RD289 - Virginia Retirement System Line of Duty Act Report - October 1, 2015


Executive Summary:
The 2015 General Assembly made numerous changes to the Line of Duty Act (LODA or the Act) in legislation that requires re-enactment by the 2016 General Assembly in order to go into effect. The changes, part of House Bill (HB) 2204, include transferring administrative responsibility from the Department of Accounts (DOA) to the Virginia Retirement System (VRS), making the Department of Human Resource Management (DHRM) responsible for the Act’s health benefits provisions, and providing for an administrative appeals process that would allow employer involvement.(*1) The General Assembly also directed VRS and DHRM to report on ways to improve the Act’s administration (Appendix A). The following areas were identified for review:

• Develop proposals to clarify the Act’s provisions
• Simplify administration of the Act
• Ensure the Act’s long-term fiscal viability, and
• Improve how Line of Duty personnel and the interests of the Commonwealth’s taxpayers are served.

As part of their efforts, the agencies were specifically directed to examine the recommendations and options contained in the Joint Legislative Audit and Review Commission’s (JLARC) 2014 report, "Virginia’s Line of Duty Act." (The options are identified throughout this report and the recommendations appear in Appendix B.) Due to its recent issuance and extensive analysis, VRS relied heavily on the JLARC report’s findings, recommendations, and options while addressing the issues identified in HB 2204. In addition, VRS analyzed the existing framework of LODA administration and benefits, the changes contained in HB 2204, and other alternatives that warranted consideration. In particular, VRS reviewed programs in other states that are similar to LODA. VRS also requested feedback from several specific stakeholder groups (Appendix C).

During 2015, the patron of HB 2204 and Chairman of the House Appropriations Committee held a series of work sessions with various stakeholders. These sessions included representatives from first-responder groups, LODA employers, VML, VACo, VRS, DHRM, DOA, JLARC, and others. The goal of the sessions was to gather input from all stakeholders to help reach a consensus on the proposals for changes, if any, to LODA benefits and administration. VRS attended work sessions and otherwise communicated with stakeholders. VRS and DHRM, with input from JLARC staff, shared information on other benefit programs and their relationship to LODA benefits at the May 18th meeting. DHRM also presented several proposals addressing health insurance options at the August 27th meeting. VRS and DOA presented options for addressing eligibility, benefits, and program administration at the September 14th meeting.

See companion report from the Virginia Department of Human Resource Management (RD291 [2015]).
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(*1) 2015 Virginia Acts of Assembly, Chapter 647.