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2025 Session

Budget Amendments - SB800 (Floor Approved)

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VA529 Surplus Funds Joint Subcommittee (language only)

Item 1 #5s

Item 1 #5s

Legislative Department
General Assembly of Virginia

Language

Page 12, delete lines 35-54 and insert:

"R.1. The Chairs of the House Appropriations and Senate Finance and Appropriations Committees shall each appoint four members from their respective committees to a joint subcommittee to review the recommendations of the 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).


2. The Joint Subcommittee on VA529 Surplus Funds 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, including the appropriate funded status at which withdrawals should be considered, with consideration to maintaining sufficient assets to ensure Fund solvency for future obligations; (ii) development of guidelines for the appropriate allocation and subsequent use of monies withdrawn from the Fund, including consideration of returning funds to Legacy Prepaid529 account holders and programs that support higher education access and affordability; and (iii) ongoing oversight of Fund balances to determine availability of any future actuarial surpluses.


3. The subcommittee 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 October 15, 2025."



Explanation

(This amendment updates language to establish a Joint Subcommittee to review options for the use of the 529 Defined Benefit Trust Fund based on the 2022 report from the Joint Legislative and Audit Review Commission (JLARC) on the actuarial surplus.)