541#1s (CA) VRS Savings - State. SB800 - Committee Approved

State Budget

2001 Session

Budget Amendments - SB800 (Committee Approved)

Bill Order » Item 541 #1s

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VRS Savings - State

Item 541 #1s

Item 541 #1s	First Year - FY2001	Second Year - FY2002
Central Appropriations
Central Appropriations	FY2001 ($24,276,649)	FY2002 ($11,504,374)	GF

Language
Page 469, line 1, strike "($2,056,436)" and insert "($26,333,085)".
Page 469, line 2, strike "($1,500,025)" and insert "($13,004,399)".
Page 470, following line 16 insert:
"E. The Board of Trustees of the Virginia Retirement System shall charge the Commonwealth and local school boards the actuarially derived rates for state employees and teachers that are set out in the 2000 valuation reports for the Virginia Retirement System, the Judicial Retirement System, and the State Police Officers Retirement System. The Board of Trustees shall institute a premium holiday for the months of April, May and June 2001 (payments made to the VRS in May, June and July 2001) to recoup the employer savings that result from this action. The Board of Trustees shall adjust employer retirement rates for FY 2002 to capture any savings from this action that are not recovered by employers through the premium holiday authorized in this item. The general fund savings for state employers from this action, estimated at $24,276,649 the first year and $11,504,374 the second year shall be withheld from appropriation and transferred to this item.

Explanation
(This amendment captures general fund savings from a technical correction in the employer rates for the Virginia Retirement System, the Judicial Retirement System, and the State Police Officers Retirement System. A companion amendment captures the general fund savings from this action for state funded teachers.)

Item 541

Item 541	First Year - FY2001	Second Year - FY2002
Reversion Clearing Account - Miscellaneous (22600)	-$2,056,436	~~-$94,534,917~~ -$1,500,025
Fund Sources:
General	FY2001 -$2,056,436	FY2002 ~~-$94,534,917~~ -$1,500,025

Authority: Discretionary Inclusion.

A.1. The head of each agency in the Executive Department, except the institutions of higher education, shall develop a plan for achieving increased productivity during the 2000-02 biennium, to be submitted to the Governor no later than October 1, 2000. Such plans shall not include savings based on: a) reductions in the personal service appropriations for corrections officers, juvenile justice officers, mental health direct care staff, or all of higher education, or b) reductions in the nonpersonal service appropriations for transfer payments (aid to localities), continuous charges, or all of higher education. The plan shall be in such form as prescribed by the Governor.

2. Upon approval of the plan by the Governor, general fund savings estimated at $91,728,481 and identified by these plans shall be transferred to this Item by the Director, Department of Planning and Budget. Any agency general fund appropriations unexpended on June 30, 2000, and June 30, 2001, that are in excess of the average general fund appropriations for that agency on June 30, 1998, and June 30, 1999, may be reappropriated if used to offset these savings. However, the State Comptroller shall include all unexpended agency general fund appropriations in the amounts for the calculation of deposits to the Water Quality Improvement Fund, pursuant to § 10.1-2128, Code of Virginia, prior to reappropriation.

3. Savings included in this item for the second year may be transferred to the first year, pursuant to information in the approved savings plan for each agency.

B. For fiscal year 2001 and fiscal year 2002, automobile liability premiums shall be suspended. State agencies and institutions of higher education will not make payments to the Department of the Treasury for this purpose. The Director, Department of Planning and Budget, shall withhold from appropriations to these agencies and institutions general fund amounts estimated to equal $1,207,116 ~~each~~ in the first year and transfer those amounts to this Item. Nongeneral fund amounts appropriated for the payment of automobile liability premiums, which are estimated to equal $34,923 each year, shall be transferred to the general fund pursuant to § 3-1.01 V of this act. All funds from the Virginia Retirement System, federal sources, and transportation funds are exempted from this transfer.

C. For fiscal year 2001 and fiscal year 2002, performance indemnity bond premiums shall be suspended. State agencies and institutions of higher education will not make payments to the Department of the Treasury for this purpose. The Director, Department of Planning and Budget, shall withhold from appropriations to these agencies and institutions general fund amounts estimated to equal $99,320 ~~each~~ in the first year, and transfer those amounts to this Item. Nongeneral fund amounts appropriated for the payment of indemnity bond premiums, which are estimated to equal $15,678 each year, shall be transferred to the general fund pursuant to § 3-1.01 W of this act. All funds from the Virginia Retirement System, federal sources, and transportation funds are exempted from this transfer.

D. The Director, Department of Planning and Budget, shall withhold from the appropriations of state agencies and institutions of higher education, amounts estimated at $750,000 the first year and $1,500,025 the second year for savings from the deregulation of the natural gas and electrical power industries.