{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/51.1-126.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/51.1-126.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/51.1-126.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/51.1-126.html"}],"law_id":74626,"edition_id":1,"section_id":74626,"structure_id":13057,"section_number":"51.1-126","catch_line":"Employees of institutions of higher education","history":"1952, c. 157, \u00a7 51-111.28; 1978, c. 841; 1982, c. 467; 1987, c. 215; 1990, c. 832; 1991, cc. 217, 645; 1996, cc. 933, 995; 2000, cc. 722, 723; 2001, c. 691; 2003, cc. 369, 626; 2005, c. 793; 2010, cc. 737, 738; 2012, cc. 701, 823; 2014, cc. 745, 764.","full_text":"For purposes of this section, “optional retirement plan” means a retirement plan covering the employee for retirement purposes other than the Virginia Retirement System defined benefit retirement plan established under this chapter or the hybrid retirement program described in \u00a7 51.1-169.\n\nA\n\n1. The Board shall maintain an optional retirement plan covering employees engaged in the performance of teaching, administrative, or research duties with an institution of higher education and any institution of higher education is authorized to make contributions to such plan for the benefit of its employees participating in such plan. Except (i) as provided in subsection B for institutions of higher education that have established their own optional retirement plan and (ii) for employees described in subdivision A 2, every employee hired by an institution of higher education on or after July 1, 2003, engaged in the performance of teaching, administrative, or research duties shall make an irrevocable election to participate in either (a) the Virginia Retirement System defined benefit retirement plan established by this chapter until January 1, 2014, and thereafter, the hybrid retirement program described in \u00a7 51.1-169 or (b) an optional retirement plan maintained by the Board. Such election shall be exercised no later than 60 days from the time of the employee’s entry upon the performance of his duties. If an election is not made within such 60 days, such employee shall be deemed to have elected to participate in the Virginia Retirement System defined benefit retirement plan or the hybrid retirement program described in \u00a7 51.1-169, as applicable.2\n\nAny employee (i) hired on or after July 1, 2003, by an institution of higher education engaged in the performance of teaching, administrative, or research duties; and (ii) who at the time of hiring is in continuous service in the performance of such teaching, administrative, or research duties shall participate in the optional retirement plan maintained by the Board if the most recent retirement plan covering the employee prior to such hiring was an optional retirement plan. If the most recent retirement plan covering the employee prior to such hiring was the Virginia Retirement System defined benefit retirement plan or the hybrid retirement program described in § 51.1-169, such person shall participate in such defined benefit retirement plan or such hybrid retirement program, as applicable, from the time of his entry upon the performance of his duties.B\n\n1. Any institution of higher education, upon receipt of approval by the Board in writing, may establish and maintain its own optional retirement plan covering its employees who are engaged in the performance of teaching, administrative, or research duties. Upon such approval, such institution is authorized to make contributions to its own optional retirement plan for the benefit of its employees who elect to participate or who are required to participate in such plan as provided in this subsection.2\n\nEvery employee, with the exception of employees described in subdivision B 3, (i) hired on or after July 1, 2003, by an institution of higher education that has established and is maintaining its own optional retirement plan pursuant to this subsection and (ii) engaged in the performance of teaching, administrative, or research duties shall make an irrevocable election to participate in either: (a) the Virginia Retirement System defined benefit retirement plan established by this chapter until January 1, 2014, and thereafter, the hybrid retirement program described in § 51.1-169, as applicable; or (b) such optional retirement plan of the institution of higher education. Such employee shall not be provided any election to participate in an optional retirement plan maintained by the Board.\n\t\t\t\tThe election shall be exercised no later than 60 days from the time of the employee’s entry upon the performance of his duties. If an election is not made within such 60 days, such employee shall be deemed to have elected to participate in the Virginia Retirement System defined benefit retirement plan established by this chapter or the hybrid retirement program described in § 51.1-169, as applicable.3\n\nAny employee (i) hired on or after July 1, 2003, by an institution of higher education engaged in the performance of teaching, administrative, or research duties; and (ii) who at the time of hiring is in continuous service in the performance of such teaching, administrative, or research duties shall participate in the optional retirement plan established by the institution of higher education pursuant to this subsection if the most recent retirement plan covering the employee prior to such hiring was an optional retirement plan. If the most recent retirement plan covering the employee prior to such hiring was the Virginia Retirement System defined benefit retirement plan or the hybrid retirement program described in § 51.1-169, such person shall participate in such defined benefit retirement plan or such hybrid retirement program, as applicable, from the time of his entry upon the performance of his duties.C\n\nAny employee engaged in the performance of teaching, administrative, or research duties at an institution of higher education who was covered under an optional retirement plan for retirement purposes, other than the optional retirement plan established by such institution pursuant to subdivision B 1, shall, at the time such institution establishes its own optional retirement plan pursuant to subdivision B 1, automatically and immediately begin to participate in the optional retirement plan established pursuant to subdivision B 1, notwithstanding such employee’s prior election to participate in a different optional retirement plan.D\n\n1. Any administrative fee imposed pursuant to subdivision A 13 of \u00a7 51.1-124.22 upon any institution of higher education for administering and overseeing the institution’s retirement plan established pursuant to subsection A shall be charged for each employee participating in such plan and shall be for costs incurred by the Retirement System that are directly related to the administration and oversight of such plan.2\n\nEach institution of higher education may charge and collect a reimbursement fee from each employee participating in the institution’s retirement plan established pursuant to subsection A. The total amount charged and collected for such fee from all such employees for any year shall not exceed the total of the costs described in subdivision D 1 and charged to the institution for such year.E\n\n1. No employee of an institution of higher education who is an active member in any plan maintained by the Board or established by an institution of higher education, pursuant to this section, shall also be an active member of the retirement system or beneficiary other than a contingent annuitant.2\n\nIf a member of the optional retirement plan maintained under this section is at any time in service as an employee in a position covered for retirement purposes under the provisions of Chapters 1 (§ 51.1-124.1 et seq.), 2 (§ 51.1-200 et seq.), 2.1 (§ 51.1-211 et seq.), or 3 (§ 51.1-300 et seq.), his benefit payments under the optional retirement plan maintained under this section shall be suspended while so employed; provided, however, reemployment shall have no effect on the payment under the optional plan maintained under this section if the benefits are being paid in an annuity form under an annuity contract purchased with the member’s account balance.F\n\n1. The contribution by the Commonwealth on behalf of an employee participating in an optional retirement plan maintained by the Board or on behalf of an employee participating in an optional retirement plan established by his institution of higher education under this section to such employee’s retirement plan shall be (i) at least 8.5 percent but not in excess of 8.9 percent of creditable compensation for any person who becomes a member on or after July 1, 2010, and (ii) 10.4 percent of creditable compensation for all other employees. Any institution of higher education that elects a contribution in excess of 8.5 percent of creditable compensation for any employee described in clause (i) shall provide for the same percentage of creditable compensation as contributions for each of its employees described in clause (i) who participates in such optional retirement plan. The portion of the contribution in excess of 8.5 percent of creditable compensation pursuant to clause (i) shall not be funded from the general fund of the state treasury, but shall be paid by the institution of higher education from other funds. In addition, any person who becomes a member on or after July 1, 2010, shall, pursuant to procedures established by the Board, pay member contributions on a salary reduction basis in accordance with \u00a7 414(h) of the Internal Revenue Code, in an amount equal to five percent of his creditable compensation, to the optional retirement plan maintained by the Board on his behalf or the optional retirement plan established by his institution of higher education on his behalf, as applicable. Each employee making such member contribution shall be deemed to consent and agree to any salary reduction for purposes of the member contribution. Such member contributions shall be in addition to all contributions pursuant to clause (i). An institution of higher education may make an additional contribution for participants who, before January 1, 1991, exercised the election to participate in the plan provided by the institution employing them. Such additional contributions shall be made using funds other than general funds, tuition or fees, up to an additional 2.17 percent of creditable compensation.2\n\nThe governing board of any institution of higher education that establishes its own optional retirement plan pursuant to this section may establish a policy regarding the number of years of service, or portion thereof, that an employee must perform before such employee shall be entitled to receive all contributions made on his behalf by the institution to the optional retirement plan. If an employee has less than the number of years of service, or portion thereof, established by the governing board at the time he ceases employment, other than by death or involuntary separation due to causes other than job performance or misconduct, as determined by the institution of higher education in its sole discretion, he shall not receive or be entitled to that portion of the contributions that was paid by the institution on his behalf for which he does not have the required service. The institution of higher education may establish a forfeiture account for such employer contributions forgone by the employee and may specify the uses of funds in the forfeiture account. The provisions of this subdivision shall apply only to any person who (i) becomes a participant in the institution of higher education’s optional retirement plan on or after July 1, 2014, and (ii) is not an employee described under subdivision B 3. Any future change to a policy established by the governing board of an institution of higher education pursuant to this subdivision regarding the number of years of service required for an employee to receive all contributions made by the institution to the optional retirement plan shall apply only to new employees hired on or after the date of the change.3\n\nThe contribution rates established pursuant to subdivision 1 shall be examined by the Board at least once every six years. The examination shall consider the salary peer group mean contribution as determined by the State Council of Higher Education and the Virginia Retirement System actuary, and, if deemed advisable, recommend a revision to the rate of contribution by the Commonwealth.G\n\nWith respect to any employee who elects pursuant to subsection A or B to participate in the Virginia Retirement System defined benefit retirement plan established by this chapter or the hybrid retirement program described in § 51.1-169, the institution of higher education shall collect and pay all employee and employer contributions to the Virginia Retirement System for retirement and group life insurance in accordance with the provisions of Chapter 1 (§ 51.1-124.1 et seq.) for such employees.H\n\nThe Virginia Retirement System shall develop policies and procedures for the administration of the optional retirement plan it maintains. To assist the Virginia Retirement System in developing such policies and procedures, the Board may appoint an advisory committee of higher education employees to supply guidance in the process.I\n\nAs a condition of the Board granting approval to an institution of higher education to establish its own optional retirement plan, the institution of higher education shall develop policies and procedures for the administration of such plan and shall submit such policies and procedures to the Board as part of the Board-approval process required under this section. In addition, an institution of higher education that is granted approval by the Board to establish its own optional retirement plan covering employees engaged in the performance of teaching, administrative, or research duties shall not adopt or implement policies and procedures that are substantially different from the policies and procedures approved by the Board in the initial approval process unless the Board, in writing, approves such substantially different policies and procedures.J\n\nThe Board shall establish guidelines for the employee elections referred to in subdivision B 2 and shall review and, if deemed advisable, recommend revisions to the contribution rates as described in subsection F. Except for the duties described in subsection I, the Board shall have no duties and responsibilities with respect to such plans established pursuant to subsection B.","order_by":null,"text":{"0":{"id":268200,"text":"For purposes of this section, “optional retirement plan” means a retirement plan covering the employee for retirement purposes other than the Virginia Retirement System defined benefit retirement plan established under this chapter or the hybrid retirement program described in \u00a7 51.1-169.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"A"},"1":{"id":268201,"text":"1. The Board shall maintain an optional retirement plan covering employees engaged in the performance of teaching, administrative, or research duties with an institution of higher education and any institution of higher education is authorized to make contributions to such plan for the benefit of its employees participating in such plan. Except (i) as provided in subsection B for institutions of higher education that have established their own optional retirement plan and (ii) for employees described in subdivision A 2, every employee hired by an institution of higher education on or after July 1, 2003, engaged in the performance of teaching, administrative, or research duties shall make an irrevocable election to participate in either (a) the Virginia Retirement System defined benefit retirement plan established by this chapter until January 1, 2014, and thereafter, the hybrid retirement program described in \u00a7 51.1-169 or (b) an optional retirement plan maintained by the Board. Such election shall be exercised no later than 60 days from the time of the employee’s entry upon the performance of his duties. If an election is not made within such 60 days, such employee shall be deemed to have elected to participate in the Virginia Retirement System defined benefit retirement plan or the hybrid retirement program described in \u00a7 51.1-169, as applicable.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"","next_prefix":"A2"},"2":{"id":268202,"text":"Any employee (i) hired on or after July 1, 2003, by an institution of higher education engaged in the performance of teaching, administrative, or research duties; and (ii) who at the time of hiring is in continuous service in the performance of such teaching, administrative, or research duties shall participate in the optional retirement plan maintained by the Board if the most recent retirement plan covering the employee prior to such hiring was an optional retirement plan. If the most recent retirement plan covering the employee prior to such hiring was the Virginia Retirement System defined benefit retirement plan or the hybrid retirement program described in § 51.1-169, such person shall participate in such defined benefit retirement plan or such hybrid retirement program, as applicable, from the time of his entry upon the performance of his duties.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A","next_prefix":"B"},"3":{"id":268203,"text":"1. Any institution of higher education, upon receipt of approval by the Board in writing, may establish and maintain its own optional retirement plan covering its employees who are engaged in the performance of teaching, administrative, or research duties. Upon such approval, such institution is authorized to make contributions to its own optional retirement plan for the benefit of its employees who elect to participate or who are required to participate in such plan as provided in this subsection.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A2","next_prefix":"B2"},"4":{"id":268204,"text":"Every employee, with the exception of employees described in subdivision B 3, (i) hired on or after July 1, 2003, by an institution of higher education that has established and is maintaining its own optional retirement plan pursuant to this subsection and (ii) engaged in the performance of teaching, administrative, or research duties shall make an irrevocable election to participate in either: (a) the Virginia Retirement System defined benefit retirement plan established by this chapter until January 1, 2014, and thereafter, the hybrid retirement program described in § 51.1-169, as applicable; or (b) such optional retirement plan of the institution of higher education. Such employee shall not be provided any election to participate in an optional retirement plan maintained by the Board.\n\t\t\t\tThe election shall be exercised no later than 60 days from the time of the employee’s entry upon the performance of his duties. If an election is not made within such 60 days, such employee shall be deemed to have elected to participate in the Virginia Retirement System defined benefit retirement plan established by this chapter or the hybrid retirement program described in § 51.1-169, as applicable.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B","next_prefix":"B3"},"5":{"id":268205,"text":"Any employee (i) hired on or after July 1, 2003, by an institution of higher education engaged in the performance of teaching, administrative, or research duties; and (ii) who at the time of hiring is in continuous service in the performance of such teaching, administrative, or research duties shall participate in the optional retirement plan established by the institution of higher education pursuant to this subsection if the most recent retirement plan covering the employee prior to such hiring was an optional retirement plan. If the most recent retirement plan covering the employee prior to such hiring was the Virginia Retirement System defined benefit retirement plan or the hybrid retirement program described in § 51.1-169, such person shall participate in such defined benefit retirement plan or such hybrid retirement program, as applicable, from the time of his entry upon the performance of his duties.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"6":{"id":268206,"text":"Any employee engaged in the performance of teaching, administrative, or research duties at an institution of higher education who was covered under an optional retirement plan for retirement purposes, other than the optional retirement plan established by such institution pursuant to subdivision B 1, shall, at the time such institution establishes its own optional retirement plan pursuant to subdivision B 1, automatically and immediately begin to participate in the optional retirement plan established pursuant to subdivision B 1, notwithstanding such employee’s prior election to participate in a different optional retirement plan.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3","next_prefix":"D"},"7":{"id":268207,"text":"1. Any administrative fee imposed pursuant to subdivision A 13 of \u00a7 51.1-124.22 upon any institution of higher education for administering and overseeing the institution’s retirement plan established pursuant to subsection A shall be charged for each employee participating in such plan and shall be for costs incurred by the Retirement System that are directly related to the administration and oversight of such plan.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D2"},"8":{"id":268208,"text":"Each institution of higher education may charge and collect a reimbursement fee from each employee participating in the institution’s retirement plan established pursuant to subsection A. The total amount charged and collected for such fee from all such employees for any year shall not exceed the total of the costs described in subdivision D 1 and charged to the institution for such year.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D","next_prefix":"E"},"9":{"id":268209,"text":"1. No employee of an institution of higher education who is an active member in any plan maintained by the Board or established by an institution of higher education, pursuant to this section, shall also be an active member of the retirement system or beneficiary other than a contingent annuitant.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D2","next_prefix":"E2"},"10":{"id":268210,"text":"If a member of the optional retirement plan maintained under this section is at any time in service as an employee in a position covered for retirement purposes under the provisions of Chapters 1 (§ 51.1-124.1 et seq.), 2 (§ 51.1-200 et seq.), 2.1 (§ 51.1-211 et seq.), or 3 (§ 51.1-300 et seq.), his benefit payments under the optional retirement plan maintained under this section shall be suspended while so employed; provided, however, reemployment shall have no effect on the payment under the optional plan maintained under this section if the benefits are being paid in an annuity form under an annuity contract purchased with the member’s account balance.","type":"section","prefixes":["E","2"],"prefix":"2","entire_prefix":"E2","prefix_anchor":"E2","level":2,"prior_prefix":"E","next_prefix":"F"},"11":{"id":268211,"text":"1. The contribution by the Commonwealth on behalf of an employee participating in an optional retirement plan maintained by the Board or on behalf of an employee participating in an optional retirement plan established by his institution of higher education under this section to such employee’s retirement plan shall be (i) at least 8.5 percent but not in excess of 8.9 percent of creditable compensation for any person who becomes a member on or after July 1, 2010, and (ii) 10.4 percent of creditable compensation for all other employees. Any institution of higher education that elects a contribution in excess of 8.5 percent of creditable compensation for any employee described in clause (i) shall provide for the same percentage of creditable compensation as contributions for each of its employees described in clause (i) who participates in such optional retirement plan. The portion of the contribution in excess of 8.5 percent of creditable compensation pursuant to clause (i) shall not be funded from the general fund of the state treasury, but shall be paid by the institution of higher education from other funds. In addition, any person who becomes a member on or after July 1, 2010, shall, pursuant to procedures established by the Board, pay member contributions on a salary reduction basis in accordance with \u00a7 414(h) of the Internal Revenue Code, in an amount equal to five percent of his creditable compensation, to the optional retirement plan maintained by the Board on his behalf or the optional retirement plan established by his institution of higher education on his behalf, as applicable. Each employee making such member contribution shall be deemed to consent and agree to any salary reduction for purposes of the member contribution. Such member contributions shall be in addition to all contributions pursuant to clause (i). An institution of higher education may make an additional contribution for participants who, before January 1, 1991, exercised the election to participate in the plan provided by the institution employing them. Such additional contributions shall be made using funds other than general funds, tuition or fees, up to an additional 2.17 percent of creditable compensation.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E2","next_prefix":"F2"},"12":{"id":268212,"text":"The governing board of any institution of higher education that establishes its own optional retirement plan pursuant to this section may establish a policy regarding the number of years of service, or portion thereof, that an employee must perform before such employee shall be entitled to receive all contributions made on his behalf by the institution to the optional retirement plan. If an employee has less than the number of years of service, or portion thereof, established by the governing board at the time he ceases employment, other than by death or involuntary separation due to causes other than job performance or misconduct, as determined by the institution of higher education in its sole discretion, he shall not receive or be entitled to that portion of the contributions that was paid by the institution on his behalf for which he does not have the required service. The institution of higher education may establish a forfeiture account for such employer contributions forgone by the employee and may specify the uses of funds in the forfeiture account. The provisions of this subdivision shall apply only to any person who (i) becomes a participant in the institution of higher education’s optional retirement plan on or after July 1, 2014, and (ii) is not an employee described under subdivision B 3. Any future change to a policy established by the governing board of an institution of higher education pursuant to this subdivision regarding the number of years of service required for an employee to receive all contributions made by the institution to the optional retirement plan shall apply only to new employees hired on or after the date of the change.","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F","next_prefix":"F3"},"13":{"id":268213,"text":"The contribution rates established pursuant to subdivision 1 shall be examined by the Board at least once every six years. The examination shall consider the salary peer group mean contribution as determined by the State Council of Higher Education and the Virginia Retirement System actuary, and, if deemed advisable, recommend a revision to the rate of contribution by the Commonwealth.","type":"section","prefixes":["F","3"],"prefix":"3","entire_prefix":"F3","prefix_anchor":"F3","level":2,"prior_prefix":"F2","next_prefix":"G"},"14":{"id":268214,"text":"With respect to any employee who elects pursuant to subsection A or B to participate in the Virginia Retirement System defined benefit retirement plan established by this chapter or the hybrid retirement program described in § 51.1-169, the institution of higher education shall collect and pay all employee and employer contributions to the Virginia Retirement System for retirement and group life insurance in accordance with the provisions of Chapter 1 (§ 51.1-124.1 et seq.) for such employees.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F3","next_prefix":"H"},"15":{"id":268215,"text":"The Virginia Retirement System shall develop policies and procedures for the administration of the optional retirement plan it maintains. To assist the Virginia Retirement System in developing such policies and procedures, the Board may appoint an advisory committee of higher education employees to supply guidance in the process.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"16":{"id":268216,"text":"As a condition of the Board granting approval to an institution of higher education to establish its own optional retirement plan, the institution of higher education shall develop policies and procedures for the administration of such plan and shall submit such policies and procedures to the Board as part of the Board-approval process required under this section. In addition, an institution of higher education that is granted approval by the Board to establish its own optional retirement plan covering employees engaged in the performance of teaching, administrative, or research duties shall not adopt or implement policies and procedures that are substantially different from the policies and procedures approved by the Board in the initial approval process unless the Board, in writing, approves such substantially different policies and procedures.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"17":{"id":268217,"text":"The Board shall establish guidelines for the employee elections referred to in subdivision B 2 and shall review and, if deemed advisable, recommend revisions to the contribution rates as described in subsection F. Except for the duties described in subsection I, the Board shall have no duties and responsibilities with respect to such plans established pursuant to subsection B.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I"}},"ancestry":[{"id":13057,"edition_id":1,"name":"Membership in Retirement System","identifier":"4","label":"article","depth":3,"order_by":1,"parent_id":13056,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":235189,"object_type":"structure","relational_id":13057,"identifier":"4","token":"51.1\/1\/4","url":"\/51.1\/1\/4\/","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":84519,"structure_id":13057,"section_number":"51.1-125","catch_line":"Persons composing membership; persons holding more than one position","url":"\/51.1-125\/","token":"51.1\/1\/4\/51.1-125","metadata":false},{"id":74626,"structure_id":13057,"section_number":"51.1-126","catch_line":"Employees of institutions of higher education","url":"\/51.1-126\/","token":"51.1\/1\/4\/51.1-126","metadata":false},{"id":70940,"structure_id":13057,"section_number":"51.1-126.1","catch_line":"Certain employees of teaching hospitals","url":"\/51.1-126.1\/","token":"51.1\/1\/4\/51.1-126.1","metadata":false},{"id":65797,"structure_id":13057,"section_number":"51.1-126.2","catch_line":"Repealed","url":"\/51.1-126.2\/","token":"51.1\/1\/4\/51.1-126.2","metadata":false},{"id":59098,"structure_id":13057,"section_number":"51.1-126.3","catch_line":"Employees of the University of Virginia Medical Center","url":"\/51.1-126.3\/","token":"51.1\/1\/4\/51.1-126.3","metadata":false},{"id":85814,"structure_id":13057,"section_number":"51.1-126.4","catch_line":"Employees of the Virginia Port Authority","url":"\/51.1-126.4\/","token":"51.1\/1\/4\/51.1-126.4","metadata":false},{"id":70111,"structure_id":13057,"section_number":"51.1-126.5","catch_line":"Defined contribution plan for eligible members","url":"\/51.1-126.5\/","token":"51.1\/1\/4\/51.1-126.5","metadata":false},{"id":86163,"structure_id":13057,"section_number":"51.1-126.6","catch_line":"Certain employees of public school divisions","url":"\/51.1-126.6\/","token":"51.1\/1\/4\/51.1-126.6","metadata":false},{"id":84459,"structure_id":13057,"section_number":"51.1-126.7","catch_line":"Employees of the Virginia Outdoors Foundation","url":"\/51.1-126.7\/","token":"51.1\/1\/4\/51.1-126.7","metadata":false},{"id":65817,"structure_id":13057,"section_number":"51.1-126.8","catch_line":"Maximum contributions to optional plans; coordination of limits","url":"\/51.1-126.8\/","token":"51.1\/1\/4\/51.1-126.8","metadata":false},{"id":54112,"structure_id":13057,"section_number":"51.1-127","catch_line":"Federal Employees' Retirement System","url":"\/51.1-127\/","token":"51.1\/1\/4\/51.1-127","metadata":false},{"id":86067,"structure_id":13057,"section_number":"51.1-128","catch_line":"Cessation of membership","url":"\/51.1-128\/","token":"51.1\/1\/4\/51.1-128","metadata":false},{"id":71232,"structure_id":13057,"section_number":"51.1-129","catch_line":"Limitation on membership","url":"\/51.1-129\/","token":"51.1\/1\/4\/51.1-129","metadata":false}],"previous_section":{"id":84519,"structure_id":13057,"section_number":"51.1-125","catch_line":"Persons composing membership; persons holding more than one position","url":"\/51.1-125\/","token":"51.1\/1\/4\/51.1-125","metadata":false},"next_section":{"id":70940,"structure_id":13057,"section_number":"51.1-126.1","catch_line":"Certain employees of teaching hospitals","url":"\/51.1-126.1\/","token":"51.1\/1\/4\/51.1-126.1","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/51.1-126\/","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 13 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 1978, chapter 841; in 1982, chapter 467; in 1987, chapter 215; in 1990, chapter 832; in 1991, chapters 217 and 645; in 1996, chapters 933<\/a> and 995<\/a>; in 2000, chapters 722<\/a> and 723<\/a>; in 2001, chapter 691<\/a>; in 2003, chapters 369<\/a> and 626<\/a>; in 2005, chapter 793<\/a>; in 2010, chapters 737<\/a> and 738<\/a>; in 2012, chapters 701<\/a> and 823<\/a>; in 2014, chapters 745<\/a> and 764<\/a>.<\/p>","references":[{"id":54806,"section_number":"23.1-2416","catch_line":"Retirement benefits for employees of the Authority","order_by":null,"url":"\/23.1-2416\/"},{"id":82207,"section_number":"51.1-1100","catch_line":"Definitions","order_by":null,"url":"\/51.1-1100\/"},{"id":70634,"section_number":"51.1-124.3","catch_line":"Definitions","order_by":null,"url":"\/51.1-124.3\/"},{"id":70940,"section_number":"51.1-126.1","catch_line":"Certain employees of teaching hospitals","order_by":null,"url":"\/51.1-126.1\/"},{"id":75331,"section_number":"51.1-1400","catch_line":"Health insurance credits for retired state employees","order_by":null,"url":"\/51.1-1400\/"},{"id":63381,"section_number":"51.1-1405","catch_line":"Participation in the state retiree health benefits program","order_by":null,"url":"\/51.1-1405\/"},{"id":62951,"section_number":"51.1-145","catch_line":"Employer contributions","order_by":null,"url":"\/51.1-145\/"},{"id":65950,"section_number":"51.1-161","catch_line":"Withdrawal of contributions before retirement","order_by":null,"url":"\/51.1-161\/"}],"refers_to":[{"id":68506,"section_number":"51.1-124.1","catch_line":"Virginia Retirement System established","order_by":null,"url":"\/51.1-124.1\/"},{"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":83100,"section_number":"51.1-169","catch_line":"Hybrid retirement program","order_by":null,"url":"\/51.1-169\/"},{"id":54259,"section_number":"51.1-200","catch_line":"State Police Officers' Retirement System continued; administration; application of provisions of Virginia Retirement System","order_by":null,"url":"\/51.1-200\/"},{"id":74746,"section_number":"51.1-211","catch_line":"Virginia Law Officers' Retirement System; application of provisions of Virginia Retirement System","order_by":null,"url":"\/51.1-211\/"},{"id":73479,"section_number":"51.1-300","catch_line":"Judicial Retirement System continued; administration; application of provisions of Virginia Retirement System","order_by":null,"url":"\/51.1-300\/"}],"permalink":{"id":235195,"object_type":"law","relational_id":74626,"identifier":"51.1-126","token":"51.1\/1\/4\/51.1-126","url":"\/51.1-126\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/51.1-126\/","token":"51.1\/1\/4\/51.1-126","dublin_core":{"Title":"Employees of institutions of higher education","Type":"Text","Format":"text\/html","Identifier":"\u00a7 51.1-126","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

For purposes of this section, “optional retirement plan” means a retirement plan covering the employee<\/span> for retirement purposes other than the Virginia Retirement System<\/span> defined benefit retirement plan established under this chapter or the hybrid retirement program described in \u00a7 51.1-169<\/a>.<\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> 1. The Board<\/span> shall maintain an optional retirement plan covering employees<\/span> engaged in the performance of teaching, administrative, or research duties with an institution of higher education and any institution of higher education is authorized to make contributions to such plan for the benefit of its employees<\/span> participating in such plan. Except (i) as provided in subsection B for institutions of higher education that have established their own optional retirement plan and (ii) for employees<\/span> described in subdivision A 2, every employee<\/span> hired by an institution of higher education on or after July 1, 2003, engaged in the performance of teaching, administrative, or research duties shall make an irrevocable election to participate in either (a) the Virginia Retirement System<\/span> defined benefit retirement plan established by this chapter until January 1, 2014, and thereafter, the hybrid retirement program described in \u00a7 51.1-169<\/a> or (b) an optional retirement plan maintained by the Board<\/span>. Such election shall be exercised no later than 60 days from the time of the employee<\/span>’s entry upon the performance of his duties. If an election is not made within such 60 days, such employee<\/span> shall be deemed to have elected to participate in the Virginia Retirement System<\/span> defined benefit retirement plan or the hybrid retirement program described in \u00a7 51.1-169<\/a>, as applicable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Any employee<\/span> (i) hired on or after July 1, 2003, by an institution of higher education engaged in the performance of teaching, administrative, or research duties; and (ii) who at the time of hiring is in continuous service<\/span> in the performance of such teaching, administrative, or research duties shall participate in the optional retirement plan maintained by the Board<\/span> if the most recent retirement plan covering the employee<\/span> prior to such hiring was an optional retirement plan. If the most recent retirement plan covering the employee<\/span> prior to such hiring was the Virginia Retirement System<\/span> defined benefit retirement plan or the hybrid retirement program described in § 51.1-169<\/a>, such person shall participate in such defined benefit retirement plan or such hybrid retirement program, as applicable, from the time of his entry upon the performance of his duties. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> 1. Any institution of higher education, upon receipt of approval by the Board<\/span> in writing, may establish and maintain its own optional retirement plan covering its employees<\/span> who are engaged in the performance of teaching, administrative, or research duties. Upon such approval, such institution is authorized to make contributions to its own optional retirement plan for the benefit of its employees<\/span> who elect to participate or who are required to participate in such plan as provided in this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Every employee<\/span>, with the exception of employees<\/span> described in subdivision B 3, (i) hired on or after July 1, 2003, by an institution of higher education that has established and is maintaining its own optional retirement plan pursuant to this subsection and (ii) engaged in the performance of teaching, administrative, or research duties shall make an irrevocable election to participate in either: (a) the Virginia Retirement System<\/span> defined benefit retirement plan established by this chapter until January 1, 2014, and thereafter, the hybrid retirement program described in § 51.1-169<\/a>, as applicable; or (b) such optional retirement plan of the institution of higher education. Such employee<\/span> shall not be provided any election to participate in an optional retirement plan maintained by the Board<\/span>.\n\t\t\t\tThe election shall be exercised no later than 60 days from the time of the employee<\/span>’s entry upon the performance of his duties. If an election is not made within such 60 days, such employee<\/span> shall be deemed to have elected to participate in the Virginia Retirement System<\/span> defined benefit retirement plan established by this chapter or the hybrid retirement program described in § 51.1-169<\/a>, as applicable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Any employee<\/span> (i) hired on or after July 1, 2003, by an institution of higher education engaged in the performance of teaching, administrative, or research duties; and (ii) who at the time of hiring is in continuous service<\/span> in the performance of such teaching, administrative, or research duties shall participate in the optional retirement plan established by the institution of higher education pursuant to this subsection if the most recent retirement plan covering the employee<\/span> prior to such hiring was an optional retirement plan. If the most recent retirement plan covering the employee<\/span> prior to such hiring was the Virginia Retirement System<\/span> defined benefit retirement plan or the hybrid retirement program described in § 51.1-169<\/a>, such person shall participate in such defined benefit retirement plan or such hybrid retirement program, as applicable, from the time of his entry upon the performance of his duties. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any employee<\/span> engaged in the performance of teaching, administrative, or research duties at an institution of higher education who was covered under an optional retirement plan for retirement purposes, other than the optional retirement plan established by such institution pursuant to subdivision B 1, shall, at the time such institution establishes its own optional retirement plan pursuant to subdivision B 1, automatically and immediately begin to participate in the optional retirement plan established pursuant to subdivision B 1, notwithstanding such employee<\/span>’s prior election to participate in a different optional retirement plan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> 1. Any administrative fee imposed pursuant to subdivision A 13 of \u00a7 51.1-124.22<\/a> upon any institution of higher education for administering and overseeing the institution’s retirement plan established pursuant to subsection A shall be charged for each employee<\/span> participating in such plan and shall be for costs incurred by the Retirement System<\/span> that are directly related to the administration and oversight of such plan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Each institution of higher education may charge and collect a reimbursement fee from each employee<\/span> participating in the institution’s retirement plan established pursuant to subsection A. The total amount charged and collected for such fee from all such employees<\/span> for any year shall not exceed the total of the costs described in subdivision D 1 and charged to the institution for such year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> 1. No employee<\/span> of an institution of higher education who is an active member<\/span> in any plan maintained by the Board<\/span> or established by an institution of higher education, pursuant to this section, shall also be an active member<\/span> of the retirement system<\/span> or beneficiary<\/span> other than a contingent annuitant. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If a member<\/span> of the optional retirement plan maintained under this section is at any time in service<\/span> as an employee<\/span> in a position covered for retirement purposes under the provisions of Chapters 1 (§ 51.1-124.1<\/a> et seq.), 2 (§ 51.1-200<\/a> et seq.), 2.1 (§ 51.1-211<\/a> et seq.), or 3 (§ 51.1-300<\/a> et seq.), his benefit payments under the optional retirement plan maintained under this section shall be suspended while so employed; provided, however, reemployment shall have no effect on the payment under the optional plan maintained under this section if the benefits are being paid in an annuity form under an annuity contract<\/span> purchased with the member<\/span>’s account balance. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> 1. The contribution by the Commonwealth on behalf of an employee<\/span> participating in an optional retirement plan maintained by the Board<\/span> or on behalf of an employee<\/span> participating in an optional retirement plan established by his institution of higher education under this section to such employee<\/span>’s retirement plan shall be (i) at least 8.5 percent but not in excess of 8.9 percent of creditable compensation<\/span> for any person who becomes a member<\/span> on or after July 1, 2010, and (ii) 10.4 percent of creditable compensation<\/span> for all other employees<\/span>. Any institution of higher education that elects a contribution in excess of 8.5 percent of creditable compensation<\/span> for any employee<\/span> described in clause (i) shall provide for the same percentage of creditable compensation<\/span> as contributions for each of its employees<\/span> described in clause (i) who participates in such optional retirement plan. The portion of the contribution in excess of 8.5 percent of creditable compensation<\/span> pursuant to clause (i) shall not be funded from the general fund of the state treasury, but shall be paid by the institution of higher education from other funds. In addition, any person who becomes a member<\/span> on or after July 1, 2010, shall, pursuant to procedures established by the Board<\/span>, pay member<\/span> contributions on a salary reduction basis in accordance with \u00a7 414(h) of the Internal Revenue Code, in an amount equal to five percent of his creditable compensation<\/span>, to the optional retirement plan maintained by the Board<\/span> on his behalf or the optional retirement plan established by his institution of higher education on his behalf, as applicable. Each employee<\/span> making such member<\/span> contribution shall be deemed to consent and agree to any salary reduction for purposes of the member<\/span> contribution. Such member<\/span> contributions shall be in addition to all contributions pursuant to clause (i). An institution of higher education may make an additional contribution for participants who, before January 1, 1991, exercised the election to participate in the plan provided by the institution employing them. Such additional contributions shall be made using funds other than general funds, tuition or fees, up to an additional 2.17 percent of creditable compensation<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The governing board<\/span> of any institution of higher education that establishes its own optional retirement plan pursuant to this section may establish a policy regarding the number of years of service<\/span>, or portion thereof, that an employee<\/span> must perform before such employee<\/span> shall be entitled to receive all contributions made on his behalf by the institution to the optional retirement plan. If an employee<\/span> has less than the number of years of service<\/span>, or portion thereof, established by the governing board<\/span> at the time he ceases employment, other than by death or involuntary separation due to causes other than job performance or misconduct, as determined by the institution of higher education in its sole discretion, he shall not receive or be entitled to that portion of the contributions that was paid by the institution on his behalf for which he does not have the required service<\/span>. The institution of higher education may establish a forfeiture account for such employer<\/span> contributions forgone by the employee<\/span> and may specify the uses of funds in the forfeiture account. The provisions of this subdivision shall apply only to any person who (i) becomes a participant in the institution of higher education’s optional retirement plan on or after July 1, 2014, and (ii) is not an employee<\/span> described under subdivision B 3. Any future change to a policy established by the governing board<\/span> of an institution of higher education pursuant to this subdivision regarding the number of years of service<\/span> required for an employee<\/span> to receive all contributions made by the institution to the optional retirement plan shall apply only to new employees<\/span> hired on or after the date of the change. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The contribution rates established pursuant to subdivision 1 shall be examined by the Board<\/span> at least once every six years. The examination shall consider the salary peer group mean contribution as determined by the State Council of Higher Education and the Virginia Retirement System<\/span> actuary, and, if deemed advisable, recommend a revision to the rate of contribution by the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> With respect to any employee<\/span> who elects pursuant to subsection A or B to participate in the Virginia Retirement System<\/span> defined benefit retirement plan established by this chapter or the hybrid retirement program described in § 51.1-169<\/a>, the institution of higher education shall collect and pay all employee<\/span> and employer<\/span> contributions to the Virginia Retirement System<\/span> for retirement and group life insurance in accordance with the provisions of Chapter 1 (§ 51.1-124.1<\/a> et seq.) for such employees<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> The Virginia Retirement System<\/span> shall develop policies and procedures for the administration of the optional retirement plan it maintains. To assist the Virginia Retirement System<\/span> in developing such policies and procedures, the Board<\/span> may appoint an advisory committee of higher education employees<\/span> to supply guidance in the process. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> As a condition of the Board<\/span> granting approval to an institution of higher education to establish its own optional retirement plan, the institution of higher education shall develop policies and procedures for the administration of such plan and shall submit such policies and procedures to the Board<\/span> as part of the Board<\/span>-approval process required under this section. In addition, an institution of higher education that is granted approval by the Board<\/span> to establish its own optional retirement plan covering employees<\/span> engaged in the performance of teaching, administrative, or research duties shall not adopt or implement policies and procedures that are substantially different from the policies and procedures approved by the Board<\/span> in the initial approval process unless the Board<\/span>, in writing, approves such substantially different policies and procedures. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> The Board<\/span> shall establish guidelines for the employee<\/span> elections referred to in subdivision B 2 and shall review and, if deemed advisable, recommend revisions to the contribution rates as described in subsection F. Except for the duties described in subsection I, the Board<\/span> shall have no duties and responsibilities with respect to such plans established pursuant to subsection B. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nEMPLOYEES OF INSTITUTIONS OF HIGHER EDUCATION (\u00a7 51.1-126)\n\nFor purposes of this section, “optional retirement plan” means a\nretirement plan covering the employee for retirement purposes other than the\nVirginia Retirement System defined benefit retirement plan established under\nthis chapter or the hybrid retirement program described in \u00a7 51.1-169.\n\nA. 1. The Board shall maintain an optional retirement plan covering employees\nengaged in the performance of teaching, administrative, or research duties with\nan institution of higher education and any institution of higher education is\nauthorized to make contributions to such plan for the benefit of its employees\nparticipating in such plan. Except (i) as provided in subsection B for\ninstitutions of higher education that have established their own optional\nretirement plan and (ii) for employees described in subdivision A 2, every\nemployee hired by an institution of higher education on or after July 1, 2003,\nengaged in the performance of teaching, administrative, or research duties shall\nmake an irrevocable election to participate in either (a) the Virginia\nRetirement System defined benefit retirement plan established by this chapter\nuntil January 1, 2014, and thereafter, the hybrid retirement program described\nin \u00a7 51.1-169 or (b) an optional retirement plan maintained by the Board. Such\nelection shall be exercised no later than 60 days from the time of the\nemployee’s entry upon the performance of his duties. If an election is not\nmade within such 60 days, such employee shall be deemed to have elected to\nparticipate in the Virginia Retirement System defined benefit retirement plan or\nthe hybrid retirement program described in \u00a7 51.1-169, as applicable.\n\n 2. Any employee (i) hired on or after July 1, 2003, by an institution of\n higher education engaged in the performance of teaching, administrative, or\n research duties; and (ii) who at the time of hiring is in continuous service\n in the performance of such teaching, administrative, or research duties shall\n participate in the optional retirement plan maintained by the Board if the\n most recent retirement plan covering the employee prior to such hiring was an\n optional retirement plan. If the most recent retirement plan covering the\n employee prior to such hiring was the Virginia Retirement System defined\n benefit retirement plan or the hybrid retirement program described in §\n 51.1-169, such person shall participate in such defined benefit retirement\n plan or such hybrid retirement program, as applicable, from the time of his\n entry upon the performance of his duties.\n\nB. 1. Any institution of higher education, upon receipt of approval by the Board\nin writing, may establish and maintain its own optional retirement plan covering\nits employees who are engaged in the performance of teaching, administrative, or\nresearch duties. Upon such approval, such institution is authorized to make\ncontributions to its own optional retirement plan for the benefit of its\nemployees who elect to participate or who are required to participate in such\nplan as provided in this subsection.\n\n 2. Every employee, with the exception of employees described in subdivision B\n 3, (i) hired on or after July 1, 2003, by an institution of higher education\n that has established and is maintaining its own optional retirement plan\n pursuant to this subsection and (ii) engaged in the performance of teaching,\n administrative, or research duties shall make an irrevocable election to\n participate in either: (a) the Virginia Retirement System defined benefit\n retirement plan established by this chapter until January 1, 2014, and\n thereafter, the hybrid retirement program described in § 51.1-169, as\n applicable; or (b) such optional retirement plan of the institution of higher\n education. Such employee shall not be provided any election to participate in\n an optional retirement plan maintained by the Board.\n \t\t\t\tThe election shall be exercised no later than 60 days from the time of the\n employee’s entry upon the performance of his duties. If an election is\n not made within such 60 days, such employee shall be deemed to have elected to\n participate in the Virginia Retirement System defined benefit retirement plan\n established by this chapter or the hybrid retirement program described in\n § 51.1-169, as applicable.\n\n 3. Any employee (i) hired on or after July 1, 2003, by an institution of\n higher education engaged in the performance of teaching, administrative, or\n research duties; and (ii) who at the time of hiring is in continuous service\n in the performance of such teaching, administrative, or research duties shall\n participate in the optional retirement plan established by the institution of\n higher education pursuant to this subsection if the most recent retirement\n plan covering the employee prior to such hiring was an optional retirement\n plan. If the most recent retirement plan covering the employee prior to such\n hiring was the Virginia Retirement System defined benefit retirement plan or\n the hybrid retirement program described in § 51.1-169, such person shall\n participate in such defined benefit retirement plan or such hybrid retirement\n program, as applicable, from the time of his entry upon the performance of his\n duties.\n\nC. Any employee engaged in the performance of teaching, administrative, or\nresearch duties at an institution of higher education who was covered under an\noptional retirement plan for retirement purposes, other than the optional\nretirement plan established by such institution pursuant to subdivision B 1,\nshall, at the time such institution establishes its own optional retirement plan\npursuant to subdivision B 1, automatically and immediately begin to participate\nin the optional retirement plan established pursuant to subdivision B 1,\nnotwithstanding such employee’s prior election to participate in a\ndifferent optional retirement plan.\n\nD. 1. Any administrative fee imposed pursuant to subdivision A 13 of \u00a7\n51.1-124.22 upon any institution of higher education for administering and\noverseeing the institution’s retirement plan established pursuant to\nsubsection A shall be charged for each employee participating in such plan and\nshall be for costs incurred by the Retirement System that are directly related\nto the administration and oversight of such plan.\n\n 2. Each institution of higher education may charge and collect a reimbursement\n fee from each employee participating in the institution’s retirement\n plan established pursuant to subsection A. The total amount charged and\n collected for such fee from all such employees for any year shall not exceed\n the total of the costs described in subdivision D 1 and charged to the\n institution for such year.\n\nE. 1. No employee of an institution of higher education who is an active member\nin any plan maintained by the Board or established by an institution of higher\neducation, pursuant to this section, shall also be an active member of the\nretirement system or beneficiary other than a contingent annuitant.\n\n 2. If a member of the optional retirement plan maintained under this section\n is at any time in service as an employee in a position covered for retirement\n purposes under the provisions of Chapters 1 (§ 51.1-124.1 et seq.), 2\n (§ 51.1-200 et seq.), 2.1 (§ 51.1-211 et seq.), or 3 (§\n 51.1-300 et seq.), his benefit payments under the optional retirement plan\n maintained under this section shall be suspended while so employed; provided,\n however, reemployment shall have no effect on the payment under the optional\n plan maintained under this section if the benefits are being paid in an\n annuity form under an annuity contract purchased with the member’s\n account balance.\n\nF. 1. The contribution by the Commonwealth on behalf of an employee\nparticipating in an optional retirement plan maintained by the Board or on\nbehalf of an employee participating in an optional retirement plan established\nby his institution of higher education under this section to such\nemployee’s retirement plan shall be (i) at least 8.5 percent but not in\nexcess of 8.9 percent of creditable compensation for any person who becomes a\nmember on or after July 1, 2010, and (ii) 10.4 percent of creditable\ncompensation for all other employees. Any institution of higher education that\nelects a contribution in excess of 8.5 percent of creditable compensation for\nany employee described in clause (i) shall provide for the same percentage of\ncreditable compensation as contributions for each of its employees described in\nclause (i) who participates in such optional retirement plan. The portion of the\ncontribution in excess of 8.5 percent of creditable compensation pursuant to\nclause (i) shall not be funded from the general fund of the state treasury, but\nshall be paid by the institution of higher education from other funds. In\naddition, any person who becomes a member on or after July 1, 2010, shall,\npursuant to procedures established by the Board, pay member contributions on a\nsalary reduction basis in accordance with \u00a7 414(h) of the Internal Revenue\nCode, in an amount equal to five percent of his creditable compensation, to the\noptional retirement plan maintained by the Board on his behalf or the optional\nretirement plan established by his institution of higher education on his\nbehalf, as applicable. Each employee making such member contribution shall be\ndeemed to consent and agree to any salary reduction for purposes of the member\ncontribution. Such member contributions shall be in addition to all\ncontributions pursuant to clause (i). An institution of higher education may\nmake an additional contribution for participants who, before January 1, 1991,\nexercised the election to participate in the plan provided by the institution\nemploying them. Such additional contributions shall be made using funds other\nthan general funds, tuition or fees, up to an additional 2.17 percent of\ncreditable compensation.\n\n 2. The governing board of any institution of higher education that establishes\n its own optional retirement plan pursuant to this section may establish a\n policy regarding the number of years of service, or portion thereof, that an\n employee must perform before such employee shall be entitled to receive all\n contributions made on his behalf by the institution to the optional retirement\n plan. If an employee has less than the number of years of service, or portion\n thereof, established by the governing board at the time he ceases employment,\n other than by death or involuntary separation due to causes other than job\n performance or misconduct, as determined by the institution of higher\n education in its sole discretion, he shall not receive or be entitled to that\n portion of the contributions that was paid by the institution on his behalf\n for which he does not have the required service. The institution of higher\n education may establish a forfeiture account for such employer contributions\n forgone by the employee and may specify the uses of funds in the forfeiture\n account. The provisions of this subdivision shall apply only to any person who\n (i) becomes a participant in the institution of higher education’s\n optional retirement plan on or after July 1, 2014, and (ii) is not an employee\n described under subdivision B 3. Any future change to a policy established by\n the governing board of an institution of higher education pursuant to this\n subdivision regarding the number of years of service required for an employee\n to receive all contributions made by the institution to the optional\n retirement plan shall apply only to new employees hired on or after the date\n of the change.\n\n 3. The contribution rates established pursuant to subdivision 1 shall be\n examined by the Board at least once every six years. The examination shall\n consider the salary peer group mean contribution as determined by the State\n Council of Higher Education and the Virginia Retirement System actuary, and,\n if deemed advisable, recommend a revision to the rate of contribution by the\n Commonwealth.\n\nG. With respect to any employee who elects pursuant to subsection A or B to\nparticipate in the Virginia Retirement System defined benefit retirement plan\nestablished by this chapter or the hybrid retirement program described in §\n51.1-169, the institution of higher education shall collect and pay all employee\nand employer contributions to the Virginia Retirement System for retirement and\ngroup life insurance in accordance with the provisions of Chapter 1 (§\n51.1-124.1 et seq.) for such employees.\n\nH. The Virginia Retirement System shall develop policies and procedures for the\nadministration of the optional retirement plan it maintains. To assist the\nVirginia Retirement System in developing such policies and procedures, the Board\nmay appoint an advisory committee of higher education employees to supply\nguidance in the process.\n\nI. As a condition of the Board granting approval to an institution of higher\neducation to establish its own optional retirement plan, the institution of\nhigher education shall develop policies and procedures for the administration of\nsuch plan and shall submit such policies and procedures to the Board as part of\nthe Board-approval process required under this section. In addition, an\ninstitution of higher education that is granted approval by the Board to\nestablish its own optional retirement plan covering employees engaged in the\nperformance of teaching, administrative, or research duties shall not adopt or\nimplement policies and procedures that are substantially different from the\npolicies and procedures approved by the Board in the initial approval process\nunless the Board, in writing, approves such substantially different policies and\nprocedures.\n\nJ. The Board shall establish guidelines for the employee elections referred to\nin subdivision B 2 and shall review and, if deemed advisable, recommend\nrevisions to the contribution rates as described in subsection F. Except for the\nduties described in subsection I, the Board shall have no duties and\nresponsibilities with respect to such plans established pursuant to subsection\nB.\n\nHISTORY: 1952, c. 157, \u00a7 51-111.28; 1978, c. 841; 1982, c. 467; 1987, c. 215;\n1990, c. 832; 1991, cc. 217, 645; 1996, cc. 933, 995; 2000, cc. 722, 723; 2001,\nc. 691; 2003, cc. 369, 626; 2005, c. 793; 2010, cc. 737, 738; 2012, cc. 701,\n823; 2014, cc. 745, 764.","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}}