                                 CODE OF VIRGINIA

COUNTIES, CITIES, TOWNS, SCHOOL DIVISIONS, AND CERTAIN POLITICAL SUBDIVISIONS
MAY ESTABLISH LOCAL TRUSTS OR EQUIVALENT ARRANGEMENTS TO FUND POSTEMPLOYMENT
BENEFITS OTHER THAN PENSIONS (§ 15.2-1544)

The governing body of any county, city, or town may establish a trust, trusts,
or equivalent arrangements for the purpose of accumulating and investing assets
to fund postemployment benefits other than pensions, as defined herein. Deposits
to any such trust, trusts, or equivalent arrangements and any earnings on those
deposits shall be irrevocable; shall be dedicated to providing benefits to
retirees and their beneficiaries in accordance with the terms of the plans or
programs providing postemployment benefits other than pensions; and shall be
exempt from taxation and execution, attachment, garnishment, or any other
process. For the purposes of this article, an equivalent arrangement shall mean
any fund or similar arrangement established by the governing body pursuant to
this article under which funds are irrevocably allocated, segregated, or
otherwise dedicated to providing postemployment benefits other than pension
benefits to retirees and their beneficiaries. The governing body of any such
county, city, or town also may make appropriations to any such trust, trusts, or
equivalent arrangements, and any such governing body may require active and
former employees covered by a postemployment benefit plan or program to
contribute to such a trust or equivalent arrangement through payments or
deductions from their wages, salaries, or pensions. Officers and employees who
are subject to inclusion in the retirement plans described in § 51.1-800 also
may be included in any such trust, trusts, or equivalent arrangements by the
governing body.
		The governing body also may authorize the governing body of any other
political subdivision that is appointed in whole or in part by the governing
body of such county, city, or town, to establish and fund a trust, trusts, or
equivalent arrangements for its active and former employees. Any appointed or
elected school board may establish and fund such a trust, trusts, or equivalent
arrangements for its active and former employees. The governing body of any
county, city, or town also may enter into agreements with the appointed or
elected school board that provides public schools within its boundaries or with
any other political subdivision, which is appointed in whole or in part by the
governing body of any such county, city, or town, to permit any such school
board or such other political subdivision to participate in any trust, trusts,
or equivalent arrangements established by the governing body of any such county,
city, or town.
		The governing body of any such county, city, or town, the school board of the
local school divisions, and the governing body of any other political
subdivision that establishes or participates in any such trust, trusts, or
equivalent arrangements, shall have the right to revise or discontinue its plans
or programs providing such postemployment benefits other than pensions for its
active and former officers and employees as it may deem necessary or transfer
any assets held in any trust or equivalent arrangement established pursuant to
this article to any other trust, trusts, or equivalent arrangement established
pursuant to this article; provided, however, any amendment, suspension, or
revocation of any plans or programs providing such postemployment benefits other
than pensions or transfer of assets held in a trust or equivalent arrangement
shall not have the effect of diverting the assets of any trust, trusts, or
equivalent arrangements to purposes other than the exclusive benefit of the
active or former employees or their dependents or beneficiaries entitled to such
postemployment benefit. If all plans or programs providing such postemployment
benefits other than pensions for which a trust or equivalent arrangement is
established are repealed or terminated by the governing body that created such
trust, trusts or equivalent arrangements, then there shall be no continuing
responsibility for that governing body to continue to make appropriations to
such trust, trusts or equivalent arrangements, and the assets of any such trust,
trusts or equivalent arrangements shall be used to provide any benefits
continuing to be due to active or former employees (and their dependents or
beneficiaries) under such plans or programs. If there are no active or former
employees (or dependents or beneficiaries) due a benefit under any plan or
program providing such postemployment benefits other than pensions for which the
trust or equivalent arrangement was established, then any remaining assets may
revert to the locality.

HISTORY: 2007, c. 710.