                                 CODE OF VIRGINIA

CERTAIN EMPLOYEES OF PUBLIC SCHOOL DIVISIONS (§ 51.1-126.6)

A. The Board shall establish a defined contribution plan covering any eligible
employee serving in a position designated in &#xA7; 22.1-60 who elects to
participate in the plan.

B. Any school board established pursuant to Article VIII, Section 7 of the
Constitution of Virginia and Chapter 5 (&#xA7; 22.1-28 et seq.) of Title 22.1 is
hereby authorized to make contributions to the optional retirement plan
established by the Virginia Retirement System pursuant to this section for the
benefit of its eligible employees who elect to participate in such a plan. Any
eligible employee of such school board hired on or after the effective date of
the plan shall make an irrevocable election to participate in either (i) the
retirement system established by this chapter or (ii) the optional retirement
plan established by the Virginia Retirement System pursuant to this section.
Such election shall be made in accordance with the guidelines established by the
Virginia Retirement System.

C. No employee of any school board who is an active member of the retirement
plan established under this section shall also be an active member in the
Virginia Retirement System or beneficiary thereof other than as a contingent
annuitant. Such eligible employee may, however, be covered under any insurance
plan established by the Board under this title for which he would have been
otherwise eligible.

D. The contribution by the school board to such employee&#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 eligible employee who elects to
participate. Contributions by the school board to an electing employee&#8217;s
defined contribution account shall be in lieu of contributions to the retirement
system required pursuant to &#xA7; 51.1-145. In addition, any person who becomes
a member on or after July 1, 2010, shall, pursuant to procedures established by
the Board, pay member contributions on a salary reduction basis in accordance
with &#xA7; 414(h) of the Internal Revenue Code, in an amount equal to five
percent of his creditable compensation, to the retirement plan established under
this section. Each employee making such member contribution shall be deemed to
consent and agree to any salary reduction for purposes of the member
contribution. Such member contributions shall be in addition to all
contributions by the school board to such employee&#8217;s defined contribution
account.

E. 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.

F. Effective January 1, 2014, any reference to &#8220;retirement system&#8221;
or &#8220;Virginia Retirement System&#8221; in this section, as the context
requires, shall mean the hybrid retirement program described in &#xA7; 51.1-169.
The Virginia Retirement System shall develop policies and procedures for the
administration of such plan in accordance with existing and future federal and
state policies, regulations, and statutes governing the administration of such
plans.

HISTORY: 1998, c. 822; 2000, c. 345; 2001, c. 691; 2002, c. 668; 2006, c. 639;
2012, cc. 701, 823; 2013, c. 463.