A. The total annual employer contribution for each employer, expressed as apercentage of the annual membership payroll, shall be determined in a mannerso as to remain relatively level from year to year. Each employer shallcontribute an amount equal to the sum of the normal contribution, any accruedliability contribution, and any supplementary contribution. The contributionrates for each employer shall be determined after each valuation and shallremain in effect until a new valuation is made. All contribution rates shallbe computed in accordance with recognized actuarial principles on the basisof methods and assumptions approved by the Board.
B. The normal employer contribution for any period shall be determined as apercentage, equal to the normal contribution rate, of the total coveredcompensation of the members employed during the period.
C. The normal contribution rate for any employer shall be determined as thepercentage represented by the ratio of (i) the annual normal cost to providethe benefits of the retirement system with respect to members employed by theemployer in excess of the members' contributions to (ii) the total annualcompensation of the members.
D. The accrued liability contribution for any employer for any period shallbe determined as a percentage, equal to the accrued liability contributionrate, of the total compensation of the members during the period.
E. The accrued liability contribution rate for any employer shall be apercentage of the total annual compensation of the members, determined sothat a continuation of annual contributions by the employer at the samepercentage of total annual compensation over a period of 40 years will besufficient to amortize the unfunded accrued liability with respect to theemployer.
F. The unfunded accrued liability with respect to any employer as of anyvaluation date shall be determined as the excess of (i) the then presentvalue of the benefits to be provided under the retirement system in thefuture to members and former members over (ii) the sum of the assets of theretirement system then currently in the members' contribution account and inthe employer's retirement allowance account, plus the then present value ofthe stipulated contributions to be made in the future by the members, plusthe then present value of the normal contributions expected to be made in thefuture by the employer.
G. The supplementary contribution for any employer for any period shall bedetermined as a percentage, equal to the supplementary contribution rate, ofthe total compensation of the members employed during the period.
H. Until July 1, 1997, the supplementary contribution rate for any employershall be determined as the percentage represented by the ratio of (i) theaverage annual amount of post-retirement supplements, as provided for in thischapter, which is anticipated to become payable during the period to whichthe rate will be applicable with respect to former members to (ii) the totalannual compensation of the members.
I. The Board shall certify to each employer the applicable contribution rateand any changes in the rate.
J. The employer contribution for the year shall be increased to the extentnecessary to overcome any insufficiency if the contributions for anyemployer, when combined with the amount of the retirement allowance accountof the employer, are insufficient to provide the benefits payable during theyear.
K. The appropriation bill which is submitted to the General Assembly by theGovernor prior to each regular session that begins in an even-numbered yearshall include the contributions which will become due and payable to theretirement allowance account from the state treasury during the followingbiennium. The amount of the contributions shall be based on the contributionrates certified by the Board pursuant to subsection I of this section thatare applicable to the Commonwealth as an employer and the anticipatedcompensation during the biennium of the members of the retirement system onbehalf of whom the Commonwealth is the employer.
L. In the case of all teachers whose compensation is paid exclusively out offunds derived from local revenues and appropriations from the general fund ofthe state treasury, the Commonwealth shall contribute to the extent specifiedin the appropriations act. In the case of any teacher whose compensation ispaid out of funds derived in whole or in part from any special fund or from acontributor other than the Commonwealth or a political subdivision thereof,contributions shall be paid out of the special fund or by the othercontributor in proportion to that part of the compensation derived therefrom.In the case of all state employees whose compensation is paid exclusively bythe Commonwealth out of the general fund of the state treasury, theCommonwealth shall be the sole contributor, and all contributions shall bepaid out of the general fund. In the case of a state employee whosecompensation is paid in whole or in part out of any special fund or by anycontributor other than the Commonwealth, contributions on behalf of theemployee shall be paid out of the special fund or by the other contributor inproportion to that part of the employee's compensation derived therefrom. Thegoverning body of each political subdivision is hereby authorized to makeappropriations from the funds of the political subdivision necessary to payits proportionate share of contributions on behalf of every state employeewhose compensation is paid in part by the political subdivision. In the caseof each person who has elected to remain a member of a local retirementsystem, the Commonwealth shall reimburse the local employer an amount equalto the product of the compensation of the person and the employercontribution rate as used to determine the employer contribution for stateemployees under this section. Each employer shall keep such records andperiodically furnish such information as the Board may require and shallinform new employees of their duties and obligations in connection with theretirement system.
M. The employer contribution rate established for each employer may includethe cost to administer any defined contribution plan administered by theVirginia Retirement System and available to the employer. The portion of suchcontribution designated to cover administrative costs of the definedcontribution plans shall not be deposited into the trust fund established forthe defined benefit plans but shall be separately accounted for and usedsolely to defray the administrative costs associated with the various definedcontributions plans. This provision shall supplement the authority of theBoard under §§ 51.1-124.22 and 51.1-602 to charge and collect administrativefees to employers whose employees have available the various definedcontribution plans administered by the Virginia Retirement System.
(1952, c. 157, §§ 51-111.12, 51-111.47; 1960, c. 604; 1966, c. 174; 1970, c.476; 1974, c. 353; 1975, cc. 360, 597, 610, § 51-111.10:2; 1978, cc. 1, 841;1980, c. 722, § 51-111.47:01; 1981, c. 403; 1982, c. 467; 1985, c. 129; 1986,c. 474; 1990, c. 832; 1991, c. 719; 1996, c. 1030; 2005, c. 161.)
A. The total annual employer contribution for each employer, expressed as apercentage of the annual membership payroll, shall be determined in a mannerso as to remain relatively level from year to year. Each employer shallcontribute an amount equal to the sum of the normal contribution, any accruedliability contribution, and any supplementary contribution. The contributionrates for each employer shall be determined after each valuation and shallremain in effect until a new valuation is made. All contribution rates shallbe computed in accordance with recognized actuarial principles on the basisof methods and assumptions approved by the Board.
B. The normal employer contribution for any period shall be determined as apercentage, equal to the normal contribution rate, of the total coveredcompensation of the members employed during the period.
C. The normal contribution rate for any employer shall be determined as thepercentage represented by the ratio of (i) the annual normal cost to providethe benefits of the retirement system with respect to members employed by theemployer in excess of the members' contributions to (ii) the total annualcompensation of the members.
D. The accrued liability contribution for any employer for any period shallbe determined as a percentage, equal to the accrued liability contributionrate, of the total compensation of the members during the period.
E. The accrued liability contribution rate for any employer shall be apercentage of the total annual compensation of the members, determined sothat a continuation of annual contributions by the employer at the samepercentage of total annual compensation over a period of 40 years will besufficient to amortize the unfunded accrued liability with respect to theemployer.
F. The unfunded accrued liability with respect to any employer as of anyvaluation date shall be determined as the excess of (i) the then presentvalue of the benefits to be provided under the retirement system in thefuture to members and former members over (ii) the sum of the assets of theretirement system then currently in the members' contribution account and inthe employer's retirement allowance account, plus the then present value ofthe stipulated contributions to be made in the future by the members, plusthe then present value of the normal contributions expected to be made in thefuture by the employer.
G. The supplementary contribution for any employer for any period shall bedetermined as a percentage, equal to the supplementary contribution rate, ofthe total compensation of the members employed during the period.
H. Until July 1, 1997, the supplementary contribution rate for any employershall be determined as the percentage represented by the ratio of (i) theaverage annual amount of post-retirement supplements, as provided for in thischapter, which is anticipated to become payable during the period to whichthe rate will be applicable with respect to former members to (ii) the totalannual compensation of the members.
I. The Board shall certify to each employer the applicable contribution rateand any changes in the rate.
J. The employer contribution for the year shall be increased to the extentnecessary to overcome any insufficiency if the contributions for anyemployer, when combined with the amount of the retirement allowance accountof the employer, are insufficient to provide the benefits payable during theyear.
K. The appropriation bill which is submitted to the General Assembly by theGovernor prior to each regular session that begins in an even-numbered yearshall include the contributions which will become due and payable to theretirement allowance account from the state treasury during the followingbiennium. The amount of the contributions shall be based on the contributionrates certified by the Board pursuant to subsection I of this section thatare applicable to the Commonwealth as an employer and the anticipatedcompensation during the biennium of the members of the retirement system onbehalf of whom the Commonwealth is the employer.
L. In the case of all teachers whose compensation is paid exclusively out offunds derived from local revenues and appropriations from the general fund ofthe state treasury, the Commonwealth shall contribute to the extent specifiedin the appropriations act. In the case of any teacher whose compensation ispaid out of funds derived in whole or in part from any special fund or from acontributor other than the Commonwealth or a political subdivision thereof,contributions shall be paid out of the special fund or by the othercontributor in proportion to that part of the compensation derived therefrom.In the case of all state employees whose compensation is paid exclusively bythe Commonwealth out of the general fund of the state treasury, theCommonwealth shall be the sole contributor, and all contributions shall bepaid out of the general fund. In the case of a state employee whosecompensation is paid in whole or in part out of any special fund or by anycontributor other than the Commonwealth, contributions on behalf of theemployee shall be paid out of the special fund or by the other contributor inproportion to that part of the employee's compensation derived therefrom. Thegoverning body of each political subdivision is hereby authorized to makeappropriations from the funds of the political subdivision necessary to payits proportionate share of contributions on behalf of every state employeewhose compensation is paid in part by the political subdivision. In the caseof each person who has elected to remain a member of a local retirementsystem, the Commonwealth shall reimburse the local employer an amount equalto the product of the compensation of the person and the employercontribution rate as used to determine the employer contribution for stateemployees under this section. Each employer shall keep such records andperiodically furnish such information as the Board may require and shallinform new employees of their duties and obligations in connection with theretirement system.
M. The employer contribution rate established for each employer may includethe cost to administer any defined contribution plan administered by theVirginia Retirement System and available to the employer. The portion of suchcontribution designated to cover administrative costs of the definedcontribution plans shall not be deposited into the trust fund established forthe defined benefit plans but shall be separately accounted for and usedsolely to defray the administrative costs associated with the various definedcontributions plans. This provision shall supplement the authority of theBoard under §§ 51.1-124.22 and 51.1-602 to charge and collect administrativefees to employers whose employees have available the various definedcontribution plans administered by the Virginia Retirement System.
(1952, c. 157, §§ 51-111.12, 51-111.47; 1960, c. 604; 1966, c. 174; 1970, c.476; 1974, c. 353; 1975, cc. 360, 597, 610, § 51-111.10:2; 1978, cc. 1, 841;1980, c. 722, § 51-111.47:01; 1981, c. 403; 1982, c. 467; 1985, c. 129; 1986,c. 474; 1990, c. 832; 1991, c. 719; 1996, c. 1030; 2005, c. 161.)
A. The total annual employer contribution for each employer, expressed as apercentage of the annual membership payroll, shall be determined in a mannerso as to remain relatively level from year to year. Each employer shallcontribute an amount equal to the sum of the normal contribution, any accruedliability contribution, and any supplementary contribution. The contributionrates for each employer shall be determined after each valuation and shallremain in effect until a new valuation is made. All contribution rates shallbe computed in accordance with recognized actuarial principles on the basisof methods and assumptions approved by the Board.
B. The normal employer contribution for any period shall be determined as apercentage, equal to the normal contribution rate, of the total coveredcompensation of the members employed during the period.
C. The normal contribution rate for any employer shall be determined as thepercentage represented by the ratio of (i) the annual normal cost to providethe benefits of the retirement system with respect to members employed by theemployer in excess of the members' contributions to (ii) the total annualcompensation of the members.
D. The accrued liability contribution for any employer for any period shallbe determined as a percentage, equal to the accrued liability contributionrate, of the total compensation of the members during the period.
E. The accrued liability contribution rate for any employer shall be apercentage of the total annual compensation of the members, determined sothat a continuation of annual contributions by the employer at the samepercentage of total annual compensation over a period of 40 years will besufficient to amortize the unfunded accrued liability with respect to theemployer.
F. The unfunded accrued liability with respect to any employer as of anyvaluation date shall be determined as the excess of (i) the then presentvalue of the benefits to be provided under the retirement system in thefuture to members and former members over (ii) the sum of the assets of theretirement system then currently in the members' contribution account and inthe employer's retirement allowance account, plus the then present value ofthe stipulated contributions to be made in the future by the members, plusthe then present value of the normal contributions expected to be made in thefuture by the employer.
G. The supplementary contribution for any employer for any period shall bedetermined as a percentage, equal to the supplementary contribution rate, ofthe total compensation of the members employed during the period.
H. Until July 1, 1997, the supplementary contribution rate for any employershall be determined as the percentage represented by the ratio of (i) theaverage annual amount of post-retirement supplements, as provided for in thischapter, which is anticipated to become payable during the period to whichthe rate will be applicable with respect to former members to (ii) the totalannual compensation of the members.
I. The Board shall certify to each employer the applicable contribution rateand any changes in the rate.
J. The employer contribution for the year shall be increased to the extentnecessary to overcome any insufficiency if the contributions for anyemployer, when combined with the amount of the retirement allowance accountof the employer, are insufficient to provide the benefits payable during theyear.
K. The appropriation bill which is submitted to the General Assembly by theGovernor prior to each regular session that begins in an even-numbered yearshall include the contributions which will become due and payable to theretirement allowance account from the state treasury during the followingbiennium. The amount of the contributions shall be based on the contributionrates certified by the Board pursuant to subsection I of this section thatare applicable to the Commonwealth as an employer and the anticipatedcompensation during the biennium of the members of the retirement system onbehalf of whom the Commonwealth is the employer.
L. In the case of all teachers whose compensation is paid exclusively out offunds derived from local revenues and appropriations from the general fund ofthe state treasury, the Commonwealth shall contribute to the extent specifiedin the appropriations act. In the case of any teacher whose compensation ispaid out of funds derived in whole or in part from any special fund or from acontributor other than the Commonwealth or a political subdivision thereof,contributions shall be paid out of the special fund or by the othercontributor in proportion to that part of the compensation derived therefrom.In the case of all state employees whose compensation is paid exclusively bythe Commonwealth out of the general fund of the state treasury, theCommonwealth shall be the sole contributor, and all contributions shall bepaid out of the general fund. In the case of a state employee whosecompensation is paid in whole or in part out of any special fund or by anycontributor other than the Commonwealth, contributions on behalf of theemployee shall be paid out of the special fund or by the other contributor inproportion to that part of the employee's compensation derived therefrom. Thegoverning body of each political subdivision is hereby authorized to makeappropriations from the funds of the political subdivision necessary to payits proportionate share of contributions on behalf of every state employeewhose compensation is paid in part by the political subdivision. In the caseof each person who has elected to remain a member of a local retirementsystem, the Commonwealth shall reimburse the local employer an amount equalto the product of the compensation of the person and the employercontribution rate as used to determine the employer contribution for stateemployees under this section. Each employer shall keep such records andperiodically furnish such information as the Board may require and shallinform new employees of their duties and obligations in connection with theretirement system.
M. The employer contribution rate established for each employer may includethe cost to administer any defined contribution plan administered by theVirginia Retirement System and available to the employer. The portion of suchcontribution designated to cover administrative costs of the definedcontribution plans shall not be deposited into the trust fund established forthe defined benefit plans but shall be separately accounted for and usedsolely to defray the administrative costs associated with the various definedcontributions plans. This provision shall supplement the authority of theBoard under §§ 51.1-124.22 and 51.1-602 to charge and collect administrativefees to employers whose employees have available the various definedcontribution plans administered by the Virginia Retirement System.
(1952, c. 157, §§ 51-111.12, 51-111.47; 1960, c. 604; 1966, c. 174; 1970, c.476; 1974, c. 353; 1975, cc. 360, 597, 610, § 51-111.10:2; 1978, cc. 1, 841;1980, c. 722, § 51-111.47:01; 1981, c. 403; 1982, c. 467; 1985, c. 129; 1986,c. 474; 1990, c. 832; 1991, c. 719; 1996, c. 1030; 2005, c. 161.)
