2019 Session

Budget Amendments - HB1700 (Committee Approved)

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Amend VRS Surcharge Language Addressing Stranded Liabilities (language only)

Item 474 #2h

Item 474 #2h

Central Appropriations
Central Appropriations


Page 494, strike lines 1 through 12 and insert:

"O.1.a. In order to address the potential for stranded liability in the Virginia Retirement System, institutions of higher education shall pay, effective July 1, 2019,  contributions to the employer's retirement allowance account in an amount equal to the difference between the total retirement contribution rate required on behalf of State employees participating in a defined benefit or hybrid plan offered under the Virginia Retirement System and the rate payable by the Commonwealth under § 51.1-126(F)(1) for Optional Retirement Plan for Higher Education (ORPHE) employees for any positions existing as of December 31, 2011 that are subsequently converted from non-ORPHE eligible positions to  ORPHE-eligible positions on or after January 1, 2012 and that are filled by an employee who elects to participate in the ORPHE. In meeting this obligation, each institution shall provide to the Virginia Retirement System by April 1 of each year a list of all positions converted from non-ORPHE eligible positions to ORPHE-eligible positions since January 1, 2012 and whether current employees in such positions have elected ORPHE participation.

b. Such contributions shall not be required for any new position established by the institution after January 1, 2012 that may be eligible for participation in the Optional Retirement Plan for Higher Education.”


(This amendment language included in the Chapter 2 regarding a surcharge that will be charged to university related to employees who have migrated out of the VRS defined benefit program in an effort to address the stranded liability.)