                                 CODE OF VIRGINIA

PRIOR SERVICE OR MEMBERSHIP CREDIT FOR CERTAIN MEMBERS; SERVICE CREDIT FOR
ACCUMULATED SICK LEAVE (§ 51.1-142.2)

Certain members may purchase credit for service as provided in this section.

A. 1. Any member in service may purchase service credit from the following
categories of service or leave: (i) leave of absence for educational purposes
that was previously approved by the member&#8217;s employer; (ii) leave of
absence for a serious health condition of the member or of an immediate family
member, all as defined in the Family and Medical Leave Act of 1993, 29 U.S.C. §
2601 et seq., as amended, and previously certified by the member&#8217;s
employer; (iii) up to one year of service credit per occurrence of leave for any
unpaid leave of absence due to the birth, adoption, or death of a qualifying
child, as defined in § 51.1-500; (iv) service as a full-time employee of
another state, a public school system of another state, or a political
subdivision of the Commonwealth or another state, as certified by such state,
public school system, or political subdivision; (v) full-time service of a
political subdivision of this state not credited to the member under an
agreement as provided for in § 51.1-143.1, as certified by such political
subdivision; (vi) full-time civilian service of the United States; (vii)
full-time service at a private institution of higher education if the private
institution is merged with a public institution of higher education and
graduates of the private institution are then issued new degrees from the public
institution; or (viii) any period of time when the member was employed part time
or in a wage position by a participating employer and not otherwise eligible to
participate in the retirement system because the member was not an employee as
defined in § 51.1-124.3. However, no member in service shall be allowed to
purchase more than a total of four years of service credit pursuant to this
subdivision.

   2. In addition to the service credit that may be purchased under subdivision
   1, any member in service may purchase up to four years of service credit for
   prior active duty military service in the armed forces of the United States,
   provided that the discharge from a period of active duty status with the armed
   forces was not dishonorable.

   3. The service credit to be credited to a member under this subsection shall
   be calculated at the ratio of one year, or portion thereof, of service credit
   to one year, or portion thereof, of service purchased, except for employment
   service purchased under clause (viii) of subdivision 1, which shall be
   calculated at the ratio of one month of service credit for each 173 hours of
   service as certified by the employer.
   				For each year or portion thereof to be credited at the time of purchase
   under this subsection, the member shall pay the approximate normal cost of the
   retirement plan under which the member is covered at the time of such
   purchase, as determined by the Board in its sole discretion. If the member
   does not purchase, or enter into a purchase of service credit contract for,
   the service made available in this subsection within the first 24 months of
   the member&#8217;s active service following his first date of hire or the
   final day of any applicable leave of absence, as applicable, then, for each
   year or portion thereof to be credited at the time of purchase, the member
   shall pay the actuarial equivalent cost. To the extent the member becomes
   inactive during the 24 months following his first date of hire or the final
   day of any applicable leave of absence, such periods shall not be included in
   the 24 months of active service.
   				Except as otherwise required by Chapter 1223 of Title 10 of the United
   States Code, as amended, no service credit may be purchased under this section
   if it is included in the calculation of any retirement allowance received or
   to be received by the member from this or another retirement system, or if
   there is a balance in a defined contribution account that serves as a primary
   retirement account related to such service.
   				For purposes of this subsection, &#8220;active duty military
   service&#8221; means full-time service of at least 180 consecutive days in the
   United States Army, Navy, Air Force, Marines, Coast Guard, or any other
   distinct branch of the armed services as established by the federal
   government, or reserve components thereof.

B. Any member in service may purchase all prior service credit for creditable
service lost from ceasing to be a member under this chapter, as provided in
&#xA7; 51.1-128, because of the withdrawal of his accumulated contributions. For
each year or portion thereof to be credited at the time of purchase under this
subsection, the member shall pay the withdrawn amount to be purchased plus
interest accrued daily and compounded annually from the date of withdrawal to
the date of payment at the assumed rate of return established by the Board for
the actuarial valuation of the retirement system that is in effect at the time
of the purchase. The Board shall develop guidelines and procedures for
administering this subsection.

C. Any member in service may purchase service credit for accumulated sick leave
on his effective date of retirement based upon such sums as the employer may
provide as payment for any unused sick leave balances. The cost of service
credit purchased under this subsection shall be the actuarial equivalent cost of
such service.

D. Any member receiving benefits under the Virginia Workers&#8217; Compensation
Act (&#xA7; 65.2-100 et seq.) may, in a manner prescribed by the Board and prior
to the effective date of retirement, purchase service that is not reported to
the retirement system by the member&#8217;s employer while the member is
receiving such benefits.
			For each year or portion thereof to be credited at the time of purchase under
this subsection, the member shall pay the approximate normal cost of the
retirement plan under which the member is covered, as determined by the Board in
its sole discretion. If the member does not purchase, or enter into a purchase
of service credit contract for, any service made available in this subsection
within the first 24 months of the member&#8217;s active service following his
first date of hire or the final day of any applicable leave of absence, then,
for each year or portion thereof to be credited at the time of purchase, the
member shall pay the actuarial equivalent cost. To the extent the member becomes
inactive during the 24 months following his first date of hire or the final day
of any applicable leave of absence, such periods shall not be included in the 24
months of active service.

E. Payment may be made in a lump sum at the time of purchase or by payroll
deduction. Any number of additional deductions may be permitted at any time.
Should any deduction be terminated before the member purchases the entire period
contracted for, the member shall be credited with the number of full or partial
months of service for which full payment has been made. If any deduction is
continued after the entire period has been purchased, the member shall be
credited with no more than the amount of service for which he was eligible and
for which he paid, and the excess amount deducted shall be refunded to the
member.

F. Any employer may elect to pay an equivalent amount in lieu of all member
contributions required of its employees for the purchase of service credit
pursuant to this section. These contributions shall not be considered wages for
purposes of Chapter 7 (&#xA7; 51.1-700 et seq.), nor shall they be considered
salary for purposes of this chapter.

G. In any case where member and employer contributions, as required under this
chapter, were not made because of an error in the payroll, personnel, or other
classification system of an employer participating in the retirement system,
service that has not been credited because of such error may be purchased on the
following basis:

   1. The most recent three years of service credit shall be purchased, using
   applicable member and employer contribution rates and creditable compensation
   in effect for such period, in a manner and at the cost prescribed by the
   Board; and

   2. All other years of service credit shall be purchased by the employer at an
   actuarial equivalent cost.

H. Any member may receive credit at no cost for service rendered in the armed
forces of the United States provided (i) the member was on leave of absence from
a covered position, (ii) the discharge from a period of active duty with the
armed forces was not dishonorable, (iii) the member has not withdrawn his
accumulated contributions, (iv) the member is not disabled or killed while on
leave without pay while performing active duty military service in the armed
forces of the United States, and (v) the member reenters service in a covered
position within one year after discharge from the armed forces. In order to
receive such service, the member must complete such forms and other requirements
as are required by the Board and the retirement system.

HISTORY: 2001, cc. 686, 697; 2003, c. 7; 2005, c. 292; 2006, c. 635; 2007, c.
89; 2008, c. 27; 2009, c. 362; 2010, cc. 737, 738; 2011, cc. 722, 880; 2012, cc.
696, 701, 823; 2014, c. 356; 2015, cc. 508, 536; 2016, cc. 263, 280; 2018, cc.
53, 305; 2024, cc. 267, 353.