2014 Session

Budget Amendments - SB30 (Member Request)

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Chief Patron: Locke
Assign State Share of Teachers Retirement Unfunded Liability (language only)

Item 136 #6s

Item 136 #6s

Education: Elementary and Secondary
Direct Aid To Public Education

Page 118, strike lines 18 through 20, and 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, Chapter 1, Code of Virginia.”

(This amendment changes the flow of dollars for the state’s share of teachers’ retirement costs from first being paid to the local school divisions, who in turn made their full payments to VRS, instead to being paid directly from the state to VRS. This is intended to result in the allocation to the state, for accounting purposes, of its share of the unfunded liability for teachers’ retirement rather than being entirely allocated to localities. In this absence of such a change, under new GASB standards, the full amount of the unfunded liability, accumulated over many years, will be assigned entirely to the locals.)