Since 1942, teachers and certain other employees in the public school system and State employees generally have been covered by a single actuarially sound retirement system, which replaced the former inadequate teachers' pension system. During this period, the System has been continually improved and its coverage broadened to include employees of many of the State's political subdivisions. The most notable change in the System was when it was made supplemental to Social Security coverage in 1952. The last major changes in the System occurred in 1960, although subsequent improvements were also made in 1962 and 1964.

A separate retirement system applicable only to members of the State Police Force was created in 1950 and in 1954. This System was also changed to provide Social Security coverage for its members.

Many proposals for changes in each of the Systems have been advocated by the principal interested groups. The 1964 Regular Session of the General Assembly, deeming it imperative that additional information be available in order that intelligent decisions might be made regarding the various suggested amendments, adopted two acts directing the Virginia Advisory Legislative Council to study the two Systems, evaluate the suggestions for changes, and recommend such improvements in the Systems as it might deem appropriate.

Because of the cognate nature of these two acts and the similarity of the actuarial data upon which conclusions would have to be based, the Council requested the Board of Trustees of the Virginia Supplemental Retirement System and the State Police Officers Retirement System to have actuarial studies made to determine the effect and cost of the various proposals which had been made and to recommend to the Council appropriate changes in the two Systems. (The one Board administers the two Systems.)

These studies were made by the firm of Bowles, Andrews and Towne, actuaries to the two Systems, and their report is appended to this report of the Council.

The Council has carefully considered each of the proposals for changes to the Systems and analyzed the effect of the recent Social Security changes. Especially close attention has been given to the actuary's report. We now make the recommendations summarized below and submit certain general comments with regard to the two Systems. The table of summarized recommendations carries references to the pages of the actuary's report (Appendix IV) in which these matters are dealt with in detail. Costs or savings estimated to result from the numbered recommendations are set forth in the table in Appendix I, page 41.