CODE OF VIRGINIA

(EFFECTIVE JANUARY 1, 2017) PRIOR SERVICE OR MEMBERSHIP CREDIT FOR CERTAIN
MEMBERS; SERVICE CREDIT FOR ACCUMULATED SICK LEAVE (§ 51.1-142.2)

Certain members may purchase credit for service as provided in this section.

   A. 
               
               
               
            

      1.  Any member in service may purchase service credit from the following
      categories of service or leave: (i) leave of absence for educational
      purposes that was previously approved by the member’s employer; (ii)
      leave of absence for a serious health condition of the member or of an
      immediate family member, all as defined in the Family and Medical Leave Act
      of 1993, 29 U.S.C. § 2601 et seq., as amended, and previously certified by
      the member’s employer; (iii) up to one year of service credit per
      occurrence of leave for any unpaid leave of absence due to the birth,
      adoption, or death of a qualifying child, as defined in § 51.1-500; (iv)
      service as a full-time employee of another state, a public school system of
      another state, or a political subdivision of the Commonwealth or another
      state, as certified by such state, public school system, or political
      subdivision; (v) full-time service of a political subdivision of this state
      not credited to the member under an agreement as provided for in §
      51.1-143.1, as certified by such political subdivision; (vi) civilian
      service of the United States; (vii) full-time service at a private
      institution of higher education if the private institution is merged with a
      public institution of higher education and graduates of the private
      institution are then issued new degrees from the public institution; or
      (viii) any period of time when the member was employed part time or in a
      wage position by a participating employer and not otherwise eligible to
      participate in the retirement system because the member was not an employee
      as defined in § 51.1-124.3. However, no member in service shall be allowed
      to purchase more than a total of four years of service credit pursuant to
      this subdivision.

      2.  In addition to the service credit that may be purchased under
      subdivision 1, any member in service may purchase up to four years of
      service credit for prior active duty military service in the armed forces of
      the United States, provided that the discharge from a period of active duty
      status with the armed forces was not dishonorable.

      3.  The service credit to be credited to a member under this subsection
      shall be calculated at the ratio of one year, or portion thereof, of service
      credit to one year, or portion thereof, of service purchased, except for
      employment service purchased under clause (viii) of subdivision 1, which
      shall be calculated at the ratio of one month of service credit for each 173
      hours of service as certified by the employer.For each year or portion
      thereof to be credited at the time of purchase under this subsection, the
      member shall pay the approximate normal cost of the retirement plan under
      which the member is covered at the time of such purchase, as determined by
      the Board in its sole discretion. If the member does not purchase, or enter
      into a purchase of service credit contract for, the service made available
      in this subsection within the first 24 months of the member’s active
      service following his first date of hire or the final day of any applicable
      leave of absence, as applicable, then, for each year or portion thereof to
      be credited at the time of purchase, the member shall pay the actuarial
      equivalent cost. To the extent the member becomes inactive during the 24
      months following his first date of hire or the final day of any applicable
      leave of absence, such periods shall not be included in the 24 months of
      active service.Except as otherwise required by Chapter 1223 of Title 10 of
      the United States Code, as amended, no service credit may be purchased under
      this section if it is included in the calculation of any retirement
      allowance received or to be received by the member from this or another
      retirement system, or if there is a balance in a defined contribution
      account that serves as a primary retirement account related to such
      service.For purposes of this subsection, “active duty military
      service” means full-time service of at least 180 consecutive days in
      the United States Army, Navy, Air Force, Marines, Coast Guard, or reserve
      components thereof.

   B.  Any member in service may purchase all prior service credit for creditable
   service lost from ceasing to be a member under this chapter, as provided in §
   51.1-128, because of the withdrawal of his accumulated contributions. For each
   year or portion thereof to be credited at the time of purchase under this
   subsection, the member shall pay the withdrawn amount to be purchased plus
   interest accrued daily and compounded annually from the date of withdrawal to
   the date of payment at the assumed rate of return established by the Board for
   the actuarial valuation of the retirement system that is in effect at the time
   of the purchase. The Board shall develop guidelines and procedures for
   administering this subsection.

   C.  Any member in service may purchase service credit for accumulated sick
   leave on his effective date of retirement based upon such sums as the employer
   may provide as payment for any unused sick leave balances. The cost of service
   credit purchased under this subsection shall be the actuarial equivalent cost
   of such service.

   D.  Any member receiving benefits under the Virginia Workers’
   Compensation Act (§ 65.2-100 et seq.) may, in a manner prescribed by the
   Board and prior to the effective date of retirement, purchase service that is
   not reported to the retirement system by the member’s employer while the
   member is receiving such benefits.For each year or portion thereof to be
   credited at the time of purchase under this subsection, the member shall pay
   the approximate normal cost of the retirement plan under which the member is
   covered, as determined by the Board in its sole discretion. If the member does
   not purchase, or enter into a purchase of service credit contract for, any
   service made available in this subsection within the first 24 months of the
   member’s active service following his first date of hire or the final
   day of any applicable leave of absence, then, for each year or portion thereof
   to be credited at the time of purchase, the member shall pay the actuarial
   equivalent cost. To the extent the member becomes inactive during the 24
   months following his first date of hire or the final day of any applicable
   leave of absence, such periods shall not be included in the 24 months of
   active service.

   E.  Payment may be made in a lump sum at the time of purchase or by payroll
   deduction. Any number of additional deductions may be permitted at any time.
   Should any deduction be terminated before the member purchases the entire
   period contracted for, the member shall be credited with the number of full or
   partial months of service for which full payment has been made. If any
   deduction is continued after the entire period has been purchased, the member
   shall be credited with no more than the amount of service for which he was
   eligible and for which he paid, and the excess amount deducted shall be
   refunded to the member.

   F.  Any employer may elect to pay an equivalent amount in lieu of all member
   contributions required of its employees for the purchase of service credit
   pursuant to this section. These contributions shall not be considered wages
   for purposes of Chapter 7 (§ 51.1-700 et seq.), nor shall they be considered
   salary for purposes of this chapter.

   G.  In any case where member and employer contributions, as required under
   this chapter, were not made because of an error in the payroll, personnel, or
   other classification system of an employer participating in the retirement
   system, service that has not been credited because of such error may be
   purchased on the following basis:
               
            

      1.  The most recent three years of service credit shall be purchased, using
      applicable member and employer contribution rates and creditable
      compensation in effect for such period, in a manner and at the cost
      prescribed by the Board; and

      2.  All other years of service credit shall be purchased by the employer at
      an actuarial equivalent cost.

   H.  Any member may receive credit at no cost for service rendered in the armed
   forces of the United States provided (i) the member was on leave of absence
   from a covered position, (ii) the discharge from a period of active duty with
   the armed forces was not dishonorable, (iii) the member has not withdrawn his
   accumulated contributions, (iv) the member is not disabled or killed while on
   leave without pay while performing active duty military service in the armed
   forces of the United States, and (v) the member reenters service in a covered
   position within one year after discharge from the armed forces. In order to
   receive such service, the member must complete such forms and other
   requirements as are required by the Board and the retirement system.

HISTORY: 2001, cc. 686, 697; 2003, c. 7; 2005, c. 292; 2006, c. 635; 2007, c.
89; 2008, c. 27; 2009, c. 362; 2010, cc. 737, 738; 2011, cc. 722, 880; 2012, cc.
696, 701, 823; 2014, c. 356; 2015, cc. 508, 536; 2016, cc. 263, 280.