2011 Session

Budget Amendments - HB1500 (Conference Report)

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Require Employees to Pay 5% EC with 5% Salary Offset

Item 469 #6c

Item 469 #6c

First Year - FY2011 Second Year - FY2012
Central Appropriations
Central Appropriations FY2011 $0 FY2012 $15,057,664 GF

Page 402, line 7, strike "($27,327,805)" and insert "($12,270,141)".
Page 410, strike lines 3 through 14 and insert:
"T.1. Every “state employee," except elected officials, who is not a “person who becomes a member on or after July 1, 2010,” as those terms are defined in § 51.1-124.3, Code of Virginia, shall be required to pay member contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code in the amount of five percent of creditable compensation, effective June 25, 2011, if the employee is (i) a member covered by the defined benefit plan of the Virginia Retirement System established under Chapter 1 of Title 51.1 (§ 51.1-100 et seq.), (ii) a member of the State Police Officers' Retirement System under Chapter 2 of Title 51.1 (§ 51.1-200 et seq.), or (iii) a member of the Virginia Law Officers' Retirement System under Chapter 2.1 of Title 51.1 (§ 51.1-211 et seq).
2. The base salary of employees described in subparagraph T.1. above shall be increased by five percent effective on June 25, 2011.
3.  Out of the general fund appropriation for this item, $15,057,664 in the second year shall be transferred to state agencies and institutions of higher education to support the net general fund cost as a result of the actions described in paragraphs 1 and 2 above."

(This amendment reinstitutes the 5 percent employee contribution for Plan 1 state employees effective June 25, 2011, and provides a 5 percent salary offset concurrently. The amendment includes $15.1 million general fund to reflect a slight increase in federal tax and fringe benefit expenditures as a result of this action. It is the intent of the General Assembly that the changes to the salaries listed in items 1 to 490, and §4-6.01 of this act that are necessary to implement the purpose of this amendment will be made during enrolling.)