2014 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Davis
Direct Retirement Payments to VRS (language only)

Item 136 #15h

Item 136 #15h

Education: Elementary and Secondary
Direct Aid To Public Education

Page 118, after line 17 insert:
"a. This item provides funds for the state share of the employer's retirement cost incurred by it, on behalf of instructional personnel, to be transferred directly to the retirement allowance account as provided by Title 51.1, Code of Virginia."
Page 118, strike lines 18 through 20.

(This language amendment changes the flow of dollars for the state's share of teacher retirement costs. Instead of the state making payments of their portion of teacher retirement costs to the local school divisions, who in turn make the full payments to VRS, the state would now make its share of payments directly to VRS. This is intended to result in the allocation to the state of its share of unfunded liability for teacher retirement rather than the full liability being borne solely by localities. This does not change the amount paid by the state for teacher retirement; it only takes out the locality as the "middle man" between the state and VRS with regard to state VRS payments.)