided by the
members’ contributions. After the accrued liability contribution is no
longer required, the normal contribution shall be determined as such
annual amount payable during the members’ periods of membership
required to provide the difference between the total liabilities for retire-
ment allowances, not provided by members’ contributions, and the amount
of the assets in the retirement allowance account. ,

(c) The accrued liability contribution shall be such annual amount
required to provide for the liquidation, within twenty years of the effective
date of the establishment of the retirement system, of the liability for
retirement allowances due to prior service. The unfunded accrued liability
at any particular time shall be the excess, if any, of the then present value
of the retirement allowances due to prior service over the total accumulated
accrued liability contributions previously made with interest on such
contributions at the rates of interest earned each year on the assets of
the retirement system.

d) Normal contributions and the accrued liability contributions shall
be determined on actuarial bases adopted by the Board. Such contributions
shall be determined by the Board after each valuation and shall continue
in force until a new valuation is made.

(e) The Board shall certify to the Comptroller, and to each employer
contributor other than the State, the normal contributions and the accrued
liability contributions, and every change made therein from time to time.

(f) The aggregate employer contributions payable into the retire-
ment allowance account shall be at least sufficient, when combined with the
amount then held in the account, to provide the benefits payable from the
account during the current year.

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

(h) In the case of all teachers whose compensation is paid exclusively
out of funds derived from local revenues and appropriations from the
general fund of the State treasury, and in the case of all State employees
whose compensation is paid exclusively by the State out of the general
fund of the State treasury, the State shall be the sole contributor, and all
such contributions shall be paid out of the general fund. In the case of
any teacher whose compensation is paid out of funds derived in whole or
in part from any special fund, or from a contributor other than the State
or some political subdivision thereof, then in any year, there shall be paid
out of the general fund only such proportion of the contributions on be-
half of such employee as that part of such employee’s compensation paid
out of local revenues and funds derived from the general fund for that
year bears to his total compensation for that year, and the remainder of
such contributions shall be paid out of such special fund or by such other
contributor in proportion to that part of the employee’s compensation
derived therefrom. In the case of a State employee whose compensation
is paid in whole or in part out of any special fund, or by any contributor
other than the State, then contributions on behalf of such employee in
any year shall be paid out of such special fund, or by such other contribu-
tor, in proportion to that part of the employee’s compensation derived
therefrom for that year. The governing body of each county, city and
town is hereby authorized to make such appropriations from the funds of
such county, city or town as shall be necessary to pay its proportionate
share of contributions on account of every State employee whose com-
pensation is paid in part by such county, city or town.

Article 7.

Assets of Retirement System.

§ 51-29.40. Assets credited to one of two accounts.—All of the
assets of the retirement system shall be credited, according to the purpose,
for which they are held, to one of two accounts, namely, the member’s
contribution account, and the retirement allowance account.

§ 51-29.41. Members’ contribution account.—(a) The members’
contribution account shall be the account to which all members’ contribu-
tions and interest allowances as provided in this chapter shall be credited ;
from this account shall be paid the accumulated contributions of a member
required to be returned to him upon withdrawal, or paid in the event of
his death before retirement.

(b) In the case of all members paid directly out of the State treas-
ury, the Comptroller shall, at the end of each payroll period, transfer to
the members’ contribution account from each fund in the State treasury
out of which the salary of any member is paid, an amount equal to the
aggregate amount of the deductions made for the preceding payroll
period from the salaries of all members paid out of such fund in the
State treasury. The Comptroller shall forward a record of all such trans-
fers to the Board. In all other cases the employer, or the department,
agency or institution, by which any member’s compensation is paid, shall,
at the end of each payroll period, transmit to the State Treasurer its
warrant for the payment of an amount equal to the aggregate amount of
the deductions made for such payroll period from the salaries of all mem-
bers paid by such employer, department, agency or institution, for the
preceding payroll period. The funds collected by the Treasurer on account
of such warrants shall be credited to the members’ contribution account.
The Treasurer shall transmit to the Comptroller and to the Board a
record of all moneys so collected.

(c) Each contribution provided for in § 51-29.38 shall be credited
to the individual account of the contributing member.

(d) Each individual account of the members’ contribution account
shall be credited annually with interest at the rate of two per centum
per annum on the accumulated contributions of the member; provided
however that interest shall accrue on any such contribution beginning at
the end of the fiscal year in which each such contribution was made.

(e) Accumulated contributions transferred from the abolished system
shall be credited to the individual account in the members’ contribution
account and interest thereon shall accrue and be credited annually at the
rate of two per centum per annum beginning on the first day of the month
next following the month in which such transfer is authorized.

(f) Upon the retirement of a member, his accumulated contributions
shall be transferred from the members’ contribution account to the re-
tirement allowance account.

§ 51-29.42. Retirement allowance account.—(a) The retirement
allowance account shall be the account in which shall be accumulated all
employer contributions, amounts transferred from the members’ contri-
bution account, and to which all income from the invested assets of the
retirement system shall be credited; from this account shall be paid re-
tirement allowances and any other benefits payable after a member’s re-
tirement; from this account may be paid administrative expenses.

(b) The amount of the interest allowances provided for in § 51-29.41
shall be transferred each year from the retirement allowance account to
the members’ contribution account.

(c) The Board shall certify the total of such amounts so ascertained
and appropriated for each year of the biennium to the Comptroller on or
before the beginning of each fiscal year; whereupon the Comptroller at the
beginning of each fiscal year shall transfer the amount so certified to the
retirement allowance account. At the end of each fiscal year any amounts
determined by the Board to be paid out of any special funds under sub-
section (h) of § 51-29.39 shall be transferred by the Comptroller from
such special funds to the general fund.

(d) On or before the first day of May in each year the Board shall
certify to each employer other than the State, the amount which will
become due from such employer on account of contributions under this
chapter during the fiscal year beginning July first of each such year.
Every such employer shall make provision for the payment of such
amounts, which shall be paid in equal quarterly installments by warrants
of the employer transmitted and payable to the State Treasurer. All
moneys collected on such warrants shall be credited to the retirement
allowance account. The Treasurer shall transmit to the Comptroller and
to the Board a record of all moneys so collected.

§ 51-29.48. State Treasurer custodian of funds; payments.—The
State Treasurer shall be the custodian of the assets of the retirement
system. All payments from the accounts thereof shall be made by him on
warrants of the Comptroller issued upon vouchers signed by such persons
as are designated by the Board. A duly attested copy of a resolution of
the Board designating such persons and bearing on its face the specimen
signatures of such persons shall be filed with the Comptroller as his
authority for issuing warrants upon such vouchers. No voucher shall be
drawn unless it has previously been authorized by resolution of the Board.

§ 51-29.44. Deposits.—For the purpose of meeting disbursements
for retirement allowances and other payments, there may be kept avail-
able cash, not exceeding ten per centum of the total amount in the accounts
of the retirement system, on deposit to the credit of the State Treasurer
in one or more banks or trust companies, located in Virginia, organized
under the laws of Virginia or of the United States, and qualified as State
depositories.

Article 8.
Benefits and Conditions Upon Receipt Thereof.

§ 51-29.45. Service retirement.— (a) Normal retirement. — Any
member in service at his normal retirement date may retire at any time
then or thereafter upon written notification to the Board, made by the
member or his employer, setting forth at what time the retirement is to
become effective, provided that such effective date shall be after his last
day of service but shall not be more than ninety days prior to or subse-
quent to the filing of such notice.

(b) Early retirement.—Any member in service on or after his six-
tieth birthday, or, at the time he has complied with the requirements for
retirement set forth in Chap 36 of the Code of 1919 as it existed
immediately prior to July one, nineteen hundred forty-two, in the case of
a teacher who would have qualified for service retirement prior to his
normal retirement date under the provisions of the abolished system and
in either case prior to his normal retirement date, may retire upon written
notification to the Board, made by the member or his employer, setting
forth at what time the retirement is to become effective, provided that
such effective date shall be after his last day of service and after the filing
of such notice but shall not be more than ninety days subsequent to the
filing of such notice.

(c) Deferred retirement for members terminating service.—Any
member having left the service after fifteen or more years of service may
retire under the provisions of paragraphs (a) or (b) above, provided that
he shall not have withdrawn his accumulated contributions prior to the
effective date of his retirement, and except that any requirements as to
the member being in service shall not apply; provided further however
that no member shall be entitled to the benefits of this paragraph if his
service was terminated because of dishonesty, malfeasance or misfeasance
in Office.

§ 51-29.46. Service retirement on attaining seventy years of age.—
Any member who attains seventy years of age shall be retired forthwith ;
provided that, upon the request of his employer in the case of a teacher,
or the head of the department, institution or agency by which he is
employed, in the case of a State employee, he may remain in service not
longer than the last day of the fiscal year during which he attains seventy
years of age, or if he is a State officer appointed by the Governor he may,
in the discretion of the Governor, be retained in service during such
period or periods for which he may be appointed by the Governor. Not-
withstanding the foregoing provisions, however, until the conclusion of
the war in which the United States is now engaged, upon the request of
his employer, in the case of a teacher, or of the head of the department,
institution or agency by which he is employed, in the case of a State
employee, such member may remain in service for such period or periods
as may be determined by such employer or department, institution or
agency head, with the approval of the Board, if such member is mentally
and physically able to perform his duties efficiently, but, upon conclusion
of such war, any member so remaining in service shall be retired not
later than the end of the fiscal year in which occurs the conclusion of the
war. 7
Any member seventy years of age or more who by reason of long
service and experience has become specially fitted to perform the duties
of his position, and who is physically and mentally capable to perform
such duties adequately, may if he so desires, upon request of the head
of the department, institution or agency by which he is employed, and
upon recommendation of the Board, be continued in service for such period
or periods as is determined by the head of such department, institution or
agency, but not more than two years after each such extension in any
event. The provisions of this paragraph shall not be effective after July
first, nineteen hundred fifty-four.

§ 51-29.47. Service retirement allowance.—Upon service retirement
a member shall receive an annual retirement allowance, payable monthly
to him for life, which shall consist in the case of

(a) Normal retirement—An amount equal to one per centum of his
average final compensation multiplied by his number of years of credit-
able service subject, however, to the provisions of subsections (c) and (d)
of this section.

(b) Early retirement—An amount which shall be determined in the
same manner as for retirement at his normal retirement date with years
of creditable service and average final compensation being determined as
of the date of his actual] retirement, and the amount of the retirement
allowance so determined being reduced on an actuarial equivalent basis
for the period that the actual retirement date precedes the normal retire-
ment date subject, however, to the provisions of subsections (c) and (e)
of this section.

(c) Normal or early retirement—An amount additional to (a) or
(b) above which shall be the actuarial equivalent, for his attained age at
time of retirement, of the excess, if any, of his accumulated contributions
transferred from the abolished system to the retirement system, including
interest credited since such transfer to the date of retirement, over the
amount obtained by accumulating at the rate of two per centum com-
pounded annually, annual amounts equal to four per centum of his annual
creditable compensation at the date of abolition of the Virginia Retirement
System for a period equal to his period of membership in the abolished
system and with interest credited at two per centum annually from the
date of such transfer to the date of retirement. ,

(d) Normal retirement guarantee—The retirement allowance pay-
able upon normal retirement to a former member of the abolished system
who transferred his accumulated contributions to the retirement system
as provided in § 51-29.33 and who has not withdrawn such contributions
prior to retirement, shall be at least an amount which when added to the
primary Social Security benefits to which the member may become entitled
under the Federal Social Security Act in effect at his retirement date,
would equal the service retirement allowance to which the member would
have been entitled under the provisions of the abolished system if he had
continued contributions at the amount in effect at the date of abolition
of the Virginia Retirement System.

(e) Early retirement guarantee—The retirement allowance payable
upon early retirement to a former member of the abolished system who
transferred his accumulated contributions to the retirement system as
provided in § 51-29.33 and who has not withdrawn such contributions
prior to retirement shall not be less than the service retirement allowance
determined in accordance with the provisions of the abolished system in
the case of any member who would have qualified prior to his normal
retirement date for such service retirement allowance if the Virginia
Retirement System had not been abolished; provided, however, that the
total retirement allowance payable in accordance with this subsection after
any such member attains his sixty-fifth birthday shall be reduced by the
amount of any primary Social Security benefits to which such member
becomes entitled under the Federal Social Security Act then in effect, but
the retirement allowance shall in no case be reduced below the amount
that would be payable to such member except for the provisions of this
subsection. BS

(f) Minimum service retirement allowance—Anything in this section
to the contrary notwithstanding the amount of annual retirement allow-
ance as determined under subsection (a) or (e) of this section shall be at
least an amount which when added to the primary Social Security benefits
to which the member may become entitled under the Federal Social
Security Act in effect at his retirement date would equal twenty dollars
times the number of years of creditable service of the member subject to
a maximum of six hundred dollars..

(g) For the purposes of this section the retirement allowance shall
be determined on the assumption that the retirement allowance is payable
to the member alone and that no optional retirement allowance is elected.

§ 51-29.48. Disability Retirement.—Any member in service who has
fifteen or more years of creditable service may, at any time before his
normal retirement date, retire on account of disability upon written notifi-
cation to the Board, made by the member or his employer, setting forth
at what time the retirement is to become effective; provided that such
effective date shall be after his last day of service but shall not be more
than ninety days prior to the filing of such notice; provided further that
the Medical Board, after a medical examination of such member, shall
certify that such member is, and has been continuously since such effec-
tive date if prior to the filing of such notice, mentally or physically inca-
pacitated for the further performance of duty and that such incapacity is
likely to be permanent and that such member should be retired.

§ 51-29.49. Disability retirement allowance.—Upon retirement as
provided in § 51-29.48, a member shall receive an annual retirement allow-
ance payable monthly during his lifetime and continued disability which
shall consist in the case of

(a) Any allowance payable prior to the member’s normal] retirement
date—An amount equal to one and one-quarter per centum of his average
final compensation multiplied by his number of years of creditable service.

(b) Any allowance payable on or after the member’s normal retire-
ment date—An amount equal to the service retirement allowance for
normal retirement determined on the assumption that the member’s credit-
able compensation on the date of disability retirement continued in the
same amount up to his normal retirement date and on the assumption of
years of creditable service up to his normal retirement date including in
creditable service the period of disability retirement prior to normal retire-
ment date.

(c) Disability retirement guarantee—The disability retirement allow-
ance payable on or after a member’s normal retirement date to a former
member of the abolished system who transferred his accumulated contribu-
tions to the retirement system and who has not withdrawn such contribu-
tions prior to such retirement, shall be at least an amount which, when
added to the primary Social Security benefits to which the member may
become entitled under the Federal Social Security Act in effect at his
retirement date, would equal the disability retirement allowance to which
the individual would have been entitled under the provisions of the abol-
ished system. The provisions of subsection (d) of § 51-29.47 shall not be
applicable in the determination of the benefits guaranteed under this
paragraph.

(d) Minimum disability retirement allowance—Anything in this sec-
tion to the contrary notwithstanding the amount of annual retirement
allowance as determined under this section shal] be at least an amount
which when added to the primary Social Security benefits to which the
member may become entitled under the Federal Social Security Act in
effect at his retirement date would equal thirty dollars times the number
of years of creditable service of the member subject to a maximum of six
hundred dollars. |

(e) For the purposes of this section the retirement allowance shall
be determined on the assumption that the retirement allowance is payable
to the member alone and that no optional retirement allowance is elected.

§ 51-29.50. Withdrawal or death before retirement.—If a member
has ceased to be an employee, otherwise than by death, or by retirement
under the provisions of this chapter, he shall be paid, on demand, but not
later than ninety days thereafter, the amount of his accumulated contribu-
tions reduced by the amount of any retirement allowances previously
received by him under any of the provisions of this chapter or the abolished
system. Should a member die at any time before retirement, the amount
of his accumulated contributions reduced by the amount of any retirement
allowance previously received by him under any of the provisions of this
chapter or the abolished system shall be paid to such person, if any, as
he shall have nominated by written designation signed and acknowledged
by such member before some person authorized to take acknowledgments
and filed with the Board, otherwise to his executors or administrators.
Any person so designated may be changed by the written designation of
some other person, signed, acknowledged and filed as aforesaid.

§ 51-29.51. Death after retirement.—If a member dies after the
effective date of his retirement under this act, the excess, if any of his
accumulated contributions as of the effective date of his retirement, over
the total retirement allowances received by him shall be paid in the same
manner as provided in § 51-29.50 in the case of death before retirement
unless the retirement allowance is then being paid in accordance with any
of the options of § 51-29.52.

§ 51-29.52. Optional benefits—(a) Each member shall have the
right at any time, not subsequent to the later of the effective date of the
member’s retirement or the date of written notification to the Board of
the retirement of the member, to elect to have his retirement allowance
payable under any one of the options set forth in this section in lieu of
the retirement allowance otherwise payable to him upon retirement under
any of the provisions of this chapter. The amount of any such optional
retirement allowance shall be the actuarial equivalent of the amount of
such retirement allowance otherwise payable to him. The member shall
make such an election by written request to the Board and such an election
shall be subject to the approval of the Board.

(1) Straight life option—A member may elect to receive an in-
creased retirement allowance in lieu of any death benefits as provided in
§ 51-29.51.

(2) Joint and last survivor option.—The member may elect to receive
a decreased retirement allowance during his lifetime and have such retire-
ment allowance (or one-half thereof if so designated) continued after his
death to another person during the lifetime of such person. In case of
such an election death benefits that might otherwise be provided under
§ 51-29.51 shall not be payable upon the death of the member. This option
may not be elected by a member if the Social Security Option of paragraph
(a) (3) hereof has previously been elected.

(3) Social Security option.—If a member retires prior to his normal
retirement date, he may elect to receive an increased retirement allowance
up to his normal retirement date and a decreased retirement allowance
thereafter, thereby providing a more nearly level retirement allowance
when such decreased retirement allowance is added to his anticipated pri-
mary benefits under the Federal Social Security Act. The election of
this option shall automatically revoke any previous election under the
Joint and Last Survivor Option of paragraph (a) (2) hereof.

(4) Other options.—Some other benefit or benefits shall be paid either
to the member or to such person or persons as he shall select.

(b) The election by a member of any one of the options stated in
this section shall be null and void if the member dies prior to retirement,
and the election of a member of the option stated in paragraph (a) (2)
hereof shall be null and void if the designated person dies before the
member’s retirement.

(c) A member who has elected any one of the options stated in this
section may, at any time prior to the later of the effective date of the
member’s retirement or the date of written notification to the Board of
retirement of the member, revoke such an election by written notification
to the Board.

§ 51-29.53. Medical examinations of beneficiary of disability retire-
ment allowance.—Once each year during the first five years following the
retirement of a member on a disability retirement allowance, under this
retirement system or of the abolished system and once in every three year
period thereafter, the Board may require any such beneficiary prior to
his normal retirement date to undergo a medical examination by the
Medical Board or a physician or physicians designated by the Medical
Board. Should such a beneficiary refuse to submit to any such medical
examination, his retirement allowance shall be discontinued until his with-
drawal of such refusal, and should such refusal continue for one year, all
his rights to any further disability allowance shall cease.

§ 51-29.54. Reduction of disability retirement allowance.—When-
ever the Medical Board certifies to the Board that any beneficiary of a
disability retirement allowance is prior to his normal retirement date
engaged in, or is able to engage in, gainful occupation or work paying
more than the difference between his disability retirement allowance and
his average final compensation, the Board may reduce such retirement
allowance to an amount which, together with the amount earnable by him
equals the amount of his average final compensation.

§ 51-29.55. Cessation of disability retirement allowance.—(a)
Should a beneficiary of a disability retirement allowance be at any time
prior to his normal retirement date in service, his disability retirement
allowance shall cease and he shall become a member of the retirement
system and shall thereafter contribute. Any prior service certificate on
the basis of which his disability retirement allowance was computed shall
be restored and, in addition, he shall be credited with all his previous
membership service which shall include the period of disability retirement.
(b) The balance of any contributions of such beneficiary not used to pro-
vide part of the disability retirement allowances received by him shall be
transferred from the retirement allowance account to the members’ contri-
bution account.

§ 51-29.56. Restoration to active service of former members of
abolished system.—(a) Should a former member of the abolished system
who was receiving a disability retirement allowance under such system at
the date of its abolition be at any time in service thereafter, he shall become
a member of the retirement system and shall thereafter contribute.

(b) In the event of the restoration to service of a former member of
the abolished system as stated in paragraph (a) hereof an amount shall
be transferred from Fund B to the retirement allowance account equal to
the reserve value at the time of cessation of such former member’s dis-
ability retirement allowance under the abolished system which was
attributable to the State annuity thereunder, and the balance of any con-
tributions under the abolished system of such former member not used
to provide part of the disability retirement allowance such former member
renewes under the abolished system shall be transferred from Fund B to
Fund A.

(c) Said former member as stated in paragraph (a) of this section
shall have the right to receive such balance of his contributions as stated
in paragraph (b) hereof or, if he authorizes the transfer within one year
of restoration to service of such balance from Fund A to the member’s
contribution account, he shall be entitled to prior service credit for all
years of service prior to the date of establishment of the retirement system
including the period of disability retirement.

In addition, such former member authorizing such transfer of balance
of his contributions shall be entitled to membership credit in the retirement
system for the period prior to his restoration to service during which he
was on disability retirement under the abolished system.

§1-29.57. Annuity to be reduced in certain cases.—In the case of
any State employee whose compensation is not paid exclusively out of
some fund or funds in the State treasury, and in the case of any teacher
whose compensation is paid out of any fund not derived from local
revenues or from appropriations out of some fund in the State treasury,
if any contributor, other than the State, is in default in the payment of
any contribution or contributions payable by it for which payment pro-
vision is made in § 51-29.39 of Article 6, then the total retirement allow-
ance to which such employee would have been entitled on account of either
a service or disability retirement allowance in case there had been no such
default shall be reduced by the amount of the retirement allowance pro-
vided by the defaulted contribution or contributions.

§ 51-29.58. Social Security benefit proviso.—If a beneficiary does
not qualify for, or loses, primary Social Security benefits to which he is
entitled under the Federal Social Security Act because of his failure to
make application therefor, entering into covered employment, or other-
wise, such primary Social Security benefits shall nevertheless be considered
as being received by such beneficiary for the purposes of this chapter.

§ 51-29.59. Changes or errors in records resulting in erroneous
payments.—Should any change or error in records result in any member
or beneficiary receiving from the retirement system more or less than he
would have been entitled to receive had the records been correct, then on
discovery of any such error the Board shall correct the same, and as far
as practicable shall adjust the payments in such a manner that the
actuarial equivalent of the benefit to which such member or beneficiary
was correctly entitled shall be paid.

2. An emergency exists and this act is in force on and after March one,
nineteen hundred fifty-two.