2003 Session

Budget Amendments - SB700 (Committee Approved)

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Special Pay Plan (language only)

Item 511 #1s

Item 511 #1s

Central Appropriations
Central Appropriations

Page 480, after line 23, insert:
"M.1.  The Virginia Retirement System shall study implemention of an Internal Revenue Service approved Special Pay Plan that is qualified under section 401(a) of the Internal Revenue Code for separating state employees.  If the results of this study indicate that such a program would be of value to state employees, the Board is authorized to implement such special pay plan.  
2. Such Special Pay Plan shall be limited to employees age 55 or older.  The Board may establish such other criteria as are appropriate for the effective and efficient operation of the plan.  Special pay for this program does not include sick leave payments or disability credits in the Virginia Sickness and Disability Program.  The Virginia Retirement System may promulgate any regulations necessary to implement these provisions.
3. The Virginia Retirement System shall seek written proposals for the necessary services and programs to implement the plan including investment options and administrative services from any entity  authorized to provide such services.  In evaluating these proposals, the Virginia Retirement System shall consider the expertise and experience of those submitting the proposals as indicated by the number of Special Pay Plans the offeror currently has in effect, the number of years offering such plans, and the cumulative assets under management in such plans, the fee structure offer to plan participants, and any other factors deemed appropriate by the Board.  In developing the Plan, the Virginia Retirement System is authorized to adjust the minimum amount required for participation based on input from employees or to address unexpected hardships.
4.  The Plan shall provide permanent savings for all separating state employees participating in the Special Pay Plan of no less than the lesser of 7.65 percent or the FICA percentage applicable to all annual leave payments subject to the Plan.  Separated state employees who request and are entitled to an immediate distribution from the Plan shall be guaranteed payment of the entire amount of  Special Pay, plus earnings, and less any mandatory income tax withholding no more than seven days from the date payment is made to the Plan on behalf  of the separated state employee.  The amount reimbursed from the Plan subject to the seven day requirement shall not be reduced for any administrative or investment expenses."

(This amendment authorizes a special pay plan as qualified by the Internal Revenue Service for separating state employees.)