{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/51.1-139.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/51.1-139.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/51.1-139.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/51.1-139.html"}],"law_id":76070,"edition_id":1,"section_id":76070,"structure_id":15102,"section_number":"51.1-139","catch_line":"Procedure when employer in default","history":"1952, c. 157, \u00a7 51-111.38; 1960, c. 604; 1986, c. 474; 1990, c. 832; 2004, c. 207.","full_text":"An employer’s agreement to contribute on behalf of its employees who become members shall be irrevocable. If an employer for any reason becomes financially unable to make the contributions payable on behalf of the members, the employer shall be deemed to be in default and the employees’ membership in the Retirement System shall be terminated. As of the date of the default, (i) each member or beneficiary whose coverage under the Retirement System is affected by such default shall become fully vested, (ii) the actuary of the Retirement System shall determine by actuarial valuation the amount of the reserves held on behalf of each then member and each then beneficiary, and (iii) the Retirement System shall credit to each member and each beneficiary the amount of reserve so held. The reserve so credited together with the amount of the accumulated contributions of each member, shall be disbursed in a manner prescribed by the Board consistent with the applicable tax qualification rules of the Internal Revenue Code, whereupon the rights and privileges of the members and beneficiaries shall terminate.","order_by":null,"text":{"0":{"id":273016,"text":"An employer’s agreement to contribute on behalf of its employees who become members shall be irrevocable. If an employer for any reason becomes financially unable to make the contributions payable on behalf of the members, the employer shall be deemed to be in default and the employees’ membership in the Retirement System shall be terminated. As of the date of the default, (i) each member or beneficiary whose coverage under the Retirement System is affected by such default shall become fully vested, (ii) the actuary of the Retirement System shall determine by actuarial valuation the amount of the reserves held on behalf of each then member and each then beneficiary, and (iii) the Retirement System shall credit to each member and each beneficiary the amount of reserve so held. The reserve so credited together with the amount of the accumulated contributions of each member, shall be disbursed in a manner prescribed by the Board consistent with the applicable tax qualification rules of the Internal Revenue Code, whereupon the rights and privileges of the members and beneficiaries shall terminate.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":15102,"edition_id":1,"name":"Participation of Political Subdivisions in Retirement System","identifier":"5","label":"article","depth":3,"order_by":1,"parent_id":13056,"metadata":{},"date_created":"2026-06-26 03:52:09","date_modified":"2026-06-26 03:52:09","permalink":{"id":235243,"object_type":"structure","relational_id":15102,"identifier":"5","token":"51.1\/1\/5","url":"\/51.1\/1\/5\/","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":72480,"structure_id":15102,"section_number":"51.1-130","catch_line":"Resolution of governing body; approval by Board","url":"\/51.1-130\/","token":"51.1\/1\/5\/51.1-130","metadata":false},{"id":73929,"structure_id":15102,"section_number":"51.1-131","catch_line":"Local pension systems; transfer to retirement system","url":"\/51.1-131\/","token":"51.1\/1\/5\/51.1-131","metadata":false},{"id":81431,"structure_id":15102,"section_number":"51.1-132","catch_line":"Eligible employees","url":"\/51.1-132\/","token":"51.1\/1\/5\/51.1-132","metadata":false},{"id":83773,"structure_id":15102,"section_number":"51.1-133","catch_line":"Limitation on membership","url":"\/51.1-133\/","token":"51.1\/1\/5\/51.1-133","metadata":false},{"id":57542,"structure_id":15102,"section_number":"51.1-134","catch_line":"Optional membership; creditable service","url":"\/51.1-134\/","token":"51.1\/1\/5\/51.1-134","metadata":false},{"id":62836,"structure_id":15102,"section_number":"51.1-135","catch_line":"Compulsory membership","url":"\/51.1-135\/","token":"51.1\/1\/5\/51.1-135","metadata":false},{"id":85532,"structure_id":15102,"section_number":"51.1-136","catch_line":"Submitting information and performing duties prescribed by Board","url":"\/51.1-136\/","token":"51.1\/1\/5\/51.1-136","metadata":false},{"id":78267,"structure_id":15102,"section_number":"51.1-137","catch_line":"Computation of employer contribution rates; reimbursement by Commonwealth","url":"\/51.1-137\/","token":"51.1\/1\/5\/51.1-137","metadata":false},{"id":84786,"structure_id":15102,"section_number":"51.1-137.1","catch_line":"Certain local data to be provided","url":"\/51.1-137.1\/","token":"51.1\/1\/5\/51.1-137.1","metadata":false},{"id":60634,"structure_id":15102,"section_number":"51.1-138","catch_line":"Benefits","url":"\/51.1-138\/","token":"51.1\/1\/5\/51.1-138","metadata":false},{"id":76070,"structure_id":15102,"section_number":"51.1-139","catch_line":"Procedure when employer in default","url":"\/51.1-139\/","token":"51.1\/1\/5\/51.1-139","metadata":false}],"previous_section":{"id":60634,"structure_id":15102,"section_number":"51.1-138","catch_line":"Benefits","url":"\/51.1-138\/","token":"51.1\/1\/5\/51.1-138","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/51.1-139\/","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 4 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 1960, chapter 604; in 1986, chapter 474; in 1990, chapter 832; in 2004, chapter 207<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":235285,"object_type":"law","relational_id":76070,"identifier":"51.1-139","token":"51.1\/1\/5\/51.1-139","url":"\/51.1-139\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/51.1-139\/","token":"51.1\/1\/5\/51.1-139","dublin_core":{"Title":"Procedure when employer in default","Type":"Text","Format":"text\/html","Identifier":"\u00a7 51.1-139","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

An employer<\/span>’s agreement to contribute on behalf of its employees<\/span> who become members<\/span> shall be irrevocable. If an employer<\/span> for any reason becomes financially unable to make the contributions payable on behalf of the members<\/span>, the employer<\/span> shall be deemed to be in default<\/span> and the employees<\/span>’ membership in the Retirement System<\/span> shall be terminated. As of the date of the default<\/span>, (i) each member<\/span> or beneficiary<\/span> whose coverage under the Retirement System<\/span> is affected by such default<\/span> shall become fully vested, (ii) the actuary of the Retirement System<\/span> shall determine by actuarial valuation the amount of the reserves held on behalf of each then member<\/span> and each then beneficiary<\/span>, and (iii) the Retirement System<\/span> shall credit to each member<\/span> and each beneficiary<\/span> the amount of reserve so held. The reserve so credited together with the amount of the accumulated contributions<\/span> of each member<\/span>, shall be disbursed in a manner prescribed by the Board<\/span> consistent with the applicable tax qualification rules of the Internal Revenue Code, whereupon the rights and privileges<\/span> of the members<\/span> and beneficiaries shall terminate.<\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROCEDURE WHEN EMPLOYER IN DEFAULT (\u00a7 51.1-139)\n\nAn employer’s agreement to contribute on behalf of its employees who\nbecome members shall be irrevocable. If an employer for any reason becomes\nfinancially unable to make the contributions payable on behalf of the members,\nthe employer shall be deemed to be in default and the employees’\nmembership in the Retirement System shall be terminated. As of the date of the\ndefault, (i) each member or beneficiary whose coverage under the Retirement\nSystem is affected by such default shall become fully vested, (ii) the actuary\nof the Retirement System shall determine by actuarial valuation the amount of\nthe reserves held on behalf of each then member and each then beneficiary, and\n(iii) the Retirement System shall credit to each member and each beneficiary the\namount of reserve so held. The reserve so credited together with the amount of\nthe accumulated contributions of each member, shall be disbursed in a manner\nprescribed by the Board consistent with the applicable tax qualification rules\nof the Internal Revenue Code, whereupon the rights and privileges of the members\nand beneficiaries shall terminate.\n\nHISTORY: 1952, c. 157, \u00a7 51-111.38; 1960, c. 604; 1986, c. 474; 1990, c. 832;\n2004, c. 207.","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}}