Virginia Code 51.1-147: Members’ contribution account.
A. All members’ contributions and interest allowances shall be credited to the member‘s contribution account. Accumulated contributions required to be returned to a member or required to be paid in the event of a member’s death before retirement shall be paid from the member’s contribution account.
Terms Used In Virginia Code 51.1-147
- Accumulated contributions: means the sum of all amounts deducted from the compensation of a member and credited to his individual account in the member's contribution account, all amounts the member may contribute to purchase creditable service, all member contributions contributed by the employer on behalf of the employee, on or after July 1, 1980, except those amounts contributed on behalf of members of the General Assembly who are otherwise retired under the provisions of this chapter, and all interest accruing to these funds. See Virginia Code 51.1-124.3
- Board: means the Board of Trustees of the Virginia Retirement System. See Virginia Code 51.1-124.3
- Employer: means the Commonwealth in the case of a state employee, the local public school board in the case of a teacher, or the political subdivision participating in the Retirement System. See Virginia Code 51.1-124.3
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Member: means any person included in the membership of the Retirement System. See Virginia Code 51.1-124.3
- Retirement allowance: means the retirement payments to which a member is entitled. See Virginia Code 51.1-124.3
- State: when applied to a part of the United States, includes any of the 50 states, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, and the United States Virgin Islands. See Virginia Code 1-245
B. At the end of each payroll period, the Comptroller shall transfer to the members’ contribution account an amount equal to the aggregate amount of the deductions which would have been made for the preceding payroll period from the salaries of all members from the appropriate fund in the state treasury. The Comptroller shall forward a record of all such transfers to the Board. In all other cases, the employer shall transmit its warrant to the State Treasurer for the payment of an amount equal to the aggregate amount of the deductions made for each payroll period from the salaries of all members paid by the employer for the preceding payroll period. The funds collected by the State Treasurer shall be credited to the members’ contribution account. The State Treasurer shall transmit a record of all moneys collected to the Comptroller and the Board.
C. Each individual account of the members’ contribution account shall be credited annually with interest at the rate of four percent annually on the accumulated contributions of the member. Interest shall accrue on any contribution beginning at the end of the fiscal year in which the contribution was made. The Board shall have the authority to determine the manner in which the interest is to be credited to the members’ contribution account.
D. Upon the retirement of a member, his accumulated contributions shall be transferred from the members’ contribution account to the retirement allowance account.
1952, c. 157, § 51-111.49; 1966, c. 174; 1970, c. 476; 1976, c. 540; 1982, c. 467; 1986, c. 474; 1990, c. 832.