2004 Special Session I

Budget Amendments - HB5001 (Conference Report)

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VRS Savings Using Normal Rate

Item 145 #3c

Item 145 #3c

First Year - FY2005 Second Year - FY2006
Education: Elementary and Secondary
Direct Aid To Public Education FY2005 ($11,437,562) FY2006 ($54,625) GF

Page 103, line 40, strike "$265,335,825" and insert "$253,898,263".
Page 103, line 40, strike "$275,092,690" and insert "$275,038,065".
Page 104, after line 44, insert:
"c. As a part of the review of the Virginia Retirement System pursuant to House Joint Resolution No. 34 the joint subcommittee shall review: 1) the Commonwealth's responsibilities for funding the teacher retirement system beyond the actuarial normal rate and 2) the Commonwealth's appropriate share for retirement payments by school divisions.  In making this review, the joint subcommittee shall review the impact of the blended retirement rates on the retirement system, school divisions, and the Commonwealth."

(This amendment reflects the savings associated with changing the Virginia Retirement System rate from the "pooled" rate of 6.56 percent to the normal rate of 6.03 percent in the first year. The rate for the second year is 6.62 percent. In addition, this amendment reflects a Retiree Health Care Credit Rate of 0.55 percent rather than 0.59 percent. There is a companion amendment that transfers the savings for the "pooled" rate from Central Appropriations to Direct Aid.)