                                 CODE OF VIRGINIA

MEMBER CONTRIBUTIONS (§ 51.1-144)

A. Each member shall contribute five percent of his creditable compensation for
each pay period for which he receives compensation.
			The employer shall deduct the contribution payable by the member. Every
employee accepting employment shall be deemed to consent and agree to any
deductions from his compensation required by this chapter.

B. In determining the creditable compensation of a member in a payroll period,
the Board may consider the rate of compensation payable to the member on the
date of entry or removal of his name from the payroll as having been received
throughout the month if service for the month is creditable. If service for the
month is not creditable, the Board may consider any compensation payable during
the month as not being creditable compensation.

C. The minimum compensation provided by law for any member shall be reduced by
the deduction required by this section. Except for any benefits provided by this
chapter, payment of compensation minus the deductions shall be a full and
complete discharge of all claims for services rendered by the member during the
period covered by the payment.

D. No deduction shall be made from any member&#8217;s compensation if the
employer&#8217;s contribution is in default.

E. The Board may modify the method of collecting the contributions of members so
that the employer may retain the amounts deducted from members&#8217; salaries
and have a corresponding amount deducted from state funds otherwise payable to
the employer.

F. 1. Only as provided in subdivisions 3 and 4 may any employer elect to pay an
equivalent amount in lieu of any member contributions required of its employees.
Such payments shall be credited to the members&#8217; contribution account.
These contributions shall not be considered wages for purposes of Chapter 7 (§
51.1-700 et seq.), nor shall they be considered to be salary for purposes of
this chapter.

   2. A person who becomes a member on or after July 1, 2010, shall be required
   to pay member contributions on a salary reduction basis in accordance with
   &#xA7; 414(h) of the Internal Revenue Code in the amount of five percent of
   creditable compensation if the person is (i) a member covered by the defined
   benefit plan established under this chapter, (ii) a member of the State Police
   Officers&#8217; Retirement System under Chapter 2 (&#xA7; 51.1-200 et seq.),
   (iii) a member of the Virginia Law Officers&#8217; Retirement System under
   Chapter 2.1 (&#xA7; 51.1-211 et seq.), (iv) a member of the Judicial
   Retirement System under Chapter 3 (&#xA7; 51.1-300 et seq.), or (v) earning
   the benefits permitted by &#xA7; 51.1-138.

   3. A member who is an employee of a county, city, town, or other local
   employer other than a local public school board, regardless of whether the
   member is a person who becomes a member on or after July 1, 2010, shall be
   required to pay member contributions on a salary reduction basis in accordance
   with &#xA7; 414(h) of the Internal Revenue Code in the amount of five percent
   of creditable compensation as follows: (i) any member who commences or
   recommences employment on or after July 1, 2012, shall be required to
   contribute five percent of his creditable compensation upon commencing or
   recommencing employment and (ii) members in service on June 30, 2012, shall be
   required to contribute five percent of their creditable compensation no later
   than July 1, 2016. Such member described in subdivision (ii) shall contribute
   a minimum of an additional one percent of his creditable compensation
   beginning on each July 1 of 2012, 2013, 2014, 2015, and 2016, or until the
   member&#8217;s contribution equals five percent of creditable compensation,
   but the county, city, town, or other local employer other than a local public
   school board may elect to require members to contribute more than an
   additional one percent each year, in whole percentages. In no case shall a
   member be required to contribute more than five percent of his creditable
   compensation for each pay period for which he receives compensation. No
   county, city, town, or other local employer other than a local public school
   board shall be allowed to elect to pay any amount of member contributions
   except to pay the difference between five percent and the employee
   contribution during the phase-in period described in this subdivision for a
   member who was in service on June 30, 2012.

   4. A member who is an employee of a local public school board, regardless of
   whether the member is a person who becomes a member on or after July 1, 2010,
   shall be required to pay member contributions on a salary reduction basis in
   accordance with &#xA7; 414(h) of the Internal Revenue Code in the amount of
   five percent of creditable compensation as follows: (i) any member who
   commences or recommences employment on or after July 1, 2012, shall be
   required to contribute five percent of his creditable compensation upon
   commencing or recommencing employment and (ii) members in service on June 30,
   2012, shall be required to contribute five percent of their creditable
   compensation no later than July 1, 2016. Such member described in subdivision
   (ii) shall contribute a minimum of an additional one percent of his creditable
   compensation beginning on each July 1 of 2012, 2013, 2014, 2015, and 2016, or
   until the member&#8217;s contribution equals five percent of creditable
   compensation, but the local public school board employer may elect to require
   members to contribute more than an additional one percent each year, in whole
   percentages. In no case shall a member be required to contribute more than
   five percent of his creditable compensation for each pay period for which he
   receives compensation. No local public school board employer shall be allowed
   to elect to pay any amount of member contributions except to pay the
   difference between five percent and the employee contribution during the
   phase-in period described in this subdivision for a member who was in service
   on June 30, 2012.

G. The Board may develop procedures to effect the transfer of member
contributions paid by employers on or after July 1, 1980, and accrued interest
on those contributions, to the member contribution account of the member, if
such contributions have been previously deposited into the retirement allowance
account of the employer.

HISTORY: 1952, c. 157, §§ 51-111.13, 51-111.46; 1956, c. 560; 1960, c. 604;
1966, c. 174; 1972, c. 568; 1974, c. 353; 1976, c. 537; 1980, c. 722, §
51-111.46:1; 1982, c. 467; 1984, c. 430; 1990, c. 832; 1998, c. 660; 2001, cc.
693, 702; 2002, c. 307; 2010, cc. 737, 738; 2012, c. 822; 2013, c. 463.