{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/51.1-124.30.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/51.1-124.30.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/51.1-124.30.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/51.1-124.30.html"}],"law_id":84073,"edition_id":1,"section_id":84073,"structure_id":14014,"section_number":"51.1-124.30","catch_line":"Board as trustee of funds; investments; standard of care; liability for losses","history":"1952, c. 157, \u00a7 51-111.24; 1954, c. 633; 1959, Ex. Sess., c. 47; 1962, c. 50; 1972, c. 151; 1973, c. 523; 1976, c. 545; 1977, c. 620; 1978, c. 841; 1980, cc. 559, 596; 1984, c. 430; 1990, c. 832, \u00a7 51.1-114; 1994, cc. 4, 85; 1995, c. 788; 2000, c. 396; 2005, c. 729; 2013, c. 463.","full_text":"A\n\nThe Board shall be the trustee of the funds of the Retirement System that it administers and of those resulting from the abolished system. Subject to the provisions of this chapter, the Board shall have full power to invest and reinvest such funds as authorized by law.B\n\nThe Board shall have the power to borrow money in such amounts as may be necessary to discharge current obligations under this chapter whenever in its judgment it would be more advantageous to borrow money than to sell securities held by the Retirement System. Any debt so incurred may be evidenced by notes duly authorized by resolution of the Board, but in no case is the due date of any note or other evidence of debt to be beyond the end of the biennium succeeding the biennium in which the debt is incurred. Securities held by the Retirement System may be hypothecated by the Board as security for the payment of any debt incurred under this section.C\n\nThe Board shall discharge its duties with respect to the Retirement System solely in the interest of the beneficiaries thereof and shall invest the assets of the Retirement System with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. The Board shall also diversify such investments so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so.D\n\nNo officer, director, or member of the Board or of any advisory committee of the Retirement System or any of its tax exempt subsidiary corporations whose actions are within the standard of care in subsection C above shall be held personally liable for losses suffered by the Retirement System on investments made under the authority of this chapter.E\n\nIn the case of a plan administered by the Board which provides individual accounts permitting an employee or beneficiary to exercise discretion over assets in his account, the Board shall not be liable for any loss resulting from such employee’s or beneficiary’s (i) exercise of discretion over the assets in his account or (ii) inaction with respect to the assets in his account that results in such assets being placed in a default investment option selected by the Board.F\n\nIn the case of an automatic rollover of a mandatory cash-out, as that term is defined under I.R.C. § 401 (a)(31)(B) of the United States Internal Revenue Code of 1986 (including as such section is amended or renumbered, or any successor provision thereto) and regulations thereunder applicable to governmental plans, the Board shall not be liable for any loss resulting from the Board’s selection of an individual retirement plan provider and investment product where the selection is made in accordance with guidelines to be adopted by the Board that are similar to the safe harbor guidelines adopted by the United States Department of Labor for this purpose.","order_by":null,"text":{"0":{"id":301275,"text":"The Board shall be the trustee of the funds of the Retirement System that it administers and of those resulting from the abolished system. Subject to the provisions of this chapter, the Board shall have full power to invest and reinvest such funds as authorized by law.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":301276,"text":"The Board shall have the power to borrow money in such amounts as may be necessary to discharge current obligations under this chapter whenever in its judgment it would be more advantageous to borrow money than to sell securities held by the Retirement System. Any debt so incurred may be evidenced by notes duly authorized by resolution of the Board, but in no case is the due date of any note or other evidence of debt to be beyond the end of the biennium succeeding the biennium in which the debt is incurred. Securities held by the Retirement System may be hypothecated by the Board as security for the payment of any debt incurred under this section.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":301277,"text":"The Board shall discharge its duties with respect to the Retirement System solely in the interest of the beneficiaries thereof and shall invest the assets of the Retirement System with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. The Board shall also diversify such investments so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":301278,"text":"No officer, director, or member of the Board or of any advisory committee of the Retirement System or any of its tax exempt subsidiary corporations whose actions are within the standard of care in subsection C above shall be held personally liable for losses suffered by the Retirement System on investments made under the authority of this chapter.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":301279,"text":"In the case of a plan administered by the Board which provides individual accounts permitting an employee or beneficiary to exercise discretion over assets in his account, the Board shall not be liable for any loss resulting from such employee’s or beneficiary’s (i) exercise of discretion over the assets in his account or (ii) inaction with respect to the assets in his account that results in such assets being placed in a default investment option selected by the Board.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":301280,"text":"In the case of an automatic rollover of a mandatory cash-out, as that term is defined under I.R.C. § 401 (a)(31)(B) of the United States Internal Revenue Code of 1986 (including as such section is amended or renumbered, or any successor provision thereto) and regulations thereunder applicable to governmental plans, the Board shall not be liable for any loss resulting from the Board’s selection of an individual retirement plan provider and investment product where the selection is made in accordance with guidelines to be adopted by the Board that are similar to the safe harbor guidelines adopted by the United States Department of Labor for this purpose.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":14014,"edition_id":1,"name":"Investments","identifier":"3.1","label":"article","depth":3,"order_by":1,"parent_id":13056,"metadata":{},"date_created":"2026-06-26 03:46:36","date_modified":"2026-06-26 03:46:36","permalink":{"id":235139,"object_type":"structure","relational_id":14014,"identifier":"3.1","token":"51.1\/1\/3.1","url":"\/51.1\/1\/3.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13056,"edition_id":1,"name":"Virginia Retirement System","identifier":"1","label":"chapter","depth":2,"order_by":1,"parent_id":12947,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":235031,"object_type":"structure","relational_id":13056,"identifier":"1","token":"51.1\/1","url":"\/51.1\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12947,"edition_id":1,"name":"Pensions, Benefits, and Retirement","identifier":"51.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:04","date_modified":"2026-06-26 03:44:04","permalink":{"id":235029,"object_type":"structure","relational_id":12947,"identifier":"51.1","token":"51.1","url":"\/51.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":84073,"structure_id":14014,"section_number":"51.1-124.30","catch_line":"Board as trustee of funds; investments; standard of care; liability for losses","url":"\/51.1-124.30\/","token":"51.1\/1\/3.1\/51.1-124.30","metadata":false},{"id":83324,"structure_id":14014,"section_number":"51.1-124.30:1","catch_line":"Adoption of stress testing and reporting policies","url":"\/51.1-124.30_1\/","token":"51.1\/1\/3.1\/51.1-124.30_1","metadata":false},{"id":62938,"structure_id":14014,"section_number":"51.1-124.31","catch_line":"Pooling of assets for investment","url":"\/51.1-124.31\/","token":"51.1\/1\/3.1\/51.1-124.31","metadata":false},{"id":55103,"structure_id":14014,"section_number":"51.1-124.32","catch_line":"Exemption from Public Procurement Act","url":"\/51.1-124.32\/","token":"51.1\/1\/3.1\/51.1-124.32","metadata":false},{"id":87307,"structure_id":14014,"section_number":"51.1-124.33","catch_line":"Deposit of trust funds not an investment; authorized deposits","url":"\/51.1-124.33\/","token":"51.1\/1\/3.1\/51.1-124.33","metadata":false},{"id":68643,"structure_id":14014,"section_number":"51.1-124.34","catch_line":"Retention of investments that become ineligible","url":"\/51.1-124.34\/","token":"51.1\/1\/3.1\/51.1-124.34","metadata":false},{"id":74070,"structure_id":14014,"section_number":"51.1-124.35","catch_line":"Investment provisions exclusive","url":"\/51.1-124.35\/","token":"51.1\/1\/3.1\/51.1-124.35","metadata":false},{"id":66913,"structure_id":14014,"section_number":"51.1-124.36","catch_line":"Investment of assets of the Commonwealth Health Research Fund","url":"\/51.1-124.36\/","token":"51.1\/1\/3.1\/51.1-124.36","metadata":false},{"id":72241,"structure_id":14014,"section_number":"51.1-124.37","catch_line":"Investment of assets of the Commonwealth's Attorneys Training Fund","url":"\/51.1-124.37\/","token":"51.1\/1\/3.1\/51.1-124.37","metadata":false},{"id":57703,"structure_id":14014,"section_number":"51.1-124.38","catch_line":"Repealed","url":"\/51.1-124.38\/","token":"51.1\/1\/3.1\/51.1-124.38","metadata":false},{"id":59752,"structure_id":14014,"section_number":"51.1-124.39","catch_line":"Investment of assets of the Line of Duty Death and Health Benefits Trust Fund","url":"\/51.1-124.39\/","token":"51.1\/1\/3.1\/51.1-124.39","metadata":false},{"id":67951,"structure_id":14014,"section_number":"51.1-124.40","catch_line":"Investment of assets of the Opioid Abatement Fund","url":"\/51.1-124.40\/","token":"51.1\/1\/3.1\/51.1-124.40","metadata":false}],"next_section":{"id":83324,"structure_id":14014,"section_number":"51.1-124.30:1","catch_line":"Adoption of stress testing and reporting policies","url":"\/51.1-124.30_1\/","token":"51.1\/1\/3.1\/51.1-124.30_1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/51.1-124.30\/","history_text":"

This law was first created in 1952. The record of its establishment is cataloged in chapter 157 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1952 \u201cActs\u201d aren\u2019t available online. It has been modified 15 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1954, chapter 633; in 1962, chapter 50; in 1972, chapter 151; in 1973, chapter 523; in 1976, chapter 545; in 1977, chapter 620; in 1978, chapter 841; in 1980, chapters 559 and 596; in 1984, chapter 430; in 1990, chapter 832; in 1994, chapters 4<\/a> and 85<\/a>; in 1995, chapter 788<\/a>; in 2000, chapter 396<\/a>; in 2005, chapter 729<\/a>; in 2013, chapter 463<\/a>.<\/p>","references":[{"id":79544,"section_number":"2.2-3705.7","catch_line":"Exclusions to application of chapter; records of specific public bodies and certain other limited exclusions","order_by":null,"url":"\/2.2-3705.7\/"},{"id":72789,"section_number":"2.2-3711","catch_line":"(Effective July 1, 2026) Closed meetings authorized for certain limited purposes","order_by":null,"url":"\/2.2-3711\/"},{"id":86924,"section_number":"22.1-149","catch_line":"Additional funds for loans","order_by":null,"url":"\/22.1-149\/"},{"id":68977,"section_number":"22.1-152","catch_line":"Payment of principal and interest","order_by":null,"url":"\/22.1-152\/"},{"id":61062,"section_number":"51.1-1101","catch_line":"Sickness and disability program; disability insurance policies","order_by":null,"url":"\/51.1-1101\/"},{"id":62198,"section_number":"51.1-1151","catch_line":"Sickness and disability program; disability insurance policies","order_by":null,"url":"\/51.1-1151\/"},{"id":68099,"section_number":"51.1-1200","catch_line":"Fund established; administration and management; Volunteer Firefighters' and Rescue Squad Workers' Service Award Fund Board","order_by":null,"url":"\/51.1-1200\/"},{"id":61929,"section_number":"51.1-1202","catch_line":"Powers and duties of the Board","order_by":null,"url":"\/51.1-1202\/"},{"id":78683,"section_number":"51.1-124.22","catch_line":"Board to administer Retirement System; powers and duties","order_by":null,"url":"\/51.1-124.22\/"},{"id":55103,"section_number":"51.1-124.32","catch_line":"Exemption from Public Procurement Act","order_by":null,"url":"\/51.1-124.32\/"},{"id":68643,"section_number":"51.1-124.34","catch_line":"Retention of investments that become ineligible","order_by":null,"url":"\/51.1-124.34\/"},{"id":83100,"section_number":"51.1-169","catch_line":"Hybrid retirement program","order_by":null,"url":"\/51.1-169\/"},{"id":80264,"section_number":"51.1-513.2","catch_line":"Long-term care coverage program","order_by":null,"url":"\/51.1-513.2\/"},{"id":71102,"section_number":"51.1-602","catch_line":"Deferred compensation plan for employees of the Commonwealth; administered by the Board","order_by":null,"url":"\/51.1-602\/"},{"id":70151,"section_number":"51.1-608","catch_line":"Cash match plan for employees of the Commonwealth; administered by the Board","order_by":null,"url":"\/51.1-608\/"},{"id":68461,"section_number":"51.1-618","catch_line":"Defined contribution plan for eligible employees of local public school boards; administered by the Board","order_by":null,"url":"\/51.1-618\/"}],"refers_to":false,"permalink":{"id":235141,"object_type":"law","relational_id":84073,"identifier":"51.1-124.30","token":"51.1\/1\/3.1\/51.1-124.30","url":"\/51.1-124.30\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/51.1-124.30\/","token":"51.1\/1\/3.1\/51.1-124.30","dublin_core":{"Title":"Board as trustee of funds; investments; standard of care; liability for losses","Type":"Text","Format":"text\/html","Identifier":"\u00a7 51.1-124.30","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Board<\/span> shall be the trustee of the funds of the Retirement System<\/span> that it administers and of those resulting from the abolished system<\/span>. Subject to the provisions of this chapter, the Board<\/span> shall have full power to invest and reinvest such funds as authorized by law<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Board<\/span> shall have the power to borrow money in such amounts as may be necessary to discharge current obligations under this chapter whenever in its judgment<\/span> it would be more advantageous to borrow money than to sell securities held by the Retirement System<\/span>. Any debt so incurred may be evidenced by notes duly authorized by resolution of the Board<\/span>, but in no case is the due date of any note or other evidence<\/span> of debt to be beyond the end of the biennium succeeding the biennium in which the debt is incurred. Securities held by the Retirement System<\/span> may be hypothecated by the Board<\/span> as security for the payment of any debt incurred under this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The Board<\/span> shall discharge its duties with respect to the Retirement System<\/span> solely in the interest of the beneficiaries thereof and shall invest the assets<\/span> of the Retirement System<\/span> with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. The Board<\/span> shall also diversify such investments so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No officer, director, or member<\/span> of the Board<\/span> or of any advisory committee of the Retirement System<\/span> or any of its tax exempt subsidiary corporations whose actions are within the standard of care in subsection C above shall be held personally liable for losses suffered by the Retirement System<\/span> on investments made under the authority of this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> In the case of a plan administered by the Board<\/span> which provides individual accounts permitting an employee<\/span> or beneficiary<\/span> to exercise discretion over assets<\/span> in his account, the Board<\/span> shall not be liable for any loss resulting from such employee<\/span>’s or beneficiary<\/span>’s (i) exercise of discretion over the assets<\/span> in his account or (ii) inaction with respect to the assets<\/span> in his account that results in such assets<\/span> being placed in a default<\/span> investment option selected by the Board<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> In the case of an automatic rollover of a mandatory cash-out, as that term is defined under I.R.C. § 401 (a)(31)(B) of the United States Internal Revenue Code of 1986 (including as such section is amended or renumbered, or any successor provision thereto) and regulations thereunder applicable to governmental plans, the Board<\/span> shall not be liable for any loss resulting from the Board<\/span>’s selection of an individual retirement plan provider and investment product where the selection is made in accordance with guidelines to be adopted by the Board<\/span> that are similar to the safe harbor guidelines adopted by the United States Department of Labor for this purpose. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nBOARD AS TRUSTEE OF FUNDS; INVESTMENTS; STANDARD OF CARE; LIABILITY FOR LOSSES\n(\u00a7 51.1-124.30)\n\nA. The Board shall be the trustee of the funds of the Retirement System that it\nadministers and of those resulting from the abolished system. Subject to the\nprovisions of this chapter, the Board shall have full power to invest and\nreinvest such funds as authorized by law.\n\nB. The Board shall have the power to borrow money in such amounts as may be\nnecessary to discharge current obligations under this chapter whenever in its\njudgment it would be more advantageous to borrow money than to sell securities\nheld by the Retirement System. Any debt so incurred may be evidenced by notes\nduly authorized by resolution of the Board, but in no case is the due date of\nany note or other evidence of debt to be beyond the end of the biennium\nsucceeding the biennium in which the debt is incurred. Securities held by the\nRetirement System may be hypothecated by the Board as security for the payment\nof any debt incurred under this section.\n\nC. The Board shall discharge its duties with respect to the Retirement System\nsolely in the interest of the beneficiaries thereof and shall invest the assets\nof the Retirement System with the care, skill, prudence, and diligence under the\ncircumstances then prevailing that a prudent person acting in a like capacity\nand familiar with such matters would use in the conduct of an enterprise of a\nlike character and with like aims. The Board shall also diversify such\ninvestments so as to minimize the risk of large losses unless under the\ncircumstances it is clearly prudent not to do so.\n\nD. No officer, director, or member of the Board or of any advisory committee of\nthe Retirement System or any of its tax exempt subsidiary corporations whose\nactions are within the standard of care in subsection C above shall be held\npersonally liable for losses suffered by the Retirement System on investments\nmade under the authority of this chapter.\n\nE. In the case of a plan administered by the Board which provides individual\naccounts permitting an employee or beneficiary to exercise discretion over\nassets in his account, the Board shall not be liable for any loss resulting from\nsuch employee’s or beneficiary’s (i) exercise of discretion over the\nassets in his account or (ii) inaction with respect to the assets in his account\nthat results in such assets being placed in a default investment option selected\nby the Board.\n\nF. In the case of an automatic rollover of a mandatory cash-out, as that term is\ndefined under I.R.C. § 401 (a)(31)(B) of the United States Internal Revenue\nCode of 1986 (including as such section is amended or renumbered, or any\nsuccessor provision thereto) and regulations thereunder applicable to\ngovernmental plans, the Board shall not be liable for any loss resulting from\nthe Board’s selection of an individual retirement plan provider and\ninvestment product where the selection is made in accordance with guidelines to\nbe adopted by the Board that are similar to the safe harbor guidelines adopted\nby the United States Department of Labor for this purpose.\n\nHISTORY: 1952, c. 157, \u00a7 51-111.24; 1954, c. 633; 1959, Ex. Sess., c. 47; 1962,\nc. 50; 1972, c. 151; 1973, c. 523; 1976, c. 545; 1977, c. 620; 1978, c. 841;\n1980, cc. 559, 596; 1984, c. 430; 1990, c. 832, \u00a7 51.1-114; 1994, cc. 4, 85;\n1995, c. 788; 2000, c. 396; 2005, c. 729; 2013, c. 463.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}