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2010 Session

Budget Amendments - SB30 (Conference Report)

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Repayment of "Normal" Cost (language only)

Item 469 #8c

Item 469 #8c

Central Appropriations
Central Appropriations

Language
Page 329, following line 44, insert:
"11. The Virginia Retirement System Board of Trustees shall account for the employer retirement contribution payments deferred for the 2010-2012 biennium based on limiting employer retirement contributions to the Virginia Retirement System to the actuarial normal cost. In setting the employer retirement contribution rates for the 2012-2014 biennium, and subsequent biennia, the Board shall calculate a separate, supplemental employer contribution rate that will amortize  such deferred payments over a period of ten years using the Board's assumed long-term rate of return. The Governor shall include funds to support payment of such Board-approved, supplemental employer contribution rates in the budget submitted to the General Assembly."


Explanation
(This amendment requires that the deferred retirement contributions from limiting employer retirement contributions to the Virginia Retirement System to the actuarial normal of the unfunded actuarial accrued liability shall be paid to the Virginia Retirement System over a period of ten years. The payments required are estimated at $74 million from the general fund annually beginning in fiscal year 2013)