{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/51.1-144.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/51.1-144.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/51.1-144.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/51.1-144.html"}],"law_id":81607,"edition_id":1,"section_id":81607,"structure_id":16045,"section_number":"51.1-144","catch_line":"Member contributions","history":"1952, c. 157, \u00a7\u00a7 51-111.13, 51-111.46; 1956, c. 560; 1960, c. 604; 1966, c. 174; 1972, c. 568; 1974, c. 353; 1976, c. 537; 1980, c. 722, \u00a7 51-111.46:1; 1982, c. 467; 1984, c. 430; 1990, c. 832; 1998, c. 660; 2001, cc. 693, 702; 2002, c. 307; 2010, cc. 737, 738; 2012, c. 822; 2013, c. 463.","full_text":"A\n\nEach member shall contribute five percent of his creditable compensation for each pay period for which he receives compensation.\n\t\t\tThe employer shall deduct the contribution payable by the member. Every employee accepting employment shall be deemed to consent and agree to any deductions from his compensation required by this chapter.B\n\nIn determining the creditable compensation of a member in a payroll period, the Board may consider the rate of compensation payable to the member on the date of entry or removal of his name from the payroll as having been received throughout the month if service for the month is creditable. If service for the month is not creditable, the Board may consider any compensation payable during the month as not being creditable compensation.C\n\nThe minimum compensation provided by law for any member shall be reduced by the deduction required by this section. Except for any benefits provided by this chapter, payment of compensation minus the deductions shall be a full and complete discharge of all claims for services rendered by the member during the period covered by the payment.D\n\nNo deduction shall be made from any member’s compensation if the employer’s contribution is in default.E\n\nThe Board may modify the method of collecting the contributions of members so that the employer may retain the amounts deducted from members’ salaries and have a corresponding amount deducted from state funds otherwise payable to the employer.F\n\n1. Only as provided in subdivisions 3 and 4 may any employer elect to pay an equivalent amount in lieu of any member contributions required of its employees. Such payments shall be credited to the members’ contribution account. These contributions shall not be considered wages for purposes of Chapter 7 (\u00a7 51.1-700 et seq.), nor shall they be considered to be salary for purposes of this chapter.2\n\nA person who becomes a member on or after July 1, 2010, shall be required to pay member contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code in the amount of five percent of creditable compensation if the person is (i) a member covered by the defined benefit plan established under this chapter, (ii) a member of the State Police Officers’ Retirement System under Chapter 2 (§ 51.1-200 et seq.), (iii) a member of the Virginia Law Officers’ Retirement System under Chapter 2.1 (§ 51.1-211 et seq.), (iv) a member of the Judicial Retirement System under Chapter 3 (§ 51.1-300 et seq.), or (v) earning the benefits permitted by § 51.1-138.3\n\nA member who is an employee of a county, city, town, or other local employer other than a local public school board, regardless of whether the member is a person who becomes a member on or after July 1, 2010, shall be required to pay member contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code in the amount of five percent of creditable compensation as follows: (i) any member who commences or recommences employment on or after July 1, 2012, shall be required to contribute five percent of his creditable compensation upon commencing or recommencing employment and (ii) members in service on June 30, 2012, shall be required to contribute five percent of their creditable compensation no later than July 1, 2016. Such member described in subdivision (ii) shall contribute a minimum of an additional one percent of his creditable compensation beginning on each July 1 of 2012, 2013, 2014, 2015, and 2016, or until the member’s contribution equals five percent of creditable compensation, but the county, city, town, or other local employer other than a local public school board may elect to require members to contribute more than an additional one percent each year, in whole percentages. In no case shall a member be required to contribute more than five percent of his creditable compensation for each pay period for which he receives compensation. No county, city, town, or other local employer other than a local public school board shall be allowed to elect to pay any amount of member contributions except to pay the difference between five percent and the employee contribution during the phase-in period described in this subdivision for a member who was in service on June 30, 2012.4\n\nA member who is an employee of a local public school board, regardless of whether the member is a person who becomes a member on or after July 1, 2010, shall be required to pay member contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code in the amount of five percent of creditable compensation as follows: (i) any member who commences or recommences employment on or after July 1, 2012, shall be required to contribute five percent of his creditable compensation upon commencing or recommencing employment and (ii) members in service on June 30, 2012, shall be required to contribute five percent of their creditable compensation no later than July 1, 2016. Such member described in subdivision (ii) shall contribute a minimum of an additional one percent of his creditable compensation beginning on each July 1 of 2012, 2013, 2014, 2015, and 2016, or until the member’s contribution equals five percent of creditable compensation, but the local public school board employer may elect to require members to contribute more than an additional one percent each year, in whole percentages. In no case shall a member be required to contribute more than five percent of his creditable compensation for each pay period for which he receives compensation. No local public school board employer shall be allowed to elect to pay any amount of member contributions except to pay the difference between five percent and the employee contribution during the phase-in period described in this subdivision for a member who was in service on June 30, 2012.G\n\nThe Board may develop procedures to effect the transfer of member contributions paid by employers on or after July 1, 1980, and accrued interest on those contributions, to the member contribution account of the member, if such contributions have been previously deposited into the retirement allowance account of the employer.","order_by":null,"text":{"0":{"id":292258,"text":"Each member shall contribute five percent of his creditable compensation for each pay period for which he receives compensation.\n\t\t\tThe employer shall deduct the contribution payable by the member. Every employee accepting employment shall be deemed to consent and agree to any deductions from his compensation required by this chapter.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":292259,"text":"In determining the creditable compensation of a member in a payroll period, the Board may consider the rate of compensation payable to the member on the date of entry or removal of his name from the payroll as having been received throughout the month if service for the month is creditable. If service for the month is not creditable, the Board may consider any compensation payable during the month as not being creditable compensation.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":292260,"text":"The minimum compensation provided by law for any member shall be reduced by the deduction required by this section. Except for any benefits provided by this chapter, payment of compensation minus the deductions shall be a full and complete discharge of all claims for services rendered by the member during the period covered by the payment.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":292261,"text":"No deduction shall be made from any member’s compensation if the employer’s contribution is in default.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":292262,"text":"The Board may modify the method of collecting the contributions of members so that the employer may retain the amounts deducted from members’ salaries and have a corresponding amount deducted from state funds otherwise payable to the employer.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":292263,"text":"1. Only as provided in subdivisions 3 and 4 may any employer elect to pay an equivalent amount in lieu of any member contributions required of its employees. Such payments shall be credited to the members’ contribution account. These contributions shall not be considered wages for purposes of Chapter 7 (\u00a7 51.1-700 et seq.), nor shall they be considered to be salary for purposes of this chapter.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"F2"},"6":{"id":292264,"text":"A person who becomes a member on or after July 1, 2010, shall be required to pay member contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code in the amount of five percent of creditable compensation if the person is (i) a member covered by the defined benefit plan established under this chapter, (ii) a member of the State Police Officers’ Retirement System under Chapter 2 (§ 51.1-200 et seq.), (iii) a member of the Virginia Law Officers’ Retirement System under Chapter 2.1 (§ 51.1-211 et seq.), (iv) a member of the Judicial Retirement System under Chapter 3 (§ 51.1-300 et seq.), or (v) earning the benefits permitted by § 51.1-138.","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F","next_prefix":"F3"},"7":{"id":292265,"text":"A member who is an employee of a county, city, town, or other local employer other than a local public school board, regardless of whether the member is a person who becomes a member on or after July 1, 2010, shall be required to pay member contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code in the amount of five percent of creditable compensation as follows: (i) any member who commences or recommences employment on or after July 1, 2012, shall be required to contribute five percent of his creditable compensation upon commencing or recommencing employment and (ii) members in service on June 30, 2012, shall be required to contribute five percent of their creditable compensation no later than July 1, 2016. Such member described in subdivision (ii) shall contribute a minimum of an additional one percent of his creditable compensation beginning on each July 1 of 2012, 2013, 2014, 2015, and 2016, or until the member’s contribution equals five percent of creditable compensation, but the county, city, town, or other local employer other than a local public school board may elect to require members to contribute more than an additional one percent each year, in whole percentages. In no case shall a member be required to contribute more than five percent of his creditable compensation for each pay period for which he receives compensation. No county, city, town, or other local employer other than a local public school board shall be allowed to elect to pay any amount of member contributions except to pay the difference between five percent and the employee contribution during the phase-in period described in this subdivision for a member who was in service on June 30, 2012.","type":"section","prefixes":["F","3"],"prefix":"3","entire_prefix":"F3","prefix_anchor":"F3","level":2,"prior_prefix":"F2","next_prefix":"F4"},"8":{"id":292266,"text":"A member who is an employee of a local public school board, regardless of whether the member is a person who becomes a member on or after July 1, 2010, shall be required to pay member contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code in the amount of five percent of creditable compensation as follows: (i) any member who commences or recommences employment on or after July 1, 2012, shall be required to contribute five percent of his creditable compensation upon commencing or recommencing employment and (ii) members in service on June 30, 2012, shall be required to contribute five percent of their creditable compensation no later than July 1, 2016. Such member described in subdivision (ii) shall contribute a minimum of an additional one percent of his creditable compensation beginning on each July 1 of 2012, 2013, 2014, 2015, and 2016, or until the member’s contribution equals five percent of creditable compensation, but the local public school board employer may elect to require members to contribute more than an additional one percent each year, in whole percentages. In no case shall a member be required to contribute more than five percent of his creditable compensation for each pay period for which he receives compensation. No local public school board employer shall be allowed to elect to pay any amount of member contributions except to pay the difference between five percent and the employee contribution during the phase-in period described in this subdivision for a member who was in service on June 30, 2012.","type":"section","prefixes":["F","4"],"prefix":"4","entire_prefix":"F4","prefix_anchor":"F4","level":2,"prior_prefix":"F3","next_prefix":"G"},"9":{"id":292267,"text":"The Board may develop procedures to effect the transfer of member contributions paid by employers on or after July 1, 1980, and accrued interest on those contributions, to the member contribution account of the member, if such contributions have been previously deposited into the retirement allowance account of the employer.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F4"}},"ancestry":[{"id":16045,"edition_id":1,"name":"Contributions","identifier":"7","label":"article","depth":3,"order_by":1,"parent_id":13056,"metadata":{},"date_created":"2026-06-26 04:04:35","date_modified":"2026-06-26 04:04:35","permalink":{"id":235319,"object_type":"structure","relational_id":16045,"identifier":"7","token":"51.1\/1\/7","url":"\/51.1\/1\/7\/","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":81607,"structure_id":16045,"section_number":"51.1-144","catch_line":"Member contributions","url":"\/51.1-144\/","token":"51.1\/1\/7\/51.1-144","metadata":false},{"id":62951,"structure_id":16045,"section_number":"51.1-145","catch_line":"Employer contributions","url":"\/51.1-145\/","token":"51.1\/1\/7\/51.1-145","metadata":false},{"id":67589,"structure_id":16045,"section_number":"51.1-146","catch_line":"Failure to report or pay contributions or insurance premiums","url":"\/51.1-146\/","token":"51.1\/1\/7\/51.1-146","metadata":false}],"next_section":{"id":62951,"structure_id":16045,"section_number":"51.1-145","catch_line":"Employer contributions","url":"\/51.1-145\/","token":"51.1\/1\/7\/51.1-145","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/51.1-144\/","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 16 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 1956, chapter 560; in 1960, chapter 604; in 1966, chapter 174; in 1972, chapter 568; in 1974, chapter 353; in 1976, chapter 537; in 1980, chapter 722; in 1982, chapter 467; in 1984, chapter 430; in 1990, chapter 832; in 1998, chapter 660<\/a>; in 2001, chapters 693<\/a> and 702<\/a>; in 2002, chapter 307<\/a>; in 2010, chapters 737<\/a> and 738<\/a>; in 2012, chapter 822<\/a>; in 2013, chapter 463<\/a>.<\/p>","references":[{"id":65889,"section_number":"51.1-1301","catch_line":"Benefit restoration plan for employees; administration by the Board","order_by":null,"url":"\/51.1-1301\/"},{"id":83100,"section_number":"51.1-169","catch_line":"Hybrid retirement program","order_by":null,"url":"\/51.1-169\/"},{"id":74635,"section_number":"51.1-304","catch_line":"Contributions by Commonwealth","order_by":null,"url":"\/51.1-304\/"}],"refers_to":[{"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\/"},{"id":62567,"section_number":"51.1-700","catch_line":"Definitions","order_by":null,"url":"\/51.1-700\/"}],"permalink":{"id":235321,"object_type":"law","relational_id":81607,"identifier":"51.1-144","token":"51.1\/1\/7\/51.1-144","url":"\/51.1-144\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/51.1-144\/","token":"51.1\/1\/7\/51.1-144","dublin_core":{"Title":"Member contributions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 51.1-144","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Each member<\/span> shall contribute five percent of his creditable compensation<\/span> for each pay period for which he receives compensation.\n\t\t\tThe employer<\/span> shall deduct the contribution payable by the member<\/span>. Every employee<\/span> accepting employment shall be deemed to consent and agree to any deductions from his compensation required by this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In determining the creditable compensation<\/span> of a member<\/span> in a payroll period, the Board<\/span> may consider the rate of compensation payable to the member<\/span> on the date of entry or removal of his name from the payroll as having been received throughout the month if service<\/span> for the month is creditable. If service<\/span> for the month is not creditable, the Board<\/span> may consider any compensation payable during the month as not being creditable compensation<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The minimum compensation provided by law<\/span> for any member<\/span> shall be reduced by the deduction required by this section. Except for any benefits provided by this chapter, payment of compensation minus the deductions shall be a full and complete discharge of all claims for services<\/span> rendered by the member<\/span> during the period covered by the payment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No deduction shall be made from any member<\/span>’s compensation if the employer<\/span>’s contribution is in default<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The Board<\/span> may modify the method of collecting the contributions of members<\/span> so that the employer<\/span> may retain the amounts deducted from members<\/span>’ salaries and have a corresponding amount deducted from state funds otherwise payable to the employer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> 1. Only as provided in subdivisions 3 and 4 may any employer<\/span> elect to pay an equivalent amount in lieu of any member<\/span> contributions required of its employees<\/span>. Such payments shall be credited to the members<\/span>’ contribution account. These contributions shall not be considered wages for purposes of Chapter 7 (\u00a7 51.1-700<\/a> et seq.), nor shall they be considered to be salary for purposes of this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A person who becomes a member<\/span> on or after July 1, 2010, shall be required to pay member<\/span> contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code in the amount of five percent of creditable compensation<\/span> if the person is (i) a member<\/span> covered by the defined benefit plan established under this chapter, (ii) a member<\/span> of the State Police Officers’ Retirement System<\/span> under Chapter 2 (§ 51.1-200<\/a> et seq.), (iii) a member<\/span> of the Virginia Law<\/span> Officers’ Retirement System<\/span> under Chapter 2.1 (§ 51.1-211<\/a> et seq.), (iv) a member<\/span> of the Judicial Retirement System<\/span> under Chapter 3 (§ 51.1-300<\/a> et seq.), or (v) earning the benefits permitted by § 51.1-138<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A member<\/span> who is an employee<\/span> of a county, city, town, or other local employer<\/span> other than a local public school board<\/span>, regardless of whether the member<\/span> is a person who becomes a member<\/span> on or after July 1, 2010, shall be required to pay member<\/span> contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code in the amount of five percent of creditable compensation<\/span> as follows: (i) any member<\/span> who commences or recommences employment on or after July 1, 2012, shall be required to contribute five percent of his creditable compensation<\/span> upon commencing or recommencing employment and (ii) members<\/span> in service<\/span> on June 30, 2012, shall be required to contribute five percent of their creditable compensation<\/span> no later than July 1, 2016. Such member<\/span> described in subdivision (ii) shall contribute a minimum of an additional one percent of his creditable compensation<\/span> beginning on each July 1 of 2012, 2013, 2014, 2015, and 2016, or until the member<\/span>’s contribution equals five percent of creditable compensation<\/span>, but the county, city, town, or other local employer<\/span> other than a local public school board<\/span> may elect to require members<\/span> to contribute more than an additional one percent each year, in whole percentages. In no case shall a member<\/span> be required to contribute more than five percent of his creditable compensation<\/span> for each pay period for which he receives compensation. No county, city, town, or other local employer<\/span> other than a local public school board<\/span> shall be allowed to elect to pay any amount of member<\/span> contributions except to pay the difference between five percent and the employee<\/span> contribution during the phase-in period described in this subdivision for a member<\/span> who was in service<\/span> on June 30, 2012. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> A member<\/span> who is an employee<\/span> of a local public school board<\/span>, regardless of whether the member<\/span> is a person who becomes a member<\/span> on or after July 1, 2010, shall be required to pay member<\/span> contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code in the amount of five percent of creditable compensation<\/span> as follows: (i) any member<\/span> who commences or recommences employment on or after July 1, 2012, shall be required to contribute five percent of his creditable compensation<\/span> upon commencing or recommencing employment and (ii) members<\/span> in service<\/span> on June 30, 2012, shall be required to contribute five percent of their creditable compensation<\/span> no later than July 1, 2016. Such member<\/span> described in subdivision (ii) shall contribute a minimum of an additional one percent of his creditable compensation<\/span> beginning on each July 1 of 2012, 2013, 2014, 2015, and 2016, or until the member<\/span>’s contribution equals five percent of creditable compensation<\/span>, but the local public school board<\/span> employer<\/span> may elect to require members<\/span> to contribute more than an additional one percent each year, in whole percentages. In no case shall a member<\/span> be required to contribute more than five percent of his creditable compensation<\/span> for each pay period for which he receives compensation. No local public school board<\/span> employer<\/span> shall be allowed to elect to pay any amount of member<\/span> contributions except to pay the difference between five percent and the employee<\/span> contribution during the phase-in period described in this subdivision for a member<\/span> who was in service<\/span> on June 30, 2012. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The Board<\/span> may develop procedures to effect the transfer of member<\/span> contributions paid by employers<\/span> on or after July 1, 1980, and accrued interest on those contributions, to the member<\/span> contribution account of the member<\/span>, if such contributions have been previously deposited into the retirement allowance<\/span> account of the employer<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nMEMBER CONTRIBUTIONS (\u00a7 51.1-144)\n\nA. Each member shall contribute five percent of his creditable compensation for\neach pay period for which he receives compensation.\n\t\t\tThe employer shall deduct the contribution payable by the member. Every\nemployee accepting employment shall be deemed to consent and agree to any\ndeductions from his compensation required by this chapter.\n\nB. In determining the creditable compensation of a member in a payroll period,\nthe Board may consider the rate of compensation payable to the member on the\ndate of entry or removal of his name from the payroll as having been received\nthroughout the month if service for the month is creditable. If service for the\nmonth is not creditable, the Board may consider any compensation payable during\nthe month as not being creditable compensation.\n\nC. The minimum compensation provided by law for any member shall be reduced by\nthe deduction required by this section. Except for any benefits provided by this\nchapter, payment of compensation minus the deductions shall be a full and\ncomplete discharge of all claims for services rendered by the member during the\nperiod covered by the payment.\n\nD. No deduction shall be made from any member’s compensation if the\nemployer’s contribution is in default.\n\nE. The Board may modify the method of collecting the contributions of members so\nthat the employer may retain the amounts deducted from members’ salaries\nand have a corresponding amount deducted from state funds otherwise payable to\nthe employer.\n\nF. 1. Only as provided in subdivisions 3 and 4 may any employer elect to pay an\nequivalent amount in lieu of any member contributions required of its employees.\nSuch payments shall be credited to the members’ contribution account.\nThese contributions shall not be considered wages for purposes of Chapter 7 (\u00a7\n51.1-700 et seq.), nor shall they be considered to be salary for purposes of\nthis chapter.\n\n 2. A person who becomes a member on or after July 1, 2010, shall be required\n to pay member contributions on a salary reduction basis in accordance with\n § 414(h) of the Internal Revenue Code in the amount of five percent of\n creditable compensation if the person is (i) a member covered by the defined\n benefit plan established under this chapter, (ii) a member of the State Police\n Officers’ Retirement System under Chapter 2 (§ 51.1-200 et seq.),\n (iii) a member of the Virginia Law Officers’ Retirement System under\n Chapter 2.1 (§ 51.1-211 et seq.), (iv) a member of the Judicial\n Retirement System under Chapter 3 (§ 51.1-300 et seq.), or (v) earning\n the benefits permitted by § 51.1-138.\n\n 3. A member who is an employee of a county, city, town, or other local\n employer other than a local public school board, regardless of whether the\n member is a person who becomes a member on or after July 1, 2010, shall be\n required to pay member contributions on a salary reduction basis in accordance\n with § 414(h) of the Internal Revenue Code in the amount of five percent\n of creditable compensation as follows: (i) any member who commences or\n recommences employment on or after July 1, 2012, shall be required to\n contribute five percent of his creditable compensation upon commencing or\n recommencing employment and (ii) members in service on June 30, 2012, shall be\n required to contribute five percent of their creditable compensation no later\n than July 1, 2016. Such member described in subdivision (ii) shall contribute\n a minimum of an additional one percent of his creditable compensation\n beginning on each July 1 of 2012, 2013, 2014, 2015, and 2016, or until the\n member’s contribution equals five percent of creditable compensation,\n but the county, city, town, or other local employer other than a local public\n school board may elect to require members to contribute more than an\n additional one percent each year, in whole percentages. In no case shall a\n member be required to contribute more than five percent of his creditable\n compensation for each pay period for which he receives compensation. No\n county, city, town, or other local employer other than a local public school\n board shall be allowed to elect to pay any amount of member contributions\n except to pay the difference between five percent and the employee\n contribution during the phase-in period described in this subdivision for a\n member who was in service on June 30, 2012.\n\n 4. A member who is an employee of a local public school board, regardless of\n whether the member is a person who becomes a member on or after July 1, 2010,\n shall be required to pay member contributions on a salary reduction basis in\n accordance with § 414(h) of the Internal Revenue Code in the amount of\n five percent of creditable compensation as follows: (i) any member who\n commences or recommences employment on or after July 1, 2012, shall be\n required to contribute five percent of his creditable compensation upon\n commencing or recommencing employment and (ii) members in service on June 30,\n 2012, shall be required to contribute five percent of their creditable\n compensation no later than July 1, 2016. Such member described in subdivision\n (ii) shall contribute a minimum of an additional one percent of his creditable\n compensation beginning on each July 1 of 2012, 2013, 2014, 2015, and 2016, or\n until the member’s contribution equals five percent of creditable\n compensation, but the local public school board employer may elect to require\n members to contribute more than an additional one percent each year, in whole\n percentages. In no case shall a member be required to contribute more than\n five percent of his creditable compensation for each pay period for which he\n receives compensation. No local public school board employer shall be allowed\n to elect to pay any amount of member contributions except to pay the\n difference between five percent and the employee contribution during the\n phase-in period described in this subdivision for a member who was in service\n on June 30, 2012.\n\nG. The Board may develop procedures to effect the transfer of member\ncontributions paid by employers on or after July 1, 1980, and accrued interest\non those contributions, to the member contribution account of the member, if\nsuch contributions have been previously deposited into the retirement allowance\naccount of the employer.\n\nHISTORY: 1952, c. 157, \u00a7\u00a7 51-111.13, 51-111.46; 1956, c. 560; 1960, c. 604;\n1966, c. 174; 1972, c. 568; 1974, c. 353; 1976, c. 537; 1980, c. 722, \u00a7\n51-111.46:1; 1982, c. 467; 1984, c. 430; 1990, c. 832; 1998, c. 660; 2001, cc.\n693, 702; 2002, c. 307; 2010, cc. 737, 738; 2012, c. 822; 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}}