                                 CODE OF VIRGINIA

DISTRIBUTION OF ASSETS UPON REPEAL OF SYSTEM (§ 51.1-124.7)

A. If the General Assembly repeals the provisions of this chapter or terminates
its application to any person, the Board shall continue to administer the
Retirement System in accordance with the provisions of this chapter for the sole
benefit of the then members, any beneficiaries then receiving retirement
allowances, and any future persons entitled to receive benefits under a joint
and last-survivor option who are designated by a member.

B. Upon repeal or termination of the Retirement System, the assets of the
Retirement System shall be allocated by the Board in an equitable manner to
provide benefits for the persons stated in subsection A of this section in
accordance with the provisions of this chapter but based on creditable service
and average final compensation as of the date of repeal or termination and in
the following order:

   1. For the benefit of the then members to the extent of their individual
   account in the members&#8217; contribution account.

   2. If any funds remain, then for the benefit of the then beneficiaries and
   persons already designated by former members who are then beneficiaries under
   a joint and last-survivor option, to the extent of the then actuarial value of
   their retirement allowances.

   3. If any funds remain, then for the benefit of members, and persons, if any,
   designated by them under a joint and last-survivor option, to the extent, not
   provided under subdivision 1 of this subsection, of the then actuarial value
   of their accrued future retirement allowances. The allocation under this
   subdivision shall be the basis of the oldest-ages-first method.
   				The employer is required to contribute the amount necessary to make up any
   insufficiency of assets needed to provide all benefits payable under
   subdivisions 1 and 2 of this subsection.

C. The allocation of assets of the Retirement System shall be carried out by the
Board as the benefits become due or by the transfer of such assets to any
retirement system replacing this Retirement System. The vesting of benefits
shall be fully maintained under the new retirement system. Any funds remaining
in the assets of this retirement system after all of the vested benefits have
been paid shall revert to the general fund.

D. Any allocation of assets shall be final and binding on all persons entitled
to benefits.

E. Upon the termination or partial termination of the Retirement System, each
affected member shall become fully vested, as of the termination date or partial
termination date, in his service retirement allowance to the extent funded,
regardless of the length of service or amount of creditable service.

HISTORY: 1952, c. 157, § 51-111.16; 1960, c. 604; 1977, c. 620; 1978, c. 841;
1980, cc. 637, 638, 646; 1982, cc. 467, 478; 1990, c. 832, § 51.1-105; 1994,
cc. 4, 85; 2014, c. 356.