                                 CODE OF VIRGINIA

PARTIAL LUMP-SUM OPTION FOR PAYMENT OF RETIREMENT ALLOWANCE (§ 51.1-165.01)

A. For purposes of this section:
			&#8220;Normal retirement&#8221; means normal retirement as described in
&#xA7;&#xA7; 51.1-153, 51.1-205, 51.1-216 or &#xA7; 51.1-305, in accordance with
the retirement plan covering the member.

B. The following members are eligible to receive a portion of their retirement
allowance paid in a lump-sum distribution upon retirement as provided in this
section:

   1. Any retiring member who (i) has satisfied the requirements for normal
   retirement after January 1, 2004, or has been credited with at least three
   years of creditable service for service performed after the date he was first
   eligible for an unreduced service retirement allowance and (ii) was in service
   for at least three full years after January 1, 2001, is eligible to elect one
   of the partial lump-sum options described in either subdivision C 1, C 2, or C
   3.

   2. Any retiring member who (i) has been credited with at least two years of
   creditable service for service performed after the date he was first eligible
   for an unreduced service retirement allowance and (ii) was in service for at
   least two full years after January 1, 2001, is eligible to elect one of the
   partial lump-sum options described in either subdivision C 1 or C 2.

   3. Any retiring member who (i) has been credited with at least one year of
   creditable service for service performed after the date he was first eligible
   for an unreduced service retirement allowance and (ii) was in service for at
   least one full year after January 1, 2001, is eligible to elect the partial
   lump-sum option described in subdivision C 1.
   				For purposes of this subsection, service of an employee of a locality
   participating in the Retirement System shall mean service for which retirement
   credit is granted under this chapter.

C. An eligible retiring member may make a one-time election to receive a portion
of his retirement allowance paid in a lump-sum distribution upon his retirement.
The monthly amount of the service retirement allowance otherwise payable to such
member making the election shall be reduced on an actuarially equivalent basis
to reflect the payment of such lump-sum distribution. Any optional payment of
the retirement allowance, pursuant to § 51.1-165, shall also be based upon such
reduced retirement allowance. The computation and payment of any service
retirement allowance that is reduced on an actuarially equivalent basis to
reflect the payment of a lump-sum distribution shall also reflect the provisions
of subsection B of § 51.1-168 applicable to the total retirement benefit
including the lump-sum distribution. An eligible retiring member may elect one
of the following partial lump-sum options pursuant to the limitations provided
in subsection B:

   1. A lump-sum distribution shall be paid to such member upon his retirement
   equal to twelve times the monthly amount of his service retirement allowance
   as determined in subsection A of &#xA7; 51.1-155, subsection A of &#xA7;
   51.1-206, subsection A of &#xA7; 51.1-217, or subsection A of &#xA7; 51.1-306,
   in accordance with the retirement plan covering such member but without regard
   to the limitation set forth in subsection B of &#xA7; 51.1-168.

   2. A lump-sum distribution shall be paid to such member upon his retirement
   equal to twenty-four times the monthly amount of his service retirement
   allowance as determined in subsection A of &#xA7; 51.1-155, subsection A of
   &#xA7; 51.1-206, subsection A of &#xA7; 51.1-217, or subsection A of &#xA7;
   51.1-306, in accordance with the retirement plan covering such member but
   without regard to the limitation set forth in subsection B of &#xA7; 51.1-168.

   3. A lump-sum distribution shall be paid to such member upon his retirement
   equal to thirty-six times the monthly amount of his service retirement
   allowance as determined in subsection A of &#xA7; 51.1-155, subsection A of
   &#xA7; 51.1-206, subsection A of &#xA7; 51.1-217, or subsection A of &#xA7;
   51.1-306, in accordance with the retirement plan covering such member but
   without regard to the limitation set forth in subsection B of &#xA7; 51.1-168.

D. The lump-sum distribution, if elected by the eligible retiring member, shall
be paid at the same time that the first monthly annuity payment is paid to such
member.

E. Before an eligible retiring member may make an election to receive a lump-sum
distribution, such member shall have been provided from the Retirement System
the amount by which his monthly retirement allowance shall be reduced under each
of the partial lump-sum options provided in subsection C, as available to such
member. No eligible retiring member shall be allowed to make an election for a
lump-sum distribution pursuant to this section more than once in his lifetime.

F. The election of any one of the options stated in this section shall be void
if the member dies prior to the Board receiving written notification of the
member&#8217;s effective date of retirement. If the death of the member occurs
prior to the effective date of retirement but after the Board has received
written notification of the member&#8217;s effective date of retirement,
benefits shall be paid in accordance with the provisions of &#xA7; 51.1-163 and
the requirement that the member be in service shall not apply.

HISTORY: 2001, cc. 679, 699; 2002, c. 404.