                                 CODE OF VIRGINIA

PARTICIPATION IN THE PROGRAM (§ 51.1-1103)

A. All prior elections to participate in the program shall be irrevocable.

B. 1. Except for eligible employees who are employed by an institution of higher
education in a faculty position performing teaching, research or administrative
duties, all eligible employees commencing employment or who are reemployed on or
after January 1, 1999, shall participate in the program. The effective date of
participation in the program for such employees shall be their first day of
employment.

   2. Except for such employees of an institution of higher education, all
   eligible employees not participating in the program prior to October 1, 2002,
   shall participate in the program effective January 10, 2003, unless such
   employee elects not to participate in the program as provided herein. An
   election not to participate shall be in writing, and on forms prescribed by
   the Retirement System, and shall be received by the Retirement System during
   the period commencing on October 1, 2002, but before January 1, 2003. An
   election not to participate in the program shall be irrevocable and such
   employee shall be ineligible to participate in the program for the period of
   his continued employment by the Commonwealth except that any such employee who
   elects to participate in the hybrid retirement program described in &#xA7;
   51.1-169 shall participate in the program.

C. Any eligible employee who is employed by an institution of higher education
in a faculty position performing teaching, research or administrative duties may
elect to participate in the program established under this chapter or under an
existing program provided by the institution. Any eligible employee who is (i)
employed by an institution of higher education in a faculty position performing
teaching, research or administrative duties prior to October 1, 2002, and (ii)
not participating in the program, shall participate in the program established
under this chapter effective January 10, 2003, unless such employee elects not
to participate in the manner provided in subdivision B 2. Any eligible employee
of an institution of higher education in a faculty position performing teaching,
research or administrative duties employed or reemployed on or after October 1,
2002, shall participate in the program unless such employee elects not to
participate in the program, in writing and on such forms as prescribed by the
Retirement System, within 60 days from the time of entry upon the performance of
his duties. The effective date of participation in the program for such employee
shall be the first day following the expiration of such 60-day period or January
10, 2003, whichever is later.
			Any eligible employee under this subsection shall participate in the sickness
and disability program established by his institution of higher education until
such time as the employee participates in the program established under this
chapter. If the institution of higher education has not established its own
sickness and disability program, such eligible employee shall participate in the
program established under this chapter effective on his first day of employment.
			An election not to participate in the program established under this chapter
shall be irrevocable and such employee shall be ineligible to participate in the
program for the period of his continued employment by the Commonwealth.

D. Notwithstanding any provision to the contrary, no participating employee
commencing employment or reemployment on or after July 1, 2009, shall receive
benefits under Article 3 of this Chapter (Nonwork Related Disability Benefits)
until the participating employee completes one continuous year of active
employment or reemployment.

E. The provisions of this subsection shall apply to any eligible employee who
participates in the program under the provisions of subdivision B 2 or
subsection C. Any eligible employee, including a person employed by an
institution of higher education in a faculty position performing teaching,
research or administrative duties, who (i) is a member of the Retirement System,
and (ii) commenced employment or was reemployed prior to January 1, 1999, shall
have his sick leave balances, as of the effective date of coverage in the
program, converted to disability credits, as provided in subsection F.

F. Any eligible employee converting his sick leave balance as provided in
subsection E shall receive one hour of disability credit for each hour of sick
leave. Disability credits shall be used to continue periods for which the
participating employee receives income replacement during periods of short-term
and long-term disability at 100 percent of creditable compensation. Disability
credits shall be reduced by one day for each day that the participating employee
receives short-term or long-term disability benefits.

G. Upon retiring directly from state service and receiving an immediate annuity,
the eligible employee&#8217;s unused disability credits shall be converted to
service credit under the Retirement System at the rate of one month of service
for each 173 hours of disability credits, rounded to the next highest month,
unless the employee elects to be paid for the balance of such disability credits
under the same terms and subject to the same conditions as are in effect for the
payment of sick leave benefits in the employee&#8217;s agency on December 31,
1998. Upon leaving state service under any other circumstances, the employee
shall be paid for the balance of such disability credits under the same terms
and subject to the same conditions as are in effect for the payment of sick
leave benefits in the employee&#8217;s agency on December 31, 1998, unless he
elects to have such credits converted to service credit under the Retirement
System at the rate of one month of service for each 173 hours of disability
credits, rounded to the next highest month. Upon entry into long-term
disability, the employee may be paid for the balance of such disability credits
under the same terms and subject to the same conditions in effect for payment of
sick leave benefits in the employee&#8217;s agency as of December 31, 1998.

H. Eligibility for participation in the program shall terminate upon the
earliest to occur of an employee&#8217;s (i) termination of employment, (ii)
death, or (iii) retirement from service. Eligibility for participation in the
program shall be suspended during periods that an employee is placed on nonpay
status, including leave without pay, if such nonpay status is due to suspension
pending investigation or outcome of employment-related court or disciplinary
action.

HISTORY: 1998, c. 774; 1999, c. 144; 2000, c. 889; 2002, cc. 663, 697; 2004, c.
186; 2010, c. 750; 2013, c. 463.