2000 Session

Budget Bill - HB29 (Chapter 1072)

Virginia Retirement System

Item 567

Item 567

First Year - FY1999Second Year - FY2000
Administrative and Support Services (74900)$14,006,718$14,225,351
General Management and Direction (74901)FY1999 $10,247,065FY2000 $10,446,491
Computer Services (74902)FY1999 $3,759,653FY2000 $3,778,860
Fund Sources:  
Trust and AgencyFY1999 $14,006,718FY2000 $14,225,351

Authority: Title 51.1, Chapters 1, 2, and 3, Code of Virginia.

A. Out of the amounts appropriated to this Item, the Director is authorized to expend an amount not to exceed $25,000 the first year and $25,000 the second year for expenses commonly borne by business enterprises. Such expenses shall be recorded separately by the agency.

B. The procurement of services by the Virginia Retirement System related to the management of authorized investments, including but not limited to actuarial services and services related to disability determination, shall be governed by the standards set forth in § 51.1-808, Code of Virginia, and shall not be subject to the provisions of Chapter 7 (§ 11-35 et seq.) of Title 11, Code of Virginia.

C. State Medicare Retirees who elected to enroll in a Medicare + Choice plan when first eligible for Medicare or who transferred from a state-sponsored program to a Medicare + Choice plan and maintained continuous coverage in such a plan shall be eligible to participate in the state-sponsored Medicare Supplement health plan. If the retired Medicare-eligible employee first enrolled in a Medicare + Choice plan prior to January 1, 1999, the coverage effective date for returning to the state Medicare Supplement plan will be July 1, 1999.

D. The Director of the Virginia Retirement System shall conduct a review of the investment options provided to participants of the Deferred Compensation Program and report his findings to the Secretary of Finance, the Chairmen of the Senate Finance Committee, and the Chairmen of the House Appropriations Committee by July 1, 1999.

E. Any employee with fifteen years or more of full-time or part-time service, and employed prior to 1975 1983, in the legislative branch of government shall be entitled to a compilation of all full-time or part-time service to be counted toward that person's creditable service in the Virginia Retirement System. Part-time service is defined as a minimum of five months of service for each calendar year.

F. Included in the amount for Administrative and Support Services is $100,000 the second year which may be utilized for computer system modifications and related activities for implementation of the Deferred Retirement Option Plan (DROP) provided that such a plan is authorized by House Bill 189 Chapter 974 (1999), as approved by the General Assembly.

G. Consistent with common practice among large public employee retirement systems, the Board of Trustees of the Virginia Retirement System shall conduct, prior to July 1, 2000, for fiscal year 2001, annual valuation studies of the Virginia Retirement System, the State Police Officers Retirement System, the Virginia Law Officers Retirement System, and the Judicial Retirement System. In determining the employer contribution rates for the 2000-02 biennium, the Board shall use the period ending June 30, 1999, as the valuation date of assets. In addition, the Board shall use the same cost assumptions, amortization period and methodologies as was used in initially setting the contribution rates.