SD47 - Report of the Virginia Retirement System to Establish a Single Statewide Rate or Rates for Local Constitutional Officers and Their Employees


Executive Summary:
Senate Bill 2008 provided for the Director of the Virginia Retirement System (VRS) to report and make recommendations to the 1995 Session of the General Assembly regarding the manner in which the System establishes employer contribution rates for local officers and make recommendations related to establishing a single statewide rate or rates for such local officers.

Local officers are defined for retirement purposes as "the treasurer, commissioner of the revenue, attorney for the Commonwealth, clerk of a circuit court, or sheriff of any county or city, or deputy or employee of any such officer." Local officers are considered employees of the county or city for retirement purposes and are reported to the VRS by the county or city. They are included in the actuarial valuations along with other employees of the particular county or city in order to determine the employer contribution rate for their respective locality. The Commonwealth, through the State Compensation Board, reimburses the locality for its retirement costs for State approved positions and salary. The rate used for reimbursement is the lower of the locality's VRS employer contribution rate or the employer contribution rate paid by the state for its employees.