LEGISLATIVE AGENDA FOR 2012
The 2012 General Assembly began on January 11, 2012. Bills are just now being introduced for consideration. Below, are just a few bills that have been brought to our attention -- we will be adding more bills as soon as they are posted.
HB 1129 Virginia Retirement System; modifies several provisions of defined benefit retirement plan.
William J. Howell | all patrons
Summary as introduced:
Virginia Retirement System; defined benefit plan. Modifies several provisions of the defined benefit retirement plan. Beginning January 1, 2013, the bill changes the calculation of average final compensation to cover a period of 60 months rather than 36 months. Under current law, the use of a 60-month period applies only to those employees hired on or after July 1, 2010. However, current employees affected by this change in average final compensation may use the 36-month period of calculation for compensation received prior to January 1, 2013, if it is greater than the 60-month period of calculation.
Effective January 1, 2013, except for employees who are within five years of their unreduced retirement date at that time, the bill (i) restricts cost of living adjustments (COLA) to those employees who reach the age for unreduced retirement benefits and (ii) reduces the COLA to the first two percent of inflation plus one-half of the next two percent, for a maximum total of three percent. Under current law, the COLA is the first three percent of inflation plus one-half of the next four percent, for a maximum total of five percent.
The bill also increases the employee contribution rate from five percent to six percent for all state employees, and members of the State Police Officers' Retirement System, and the Virginia Law Officers' Retirement System. For current employees, this increase in employee contributions is phased in increments of one-half percent per year. Similarly, the cost of prior service credit that currently may be purchased at the rate of five percent of salary, is increased to six percent on July 1, 2013.
Finally, for state and local employees hired on or after January 1, 2013, other than law-enforcement employees and judges, the bill reduces the multiplier from 1.7 to 1.6.
WE ARE STRONGLY OPPOSED TO ANY MEASURE THAT WOULD REQUIRE ADDITIONAL EMPLOYEE CONTRIBUTIONS !!!
HB 1130 Virginia Retirement System; new optional hybrid retirement plan created.
Summary as introduced:
Virginia Retirement System; optional hybrid retirement plan. Creates a new optional hybrid retirement plan with a defined benefit retirement plan component and a defined contribution retirement plan component for all state employees except judges and employees currently eligible for optional retirement plans. The plan will be available beginning January 1, 2014.
The defined benefit component has a multiplier of 1.0 and a required employee contribution of 4%, and the employer's contribution is actuarially determined using the same methodology used for the current defined benefit retirement plan. The defined contribution component includes a required employee contribution of 2% and a corresponding mandatory contribution from the employer of 1%, with optional additional employee contributions of up to 4% which could be matched by another 2.5 % from the employer. Maximum contributions to the defined contribution plan are 6% from the employee and 3.5% from the employer, for a total of 9.5%.
If a current employee elects to participate in the new plan, his accrued service in the defined benefit plan at the time of his election would transfer with a multiplier of the defined benefit plan from which he is leaving, but his service thereafter would accrue with a 1.0 multiplier.
We will NOT be supporting the measure relating to having local employees contribute 5% of their pay into VRS
Your FOP is looking for a few great members !! We need a handful of motiviated members who want to assist the Legislative Committee. We need you !!! Contact our Legislative Chair, Kevin a Email: THELAWMANII@verizon.net --- be a part of the next legislative process !!
ALSO--- If any local lodge has made any local endorsements, please notifiy the State Lodge office so that they may be shared with all of our members.
