2002 Session

Budget Amendments - HB30 (Committee Approved)

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VRS Actuarial Valuations (language only)

Item 527 #5h

Item 527 #5h

Independent Agencies
Virginia Retirement System

Page 381, after line 10, insert:
"H.  Consistent with the provisions of § 51.1-124.22, Code of Virginia, the Board of Trustees of the Virginia Retirement System shall conduct biennial actuarial valuations beginning with the valuation as of June 30, 2003, for purposes of establishing fiscal year 2005 employer contribution rates.  In conducting the June 30, 2003, valuation, the  actuarial gains and losses of the system will be amortized over a 30-year period.  In addition, for purposes of establishing employer contribution rates, the Virginia Retirement System Board of Trustees shall segregate the excess gains of the state employee and teacher systems that were in place on June 30, 2001, amortize these gains over a 10-year period, and use the gains to credit the VRS normal cost rate established by the VRS actuary for state employees and teachers."

(This amendment establishes that VRS actuarial valuations will return to biennial valuations as required by the Code of Virginia with the next actuarial valuation occurring effective June 30, 2003. In addition, the amendment requires that in establishing future employer contribution rates for the state employee and teacher funds, the gains of the systems in places on June 2001 will be used over a 10-year period to credit the normal cost rate established by the actuary for state employees and teachers.)