                                 CODE OF VIRGINIA

GOVERNING BOARDS; ADDITIONAL POWERS; VOLUNTARY EARLY RETIREMENT (§ 23.1-1302)

A. The governing board of each public institution of higher education may
establish a compensation plan designed to provide incentives for voluntary early
retirement of teaching and research staff employed in nonclassified, faculty
positions. Participation in such compensation plan is voluntary for eligible
employees and no employee shall be penalized in any way for not participating.

B. In order to qualify for participation in such compensation plan, an eligible
faculty employee shall (i) be at least 60 years old; (ii) have completed at
least 10 years of full-time service at the institution offering the plan; (iii)
have been awarded tenure or have a contractual right to continued employment;
(iv) agree to withdraw from active membership in the Virginia Retirement System;
and (v) comply with any additional criteria established by the governing board
of the institution.

C. Any compensation plan established pursuant to this section shall include the
institutional needs and objectives to be served, the kind of incentives to be
offered, the sources of available funding for implementation, and any additional
qualifications required of eligible faculty employees established by the
governing board. Any such compensation plan shall explicitly reserve to the
governing board the authority to modify, amend, or repeal the plan. However, no
such amendment, modification, or repeal is effective as to any individual who
retires under the plan prior to the effective date of the amendment,
modification, or repeal.

D. The cash payments offered under any such compensation plan shall not exceed
150 percent of the employee&#8217;s base annual salary reflected in the
Personnel Management Information System at the time of election to participate.
Any such payment shall be allocated over at least two years. Such compensation
may include payment of insurance benefits by the institution until the
participant reaches the age of 65. The total cost in any fiscal year for any
compensation plan established under this section shall not exceed one percent of
the institution&#8217;s corresponding fiscal year state general fund
appropriation for faculty salaries and associated benefits.

E. The Governor may establish, with the assistance of the Council, uniform
criteria for such compensation plans. Prior to the adoption, modification,
amendment, or repeal of any such compensation plan, the governing board shall
obtain the Governor&#8217;s approval. The Governor shall provide a copy of each
approved plan to the Chairmen of the House Committee on Appropriations and the
Senate Committee on Finance and Appropriations. All compensation plans shall be
reviewed for legal sufficiency by the Office of the Attorney General prior to
adoption, modification, amendment, or repeal.

F. The Administrative Process Act (&#xA7; 2.2-4000 et seq.) does not apply to
the establishment of such compensation plans or any implementing regulations or
criteria.

HISTORY: 1988, c. 246, § 23-9.2:3.1; 2005, c. 633; 2016, c. 588.