                                 CODE OF VIRGINIA

DEFERRED COMPENSATION PLAN FOR EMPLOYEES OF THE COMMONWEALTH; ADMINISTERED BY
THE BOARD (§ 51.1-602)

A. The Board shall establish and administer a deferred compensation plan for
employees of the Commonwealth and its agencies. The Virginia Retirement System
Director shall be the chief administrative officer of the plan. The Board may
contract with private corporations or institutions subject to the standards set
forth in &#xA7; 51.1-124.30 to provide investment products as well as any other
goods and services related to the administration of the deferred compensation
plan. The Virginia Retirement System is hereby authorized to perform related
services including, but not limited to, providing consolidated billing,
individual and collective record keeping and accountings, and asset purchase,
control, and safekeeping. In accordance with such plan, and upon contract or
agreement with an eligible employee, deferrals of compensation may be
accomplished by payroll deductions made by the appropriate officer of the
Commonwealth, with such funds being thereafter held and administered in
accordance with the plan. Administrative fees related to the VRS program
oversight that otherwise would be charged to an employee participating in the
plan shall be paid by the participating employer under procedures established by
the Board. Any political subdivision participating in the plan pursuant to
&#xA7; 51.1-603.1 may collect the administrative fee imposed by the Virginia
Retirement System from employees participating in the plan.

B. If it deems it advisable, the Board may create a trust or other special fund
for the segregation of the funds or assets resulting from compensation deferred
at the request of employees of the Commonwealth or its agencies and for the
implementation of such program.

C. The Department of Accounts shall be responsible for the (i) accounting and
reconciliations associated with state employees&#8217; contributions to the plan
through payroll deductions and (ii) timely transfer of withheld funds to the
private corporation or institution designated by the Board pursuant to
subsection A. However, any state agency that has decentralized its payroll
function and any political subdivision of the Commonwealth participating in the
plan pursuant to &#xA7; 51.1-603.1 shall be responsible for the (i) accounting
and reconciliations associated with their employees&#8217; contributions to the
plan through payroll deductions and (ii) timely transfer of withheld funds to
the private corporation or institution designated by the Board pursuant to
subsection A.

HISTORY: 1974, c. 461, § 51-111.67:17; 1984, cc. 662, 746; 1985, c. 448; 1987,
c. 619; 1990, c. 832; 1992, c. 276; 1997, c. 174; 1998, c. 658; 2000, c. 395;
2004, c. 86; 2008, c. 245.