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2023 Session

Budget Amendments - HB1400 (Floor Approved)

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VA529 Defined Benefit Trust Fund Balances (language only)

Item 1 #2h

Item 1 #2h

Legislative Department
General Assembly of Virginia

Language

Page 12, after line 38, insert:

"G.1. There is hereby established a workgroup to review the recommendations of a November 2022 report from the Joint Legislative and Audit Review Commission (JLARC) regarding the actuarial surplus of the VA529 Defined Benefit Trust Fund (the Fund). The workgroup shall be comprised of the staff directors of the House Committee on Appropriations and the Senate Committee on Finance and Appropriations, the investment director of the Virginia College Savings Plan, the State Treasurer, three nonlegislative citizen member who are citizens of the Commonwealth and have investment or actuarial expertise, one each of which is to be appointed by the Governor, and by the Chairs of the House Committee on Appropriations and the Senate Committee on Finance and Appropriations.

2. The workgroup shall review the considerations set forth in the JLARC report and produce recommendations with regard to: (i) the method, timing, and amount of any withdrawals from the Fund, with consideration to maintaining sufficient assets to ensure Fund solvency for future obligations; (ii) appropriate uses of monies withdrawn from the Fund, to include the appropriate amount and calculation for returning funds to Legacy Prepaid529 account holders, and the appropriate amount and method for dedicating funds to programs supporting higher education access and affordability; and (iii) ongoing oversight of Fund balances to determine availability of any future actuarial surpluses.

3. The workgroup shall submit its findings and recommendations to the Governor and the Chairs of the House Appropriations and Senate Finance and Appropriations Committees no later than November 1, 2023."



Explanation

(This language-only amendment directs the establishment of a workgroup to evaluate November 2022 recommendations of the Joint Legislative and Audit Review Commission (JLARC) with regard to actuarial surpluses in the VA529 Defined Benefit Trust Fund.)