{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/51.1-169.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/51.1-169.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/51.1-169.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/51.1-169.html"}],"law_id":83100,"edition_id":1,"section_id":83100,"structure_id":14048,"section_number":"51.1-169","catch_line":"Hybrid retirement program","history":"2012, cc. 701, 823; 2013, cc. 456, 666; 2014, c. 356; 2015, cc. 502, 503, 538, 539, 660; 2016, cc. 263, 280; 2025, c. 508.","full_text":"A\n\nFor purposes of this section, “hybrid retirement program” or “program” means a hybrid retirement program covering any employee in a position covered for retirement purposes under the provisions of Chapter 1 (§ 51.1-124.1 et seq.) for retirement purposes other than the Virginia Retirement System defined benefit retirement plan established under Chapter 1 (§ 51.1-124.1 et seq.). Persons who are participants in, or eligible to be participants in, the retirement plans under the provisions of Chapter 2 (§ 51.1-200 et seq.), Chapter 2.1 (§ 51.1-211 et seq.), the optional retirement plans established under §§ 51.1-126.1, 51.1-126.3, 51.1-126.4, and 51.1-126.7, or a person eligible to earn the benefits permitted by § 51.1-138 shall not be eligible to participate in the hybrid retirement program. Any person who meets the definition of “emergency medical services personnel” in § 32.1-111.1 or is employed as a firefighter, or law-enforcement officer as those terms are defined in § 15.2-1512.2 and whose employing political subdivision has legally adopted an irrevocable resolution as described in subdivision B 4 of § 51.1-153 and subdivision A 3 of § 51.1-155 shall not be eligible to participate in the hybrid retirement program.\n\t\t\tThe Board shall maintain the hybrid retirement program established by this section, and any employer is authorized to make contributions under such program for the benefit of its employees participating in such program. Every person who is otherwise eligible to participate in the program but is not a member of a retirement plan administered by the Virginia Retirement System the first time he is hired or rehired on or after January 1, 2014, in a covered position, shall participate in the hybrid retirement program established by this section.\n\t\t\tA person who participates in the otherwise applicable defined benefit retirement plan established by this title and administered by the Virginia Retirement System under this chapter may make an irrevocable election to participate in the hybrid retirement program maintained under this section. Such election shall be exercised no later than April 30, 2014. If an election is not made by April 30, 2014, such employee shall be deemed to have elected not to participate in the hybrid retirement program and shall continue to participate in his current retirement plan.B\n\nExcept as otherwise provided in subsection G:1\n\nThe employer shall make contributions to the defined benefit component of the program in accordance with § 51.1-145.2\n\nThe employer shall make a mandatory contribution to the defined contribution component of the program on behalf of an employee participating in the program in the amount of one percent of creditable compensation, which shall be made to the appropriate cash match plan established for the employee under § 51.1-608. In addition, the employer shall make a matching contribution on behalf of the employee based on the employee’s voluntary contributions under the defined contribution component of the program to the deferred compensation plan established under § 51.1-602, up to a maximum of 2.5 percent of creditable compensation for the payroll period, as follows: (i) 100 percent of the first one percent of creditable compensation contributed by the employee to the defined contribution component of the program under subdivision C 2 for the payroll period, and (ii) 50 percent of the next three percent of creditable compensation contributed by the employee to the defined contribution component of the program under subdivision C 2 for the payroll period. The matching contribution by the employer shall be made to the appropriate cash match plan established for the employee under § 51.1-608.3\n\nThe total amount contributed by the employer under subdivision 2 shall vest to the employee’s benefit according to the following schedule:\n\t\t\t\ta. Upon completion of two years of active participation, 50 percent.\n\t\t\t\tb. Upon completion of three years of active participation, 75 percent.\n\t\t\t\tc. Upon completion of four years of active participation, 100 percent.\n\t\t\t\tFor purposes of this subdivision, “active participation” includes creditable service, as defined in § 51.1-124.3, in any retirement plan established by this title and administered by the Retirement System.\n\t\t\t\tIf an employee ceases to be a member prior to achieving 100 percent vesting, contributions made by an employer on behalf of the employee under subdivision 2 that are not vested shall be forfeited. The Board may establish a forfeiture account and may specify the uses of the forfeiture account.4\n\nAn employee may direct the investment of contributions made by an employer under subdivision B 2.5\n\nNo loans or hardship distributions shall be available from contributions made by an employer under subdivision B 2.C\n\nExcept as otherwise provided in subsection G:1\n\nAn employee participating in the hybrid retirement program maintained under this section shall, pursuant to procedures established by the Board, make mandatory contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code (i) to the defined benefit component of the program in the amount of four percent of creditable compensation in lieu of the amount described in subsection A of § 51.1-144 and (ii) to the defined contribution component of the program in the amount of one percent of creditable compensation, which shall be made to the appropriate cash match plan established for the employee under § 51.1-608.2\n\nAn employee participating in the hybrid retirement program may also make voluntary contributions to the defined contribution component of the program of up to four percent of creditable compensation or the limit on elective deferrals pursuant to § 457(b) of the Internal Revenue Code, whichever is less. The contribution by the employee shall be made to the appropriate deferred compensation plan established by the employee under § 51.1-602.3\n\nIf an employee’s voluntary contributions under subdivision C 2 are less than four percent of creditable compensation, the contribution will increase by one-half of one percent, beginning on January 1, 2017, and every three years thereafter, until the employee’s voluntary contributions under subdivision C 2 reach four percent of creditable compensation. The increase will be effective beginning with the first pay period that begins in such calendar year unless the employee elects not to increase the voluntary contribution in a manner prescribed by the Board.4\n\nNo loans or hardship distributions shall be available from contributions made by an employee under this subsection.5\n\nDisclosure of all services, fees, restrictions, and surrender penalties associated with employee voluntary contributions under subdivision C 2 shall be provided by the Board on an annual basis to an employee who does not make the election provided in subdivision G 1.D\n\n1. The amount of the service retirement allowance under the defined benefit component of the program shall be governed by \u00a7 51.1-155 for all creditable service credited prior to the effective date of the member’s participation in the program. For all other creditable service, the allowance shall equal one percent of a member’s average final compensation multiplied by the amount of his creditable service while in the program.2\n\nNo member shall retire for disability under the defined benefit component of the program.3\n\nExcept as provided in subdivision 1, any employee participating in the hybrid retirement program maintained under this section shall be considered to be a person who becomes a member on or after July 1, 2010.4\n\nIn all other respects, administration of the defined benefit component of the program shall be governed by the provisions of Chapter 1 (§ 51.1-124.1 et seq.).E\n\nWith respect to any employee who elects, pursuant to subsection A, to participate in the otherwise applicable defined benefit retirement plan established by this title and administered by the Virginia Retirement System, the employer shall collect and pay all employee and employer contributions to the Virginia Retirement System for retirement and group life insurance in accordance with the provisions of Chapter 1 (§ 51.1-124.1 et seq.) for such employee.F\n\n1. The Board shall develop policies and procedures for administering the hybrid retirement program it maintains, including the establishment of guidelines for employee elections and deferrals under the program.2\n\nNo employee who is an active member in the hybrid retirement program maintained under this section shall also be an active member of any other optional retirement plan maintained under the provisions of Chapter 1 (§ 51.1-124.1 et seq.).3\n\nIf a member of the hybrid retirement program maintained under this section is at any time in service as an employee in a position covered for retirement purposes under the provisions of Chapter 1 (§ 51.1-124.1 et seq.), 2 (§ 51.1-200 et seq.), 2.1 (§ 51.1-211 et seq.), or 3 (§ 51.1-300 et seq.), his benefit payments under the hybrid retirement program maintained under this section shall be suspended while so employed; provided, however, reemployment shall have no effect on a payment under the defined contribution component of the program if the benefit is being paid in an annuity form under an annuity contract purchased with the member’s account balance.4\n\nAny administrative fee imposed pursuant to subdivision A 13 of § 51.1-124.22 on any employer for administering and overseeing the hybrid retirement program maintained under this section shall be charged for each employee participating in such program and shall be for costs incurred by the Virginia Retirement System that are directly related to the administration and oversight of such program. Notwithstanding the foregoing, the Board is authorized to collect all or a portion of such fee directly from the employee.5\n\nThe creditable compensation for any employee on whose behalf employee or employer contributions are made into the hybrid retirement program shall not exceed the limit on compensation as adjusted by the Commissioner of the Internal Revenue Service pursuant to the transition provisions applicable to eligible participants under state and local governmental plans under § 401(a)(17) of the Internal Revenue Code as amended in 1993 and as contained in § 13212(d)(3) of the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66).6\n\nThe Board may contract with private corporations or institutions, subject to the standards set forth in § 51.1-124.30, to provide investment products as well as any other goods and services related to the administration of the hybrid retirement program, except as provided in subsection G. The Virginia Retirement System is hereby authorized to perform related services, including but not limited to, providing consolidated billing, individual and collective recordkeeping and accountings, and asset purchase, control, and safekeeping.G\n\n1. Any political subdivision of the Commonwealth that has established a plan pursuant to \u00a7 403(b) of the Internal Revenue Code of 1986, as amended (a “403(b) plan”), may, at its option, elect to allow its employees the option to direct that voluntary contributions to the defined contribution component of the program under subdivision C 2 be made to such 403(b) plan and the corresponding employer matching contributions under subdivision B 2 be made to such 403(b) plan or the appropriate local cash match plan established under \u00a7 51.1-610. All such voluntary contributions by an employee to such 403(b) plan shall be made on a pretax basis. Any such political subdivision of the Commonwealth that so directs shall develop policies and procedures for administering such contributions, subject to and in accordance with applicable federal law and regulations. The policies and procedures shall provide for the administration of vesting provisions as provided in subdivision B 3, the establishment of and uses for a forfeiture account as provided in subdivision B 3, and automatic contribution escalation provisions as provided in subdivision C 3, all with regard to employee voluntary contributions and corresponding employer matching contributions.\n\t\t\tIn all other respects, the political subdivision shall be subject to the provisions of the hybrid retirement program described in this section.2\n\nThe governing body of any political subdivision of the Commonwealth electing to allow its employees to use its 403(b) plan or a local cash match plan as described in subdivision 1 shall adopt a resolution on or before November 1, 2015, and submit such resolution to the Board to notify the Board of its election, which shall be effective January 1, 2016, and shall remain effective for 12 months. Thereafter, the governing body of any political subdivision of the Commonwealth may make or change its election for its employees no more often than annually by adopting a resolution on or before November 1 of each year notifying the Board of a new or changed election, which shall become effective on January 1.3\n\nA person who participates in the hybrid retirement program maintained under this section may make an election to participate in the 403(b) plan established by his employer under subdivision G 1. Such election shall be exercised no later than November 30, 2015, and shall be effective January 1, 2016. If an election is not made by November 30, 2015, such employee shall be deemed to have elected not to participate in the 403(b) plan established by his employer under subdivision G 1. Thereafter, such employee may make or change his election on or before November 30 of each year by notifying his employer of a new or changed election, which shall become effective the following January 1. If an election is not made or changed by November 30, such employee shall be deemed to have elected not to change the prior year’s election.4\n\nIn the case of a 403(b) plan or local cash match plan administered by a political subdivision of the Commonwealth that provides individual accounts permitting an employee or beneficiary to exercise discretion over assets in his account, the political subdivision shall not be liable for any loss resulting from such employee’s or beneficiary’s (i) investment of voluntary contributions in the political subdivision’s 403(b) plan or matching contributions in the political subdivision’s 403(b) plan or local cash match plan, (ii) exercise of discretion over the assets in any of his accounts, or (iii) inaction with respect to the assets in any of his accounts that results in such assets being placed in a default investment option selected by the political subdivision, provided that the investment options for the affected individual account and the particular default investment option for such individual account are selected in accordance with subsection A of § 51.1-803, applied mutatis mutandis. Under no circumstances shall the Commonwealth, the Board, employees of the Retirement System, the Investment Advisory Committee of the Retirement System, or any other advisory committee established by the Board bear any liability with respect to any plan or individual account described in this subsection.5\n\nThe provisions of this subsection shall not apply to any political subdivision of the Commonwealth that has entered into an agreement with the Retirement System pursuant to § 51.1-603.1 or 51.1-611 except with regard to a 403(b) plan.6\n\nDisclosure of all services, fees, restrictions, and surrender penalties associated with employee voluntary contributions under subsection G shall be provided by the political subdivision of the Commonwealth on an annual basis to an employee who makes the election provided in subdivision G 1. Such employee shall also be provided with a side-by-side comparison of the long-term effects of generic expense ratios on his investments.7\n\nThe Board shall not be responsible for administration of or recordkeeping related to voluntary contributions to the defined contribution component of the program made to a 403(b) plan or the corresponding employer matching contributions made to a 403(b) plan or the appropriate local cash match plan established under § 51.1-610 that are authorized by subdivision G 1.8\n\nThe Board shall develop policies and procedures for administering the provisions of this subsection.","order_by":null,"text":{"0":{"id":297812,"text":"For purposes of this section, “hybrid retirement program” or “program” means a hybrid retirement program covering any employee in a position covered for retirement purposes under the provisions of Chapter 1 (§ 51.1-124.1 et seq.) for retirement purposes other than the Virginia Retirement System defined benefit retirement plan established under Chapter 1 (§ 51.1-124.1 et seq.). Persons who are participants in, or eligible to be participants in, the retirement plans under the provisions of Chapter 2 (§ 51.1-200 et seq.), Chapter 2.1 (§ 51.1-211 et seq.), the optional retirement plans established under §§ 51.1-126.1, 51.1-126.3, 51.1-126.4, and 51.1-126.7, or a person eligible to earn the benefits permitted by § 51.1-138 shall not be eligible to participate in the hybrid retirement program. Any person who meets the definition of “emergency medical services personnel” in § 32.1-111.1 or is employed as a firefighter, or law-enforcement officer as those terms are defined in § 15.2-1512.2 and whose employing political subdivision has legally adopted an irrevocable resolution as described in subdivision B 4 of § 51.1-153 and subdivision A 3 of § 51.1-155 shall not be eligible to participate in the hybrid retirement program.\n\t\t\tThe Board shall maintain the hybrid retirement program established by this section, and any employer is authorized to make contributions under such program for the benefit of its employees participating in such program. Every person who is otherwise eligible to participate in the program but is not a member of a retirement plan administered by the Virginia Retirement System the first time he is hired or rehired on or after January 1, 2014, in a covered position, shall participate in the hybrid retirement program established by this section.\n\t\t\tA person who participates in the otherwise applicable defined benefit retirement plan established by this title and administered by the Virginia Retirement System under this chapter may make an irrevocable election to participate in the hybrid retirement program maintained under this section. Such election shall be exercised no later than April 30, 2014. If an election is not made by April 30, 2014, such employee shall be deemed to have elected not to participate in the hybrid retirement program and shall continue to participate in his current retirement plan.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":297813,"text":"Except as otherwise provided in subsection G:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":297814,"text":"The employer shall make contributions to the defined benefit component of the program in accordance with § 51.1-145.","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":297815,"text":"The employer shall make a mandatory contribution to the defined contribution component of the program on behalf of an employee participating in the program in the amount of one percent of creditable compensation, which shall be made to the appropriate cash match plan established for the employee under § 51.1-608. In addition, the employer shall make a matching contribution on behalf of the employee based on the employee’s voluntary contributions under the defined contribution component of the program to the deferred compensation plan established under § 51.1-602, up to a maximum of 2.5 percent of creditable compensation for the payroll period, as follows: (i) 100 percent of the first one percent of creditable compensation contributed by the employee to the defined contribution component of the program under subdivision C 2 for the payroll period, and (ii) 50 percent of the next three percent of creditable compensation contributed by the employee to the defined contribution component of the program under subdivision C 2 for the payroll period. The matching contribution by the employer shall be made to the appropriate cash match plan established for the employee under § 51.1-608.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":297816,"text":"The total amount contributed by the employer under subdivision 2 shall vest to the employee’s benefit according to the following schedule:\n\t\t\t\ta. Upon completion of two years of active participation, 50 percent.\n\t\t\t\tb. Upon completion of three years of active participation, 75 percent.\n\t\t\t\tc. Upon completion of four years of active participation, 100 percent.\n\t\t\t\tFor purposes of this subdivision, “active participation” includes creditable service, as defined in § 51.1-124.3, in any retirement plan established by this title and administered by the Retirement System.\n\t\t\t\tIf an employee ceases to be a member prior to achieving 100 percent vesting, contributions made by an employer on behalf of the employee under subdivision 2 that are not vested shall be forfeited. The Board may establish a forfeiture account and may specify the uses of the forfeiture account.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":297817,"text":"An employee may direct the investment of contributions made by an employer under subdivision B 2.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":297818,"text":"No loans or hardship distributions shall be available from contributions made by an employer under subdivision B 2.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"C"},"7":{"id":297819,"text":"Except as otherwise provided in subsection G:","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B5","next_prefix":"C1"},"8":{"id":297820,"text":"An employee participating in the hybrid retirement program maintained under this section shall, pursuant to procedures established by the Board, make mandatory contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code (i) to the defined benefit component of the program in the amount of four percent of creditable compensation in lieu of the amount described in subsection A of § 51.1-144 and (ii) to the defined contribution component of the program in the amount of one percent of creditable compensation, which shall be made to the appropriate cash match plan established for the employee under § 51.1-608.","type":"section","prefixes":["C","1"],"prefix":"1","entire_prefix":"C1","prefix_anchor":"C1","level":2,"prior_prefix":"C","next_prefix":"C2"},"9":{"id":297821,"text":"An employee participating in the hybrid retirement program may also make voluntary contributions to the defined contribution component of the program of up to four percent of creditable compensation or the limit on elective deferrals pursuant to § 457(b) of the Internal Revenue Code, whichever is less. The contribution by the employee shall be made to the appropriate deferred compensation plan established by the employee under § 51.1-602.","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C1","next_prefix":"C3"},"10":{"id":297822,"text":"If an employee’s voluntary contributions under subdivision C 2 are less than four percent of creditable compensation, the contribution will increase by one-half of one percent, beginning on January 1, 2017, and every three years thereafter, until the employee’s voluntary contributions under subdivision C 2 reach four percent of creditable compensation. The increase will be effective beginning with the first pay period that begins in such calendar year unless the employee elects not to increase the voluntary contribution in a manner prescribed by the Board.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"11":{"id":297823,"text":"No loans or hardship distributions shall be available from contributions made by an employee under this subsection.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"C5"},"12":{"id":297824,"text":"Disclosure of all services, fees, restrictions, and surrender penalties associated with employee voluntary contributions under subdivision C 2 shall be provided by the Board on an annual basis to an employee who does not make the election provided in subdivision G 1.","type":"section","prefixes":["C","5"],"prefix":"5","entire_prefix":"C5","prefix_anchor":"C5","level":2,"prior_prefix":"C4","next_prefix":"D"},"13":{"id":297825,"text":"1. The amount of the service retirement allowance under the defined benefit component of the program shall be governed by \u00a7 51.1-155 for all creditable service credited prior to the effective date of the member’s participation in the program. For all other creditable service, the allowance shall equal one percent of a member’s average final compensation multiplied by the amount of his creditable service while in the program.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C5","next_prefix":"D2"},"14":{"id":297826,"text":"No member shall retire for disability under the defined benefit component of the program.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D","next_prefix":"D3"},"15":{"id":297827,"text":"Except as provided in subdivision 1, any employee participating in the hybrid retirement program maintained under this section shall be considered to be a person who becomes a member on or after July 1, 2010.","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"16":{"id":297828,"text":"In all other respects, administration of the defined benefit component of the program shall be governed by the provisions of Chapter 1 (§ 51.1-124.1 et seq.).","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"E"},"17":{"id":297829,"text":"With respect to any employee who elects, pursuant to subsection A, to participate in the otherwise applicable defined benefit retirement plan established by this title and administered by the Virginia Retirement System, the employer shall collect and pay all employee and employer contributions to the Virginia Retirement System for retirement and group life insurance in accordance with the provisions of Chapter 1 (§ 51.1-124.1 et seq.) for such employee.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D4","next_prefix":"F"},"18":{"id":297830,"text":"1. The Board shall develop policies and procedures for administering the hybrid retirement program it maintains, including the establishment of guidelines for employee elections and deferrals under the program.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"F2"},"19":{"id":297831,"text":"No employee who is an active member in the hybrid retirement program maintained under this section shall also be an active member of any other optional retirement plan maintained under the provisions of Chapter 1 (§ 51.1-124.1 et seq.).","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F","next_prefix":"F3"},"20":{"id":297832,"text":"If a member of the hybrid retirement program maintained under this section is at any time in service as an employee in a position covered for retirement purposes under the provisions of Chapter 1 (§ 51.1-124.1 et seq.), 2 (§ 51.1-200 et seq.), 2.1 (§ 51.1-211 et seq.), or 3 (§ 51.1-300 et seq.), his benefit payments under the hybrid retirement program maintained under this section shall be suspended while so employed; provided, however, reemployment shall have no effect on a payment under the defined contribution component of the program if the benefit is being paid in an annuity form under an annuity contract purchased with the member’s account balance.","type":"section","prefixes":["F","3"],"prefix":"3","entire_prefix":"F3","prefix_anchor":"F3","level":2,"prior_prefix":"F2","next_prefix":"F4"},"21":{"id":297833,"text":"Any administrative fee imposed pursuant to subdivision A 13 of § 51.1-124.22 on any employer for administering and overseeing the hybrid retirement program maintained under this section shall be charged for each employee participating in such program and shall be for costs incurred by the Virginia Retirement System that are directly related to the administration and oversight of such program. Notwithstanding the foregoing, the Board is authorized to collect all or a portion of such fee directly from the employee.","type":"section","prefixes":["F","4"],"prefix":"4","entire_prefix":"F4","prefix_anchor":"F4","level":2,"prior_prefix":"F3","next_prefix":"F5"},"22":{"id":297834,"text":"The creditable compensation for any employee on whose behalf employee or employer contributions are made into the hybrid retirement program shall not exceed the limit on compensation as adjusted by the Commissioner of the Internal Revenue Service pursuant to the transition provisions applicable to eligible participants under state and local governmental plans under § 401(a)(17) of the Internal Revenue Code as amended in 1993 and as contained in § 13212(d)(3) of the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66).","type":"section","prefixes":["F","5"],"prefix":"5","entire_prefix":"F5","prefix_anchor":"F5","level":2,"prior_prefix":"F4","next_prefix":"F6"},"23":{"id":297835,"text":"The Board may contract with private corporations or institutions, subject to the standards set forth in § 51.1-124.30, to provide investment products as well as any other goods and services related to the administration of the hybrid retirement program, except as provided in subsection G. The Virginia Retirement System is hereby authorized to perform related services, including but not limited to, providing consolidated billing, individual and collective recordkeeping and accountings, and asset purchase, control, and safekeeping.","type":"section","prefixes":["F","6"],"prefix":"6","entire_prefix":"F6","prefix_anchor":"F6","level":2,"prior_prefix":"F5","next_prefix":"G"},"24":{"id":297836,"text":"1. Any political subdivision of the Commonwealth that has established a plan pursuant to \u00a7 403(b) of the Internal Revenue Code of 1986, as amended (a “403(b) plan”), may, at its option, elect to allow its employees the option to direct that voluntary contributions to the defined contribution component of the program under subdivision C 2 be made to such 403(b) plan and the corresponding employer matching contributions under subdivision B 2 be made to such 403(b) plan or the appropriate local cash match plan established under \u00a7 51.1-610. All such voluntary contributions by an employee to such 403(b) plan shall be made on a pretax basis. Any such political subdivision of the Commonwealth that so directs shall develop policies and procedures for administering such contributions, subject to and in accordance with applicable federal law and regulations. The policies and procedures shall provide for the administration of vesting provisions as provided in subdivision B 3, the establishment of and uses for a forfeiture account as provided in subdivision B 3, and automatic contribution escalation provisions as provided in subdivision C 3, all with regard to employee voluntary contributions and corresponding employer matching contributions.\n\t\t\tIn all other respects, the political subdivision shall be subject to the provisions of the hybrid retirement program described in this section.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F6","next_prefix":"G2"},"25":{"id":297837,"text":"The governing body of any political subdivision of the Commonwealth electing to allow its employees to use its 403(b) plan or a local cash match plan as described in subdivision 1 shall adopt a resolution on or before November 1, 2015, and submit such resolution to the Board to notify the Board of its election, which shall be effective January 1, 2016, and shall remain effective for 12 months. Thereafter, the governing body of any political subdivision of the Commonwealth may make or change its election for its employees no more often than annually by adopting a resolution on or before November 1 of each year notifying the Board of a new or changed election, which shall become effective on January 1.","type":"section","prefixes":["G","2"],"prefix":"2","entire_prefix":"G2","prefix_anchor":"G2","level":2,"prior_prefix":"G","next_prefix":"G3"},"26":{"id":297838,"text":"A person who participates in the hybrid retirement program maintained under this section may make an election to participate in the 403(b) plan established by his employer under subdivision G 1. Such election shall be exercised no later than November 30, 2015, and shall be effective January 1, 2016. If an election is not made by November 30, 2015, such employee shall be deemed to have elected not to participate in the 403(b) plan established by his employer under subdivision G 1. Thereafter, such employee may make or change his election on or before November 30 of each year by notifying his employer of a new or changed election, which shall become effective the following January 1. If an election is not made or changed by November 30, such employee shall be deemed to have elected not to change the prior year’s election.","type":"section","prefixes":["G","3"],"prefix":"3","entire_prefix":"G3","prefix_anchor":"G3","level":2,"prior_prefix":"G2","next_prefix":"G4"},"27":{"id":297839,"text":"In the case of a 403(b) plan or local cash match plan administered by a political subdivision of the Commonwealth that provides individual accounts permitting an employee or beneficiary to exercise discretion over assets in his account, the political subdivision shall not be liable for any loss resulting from such employee’s or beneficiary’s (i) investment of voluntary contributions in the political subdivision’s 403(b) plan or matching contributions in the political subdivision’s 403(b) plan or local cash match plan, (ii) exercise of discretion over the assets in any of his accounts, or (iii) inaction with respect to the assets in any of his accounts that results in such assets being placed in a default investment option selected by the political subdivision, provided that the investment options for the affected individual account and the particular default investment option for such individual account are selected in accordance with subsection A of § 51.1-803, applied mutatis mutandis. Under no circumstances shall the Commonwealth, the Board, employees of the Retirement System, the Investment Advisory Committee of the Retirement System, or any other advisory committee established by the Board bear any liability with respect to any plan or individual account described in this subsection.","type":"section","prefixes":["G","4"],"prefix":"4","entire_prefix":"G4","prefix_anchor":"G4","level":2,"prior_prefix":"G3","next_prefix":"G5"},"28":{"id":297840,"text":"The provisions of this subsection shall not apply to any political subdivision of the Commonwealth that has entered into an agreement with the Retirement System pursuant to § 51.1-603.1 or 51.1-611 except with regard to a 403(b) plan.","type":"section","prefixes":["G","5"],"prefix":"5","entire_prefix":"G5","prefix_anchor":"G5","level":2,"prior_prefix":"G4","next_prefix":"G6"},"29":{"id":297841,"text":"Disclosure of all services, fees, restrictions, and surrender penalties associated with employee voluntary contributions under subsection G shall be provided by the political subdivision of the Commonwealth on an annual basis to an employee who makes the election provided in subdivision G 1. Such employee shall also be provided with a side-by-side comparison of the long-term effects of generic expense ratios on his investments.","type":"section","prefixes":["G","6"],"prefix":"6","entire_prefix":"G6","prefix_anchor":"G6","level":2,"prior_prefix":"G5","next_prefix":"G7"},"30":{"id":297842,"text":"The Board shall not be responsible for administration of or recordkeeping related to voluntary contributions to the defined contribution component of the program made to a 403(b) plan or the corresponding employer matching contributions made to a 403(b) plan or the appropriate local cash match plan established under § 51.1-610 that are authorized by subdivision G 1.","type":"section","prefixes":["G","7"],"prefix":"7","entire_prefix":"G7","prefix_anchor":"G7","level":2,"prior_prefix":"G6","next_prefix":"G8"},"31":{"id":297843,"text":"The Board shall develop policies and procedures for administering the provisions of this subsection.","type":"section","prefixes":["G","8"],"prefix":"8","entire_prefix":"G8","prefix_anchor":"G8","level":2,"prior_prefix":"G7"}},"ancestry":[{"id":14048,"edition_id":1,"name":"Benefits","identifier":"9","label":"article","depth":3,"order_by":1,"parent_id":13056,"metadata":{},"date_created":"2026-06-26 03:46:41","date_modified":"2026-06-26 03:46:41","permalink":{"id":235355,"object_type":"structure","relational_id":14048,"identifier":"9","token":"51.1\/1\/9","url":"\/51.1\/1\/9\/","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":59629,"structure_id":14048,"section_number":"51.1-152","catch_line":"Limitations on average final compensation","url":"\/51.1-152\/","token":"51.1\/1\/9\/51.1-152","metadata":false},{"id":85181,"structure_id":14048,"section_number":"51.1-153","catch_line":"Service retirement","url":"\/51.1-153\/","token":"51.1\/1\/9\/51.1-153","metadata":false},{"id":79471,"structure_id":14048,"section_number":"51.1-154","catch_line":"Compulsory service retirement","url":"\/51.1-154\/","token":"51.1\/1\/9\/51.1-154","metadata":false},{"id":72358,"structure_id":14048,"section_number":"51.1-155","catch_line":"Service retirement 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member","url":"\/51.1-165.1\/","token":"51.1\/1\/9\/51.1-165.1","metadata":false},{"id":83485,"structure_id":14048,"section_number":"51.1-166","catch_line":"Post-retirement supplements generally","url":"\/51.1-166\/","token":"51.1\/1\/9\/51.1-166","metadata":false},{"id":58384,"structure_id":14048,"section_number":"51.1-167","catch_line":"Retirement allowance to be reduced in certain cases","url":"\/51.1-167\/","token":"51.1\/1\/9\/51.1-167","metadata":false},{"id":57811,"structure_id":14048,"section_number":"51.1-168","catch_line":"Limits on creditable compensation; maximum benefits; mandatory payment of allowance","url":"\/51.1-168\/","token":"51.1\/1\/9\/51.1-168","metadata":false},{"id":83100,"structure_id":14048,"section_number":"51.1-169","catch_line":"Hybrid retirement program","url":"\/51.1-169\/","token":"51.1\/1\/9\/51.1-169","metadata":false}],"previous_section":{"id":57811,"structure_id":14048,"section_number":"51.1-168","catch_line":"Limits on creditable compensation; maximum benefits; mandatory payment of allowance","url":"\/51.1-168\/","token":"51.1\/1\/9\/51.1-168","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/51.1-169\/","history_text":"

This law was first created in 2012. The record of its establishment is cataloged in chapters 701<\/a> and 823<\/a> 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. It has been modified 5 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 2013, chapters 456<\/a> and 666<\/a>; in 2014, chapter 356<\/a>; in 2015, chapters 502<\/a>, 503<\/a>, 538<\/a>, 539<\/a>, and 660<\/a>; in 2016, chapters 263<\/a> and 280<\/a>; in 2025, chapter 508<\/a>.<\/p>","references":[{"id":76756,"section_number":"2.2-3204","catch_line":"Retirement program","order_by":null,"url":"\/2.2-3204\/"},{"id":82207,"section_number":"51.1-1100","catch_line":"Definitions","order_by":null,"url":"\/51.1-1100\/"},{"id":77616,"section_number":"51.1-1103","catch_line":"Participation in the program","order_by":null,"url":"\/51.1-1103\/"},{"id":72679,"section_number":"51.1-1131.1","catch_line":"Employer contributions during disability absences","order_by":null,"url":"\/51.1-1131.1\/"},{"id":55138,"section_number":"51.1-1150","catch_line":"Definitions","order_by":null,"url":"\/51.1-1150\/"},{"id":58048,"section_number":"51.1-1153","catch_line":"Participation in the program","order_by":null,"url":"\/51.1-1153\/"},{"id":61514,"section_number":"51.1-1161","catch_line":"Cessation of disability benefits; service retirement","order_by":null,"url":"\/51.1-1161\/"},{"id":76738,"section_number":"51.1-1169","catch_line":"Cessation of supplemental disability benefits; service retirement","order_by":null,"url":"\/51.1-1169\/"},{"id":56512,"section_number":"51.1-1172","catch_line":"Employer contributions during disability absences","order_by":null,"url":"\/51.1-1172\/"},{"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":70111,"section_number":"51.1-126.5","catch_line":"Defined contribution plan for eligible members","order_by":null,"url":"\/51.1-126.5\/"},{"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":62836,"section_number":"51.1-135","catch_line":"Compulsory membership","order_by":null,"url":"\/51.1-135\/"},{"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":63381,"section_number":"51.1-1405","catch_line":"Participation in the state retiree health benefits program","order_by":null,"url":"\/51.1-1405\/"},{"id":62951,"section_number":"51.1-145","catch_line":"Employer contributions","order_by":null,"url":"\/51.1-145\/"},{"id":61992,"section_number":"51.1-155.1","catch_line":"Exceptions from general early retirement provisions for certain state employees and constitutional officers","order_by":null,"url":"\/51.1-155.1\/"},{"id":68249,"section_number":"51.1-155.2","catch_line":"Exceptions from general early retirement provisions for certain local government officials","order_by":null,"url":"\/51.1-155.2\/"},{"id":68148,"section_number":"51.1-162","catch_line":"Death before retirement","order_by":null,"url":"\/51.1-162\/"},{"id":83485,"section_number":"51.1-166","catch_line":"Post-retirement supplements generally","order_by":null,"url":"\/51.1-166\/"},{"id":74635,"section_number":"51.1-304","catch_line":"Contributions by Commonwealth","order_by":null,"url":"\/51.1-304\/"},{"id":74234,"section_number":"51.1-306.1","catch_line":"Service retirement allowance for judges appointed or elected after January 1, 2014","order_by":null,"url":"\/51.1-306.1\/"},{"id":79557,"section_number":"51.1-601.1","catch_line":"Participation in plan by certain employees","order_by":null,"url":"\/51.1-601.1\/"},{"id":68801,"section_number":"51.1-603.1","catch_line":"Participation by employees of political subdivisions in deferred compensation plan of Virginia Retirement System","order_by":null,"url":"\/51.1-603.1\/"},{"id":61074,"section_number":"51.1-609","catch_line":"Contributions on behalf of qualified participants","order_by":null,"url":"\/51.1-609\/"},{"id":73748,"section_number":"51.1-611","catch_line":"Participation by employees of political subdivisions in cash match plan of Virginia Retirement System","order_by":null,"url":"\/51.1-611\/"}],"refers_to":[{"id":85589,"section_number":"15.2-1512.2","catch_line":"Political activities of employees of localities, firefighters, emergency medical services personnel, and law-enforcement officers and certain other officers and employees","order_by":null,"url":"\/15.2-1512.2\/"},{"id":74269,"section_number":"32.1-111.1","catch_line":"Definitions","order_by":null,"url":"\/32.1-111.1\/"},{"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":84073,"section_number":"51.1-124.30","catch_line":"Board as trustee of funds; investments; standard of care; liability for losses","order_by":null,"url":"\/51.1-124.30\/"},{"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":85814,"section_number":"51.1-126.4","catch_line":"Employees of the Virginia Port Authority","order_by":null,"url":"\/51.1-126.4\/"},{"id":84459,"section_number":"51.1-126.7","catch_line":"Employees of the Virginia Outdoors Foundation","order_by":null,"url":"\/51.1-126.7\/"},{"id":60634,"section_number":"51.1-138","catch_line":"Benefits","order_by":null,"url":"\/51.1-138\/"},{"id":81607,"section_number":"51.1-144","catch_line":"Member contributions","order_by":null,"url":"\/51.1-144\/"},{"id":85181,"section_number":"51.1-153","catch_line":"Service retirement","order_by":null,"url":"\/51.1-153\/"},{"id":72358,"section_number":"51.1-155","catch_line":"Service retirement allowance","order_by":null,"url":"\/51.1-155\/"},{"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\/"},{"id":68801,"section_number":"51.1-603.1","catch_line":"Participation by employees of political subdivisions in deferred compensation plan of Virginia Retirement System","order_by":null,"url":"\/51.1-603.1\/"},{"id":70151,"section_number":"51.1-608","catch_line":"Cash match plan for employees of the Commonwealth; 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A.<\/span> For purposes of this section, “hybrid retirement program<\/span>” or “program” means a hybrid retirement program<\/span> covering any employee<\/span> in a position covered for retirement purposes under the provisions of Chapter 1 (§ 51.1-124.1<\/a> et seq.) for retirement purposes other than the Virginia Retirement System defined benefit retirement plan established under Chapter 1 (§ 51.1-124.1<\/a> et seq.). Persons who are participants in, or eligible to be participants in, the retirement plans under the provisions of Chapter 2 (§ 51.1-200<\/a> et seq.), Chapter 2.1 (§ 51.1-211<\/a> et seq.), the optional retirement plans established under §§ 51.1-126.1<\/a>, 51.1-126.3<\/a>, 51.1-126.4<\/a>, and 51.1-126.7<\/a>, or a person eligible to earn the benefits permitted by § 51.1-138<\/a> shall not be eligible to participate in the hybrid retirement program<\/span>. Any person who meets the definition of “emergency medical services personnel<\/span>” in § 32.1-111.1<\/a> or is employed as a firefighter, or law<\/span>-enforcement officer as those terms are defined in § 15.2-1512.2<\/a> and whose employing political subdivision<\/span> has legally adopted an irrevocable resolution as described in subdivision B 4 of § 51.1-153<\/a> and subdivision A 3 of § 51.1-155<\/a> shall not be eligible to participate in the hybrid retirement program<\/span>.\n\t\t\tThe Board<\/span> shall maintain the hybrid retirement program<\/span> established by this section, and any employer<\/span> is authorized to make contributions under such program for the benefit of its employees<\/span> participating in such program. Every person who is otherwise eligible to participate in the program but is not a member<\/span> of a retirement plan administered by the Virginia Retirement System<\/span> the first time he is hired or rehired on or after January 1, 2014, in a covered position, shall participate in the hybrid retirement program<\/span> established by this section.\n\t\t\tA person who participates in the otherwise applicable defined benefit retirement plan established by this title and administered by the Virginia Retirement System under this chapter may make an irrevocable election to participate in the hybrid retirement program<\/span> maintained under this section. Such election shall be exercised no later than April 30, 2014. If an election is not made by April 30, 2014, such employee<\/span> shall be deemed to have elected not to participate in the hybrid retirement program<\/span> and shall continue to participate in his current retirement plan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Except as otherwise provided in subsection G: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The employer<\/span> shall make contributions to the defined benefit component of the program in accordance with § 51.1-145<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The employer<\/span> shall make a mandatory contribution to the defined contribution component of the program on behalf of an employee<\/span> participating in the program in the amount of one percent of creditable compensation<\/span>, which shall be made to the appropriate cash match plan established for the employee<\/span> under § 51.1-608<\/a>. In addition, the employer<\/span> shall make a matching contribution on behalf of the employee<\/span> based on the employee<\/span>’s voluntary contributions under the defined contribution component of the program to the deferred compensation plan established under § 51.1-602<\/a>, up to a maximum of 2.5 percent of creditable compensation<\/span> for the payroll period, as follows: (i) 100 percent of the first one percent of creditable compensation<\/span> contributed by the employee<\/span> to the defined contribution component of the program under subdivision C 2 for the payroll period, and (ii) 50 percent of the next three percent of creditable compensation<\/span> contributed by the employee<\/span> to the defined contribution component of the program under subdivision C 2 for the payroll period. The matching contribution by the employer<\/span> shall be made to the appropriate cash match plan established for the employee<\/span> under § 51.1-608<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The total amount contributed by the employer<\/span> under subdivision 2 shall vest to the employee<\/span>’s benefit according to the following schedule:\n\t\t\t\ta. Upon completion of two years of active participation<\/span>, 50 percent.\n\t\t\t\tb. Upon completion of three years of active participation<\/span>, 75 percent.\n\t\t\t\tc. Upon completion of four years of active participation<\/span>, 100 percent.\n\t\t\t\tFor purposes of this subdivision, “active participation<\/span>” includes creditable service<\/span>, as defined in § 51.1-124.3<\/a>, in any retirement plan established by this title and administered by the Retirement System.\n\t\t\t\tIf an employee<\/span> ceases to be a member<\/span> prior to achieving 100 percent vesting, contributions made by an employer<\/span> on behalf of the employee<\/span> under subdivision 2 that are not vested shall be forfeited. The Board<\/span> may establish a forfeiture account and may specify the uses of the forfeiture account. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> An employee<\/span> may direct the investment of contributions made by an employer<\/span> under subdivision B 2. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> No loans or hardship distributions shall be available from contributions made by an employer<\/span> under subdivision B 2. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Except as otherwise provided in subsection G: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> An employee<\/span> participating in the hybrid retirement program<\/span> maintained under this section shall, pursuant to procedures established by the Board<\/span>, make mandatory contributions on a salary reduction basis in accordance with § 414(h) of the Internal Revenue Code (i) to the defined benefit component of the program in the amount of four percent of creditable compensation<\/span> in lieu of the amount described in subsection A of § 51.1-144<\/a> and (ii) to the defined contribution component of the program in the amount of one percent of creditable compensation<\/span>, which shall be made to the appropriate cash match plan established for the employee<\/span> under § 51.1-608<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> An employee<\/span> participating in the hybrid retirement program<\/span> may also make voluntary contributions to the defined contribution component of the program of up to four percent of creditable compensation<\/span> or the limit on elective deferrals pursuant to § 457(b) of the Internal Revenue Code, whichever is less. The contribution by the employee<\/span> shall be made to the appropriate deferred compensation plan established by the employee<\/span> under § 51.1-602<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If an employee<\/span>’s voluntary contributions under subdivision C 2 are less than four percent of creditable compensation<\/span>, the contribution will increase by one-half of one percent, beginning on January 1, 2017, and every three years thereafter, until the employee<\/span>’s voluntary contributions under subdivision C 2 reach four percent of creditable compensation<\/span>. The increase will be effective beginning with the first pay period that begins in such calendar year unless the employee<\/span> elects not to increase the voluntary contribution in a manner prescribed by the Board<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> No loans or hardship distributions shall be available from contributions made by an employee<\/span> under this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Disclosure of all services, fees, restrictions, and surrender penalties associated with employee<\/span> voluntary contributions under subdivision C 2 shall be provided by the Board<\/span> on an annual basis to an employee<\/span> who does not make the election provided in subdivision G 1. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> 1. The amount of the service retirement allowance<\/span> under the defined benefit component of the program shall be governed by \u00a7 51.1-155<\/a> for all creditable service<\/span> credited prior to the effective date of the member<\/span>’s participation in the program. For all other creditable service<\/span>, the allowance shall equal one percent of a member<\/span>’s average final compensation<\/span> multiplied by the amount of his creditable service<\/span> while in the program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> No member<\/span> shall retire for disability under the defined benefit component of the program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Except as provided in subdivision 1, any employee<\/span> participating in the hybrid retirement program<\/span> maintained under this section shall be considered to be a person who becomes a member<\/span> on or after July 1, 2010. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In all other respects, administration of the defined benefit component of the program shall be governed by the provisions of Chapter 1 (§ 51.1-124.1<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> With respect to any employee<\/span> who elects, pursuant to subsection A, to participate in the otherwise applicable defined benefit retirement plan established by this title and administered by the Virginia Retirement System, the employer<\/span> shall collect and pay all employee<\/span> and employer<\/span> contributions to the Virginia Retirement System for retirement and group life insurance in accordance with the provisions of Chapter 1 (§ 51.1-124.1<\/a> et seq.) for such employee<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> 1. The Board<\/span> shall develop policies and procedures for administering the hybrid retirement program<\/span> it maintains, including the establishment of guidelines for employee<\/span> elections and deferrals under the program. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> No employee<\/span> who is an active member<\/span> in the hybrid retirement program<\/span> maintained under this section shall also be an active member<\/span> of any other optional retirement plan maintained under the provisions of Chapter 1 (§ 51.1-124.1<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

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

4.<\/span> Any administrative fee imposed pursuant to subdivision A 13 of § 51.1-124.22<\/a> on any employer<\/span> for administering and overseeing the hybrid retirement program<\/span> maintained under this section shall be charged for each employee<\/span> participating in such program and shall be for costs incurred by the Virginia Retirement System that are directly related to the administration and oversight of such program. Notwithstanding the foregoing, the Board<\/span> is authorized to collect all or a portion of such fee directly from the employee<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The creditable compensation<\/span> for any employee<\/span> on whose behalf employee<\/span> or employer<\/span> contributions are made into the hybrid retirement program<\/span> shall not exceed the limit on compensation as adjusted by the Commissioner of the Internal Revenue Service pursuant to the transition provisions applicable to eligible participants under state and local governmental plans under § 401(a)(17) of the Internal Revenue Code as amended in 1993 and as contained in § 13212(d)(3) of the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The Board<\/span> may contract<\/span> with private corporations or institutions, subject to the standards set forth in § 51.1-124.30<\/a>, to provide investment products as well as any other goods and services related to the administration of the hybrid retirement program<\/span>, except as provided in subsection G. The Virginia Retirement System is hereby authorized to perform related services, including but not limited to, providing consolidated billing, individual and collective recordkeeping and accountings, and asset purchase, control, and safekeeping. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> 1. Any political subdivision<\/span> of the Commonwealth that has established a plan pursuant to \u00a7 403(b) of the Internal Revenue Code of 1986, as amended (a “403(b) plan”), may, at its option, elect to allow its employees<\/span> the option to direct that voluntary contributions to the defined contribution component of the program under subdivision C 2 be made to such 403(b) plan and the corresponding employer<\/span> matching contributions under subdivision B 2 be made to such 403(b) plan or the appropriate local cash match plan established under \u00a7 51.1-610<\/a>. All such voluntary contributions by an employee<\/span> to such 403(b) plan shall be made on a pretax basis. Any such political subdivision<\/span> of the Commonwealth that so directs shall develop policies and procedures for administering such contributions, subject to and in accordance with applicable federal law<\/span> and regulations. The policies and procedures shall provide for the administration of vesting provisions as provided in subdivision B 3, the establishment of and uses for a forfeiture account as provided in subdivision B 3, and automatic contribution escalation provisions as provided in subdivision C 3, all with regard to employee<\/span> voluntary contributions and corresponding employer<\/span> matching contributions.\n\t\t\tIn all other respects, the political subdivision<\/span> shall be subject to the provisions of the hybrid retirement program<\/span> described in this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The governing body of any political subdivision<\/span> of the Commonwealth electing to allow its employees<\/span> to use its 403(b) plan or a local cash match plan as described in subdivision 1 shall adopt a resolution on or before November 1, 2015, and submit such resolution to the Board<\/span> to notify the Board<\/span> of its election, which shall be effective January 1, 2016, and shall remain effective for 12 months. Thereafter, the governing body of any political subdivision<\/span> of the Commonwealth may make or change its election for its employees<\/span> no more often than annually by adopting a resolution on or before November 1 of each year notifying the Board<\/span> of a new or changed election, which shall become effective on January 1. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A person who participates in the hybrid retirement program<\/span> maintained under this section may make an election to participate in the 403(b) plan established by his employer<\/span> under subdivision G 1. Such election shall be exercised no later than November 30, 2015, and shall be effective January 1, 2016. If an election is not made by November 30, 2015, such employee<\/span> shall be deemed to have elected not to participate in the 403(b) plan established by his employer<\/span> under subdivision G 1. Thereafter, such employee<\/span> may make or change his election on or before November 30 of each year by notifying his employer<\/span> of a new or changed election, which shall become effective the following January 1. If an election is not made or changed by November 30, such employee<\/span> shall be deemed to have elected not to change the prior year’s election. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> In the case of a 403(b) plan or local cash match plan administered by a political subdivision<\/span> of the Commonwealth that provides individual accounts permitting an employee<\/span> or beneficiary<\/span> to exercise discretion over assets<\/span> in his account, the political subdivision<\/span> shall not be liable for any loss resulting from such employee<\/span>’s or beneficiary<\/span>’s (i) investment of voluntary contributions in the political subdivision<\/span>’s 403(b) plan or matching contributions in the political subdivision<\/span>’s 403(b) plan or local cash match plan, (ii) exercise of discretion over the assets<\/span> in any of his accounts, or (iii) inaction with respect to the assets<\/span> in any of his accounts that results in such assets<\/span> being placed in a default<\/span> investment option selected by the political subdivision<\/span>, provided that the investment options for the affected individual account and the particular default<\/span> investment option for such individual account are selected in accordance with subsection A of § 51.1-803<\/a>, applied mutatis mutandis<\/span>. Under no circumstances shall the Commonwealth, the Board<\/span>, employees<\/span> of the Retirement System, the Investment Advisory Committee of the Retirement System, or any other advisory committee established by the Board<\/span> bear any liability with respect to any plan or individual account described in this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The provisions of this subsection shall not apply to any political subdivision<\/span> of the Commonwealth that has entered into an agreement with the Retirement System pursuant to § 51.1-603.1<\/a> or 51.1-611<\/a> except with regard to a 403(b) plan. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Disclosure of all services, fees, restrictions, and surrender penalties associated with employee<\/span> voluntary contributions under subsection G shall be provided by the political subdivision<\/span> of the Commonwealth on an annual basis to an employee<\/span> who makes the election provided in subdivision G 1. Such employee<\/span> shall also be provided with a side-by-side comparison of the long-term effects of generic expense ratios on his investments. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The Board<\/span> shall not be responsible for administration of or recordkeeping related to voluntary contributions to the defined contribution component of the program made to a 403(b) plan or the corresponding employer<\/span> matching contributions made to a 403(b) plan or the appropriate local cash match plan established under § 51.1-610<\/a> that are authorized by subdivision G 1. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> The Board<\/span> shall develop policies and procedures for administering the provisions of this subsection. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nHYBRID RETIREMENT PROGRAM (\u00a7 51.1-169)\n\nA. For purposes of this section, “hybrid retirement program” or\n“program” means a hybrid retirement program covering any employee in\na position covered for retirement purposes under the provisions of Chapter 1\n(§ 51.1-124.1 et seq.) for retirement purposes other than the Virginia\nRetirement System defined benefit retirement plan established under Chapter 1\n(§ 51.1-124.1 et seq.). Persons who are participants in, or eligible to be\nparticipants in, the retirement plans under the provisions of Chapter 2 (§\n51.1-200 et seq.), Chapter 2.1 (§ 51.1-211 et seq.), the optional\nretirement plans established under §§ 51.1-126.1, 51.1-126.3,\n51.1-126.4, and 51.1-126.7, or a person eligible to earn the benefits permitted\nby § 51.1-138 shall not be eligible to participate in the hybrid retirement\nprogram. Any person who meets the definition of “emergency medical\nservices personnel” in § 32.1-111.1 or is employed as a firefighter,\nor law-enforcement officer as those terms are defined in § 15.2-1512.2 and\nwhose employing political subdivision has legally adopted an irrevocable\nresolution as described in subdivision B 4 of § 51.1-153 and subdivision A\n3 of § 51.1-155 shall not be eligible to participate in the hybrid\nretirement program.\n\t\t\tThe Board shall maintain the hybrid retirement program established by this\nsection, and any employer is authorized to make contributions under such program\nfor the benefit of its employees participating in such program. Every person who\nis otherwise eligible to participate in the program but is not a member of a\nretirement plan administered by the Virginia Retirement System the first time he\nis hired or rehired on or after January 1, 2014, in a covered position, shall\nparticipate in the hybrid retirement program established by this section.\n\t\t\tA person who participates in the otherwise applicable defined benefit\nretirement plan established by this title and administered by the Virginia\nRetirement System under this chapter may make an irrevocable election to\nparticipate in the hybrid retirement program maintained under this section. Such\nelection shall be exercised no later than April 30, 2014. If an election is not\nmade by April 30, 2014, such employee shall be deemed to have elected not to\nparticipate in the hybrid retirement program and shall continue to participate\nin his current retirement plan.\n\nB. Except as otherwise provided in subsection G:\n\n 1. The employer shall make contributions to the defined benefit component of\n the program in accordance with § 51.1-145.\n\n 2. The employer shall make a mandatory contribution to the defined\n contribution component of the program on behalf of an employee participating\n in the program in the amount of one percent of creditable compensation, which\n shall be made to the appropriate cash match plan established for the employee\n under § 51.1-608. In addition, the employer shall make a matching\n contribution on behalf of the employee based on the employee’s voluntary\n contributions under the defined contribution component of the program to the\n deferred compensation plan established under § 51.1-602, up to a maximum\n of 2.5 percent of creditable compensation for the payroll period, as follows:\n (i) 100 percent of the first one percent of creditable compensation\n contributed by the employee to the defined contribution component of the\n program under subdivision C 2 for the payroll period, and (ii) 50 percent of\n the next three percent of creditable compensation contributed by the employee\n to the defined contribution component of the program under subdivision C 2 for\n the payroll period. The matching contribution by the employer shall be made to\n the appropriate cash match plan established for the employee under §\n 51.1-608.\n\n 3. The total amount contributed by the employer under subdivision 2 shall vest\n to the employee’s benefit according to the following schedule:\n \t\t\t\ta. Upon completion of two years of active participation, 50 percent.\n \t\t\t\tb. Upon completion of three years of active participation, 75 percent.\n \t\t\t\tc. Upon completion of four years of active participation, 100 percent.\n \t\t\t\tFor purposes of this subdivision, “active participation”\n includes creditable service, as defined in § 51.1-124.3, in any\n retirement plan established by this title and administered by the Retirement\n System.\n \t\t\t\tIf an employee ceases to be a member prior to achieving 100 percent\n vesting, contributions made by an employer on behalf of the employee under\n subdivision 2 that are not vested shall be forfeited. The Board may establish\n a forfeiture account and may specify the uses of the forfeiture account.\n\n 4. An employee may direct the investment of contributions made by an employer\n under subdivision B 2.\n\n 5. No loans or hardship distributions shall be available from contributions\n made by an employer under subdivision B 2.\n\nC. Except as otherwise provided in subsection G:\n\n 1. An employee participating in the hybrid retirement program maintained under\n this section shall, pursuant to procedures established by the Board, make\n mandatory contributions on a salary reduction basis in accordance with §\n 414(h) of the Internal Revenue Code (i) to the defined benefit component of\n the program in the amount of four percent of creditable compensation in lieu\n of the amount described in subsection A of § 51.1-144 and (ii) to the\n defined contribution component of the program in the amount of one percent of\n creditable compensation, which shall be made to the appropriate cash match\n plan established for the employee under § 51.1-608.\n\n 2. An employee participating in the hybrid retirement program may also make\n voluntary contributions to the defined contribution component of the program\n of up to four percent of creditable compensation or the limit on elective\n deferrals pursuant to § 457(b) of the Internal Revenue Code, whichever is\n less. The contribution by the employee shall be made to the appropriate\n deferred compensation plan established by the employee under § 51.1-602.\n\n 3. If an employee’s voluntary contributions under subdivision C 2 are\n less than four percent of creditable compensation, the contribution will\n increase by one-half of one percent, beginning on January 1, 2017, and every\n three years thereafter, until the employee’s voluntary contributions\n under subdivision C 2 reach four percent of creditable compensation. The\n increase will be effective beginning with the first pay period that begins in\n such calendar year unless the employee elects not to increase the voluntary\n contribution in a manner prescribed by the Board.\n\n 4. No loans or hardship distributions shall be available from contributions\n made by an employee under this subsection.\n\n 5. Disclosure of all services, fees, restrictions, and surrender penalties\n associated with employee voluntary contributions under subdivision C 2 shall\n be provided by the Board on an annual basis to an employee who does not make\n the election provided in subdivision G 1.\n\nD. 1. The amount of the service retirement allowance under the defined benefit\ncomponent of the program shall be governed by \u00a7 51.1-155 for all creditable\nservice credited prior to the effective date of the member’s participation\nin the program. For all other creditable service, the allowance shall equal one\npercent of a member’s average final compensation multiplied by the amount\nof his creditable service while in the program.\n\n 2. No member shall retire for disability under the defined benefit component\n of the program.\n\n 3. Except as provided in subdivision 1, any employee participating in the\n hybrid retirement program maintained under this section shall be considered to\n be a person who becomes a member on or after July 1, 2010.\n\n 4. In all other respects, administration of the defined benefit component of\n the program shall be governed by the provisions of Chapter 1 (§\n 51.1-124.1 et seq.).\n\nE. With respect to any employee who elects, pursuant to subsection A, to\nparticipate in the otherwise applicable defined benefit retirement plan\nestablished by this title and administered by the Virginia Retirement System,\nthe employer shall collect and pay all employee and employer contributions to\nthe Virginia Retirement System for retirement and group life insurance in\naccordance with the provisions of Chapter 1 (§ 51.1-124.1 et seq.) for such\nemployee.\n\nF. 1. The Board shall develop policies and procedures for administering the\nhybrid retirement program it maintains, including the establishment of\nguidelines for employee elections and deferrals under the program.\n\n 2. No employee who is an active member in the hybrid retirement program\n maintained under this section shall also be an active member of any other\n optional retirement plan maintained under the provisions of Chapter 1 (§\n 51.1-124.1 et seq.).\n\n 3. If a member of the hybrid retirement program maintained under this section\n is at any time in service as an employee in a position covered for retirement\n purposes under the provisions of Chapter 1 (§ 51.1-124.1 et seq.), 2\n (§ 51.1-200 et seq.), 2.1 (§ 51.1-211 et seq.), or 3 (§\n 51.1-300 et seq.), his benefit payments under the hybrid retirement program\n maintained under this section shall be suspended while so employed; provided,\n however, reemployment shall have no effect on a payment under the defined\n contribution component of the program if the benefit is being paid in an\n annuity form under an annuity contract purchased with the member’s\n account balance.\n\n 4. Any administrative fee imposed pursuant to subdivision A 13 of §\n 51.1-124.22 on any employer for administering and overseeing the hybrid\n retirement program maintained under this section shall be charged for each\n employee participating in such program and shall be for costs incurred by the\n Virginia Retirement System that are directly related to the administration and\n oversight of such program. Notwithstanding the foregoing, the Board is\n authorized to collect all or a portion of such fee directly from the employee.\n\n 5. The creditable compensation for any employee on whose behalf employee or\n employer contributions are made into the hybrid retirement program shall not\n exceed the limit on compensation as adjusted by the Commissioner of the\n Internal Revenue Service pursuant to the transition provisions applicable to\n eligible participants under state and local governmental plans under §\n 401(a)(17) of the Internal Revenue Code as amended in 1993 and as contained in\n § 13212(d)(3) of the Omnibus Budget Reconciliation Act of 1993 (P.L.\n 103-66).\n\n 6. The Board may contract with private corporations or institutions, subject\n to the standards set forth in § 51.1-124.30, to provide investment\n products as well as any other goods and services related to the administration\n of the hybrid retirement program, except as provided in subsection G. The\n Virginia Retirement System is hereby authorized to perform related services,\n including but not limited to, providing consolidated billing, individual and\n collective recordkeeping and accountings, and asset purchase, control, and\n safekeeping.\n\nG. 1. Any political subdivision of the Commonwealth that has established a plan\npursuant to \u00a7 403(b) of the Internal Revenue Code of 1986, as amended (a\n“403(b) plan”), may, at its option, elect to allow its employees the\noption to direct that voluntary contributions to the defined contribution\ncomponent of the program under subdivision C 2 be made to such 403(b) plan and\nthe corresponding employer matching contributions under subdivision B 2 be made\nto such 403(b) plan or the appropriate local cash match plan established under\n\u00a7 51.1-610. All such voluntary contributions by an employee to such 403(b) plan\nshall be made on a pretax basis. Any such political subdivision of the\nCommonwealth that so directs shall develop policies and procedures for\nadministering such contributions, subject to and in accordance with applicable\nfederal law and regulations. The policies and procedures shall provide for the\nadministration of vesting provisions as provided in subdivision B 3, the\nestablishment of and uses for a forfeiture account as provided in subdivision B\n3, and automatic contribution escalation provisions as provided in subdivision C\n3, all with regard to employee voluntary contributions and corresponding\nemployer matching contributions.\n\t\t\tIn all other respects, the political subdivision shall be subject to the\nprovisions of the hybrid retirement program described in this section.\n\n 2. The governing body of any political subdivision of the Commonwealth\n electing to allow its employees to use its 403(b) plan or a local cash match\n plan as described in subdivision 1 shall adopt a resolution on or before\n November 1, 2015, and submit such resolution to the Board to notify the Board\n of its election, which shall be effective January 1, 2016, and shall remain\n effective for 12 months. Thereafter, the governing body of any political\n subdivision of the Commonwealth may make or change its election for its\n employees no more often than annually by adopting a resolution on or before\n November 1 of each year notifying the Board of a new or changed election,\n which shall become effective on January 1.\n\n 3. A person who participates in the hybrid retirement program maintained under\n this section may make an election to participate in the 403(b) plan\n established by his employer under subdivision G 1. Such election shall be\n exercised no later than November 30, 2015, and shall be effective January 1,\n 2016. If an election is not made by November 30, 2015, such employee shall be\n deemed to have elected not to participate in the 403(b) plan established by\n his employer under subdivision G 1. Thereafter, such employee may make or\n change his election on or before November 30 of each year by notifying his\n employer of a new or changed election, which shall become effective the\n following January 1. If an election is not made or changed by November 30,\n such employee shall be deemed to have elected not to change the prior\n year’s election.\n\n 4. In the case of a 403(b) plan or local cash match plan administered by a\n political subdivision of the Commonwealth that provides individual accounts\n permitting an employee or beneficiary to exercise discretion over assets in\n his account, the political subdivision shall not be liable for any loss\n resulting from such employee’s or beneficiary’s (i) investment of\n voluntary contributions in the political subdivision’s 403(b) plan or\n matching contributions in the political subdivision’s 403(b) plan or\n local cash match plan, (ii) exercise of discretion over the assets in any of\n his accounts, or (iii) inaction with respect to the assets in any of his\n accounts that results in such assets being placed in a default investment\n option selected by the political subdivision, provided that the investment\n options for the affected individual account and the particular default\n investment option for such individual account are selected in accordance with\n subsection A of § 51.1-803, applied mutatis mutandis. Under no\n circumstances shall the Commonwealth, the Board, employees of the Retirement\n System, the Investment Advisory Committee of the Retirement System, or any\n other advisory committee established by the Board bear any liability with\n respect to any plan or individual account described in this subsection.\n\n 5. The provisions of this subsection shall not apply to any political\n subdivision of the Commonwealth that has entered into an agreement with the\n Retirement System pursuant to § 51.1-603.1 or 51.1-611 except with regard\n to a 403(b) plan.\n\n 6. Disclosure of all services, fees, restrictions, and surrender penalties\n associated with employee voluntary contributions under subsection G shall be\n provided by the political subdivision of the Commonwealth on an annual basis\n to an employee who makes the election provided in subdivision G 1. Such\n employee shall also be provided with a side-by-side comparison of the\n long-term effects of generic expense ratios on his investments.\n\n 7. The Board shall not be responsible for administration of or recordkeeping\n related to voluntary contributions to the defined contribution component of\n the program made to a 403(b) plan or the corresponding employer matching\n contributions made to a 403(b) plan or the appropriate local cash match plan\n established under § 51.1-610 that are authorized by subdivision G 1.\n\n 8. The Board shall develop policies and procedures for administering the\n provisions of this subsection.\n\nHISTORY: 2012, cc. 701, 823; 2013, cc. 456, 666; 2014, c. 356; 2015, cc. 502,\n503, 538, 539, 660; 2016, cc. 263, 280; 2025, c. 508.","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}}