{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/51.1-145.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/51.1-145.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/51.1-145.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/51.1-145.html"}],"law_id":62951,"edition_id":1,"section_id":62951,"structure_id":16045,"section_number":"51.1-145","catch_line":"Employer contributions","history":"1952, c. 157, \u00a7\u00a7 51-111.12, 51-111.47; 1960, c. 604; 1966, c. 174; 1970, c. 476; 1974, c. 353; 1975, cc. 360, 597, 610, \u00a7 51-111.10:2; 1978, cc. 1, 841; 1980, c. 722, \u00a7 51-111.47:01; 1981, c. 403; 1982, c. 467; 1985, c. 129; 1986, c. 474; 1990, c. 832; 1991, c. 719; 1996, c. 1030; 2005, c. 161; 2012, cc. 701, 823; 2013, c. 463; 2015, c. 660; 2022, cc. 9, 229.","full_text":"A\n\nThe total annual defined benefit employer contribution for each employer, expressed as a percentage of the annual membership payroll, shall be determined in a manner so as to remain relatively level from year to year. Each employer shall contribute for the defined benefit plans, including the defined benefit component of the hybrid retirement program under § 51.1-169, an amount equal to the sum of the normal contribution, any accrued liability contribution, and any supplementary contribution, as well as amounts required for the defined contribution component of the hybrid retirement program under § 51.1-169. The defined benefit contribution rates for each employer shall be determined biennially and shall remain in effect until a new biennial valuation is made. All defined benefit contribution rates shall be computed in accordance with recognized actuarial principles on the basis of methods and assumptions approved by the Board and as described in the Retirement System funding policy.B\n\nThe normal employer defined benefit contribution for any period shall be determined as a percentage, equal to the normal contribution rate, of the total covered compensation of the members employed during the period.C\n\nThe normal defined benefit contribution rate for any employer shall be determined as the percentage represented by the ratio of (i) the annual normal cost to provide the benefits of the Retirement System with respect to members employed by the employer in excess of the members’ contributions to (ii) the total annual compensation of the members.D\n\nThe accrued defined benefit liability contribution for any employer for any period shall be determined as a percentage, equal to the accrued liability contribution rate, of the total compensation of the members during the period.E\n\nThe accrued defined benefit liability contribution rate for any employer shall be a percentage of the total annual compensation of the members, determined so that a continuation of annual contributions by the employer at the same percentage of total annual compensation over a period of years determined by the Board consistent with recognized actuarial principles and the Retirement System funding policy will be sufficient to amortize the unfunded accrued liability with respect to the employer.F\n\nThe unfunded defined benefit accrued liability with respect to any employer as of any valuation date shall be determined as the excess of the actuarial accrued liability over the sum of assets of the Retirement System as of the valuation date, as follows: (i) the then present value of the benefits to be provided under the Retirement System in the future to members and former members over (ii) the sum of the assets of the Retirement System then currently in the members’ contribution account and in the employer’s retirement allowance account, plus the then present value of the stipulated contributions to be made in the future by the members, plus the then present value of the normal contributions expected to be made in the future by the employer.G\n\nThe supplementary defined benefit contribution for any employer for any period shall be determined as a percentage, equal to the supplementary contribution rate, of the total compensation of the members employed during the period.H\n\nUntil July 1, 1997, the supplementary contribution rate for any employer shall be determined as the percentage represented by the ratio of (i) the average annual amount of post-retirement supplements, as provided for in this chapter, which is anticipated to become payable during the period to which the rate will be applicable with respect to former members to (ii) the total annual compensation of the members.I\n\nThe Board shall certify to each employer the applicable defined benefit contribution rate and any changes in the rate. The Board shall also provide the applicable estimated defined contribution amounts to each employer.J\n\nThe defined benefit employer contribution for the year shall be increased to the extent necessary to overcome any insufficiency if the contributions for any employer, when combined with the amount of the retirement allowance account of the employer, are insufficient to provide the benefits payable during the year.K\n\nThe appropriation bill that is submitted to the General Assembly by the Governor prior to each regular session that begins in an even-numbered year shall include the defined benefit employer contributions that will become due and payable to the retirement allowance account from the state treasury during the following biennium, an estimate of all state employer defined contribution amounts required by § 51.1-169, and amounts for contributions to applicable ancillary benefits as otherwise required by this title. The amount of the defined benefit contributions shall be based on the contribution rates certified by the Board pursuant to subsection I that are applicable to the Commonwealth as an employer and the anticipated compensation during the biennium of the members of the retirement system on behalf of whom the Commonwealth is the employer.L\n\nThe General Assembly shall set defined benefit contribution rates that are at least equal to the following percentage of the contribution rates certified by the Board pursuant to subsection I:1\n\nFor members who are state employees as defined in § 51.1-124.3 and who are participating in a retirement plan established pursuant to Chapter 1 (§ 51.1-124.1 et seq.), (i) 67.02 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 78.02 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 89.01 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018;2\n\nFor members who are teachers as defined in § 51.1-124.3 and who are participating in a retirement plan established pursuant to Chapter 1 (§ 51.1-124.1 et seq.), (i) 69.53 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 79.69 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 89.84 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018;3\n\nFor members participating in a retirement plan established pursuant to Chapter 2 (§ 51.1-200 et seq.), (i) 75.84 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 83.90 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 91.95 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018;4\n\nFor members participating in a retirement plan established pursuant to Chapter 2.1 (§ 51.1-211 et seq.), (i) 75.82 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 83.88 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 91.94 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018; and5\n\nFor members participating in a retirement plan established pursuant to Chapter 3 (§ 51.1-300 et seq.), (i) 83.98 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 89.32 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 94.66 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018.M\n\nIn the case of all teachers whose compensation is paid exclusively out of funds derived from local revenues and appropriations from the general fund of the state treasury, the Commonwealth shall contribute to the extent specified in the appropriation act. In the case of any teacher whose compensation is paid out of funds derived in whole or in part from any special fund or from a contributor other than the Commonwealth or a political subdivision thereof, contributions shall be paid out of the special fund or by the other contributor in proportion to that part of the compensation derived therefrom. In the case of all state employees whose compensation is paid exclusively by the Commonwealth out of the general fund of the state treasury, the Commonwealth shall be the sole contributor, and all contributions shall be paid out of the general fund. In the case of a state employee whose compensation is paid in whole or in part out of any special fund or by any contributor other than the Commonwealth, contributions on behalf of the employee shall be paid out of the special fund or by the other contributor in proportion to that part of the employee’s compensation derived therefrom. The governing body of each political subdivision is hereby authorized to make appropriations from the funds of the political subdivision necessary to pay its proportionate share of contributions on behalf of every state employee whose compensation is paid in part by the political subdivision. In the case of each person who has elected to remain a member of a local retirement system, the Commonwealth shall reimburse the local employer an amount equal to the product of the compensation of the person and the employer contribution rate as used to determine the employer contribution for state employees under this section. Each employer shall keep such records and periodically furnish such information as the Board may require and shall inform new employees of their duties and obligations in connection with the Retirement System.N\n\nThe defined benefit contribution rate established for each employer may include the cost to administer any defined contribution plan administered by the Retirement System and available to the employer. The portion of such contribution designated to cover administrative costs of the defined contribution plans shall not be deposited into the trust fund established for the defined benefit plans but shall be separately accounted for and used solely to defray the administrative costs associated with the various defined contribution plans. This provision shall supplement the authority of the Board under §§ 51.1-124.22 and 51.1-602 to charge and collect administrative fees to employers whose employees have available the various defined contribution plans administered by the Retirement System.O\n\nInstitutions of higher education shall also pay contributions to the employer’s retirement allowance account in amounts representing the difference between the contribution rate payable with respect to employees enrolled in the defined benefit plan under this chapter and the employer contributions paid to any optional retirement plan it offers on behalf of any of its nonfaculty Covered Employees, as described in §§ 23.1-1020 through 23.1-1026. The employer contribution rate established for each employer may include the annual rate of contribution payable by such employer with respect to employees enrolled in the optional defined contribution retirement plans established under §§ 51.1-126, 51.1-126.1, 51.1-126.3, and 51.1-126.4.P\n\nEmployer contributions may be returned to the employer only as determined in accordance with § 401(a) of the Internal Revenue Code, as amended or renumbered, and the regulations thereunder applicable to governmental plans.Q\n\nAdditionally, employers shall pay contributions as determined by the Retirement System for applicable ancillary benefits as otherwise required by this title.","order_by":null,"text":{"0":{"id":229610,"text":"The total annual defined benefit employer contribution for each employer, expressed as a percentage of the annual membership payroll, shall be determined in a manner so as to remain relatively level from year to year. Each employer shall contribute for the defined benefit plans, including the defined benefit component of the hybrid retirement program under § 51.1-169, an amount equal to the sum of the normal contribution, any accrued liability contribution, and any supplementary contribution, as well as amounts required for the defined contribution component of the hybrid retirement program under § 51.1-169. The defined benefit contribution rates for each employer shall be determined biennially and shall remain in effect until a new biennial valuation is made. All defined benefit contribution rates shall be computed in accordance with recognized actuarial principles on the basis of methods and assumptions approved by the Board and as described in the Retirement System funding policy.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":229611,"text":"The normal employer defined benefit contribution for any period shall be determined as a percentage, equal to the normal contribution rate, of the total covered compensation of the members employed during the period.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":229612,"text":"The normal defined benefit contribution rate for any employer shall be determined as the percentage represented by the ratio of (i) the annual normal cost to provide the benefits of the Retirement System with respect to members employed by the employer in excess of the members’ contributions to (ii) the total annual compensation of the members.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":229613,"text":"The accrued defined benefit liability contribution for any employer for any period shall be determined as a percentage, equal to the accrued liability contribution rate, of the total compensation of the members during the period.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":229614,"text":"The accrued defined benefit liability contribution rate for any employer shall be a percentage of the total annual compensation of the members, determined so that a continuation of annual contributions by the employer at the same percentage of total annual compensation over a period of years determined by the Board consistent with recognized actuarial principles and the Retirement System funding policy will be sufficient to amortize the unfunded accrued liability with respect 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":229615,"text":"The unfunded defined benefit accrued liability with respect to any employer as of any valuation date shall be determined as the excess of the actuarial accrued liability over the sum of assets of the Retirement System as of the valuation date, as follows: (i) the then present value of the benefits to be provided under the Retirement System in the future to members and former members over (ii) the sum of the assets of the Retirement System then currently in the members’ contribution account and in the employer’s retirement allowance account, plus the then present value of the stipulated contributions to be made in the future by the members, plus the then present value of the normal contributions expected to be made in the future by the employer.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":229616,"text":"The supplementary defined benefit contribution for any employer for any period shall be determined as a percentage, equal to the supplementary contribution rate, of the total compensation of the members employed during the period.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":229617,"text":"Until July 1, 1997, the supplementary contribution rate for any employer shall be determined as the percentage represented by the ratio of (i) the average annual amount of post-retirement supplements, as provided for in this chapter, which is anticipated to become payable during the period to which the rate will be applicable with respect to former members to (ii) the total annual compensation of the members.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"8":{"id":229618,"text":"The Board shall certify to each employer the applicable defined benefit contribution rate and any changes in the rate. The Board shall also provide the applicable estimated defined contribution amounts to each employer.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"J"},"9":{"id":229619,"text":"The defined benefit employer contribution for the year shall be increased to the extent necessary to overcome any insufficiency if the contributions for any employer, when combined with the amount of the retirement allowance account of the employer, are insufficient to provide the benefits payable during the year.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I","next_prefix":"K"},"10":{"id":229620,"text":"The appropriation bill that is submitted to the General Assembly by the Governor prior to each regular session that begins in an even-numbered year shall include the defined benefit employer contributions that will become due and payable to the retirement allowance account from the state treasury during the following biennium, an estimate of all state employer defined contribution amounts required by § 51.1-169, and amounts for contributions to applicable ancillary benefits as otherwise required by this title. The amount of the defined benefit contributions shall be based on the contribution rates certified by the Board pursuant to subsection I that are applicable to the Commonwealth as an employer and the anticipated compensation during the biennium of the members of the retirement system on behalf of whom the Commonwealth is the employer.","type":"section","prefixes":["K"],"prefix":"K","entire_prefix":"K","prefix_anchor":"K","level":1,"prior_prefix":"J","next_prefix":"L"},"11":{"id":229621,"text":"The General Assembly shall set defined benefit contribution rates that are at least equal to the following percentage of the contribution rates certified by the Board pursuant to subsection I:","type":"section","prefixes":["L"],"prefix":"L","entire_prefix":"L","prefix_anchor":"L","level":1,"prior_prefix":"K","next_prefix":"L1"},"12":{"id":229622,"text":"For members who are state employees as defined in § 51.1-124.3 and who are participating in a retirement plan established pursuant to Chapter 1 (§ 51.1-124.1 et seq.), (i) 67.02 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 78.02 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 89.01 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018;","type":"section","prefixes":["L","1"],"prefix":"1","entire_prefix":"L1","prefix_anchor":"L1","level":2,"prior_prefix":"L","next_prefix":"L2"},"13":{"id":229623,"text":"For members who are teachers as defined in § 51.1-124.3 and who are participating in a retirement plan established pursuant to Chapter 1 (§ 51.1-124.1 et seq.), (i) 69.53 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 79.69 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 89.84 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018;","type":"section","prefixes":["L","2"],"prefix":"2","entire_prefix":"L2","prefix_anchor":"L2","level":2,"prior_prefix":"L1","next_prefix":"L3"},"14":{"id":229624,"text":"For members participating in a retirement plan established pursuant to Chapter 2 (§ 51.1-200 et seq.), (i) 75.84 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 83.90 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 91.95 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018;","type":"section","prefixes":["L","3"],"prefix":"3","entire_prefix":"L3","prefix_anchor":"L3","level":2,"prior_prefix":"L2","next_prefix":"L4"},"15":{"id":229625,"text":"For members participating in a retirement plan established pursuant to Chapter 2.1 (§ 51.1-211 et seq.), (i) 75.82 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 83.88 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 91.94 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018; and","type":"section","prefixes":["L","4"],"prefix":"4","entire_prefix":"L4","prefix_anchor":"L4","level":2,"prior_prefix":"L3","next_prefix":"L5"},"16":{"id":229626,"text":"For members participating in a retirement plan established pursuant to Chapter 3 (§ 51.1-300 et seq.), (i) 83.98 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 89.32 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 94.66 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018.","type":"section","prefixes":["L","5"],"prefix":"5","entire_prefix":"L5","prefix_anchor":"L5","level":2,"prior_prefix":"L4","next_prefix":"M"},"17":{"id":229627,"text":"In the case of all teachers whose compensation is paid exclusively out of funds derived from local revenues and appropriations from the general fund of the state treasury, the Commonwealth shall contribute to the extent specified in the appropriation act. In the case of any teacher whose compensation is paid out of funds derived in whole or in part from any special fund or from a contributor other than the Commonwealth or a political subdivision thereof, contributions shall be paid out of the special fund or by the other contributor in proportion to that part of the compensation derived therefrom. In the case of all state employees whose compensation is paid exclusively by the Commonwealth out of the general fund of the state treasury, the Commonwealth shall be the sole contributor, and all contributions shall be paid out of the general fund. In the case of a state employee whose compensation is paid in whole or in part out of any special fund or by any contributor other than the Commonwealth, contributions on behalf of the employee shall be paid out of the special fund or by the other contributor in proportion to that part of the employee’s compensation derived therefrom. The governing body of each political subdivision is hereby authorized to make appropriations from the funds of the political subdivision necessary to pay its proportionate share of contributions on behalf of every state employee whose compensation is paid in part by the political subdivision. In the case of each person who has elected to remain a member of a local retirement system, the Commonwealth shall reimburse the local employer an amount equal to the product of the compensation of the person and the employer contribution rate as used to determine the employer contribution for state employees under this section. Each employer shall keep such records and periodically furnish such information as the Board may require and shall inform new employees of their duties and obligations in connection with the Retirement System.","type":"section","prefixes":["M"],"prefix":"M","entire_prefix":"M","prefix_anchor":"M","level":1,"prior_prefix":"L5","next_prefix":"N"},"18":{"id":229628,"text":"The defined benefit contribution rate established for each employer may include the cost to administer any defined contribution plan administered by the Retirement System and available to the employer. The portion of such contribution designated to cover administrative costs of the defined contribution plans shall not be deposited into the trust fund established for the defined benefit plans but shall be separately accounted for and used solely to defray the administrative costs associated with the various defined contribution plans. This provision shall supplement the authority of the Board under §§ 51.1-124.22 and 51.1-602 to charge and collect administrative fees to employers whose employees have available the various defined contribution plans administered by the Retirement System.","type":"section","prefixes":["N"],"prefix":"N","entire_prefix":"N","prefix_anchor":"N","level":1,"prior_prefix":"M","next_prefix":"O"},"19":{"id":229629,"text":"Institutions of higher education shall also pay contributions to the employer’s retirement allowance account in amounts representing the difference between the contribution rate payable with respect to employees enrolled in the defined benefit plan under this chapter and the employer contributions paid to any optional retirement plan it offers on behalf of any of its nonfaculty Covered Employees, as described in §§ 23.1-1020 through 23.1-1026. The employer contribution rate established for each employer may include the annual rate of contribution payable by such employer with respect to employees enrolled in the optional defined contribution retirement plans established under §§ 51.1-126, 51.1-126.1, 51.1-126.3, and 51.1-126.4.","type":"section","prefixes":["O"],"prefix":"O","entire_prefix":"O","prefix_anchor":"O","level":1,"prior_prefix":"N","next_prefix":"P"},"20":{"id":229630,"text":"Employer contributions may be returned to the employer only as determined in accordance with § 401(a) of the Internal Revenue Code, as amended or renumbered, and the regulations thereunder applicable to governmental plans.","type":"section","prefixes":["P"],"prefix":"P","entire_prefix":"P","prefix_anchor":"P","level":1,"prior_prefix":"O","next_prefix":"Q"},"21":{"id":229631,"text":"Additionally, employers shall pay contributions as determined by the Retirement System for applicable ancillary benefits as otherwise required by this title.","type":"section","prefixes":["Q"],"prefix":"Q","entire_prefix":"Q","prefix_anchor":"Q","level":1,"prior_prefix":"P"}},"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}],"previous_section":{"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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/51.1-145\/","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 19 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 1966, chapter 174; in 1970, chapter 476; in 1974, chapter 353; in 1975, chapters 360, 597, and 610; in 1978, chapters 1 and 841; in 1980, chapter 722; in 1981, chapter 403; in 1982, chapter 467; in 1985, chapter 129; in 1986, chapter 474; in 1990, chapter 832; in 1991, chapter 719; in 1996, chapter 1030<\/a>; in 2005, chapter 161<\/a>; in 2012, chapters 701<\/a> and 823<\/a>; in 2013, chapter 463<\/a>; in 2015, chapter 660<\/a>; in 2022, chapters 9<\/a> and 229<\/a>.<\/p>","references":[{"id":86163,"section_number":"51.1-126.6","catch_line":"Certain employees of public school divisions","order_by":null,"url":"\/51.1-126.6\/"},{"id":75331,"section_number":"51.1-1400","catch_line":"Health insurance credits for retired state employees","order_by":null,"url":"\/51.1-1400\/"},{"id":71866,"section_number":"51.1-1401","catch_line":"Health insurance credits for retired teachers","order_by":null,"url":"\/51.1-1401\/"},{"id":61234,"section_number":"51.1-1402","catch_line":"Health insurance credits for retired local government employees","order_by":null,"url":"\/51.1-1402\/"},{"id":84044,"section_number":"51.1-1402.1","catch_line":"Health insurance credits for retired school division employees other than teachers","order_by":null,"url":"\/51.1-1402.1\/"},{"id":54220,"section_number":"51.1-1403","catch_line":"Health insurance credits for retired constitutional officers, employees of constitutional officers, general registrars, employees of general registrars, and local social service employees","order_by":null,"url":"\/51.1-1403\/"},{"id":72358,"section_number":"51.1-155","catch_line":"Service retirement allowance","order_by":null,"url":"\/51.1-155\/"}],"refers_to":[{"id":61212,"section_number":"23.1-1020","catch_line":"Covered institutions; operational authority; human resources; covered employees generally","order_by":null,"url":"\/23.1-1020\/"},{"id":64122,"section_number":"23.1-1026","catch_line":"Covered institutions; operational authority; human resources; severance policies","order_by":null,"url":"\/23.1-1026\/"},{"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":70634,"section_number":"51.1-124.3","catch_line":"Definitions","order_by":null,"url":"\/51.1-124.3\/"},{"id":74626,"section_number":"51.1-126","catch_line":"Employees of institutions of higher education","order_by":null,"url":"\/51.1-126\/"},{"id":70940,"section_number":"51.1-126.1","catch_line":"Certain employees of teaching hospitals","order_by":null,"url":"\/51.1-126.1\/"},{"id":59098,"section_number":"51.1-126.3","catch_line":"Employees of the University of Virginia Medical Center","order_by":null,"url":"\/51.1-126.3\/"},{"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\/"},{"id":71102,"section_number":"51.1-602","catch_line":"Deferred compensation plan for employees of the Commonwealth; administered by the Board","order_by":null,"url":"\/51.1-602\/"}],"permalink":{"id":235325,"object_type":"law","relational_id":62951,"identifier":"51.1-145","token":"51.1\/1\/7\/51.1-145","url":"\/51.1-145\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/51.1-145\/","token":"51.1\/1\/7\/51.1-145","dublin_core":{"Title":"Employer contributions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 51.1-145","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The total annual defined benefit employer<\/span> contribution for each employer<\/span>, expressed as a percentage of the annual membership payroll, shall be determined in a manner so as to remain relatively level from year to year. Each employer<\/span> shall contribute for the defined benefit plans, including the defined benefit component of the hybrid retirement program under § 51.1-169<\/a>, an amount equal to the sum of the normal contribution, any accrued liability contribution, and any supplementary contribution, as well as amounts required for the defined contribution component of the hybrid retirement program under § 51.1-169<\/a>. The defined benefit contribution rates for each employer<\/span> shall be determined biennially and shall remain in effect until a new biennial valuation is made. All defined benefit contribution rates shall be computed in accordance with recognized actuarial principles on the basis of methods and assumptions approved by the Board<\/span> and as described in the Retirement System<\/span> funding policy. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The normal employer<\/span> defined benefit contribution for any period shall be determined as a percentage, equal to the normal contribution rate, of the total covered compensation of the members<\/span> employed during the period. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The normal defined benefit contribution rate for any employer<\/span> shall be determined as the percentage represented by the ratio of (i) the annual normal cost to provide the benefits of the Retirement System<\/span> with respect to members<\/span> employed by the employer<\/span> in excess of the members<\/span>’ contributions to (ii) the total annual compensation of the members<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The accrued defined benefit liability contribution for any employer<\/span> for any period shall be determined as a percentage, equal to the accrued liability contribution rate, of the total compensation of the members<\/span> during the period. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The accrued defined benefit liability contribution rate for any employer<\/span> shall be a percentage of the total annual compensation of the members<\/span>, determined so that a continuation of annual contributions by the employer<\/span> at the same percentage of total annual compensation over a period of years determined by the Board<\/span> consistent with recognized actuarial principles and the Retirement System<\/span> funding policy will be sufficient to amortize the unfunded accrued liability with respect to the employer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The unfunded defined benefit accrued liability with respect to any employer<\/span> as of any valuation date shall be determined as the excess of the actuarial accrued liability over the sum of assets<\/span> of the Retirement System<\/span> as of the valuation date, as follows: (i) the then present value of the benefits to be provided under the Retirement System<\/span> in the future to members<\/span> and former members<\/span> over (ii) the sum of the assets<\/span> of the Retirement System<\/span> then currently in the members<\/span>’ contribution account and in the employer<\/span>’s retirement allowance<\/span> account, plus the then present value of the stipulated contributions to be made in the future by the members<\/span>, plus the then present value of the normal contributions expected to be made in the future by the employer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> The supplementary defined benefit contribution for any employer<\/span> for any period shall be determined as a percentage, equal to the supplementary contribution rate, of the total compensation of the members<\/span> employed during the period. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> Until July 1, 1997, the supplementary contribution rate for any employer<\/span> shall be determined as the percentage represented by the ratio of (i) the average annual amount of post-retirement supplements, as provided for in this chapter, which is anticipated to become payable during the period to which the rate will be applicable with respect to former members<\/span> to (ii) the total annual compensation of the members<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> The Board<\/span> shall certify to each employer<\/span> the applicable defined benefit contribution rate and any changes in the rate. The Board<\/span> shall also provide the applicable estimated defined contribution amounts to each employer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> The defined benefit employer<\/span> contribution for the year shall be increased to the extent necessary to overcome any insufficiency if the contributions for any employer<\/span>, when combined with the amount of the retirement allowance<\/span> account of the employer<\/span>, are insufficient to provide the benefits payable during the year. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

K.<\/span> The appropriation bill that is submitted to the General Assembly by the Governor prior to each regular session that begins in an even-numbered year shall include the defined benefit employer<\/span> contributions that will become due and payable to the retirement allowance<\/span> account from the state treasury during the following biennium, an estimate of all state employer<\/span> defined contribution amounts required by § 51.1-169<\/a>, and amounts for contributions to applicable ancillary benefits as otherwise required by this title. The amount of the defined benefit contributions shall be based on the contribution rates certified by the Board<\/span> pursuant to subsection I that are applicable to the Commonwealth as an employer<\/span> and the anticipated compensation during the biennium of the members<\/span> of the retirement system<\/span> on behalf of whom the Commonwealth is the employer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

L.<\/span> The General Assembly shall set defined benefit contribution rates that are at least equal to the following percentage of the contribution rates certified by the Board<\/span> pursuant to subsection I: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> For members<\/span> who are state employees<\/span> as defined in § 51.1-124.3<\/a> and who are participating in a retirement plan established pursuant to Chapter 1 (§ 51.1-124.1<\/a> et seq.), (i) 67.02 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 78.02 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 89.01 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> For members<\/span> who are teachers<\/span> as defined in § 51.1-124.3<\/a> and who are participating in a retirement plan established pursuant to Chapter 1 (§ 51.1-124.1<\/a> et seq.), (i) 69.53 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 79.69 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 89.84 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> For members<\/span> participating in a retirement plan established pursuant to Chapter 2 (§ 51.1-200<\/a> et seq.), (i) 75.84 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 83.90 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 91.95 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> For members<\/span> participating in a retirement plan established pursuant to Chapter 2.1 (§ 51.1-211<\/a> et seq.), (i) 75.82 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 83.88 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 91.94 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> For members<\/span> participating in a retirement plan established pursuant to Chapter 3 (§ 51.1-300<\/a> et seq.), (i) 83.98 percent for fiscal years beginning July 1, 2012, and July 1, 2013, (ii) 89.32 percent for fiscal years beginning July 1, 2014, and July 1, 2015, (iii) 94.66 percent for fiscal years beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or after July 1, 2018. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

M.<\/span> In the case of all teachers<\/span> whose compensation is paid exclusively out of funds derived from local revenues and appropriations from the general fund of the state treasury, the Commonwealth shall contribute to the extent specified in the appropriation act. In the case of any teacher<\/span> whose compensation is paid out of funds derived in whole or in part from any special fund or from a contributor other than the Commonwealth or a political subdivision<\/span> thereof, contributions shall be paid out of the special fund or by the other contributor in proportion to that part of the compensation derived therefrom. In the case of all state employees<\/span> whose compensation is paid exclusively by the Commonwealth out of the general fund of the state treasury, the Commonwealth shall be the sole contributor, and all contributions shall be paid out of the general fund. In the case of a state employee<\/span> whose compensation is paid in whole or in part out of any special fund or by any contributor other than the Commonwealth, contributions on behalf of the employee shall be paid out of the special fund or by the other contributor in proportion to that part of the employee’s compensation derived therefrom. The governing body of each political subdivision<\/span> is hereby authorized to make appropriations from the funds of the political subdivision<\/span> necessary to pay its proportionate share of contributions on behalf of every state employee<\/span> whose compensation is paid in part by the political subdivision<\/span>. In the case of each person who has elected to remain a member<\/span> of a local retirement system<\/span>, the Commonwealth shall reimburse the local employer<\/span> an amount equal to the product of the compensation of the person and the employer<\/span> contribution rate as used to determine the employer<\/span> contribution for state employees<\/span> under this section. Each employer<\/span> shall keep such records and periodically furnish such information as the Board<\/span> may require and shall inform new employees of their duties and obligations in connection with the Retirement System<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

N.<\/span> The defined benefit contribution rate established for each employer<\/span> may include the cost to administer any defined contribution plan administered by the Retirement System<\/span> and available to the employer<\/span>. The portion of such contribution designated to cover administrative costs of the defined contribution plans shall not be deposited into the trust fund established for the defined benefit plans but shall be separately accounted for and used solely to defray the administrative costs associated with the various defined contribution plans. This provision shall supplement the authority of the Board<\/span> under §§ 51.1-124.22<\/a> and 51.1-602<\/a> to charge and collect administrative fees to employers<\/span> whose employees have available the various defined contribution plans administered by the Retirement System<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

O.<\/span> Institutions of higher education shall also pay contributions to the employer<\/span>’s retirement allowance<\/span> account in amounts representing the difference between the contribution rate payable with respect to employees enrolled in the defined benefit plan under this chapter and the employer<\/span> contributions paid to any optional retirement plan it offers on behalf of any of its nonfaculty Covered Employees, as described in §§ 23.1-1020<\/a> through 23.1-1026<\/a>. The employer<\/span> contribution rate established for each employer<\/span> may include the annual rate of contribution payable by such employer<\/span> with respect to employees enrolled in the optional defined contribution retirement plans established under §§ 51.1-126<\/a>, 51.1-126.1<\/a>, 51.1-126.3<\/a>, and 51.1-126.4<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

P.<\/span> Employer<\/span> contributions may be returned to the employer<\/span> only as determined in accordance with § 401(a) of the Internal Revenue Code, as amended or renumbered, and the regulations thereunder applicable to governmental plans. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

Q.<\/span> Additionally, employers<\/span> shall pay contributions as determined by the Retirement System<\/span> for applicable ancillary benefits as otherwise required by this title. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nEMPLOYER CONTRIBUTIONS (\u00a7 51.1-145)\n\nA. The total annual defined benefit employer contribution for each employer,\nexpressed as a percentage of the annual membership payroll, shall be determined\nin a manner so as to remain relatively level from year to year. Each employer\nshall contribute for the defined benefit plans, including the defined benefit\ncomponent of the hybrid retirement program under § 51.1-169, an amount\nequal to the sum of the normal contribution, any accrued liability contribution,\nand any supplementary contribution, as well as amounts required for the defined\ncontribution component of the hybrid retirement program under § 51.1-169.\nThe defined benefit contribution rates for each employer shall be determined\nbiennially and shall remain in effect until a new biennial valuation is made.\nAll defined benefit contribution rates shall be computed in accordance with\nrecognized actuarial principles on the basis of methods and assumptions approved\nby the Board and as described in the Retirement System funding policy.\n\nB. The normal employer defined benefit contribution for any period shall be\ndetermined as a percentage, equal to the normal contribution rate, of the total\ncovered compensation of the members employed during the period.\n\nC. The normal defined benefit contribution rate for any employer shall be\ndetermined as the percentage represented by the ratio of (i) the annual normal\ncost to provide the benefits of the Retirement System with respect to members\nemployed by the employer in excess of the members’ contributions to (ii)\nthe total annual compensation of the members.\n\nD. The accrued defined benefit liability contribution for any employer for any\nperiod shall be determined as a percentage, equal to the accrued liability\ncontribution rate, of the total compensation of the members during the period.\n\nE. The accrued defined benefit liability contribution rate for any employer\nshall be a percentage of the total annual compensation of the members,\ndetermined so that a continuation of annual contributions by the employer at the\nsame percentage of total annual compensation over a period of years determined\nby the Board consistent with recognized actuarial principles and the Retirement\nSystem funding policy will be sufficient to amortize the unfunded accrued\nliability with respect to the employer.\n\nF. The unfunded defined benefit accrued liability with respect to any employer\nas of any valuation date shall be determined as the excess of the actuarial\naccrued liability over the sum of assets of the Retirement System as of the\nvaluation date, as follows: (i) the then present value of the benefits to be\nprovided under the Retirement System in the future to members and former members\nover (ii) the sum of the assets of the Retirement System then currently in the\nmembers’ contribution account and in the employer’s retirement\nallowance account, plus the then present value of the stipulated contributions\nto be made in the future by the members, plus the then present value of the\nnormal contributions expected to be made in the future by the employer.\n\nG. The supplementary defined benefit contribution for any employer for any\nperiod shall be determined as a percentage, equal to the supplementary\ncontribution rate, of the total compensation of the members employed during the\nperiod.\n\nH. Until July 1, 1997, the supplementary contribution rate for any employer\nshall be determined as the percentage represented by the ratio of (i) the\naverage annual amount of post-retirement supplements, as provided for in this\nchapter, which is anticipated to become payable during the period to which the\nrate will be applicable with respect to former members to (ii) the total annual\ncompensation of the members.\n\nI. The Board shall certify to each employer the applicable defined benefit\ncontribution rate and any changes in the rate. The Board shall also provide the\napplicable estimated defined contribution amounts to each employer.\n\nJ. The defined benefit employer contribution for the year shall be increased to\nthe extent necessary to overcome any insufficiency if the contributions for any\nemployer, when combined with the amount of the retirement allowance account of\nthe employer, are insufficient to provide the benefits payable during the year.\n\nK. The appropriation bill that is submitted to the General Assembly by the\nGovernor prior to each regular session that begins in an even-numbered year\nshall include the defined benefit employer contributions that will become due\nand payable to the retirement allowance account from the state treasury during\nthe following biennium, an estimate of all state employer defined contribution\namounts required by § 51.1-169, and amounts for contributions to applicable\nancillary benefits as otherwise required by this title. The amount of the\ndefined benefit contributions shall be based on the contribution rates certified\nby the Board pursuant to subsection I that are applicable to the Commonwealth as\nan employer and the anticipated compensation during the biennium of the members\nof the retirement system on behalf of whom the Commonwealth is the employer.\n\nL. The General Assembly shall set defined benefit contribution rates that are at\nleast equal to the following percentage of the contribution rates certified by\nthe Board pursuant to subsection I:\n\n 1. For members who are state employees as defined in § 51.1-124.3 and who\n are participating in a retirement plan established pursuant to Chapter 1\n (§ 51.1-124.1 et seq.), (i) 67.02 percent for fiscal years beginning July\n 1, 2012, and July 1, 2013, (ii) 78.02 percent for fiscal years beginning July\n 1, 2014, and July 1, 2015, (iii) 89.01 percent for fiscal years beginning July\n 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on\n or after July 1, 2018;\n\n 2. For members who are teachers as defined in § 51.1-124.3 and who are\n participating in a retirement plan established pursuant to Chapter 1 (§\n 51.1-124.1 et seq.), (i) 69.53 percent for fiscal years beginning July 1,\n 2012, and July 1, 2013, (ii) 79.69 percent for fiscal years beginning July 1,\n 2014, and July 1, 2015, (iii) 89.84 percent for fiscal years beginning July 1,\n 2016, and July 1, 2017, and (iv) 100 percent for fiscal years beginning on or\n after July 1, 2018;\n\n 3. For members participating in a retirement plan established pursuant to\n Chapter 2 (§ 51.1-200 et seq.), (i) 75.84 percent for fiscal years\n beginning July 1, 2012, and July 1, 2013, (ii) 83.90 percent for fiscal years\n beginning July 1, 2014, and July 1, 2015, (iii) 91.95 percent for fiscal years\n beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal\n years beginning on or after July 1, 2018;\n\n 4. For members participating in a retirement plan established pursuant to\n Chapter 2.1 (§ 51.1-211 et seq.), (i) 75.82 percent for fiscal years\n beginning July 1, 2012, and July 1, 2013, (ii) 83.88 percent for fiscal years\n beginning July 1, 2014, and July 1, 2015, (iii) 91.94 percent for fiscal years\n beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal\n years beginning on or after July 1, 2018; and\n\n 5. For members participating in a retirement plan established pursuant to\n Chapter 3 (§ 51.1-300 et seq.), (i) 83.98 percent for fiscal years\n beginning July 1, 2012, and July 1, 2013, (ii) 89.32 percent for fiscal years\n beginning July 1, 2014, and July 1, 2015, (iii) 94.66 percent for fiscal years\n beginning July 1, 2016, and July 1, 2017, and (iv) 100 percent for fiscal\n years beginning on or after July 1, 2018.\n\nM. In the case of all teachers whose compensation is paid exclusively out of\nfunds derived from local revenues and appropriations from the general fund of\nthe state treasury, the Commonwealth shall contribute to the extent specified in\nthe appropriation act. In the case of any teacher whose compensation is paid out\nof funds derived in whole or in part from any special fund or from a contributor\nother than the Commonwealth or a political subdivision thereof, contributions\nshall be paid out of the special fund or by the other contributor in proportion\nto that part of the compensation derived therefrom. In the case of all state\nemployees whose compensation is paid exclusively by the Commonwealth out of the\ngeneral fund of the state treasury, the Commonwealth shall be the sole\ncontributor, and all contributions shall be paid out of the general fund. In the\ncase of a state employee whose compensation is paid in whole or in part out of\nany special fund or by any contributor other than the Commonwealth,\ncontributions on behalf of the employee shall be paid out of the special fund or\nby the other contributor in proportion to that part of the employee’s\ncompensation derived therefrom. The governing body of each political subdivision\nis hereby authorized to make appropriations from the funds of the political\nsubdivision necessary to pay its proportionate share of contributions on behalf\nof every state employee whose compensation is paid in part by the political\nsubdivision. In the case of each person who has elected to remain a member of a\nlocal retirement system, the Commonwealth shall reimburse the local employer an\namount equal to the product of the compensation of the person and the employer\ncontribution rate as used to determine the employer contribution for state\nemployees under this section. Each employer shall keep such records and\nperiodically furnish such information as the Board may require and shall inform\nnew employees of their duties and obligations in connection with the Retirement\nSystem.\n\nN. The defined benefit contribution rate established for each employer may\ninclude the cost to administer any defined contribution plan administered by the\nRetirement System and available to the employer. The portion of such\ncontribution designated to cover administrative costs of the defined\ncontribution plans shall not be deposited into the trust fund established for\nthe defined benefit plans but shall be separately accounted for and used solely\nto defray the administrative costs associated with the various defined\ncontribution plans. This provision shall supplement the authority of the Board\nunder §§ 51.1-124.22 and 51.1-602 to charge and collect administrative\nfees to employers whose employees have available the various defined\ncontribution plans administered by the Retirement System.\n\nO. Institutions of higher education shall also pay contributions to the\nemployer’s retirement allowance account in amounts representing the\ndifference between the contribution rate payable with respect to employees\nenrolled in the defined benefit plan under this chapter and the employer\ncontributions paid to any optional retirement plan it offers on behalf of any of\nits nonfaculty Covered Employees, as described in §§ 23.1-1020 through\n23.1-1026. The employer contribution rate established for each employer may\ninclude the annual rate of contribution payable by such employer with respect to\nemployees enrolled in the optional defined contribution retirement plans\nestablished under §§ 51.1-126, 51.1-126.1, 51.1-126.3, and 51.1-126.4.\n\nP. Employer contributions may be returned to the employer only as determined in\naccordance with § 401(a) of the Internal Revenue Code, as amended or\nrenumbered, and the regulations thereunder applicable to governmental plans.\n\nQ. Additionally, employers shall pay contributions as determined by the\nRetirement System for applicable ancillary benefits as otherwise required by\nthis title.\n\nHISTORY: 1952, c. 157, \u00a7\u00a7 51-111.12, 51-111.47; 1960, c. 604; 1966, c. 174;\n1970, c. 476; 1974, c. 353; 1975, cc. 360, 597, 610, \u00a7 51-111.10:2; 1978, cc.\n1, 841; 1980, c. 722, \u00a7 51-111.47:01; 1981, c. 403; 1982, c. 467; 1985, c. 129;\n1986, c. 474; 1990, c. 832; 1991, c. 719; 1996, c. 1030; 2005, c. 161; 2012, cc.\n701, 823; 2013, c. 463; 2015, c. 660; 2022, cc. 9, 229.","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}}