The Virginia Supplemental Retirement System was adopted by the General Assembly in 1952 after a full study of the retirement system of 1942 by the Virginia Advisory Legislative Council. Various proposals have been made since 1952 for amendment of the present act; and some minor amendments have been made. However, no fundamental changes have been enacted since 1952. The Council was directed in 1956 to conduct a study of one feature of the act - lowering the retirement age for State employees and teachers in the public schools (together with the question of sick leave for teachers), but the Council concluded that it would be unwise to attempt piece-meal revision of the act and urged in a report issued in November, 1957, that "no change be made in the Virginia Supplemental Retirement Act at this time, but that the whole act be studied as to what changes, if any, should be made, and the effect thereof." As a result of this recommendation, the General Assembly at its 1958 Session adopted House Joint Resolution No. 41.

The Council assigned this study to C. W. Cleaton, member of the House of Delegates, and member of the Council, South Hill, to serve as Chairman of a Committee to make the initial study and report to the Council. Selected to serve with Mr. Cleaton were the following: Earl A. Fitzpatrick, member of the Senate of Virginia, Roanoke; Tom Frost, member of the House of Delegates, and member of the Council, Warrenton; Herbert H. Goodman, Vice-President, Remington Rand, Arlington; W. Wright Harrison, President, Peoples National Bank, Charlottesville; E. E. Lane, member of the House of Delegates, Richmond; E. B. Pendleton; Jr., State Treasurer, Richmond; L. M. Raney, President, Bank of La Crosse, La Crosse; Charles A. Taylor, President, Life Insurance Company of Virginia, Richmond; Robert F. Williams, Secretary, Virginia Education Association, Richmond.

The Committee organized and elected Senator Fitzpatrick as Vice-Chairman. John B. Boatwright, Jr., and G. M. Lapsley served as Secretary and Recording Secretary, respectively, to the Committee.

The Committee sought and obtained recommendations from the Virginia Education Association and the Virginia Teachers' Association, which represent the public school teachers throughout the State, and from the State employees. As to the latter group, a committee headed by M. M. Sutherland, Executive Assistant to the Director of the Department of Conservation and Economic Development, circularized, through the several State departments and agencies, all of the State employees and obtained their views as to desirable changes in the system. The Council Committee obtained the advice and assistance of C. H. Smith, Director, Virginia Supplemental Retirement System. We express our appreciation for the assistance rendered by these individuals and organizations in furnishing it with data and in expressing their views.

In connection with the recommendations made to it, the Committee secured actuarial estimates as to costs of some of the recommendations. The firm of Bowles, Andrews and Towne, the actuaries of the Sμpplemental Retirement System, and the staff of the System have made the computations which appear later in this report.

Based upon its study of the Virginia Supplemental Retirement System, the data which it has obtained concerning the effect of possible modifications in the System and the information which it was able to secure concerning teacher's sick leave, the Committee completed its study and reported to the Council. The Council has carefully considered the report of the Committee and other data which it secured, and submits the following report.