{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/51.1-803.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/51.1-803.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/51.1-803.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/51.1-803.html"}],"law_id":56610,"edition_id":1,"section_id":56610,"structure_id":14662,"section_number":"51.1-803","catch_line":"Investments of retirement systems","history":"1986, c. 196, \u00a7 51-112.1; 1990, c. 832; 1992, c. 810; 1995, c. 307; 1996, c. 508; 1997, c. 213; 2005, c. 196.","full_text":"A\n\nIf the governing body of any county, city, or town establishes a retirement system pursuant to the provisions of this article, any funds that may be allocated, segregated, or otherwise designated for the retirement system, which are on hand at any time and are not necessary for immediate payment of pensions or benefits, shall be invested with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with the same aims. Such investments shall be diversified so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so.B\n\nThe selection of services related to the management, purchase, or sale of investments authorized by this section, including but not limited to actuarial services, shall be governed by the standard of care set forth in this section and shall not be subject to the provisions of the Virginia Public Procurement Act (§ 2.2-4300 et seq.) of Title 2.2.C\n\nIn the case of an automatic rollover of a mandatory cash-out, as that term is defined under I.R.C. Section 401 (a) (31) (B) of the United States Internal Revenue Code of 1986 (including as such section is amended or renumbered or any successor provision thereto) and regulations thereunder applicable to governmental plans, the governing body shall not be liable for any loss resulting from the governing body’s selection of an individual retirement plan provider and investment product where the selection is made in accordance with guidelines to be adopted by the governing body that are similar to the safe harbor guidelines adopted by the United States Department of Labor for this purpose.","order_by":null,"text":{"0":{"id":207163,"text":"If the governing body of any county, city, or town establishes a retirement system pursuant to the provisions of this article, any funds that may be allocated, segregated, or otherwise designated for the retirement system, which are on hand at any time and are not necessary for immediate payment of pensions or benefits, shall be invested with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with the same aims. Such investments shall be diversified so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":207164,"text":"The selection of services related to the management, purchase, or sale of investments authorized by this section, including but not limited to actuarial services, shall be governed by the standard of care set forth in this section and shall not be subject to the provisions of the Virginia Public Procurement Act (§ 2.2-4300 et seq.) of Title 2.2.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":207165,"text":"In the case of an automatic rollover of a mandatory cash-out, as that term is defined under I.R.C. Section 401 (a) (31) (B) of the United States Internal Revenue Code of 1986 (including as such section is amended or renumbered or any successor provision thereto) and regulations thereunder applicable to governmental plans, the governing body shall not be liable for any loss resulting from the governing body’s selection of an individual retirement plan provider and investment product where the selection is made in accordance with guidelines to be adopted by the governing body that are similar to the safe harbor guidelines adopted by the United States Department of Labor for this purpose.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":14662,"edition_id":1,"name":"General Provisions","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13777,"metadata":{},"date_created":"2026-06-26 03:49:12","date_modified":"2026-06-26 03:49:12","permalink":{"id":236281,"object_type":"structure","relational_id":14662,"identifier":"1","token":"51.1\/8\/1","url":"\/51.1\/8\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13777,"edition_id":1,"name":"Local Retirement Systems","identifier":"8","label":"chapter","depth":2,"order_by":1,"parent_id":12947,"metadata":{},"date_created":"2026-06-26 03:45:51","date_modified":"2026-06-26 03:45:51","permalink":{"id":236279,"object_type":"structure","relational_id":13777,"identifier":"8","token":"51.1\/8","url":"\/51.1\/8\/","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":82031,"structure_id":14662,"section_number":"51.1-800","catch_line":"Counties, cities, and certain towns to establish local systems or participate in Virginia Retirement System","url":"\/51.1-800\/","token":"51.1\/8\/1\/51.1-800","metadata":false},{"id":56250,"structure_id":14662,"section_number":"51.1-801","catch_line":"Counties, cities, and towns generally","url":"\/51.1-801\/","token":"51.1\/8\/1\/51.1-801","metadata":false},{"id":77134,"structure_id":14662,"section_number":"51.1-801.1","catch_line":"Portability of service credit between certain political subdivisions of the Commonwealth and the Virginia Retirement System or certain other political subdivisions of the Commonwealth","url":"\/51.1-801.1\/","token":"51.1\/8\/1\/51.1-801.1","metadata":false},{"id":56314,"structure_id":14662,"section_number":"51.1-802","catch_line":"Assets of retirement systems; exemption from taxation; execution and assignment","url":"\/51.1-802\/","token":"51.1\/8\/1\/51.1-802","metadata":false},{"id":56610,"structure_id":14662,"section_number":"51.1-803","catch_line":"Investments of retirement systems","url":"\/51.1-803\/","token":"51.1\/8\/1\/51.1-803","metadata":false},{"id":68961,"structure_id":14662,"section_number":"51.1-804","catch_line":"In certain cities","url":"\/51.1-804\/","token":"51.1\/8\/1\/51.1-804","metadata":false},{"id":82534,"structure_id":14662,"section_number":"51.1-805","catch_line":"In certain counties","url":"\/51.1-805\/","token":"51.1\/8\/1\/51.1-805","metadata":false},{"id":77958,"structure_id":14662,"section_number":"51.1-806","catch_line":"Reimbursement by Commonwealth for portion of employer contribution on account of certain officers and employees","url":"\/51.1-806\/","token":"51.1\/8\/1\/51.1-806","metadata":false}],"previous_section":{"id":56314,"structure_id":14662,"section_number":"51.1-802","catch_line":"Assets of retirement systems; exemption from taxation; execution and assignment","url":"\/51.1-802\/","token":"51.1\/8\/1\/51.1-802","metadata":false},"next_section":{"id":68961,"structure_id":14662,"section_number":"51.1-804","catch_line":"In certain cities","url":"\/51.1-804\/","token":"51.1\/8\/1\/51.1-804","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/51.1-803\/","history_text":"

This law was first created in 1986. The record of its establishment is cataloged in chapter 196 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 1986 \u201cActs\u201d aren\u2019t available online. It has been modified 6 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 1990, chapter 832; in 1992, chapter 810; in 1995, chapter 307<\/a>; in 1996, chapter 508<\/a>; in 1997, chapter 213<\/a>; in 2005, chapter 196<\/a>.<\/p>","references":[{"id":82231,"section_number":"15.2-1549","catch_line":"Investment of assets of trusts or equivalent arrangement for postemployment benefits other than pensions","order_by":null,"url":"\/15.2-1549\/"},{"id":79544,"section_number":"2.2-3705.7","catch_line":"Exclusions to application of chapter; records of specific public bodies and certain other limited exclusions","order_by":null,"url":"\/2.2-3705.7\/"},{"id":72789,"section_number":"2.2-3711","catch_line":"(Effective July 1, 2026) Closed meetings authorized for certain limited purposes","order_by":null,"url":"\/2.2-3711\/"},{"id":83100,"section_number":"51.1-169","catch_line":"Hybrid retirement program","order_by":null,"url":"\/51.1-169\/"}],"refers_to":[{"id":70034,"section_number":"2.2-4300","catch_line":"Short title; purpose; declaration of intent","order_by":null,"url":"\/2.2-4300\/"}],"permalink":{"id":236299,"object_type":"law","relational_id":56610,"identifier":"51.1-803","token":"51.1\/8\/1\/51.1-803","url":"\/51.1-803\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/51.1-803\/","token":"51.1\/8\/1\/51.1-803","dublin_core":{"Title":"Investments of retirement systems","Type":"Text","Format":"text\/html","Identifier":"\u00a7 51.1-803","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> If the governing body of any county, city, or town establishes a retirement system pursuant to the provisions of this article, any funds that may be allocated, segregated, or otherwise designated for the retirement system, which are on hand at any time and are not necessary for immediate payment of pensions or benefits, shall be invested with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with the same aims. Such investments shall be diversified so as to minimize the risk of large losses unless under the circumstances it is clearly prudent not to do so. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The selection of services related to the management, purchase, or sale of investments authorized by this section, including but not limited to actuarial services, shall be governed by the standard of care set forth in this section and shall not be subject to the provisions of the Virginia Public Procurement Act (§ 2.2-4300<\/a> et seq.) of Title 2.2. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> In the case of an automatic rollover of a mandatory cash-out, as that term is defined under I.R.C. Section 401 (a) (31) (B) of the United States Internal Revenue Code of 1986 (including as such section is amended or renumbered or any successor provision thereto) and regulations thereunder applicable to governmental plans, the governing body shall not be liable for any loss resulting from the governing body’s selection of an individual retirement plan provider and investment product where the selection is made in accordance with guidelines to be adopted by the governing body that are similar to the safe harbor guidelines adopted by the United States Department of Labor for this purpose. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINVESTMENTS OF RETIREMENT SYSTEMS (\u00a7 51.1-803)\n\nA. If the governing body of any county, city, or town establishes a retirement\nsystem pursuant to the provisions of this article, any funds that may be\nallocated, segregated, or otherwise designated for the retirement system, which\nare on hand at any time and are not necessary for immediate payment of pensions\nor benefits, shall be invested with the care, skill, prudence and diligence\nunder the circumstances then prevailing that a prudent person acting in a like\ncapacity and familiar with such matters would use in the conduct of an\nenterprise of like character and with the same aims. Such investments shall be\ndiversified so as to minimize the risk of large losses unless under the\ncircumstances it is clearly prudent not to do so.\n\nB. The selection of services related to the management, purchase, or sale of\ninvestments authorized by this section, including but not limited to actuarial\nservices, shall be governed by the standard of care set forth in this section\nand shall not be subject to the provisions of the Virginia Public Procurement\nAct (§ 2.2-4300 et seq.) of Title 2.2.\n\nC. In the case of an automatic rollover of a mandatory cash-out, as that term is\ndefined under I.R.C. Section 401 (a) (31) (B) of the United States Internal\nRevenue Code of 1986 (including as such section is amended or renumbered or any\nsuccessor provision thereto) and regulations thereunder applicable to\ngovernmental plans, the governing body shall not be liable for any loss\nresulting from the governing body’s selection of an individual retirement\nplan provider and investment product where the selection is made in accordance\nwith guidelines to be adopted by the governing body that are similar to the safe\nharbor guidelines adopted by the United States Department of Labor for this\npurpose.\n\nHISTORY: 1986, c. 196, \u00a7 51-112.1; 1990, c. 832; 1992, c. 810; 1995, c. 307;\n1996, c. 508; 1997, c. 213; 2005, c. 196.","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}}