                                 CODE OF VIRGINIA

DEFINED CONTRIBUTION PLAN FOR ELIGIBLE MEMBERS (§ 51.1-126.5)

A. As used in this section, unless the context requires otherwise:
			&#8220;Eligible member&#8221; means a member who holds an eligible position.
			&#8220;Eligible position&#8221; means a position designated in subdivision 3,
4, or 20 of &#xA7; 2.2-2905 or an officer or employee appointed by the Attorney
General or Lieutenant Governor to a position designated as a deputy, counsel or
director position.
			&#8220;Participating member&#8221; means an eligible member who elects to
participate in the plan.
			&#8220;Plan&#8221; means the defined contribution plan established pursuant
to this section.

B. The Board shall establish a plan covering any eligible member who elects to
participate in the plan. The plan shall be in lieu of the service retirement
allowance provided by the retirement system under &#xA7; 51.1-155. Participating
members shall be deemed to be members of the retirement system to the extent
consistent with the provisions of this section.

C. Any person who becomes an eligible member after July 1, 1998, shall elect
upon accepting an eligible position to participate in either (i) the retirement
system or (ii) the plan. Such election shall be made in accordance with
guidelines established by the Virginia Retirement System.

D. Upon ceasing to be employed in an eligible position but continuing to be an
employee of the Commonwealth, a participating member may elect to:

   1. Maintain the accrued contributions and earnings in his defined contribution
   account; or

   2. Use the accrued contributions and earnings in his defined contribution
   account to purchase service credit in the retirement system as provided in
   subsection F.

E. After termination of employment, a participating member may withdraw the
accrued contributions and earnings from his defined contribution account,
subject to applicable state and federal law and regulation.

F. Upon an election under subsection D by a participating member who has ceased
to be employed in an eligible position, the accrued contributions and earnings
in such electing person&#8217;s defined contribution account shall be used to
purchase service credit in the retirement system at a rate to be established by
the Board. Such rate shall cover the actuarial cost of providing the creditable
service. If the account is less than the actuarial cost of the total time worked
in the eligible position, the employee may use his own funds to purchase the
remaining time. In no event shall the amount of service credit purchased in the
retirement system exceed the time that was served in an eligible position while
participating in the plan. Any amount of accrued contributions and earnings in
such electing person&#8217;s defined contribution account in excess of the
amount required to purchase service credit in the retirement system for the time
served in an eligible position while participating in the plan shall be
forfeited to the Virginia Retirement System.

G. The contribution by the Commonwealth to a participating member&#8217;s
defined contribution account shall be determined by the Board of Trustees of the
Virginia Retirement System in consultation with its actuary. Contributions to
the defined contribution account and all earnings thereon shall be credited to
an account to be maintained for each participating member. Contributions by the
Commonwealth to a participating member&#8217;s defined contribution account
shall be in lieu of contributions to the retirement system required pursuant to
&#xA7; 51.1-145.

H. If a member of the optional retirement plan maintained under this section is
at any time in service as an employee in a position covered for retirement
purposes under the provisions of this chapter, Chapter 2 (&#xA7; 51.1-200 et
seq.), Chapter 2.1 (&#xA7; 51.1-211 et seq.), or Chapter 3 (&#xA7; 51.1-300 et
seq.) of this title, his benefit payments under the optional retirement plan
maintained under this section shall be suspended while so employed; provided,
however, reemployment in such position shall have no effect on the payment under
the optional retirement plan maintained under this section if the benefits are
being paid in an annuity form under a lifetime annuity contract purchased with
the member&#8217;s account balance.

I. Effective January 1, 2014, any reference to &#8220;retirement system&#8221;
in this section shall mean the hybrid retirement program described in &#xA7;
51.1-169. The Virginia Retirement System shall (i) develop policies and
procedures for the administration of the plan and (ii) provide a program of
education and support for participating members.

HISTORY: 1998, c. 661; 1999, c. 111; 2001, c. 691; 2002, c. 668; 2004, c. 206;
2006, c. 639; 2012, cc. 701, 823.