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CONTRIBUTIONS

Richmond, Va., City Code ch. 22, art. IV
in effect

Richmond, Va., City Code § 22-112 Members' contributions.

Sec. 22-112. - Members' contributions. (a) In addition to the contributions provided for in Sections 22-177 and 22-317 or as otherwise specifically provided, effective September 1, 2006, each member of the system, including those participating in the enhanced retirement benefit pursuant to Section 22-203, who does not elect to participate in the defined contribution plan established pursuant to Section 22-142 shall contribute five percent of such member's creditable compensation in the case of a general member, and five percent in the case of a public safety member, for each pay period for which the member receives compensation. The participating employer shall deduct from the member's compensation the required contribution payable by the member. Each eligible employee who does not affirmatively elect to participate in the defined contribution plan established pursuant to Section 22-142, or who elects to transition to or otherwise becomes a member of a VRS Retirement Plan pursuant to Section 22-361 or 22-362 shall be deemed to consent and agree to any deductions from his compensation required by this section. (b) The participating employer shall pay an equivalent amount in lieu of member contributions required under this chapter (including, but not limited to, those required under this section and Section 22-203). Any such contribution, although designated as a member contribution, shall be paid by the participating employer in lieu of employee contributions and shall be treated as a mandatory salary reduction from the salary otherwise payable to the member. These contributions are intended to be a salary reduction pick-up under Section 414(h) of the Internal Revenue Code. Members of the plan may not opt out of the picked-up contribution or elect to receive the contributed amounts directly instead having them picked-up by the participating employer and paid to the Richmond Retirement System. (Code 2004, § 78-111; Code 2015, § 22-112; Code 2020, § 22-112; Ord. No. 2006-60-128, § 3, 5-30-2006; Ord. No. 2006-185-218, § 1, 7-24-2006; Ord. No. 2007-159-117, § 1, 5-29-2007; Ord. No. 2007-217-188, § 1, 8-6-2007; Ord. No. 2023-313, § 6, 11-13-2023)

Richmond, Va., City Code § 22-113 Assets and contributions; employer contributions.

Sec. 22-113. - Assets and contributions; employer contributions. (a) The participating employers in the Richmond Retirement System shall contribute annually an amount equal to the sum of the normal contribution and the accrued liability contribution. (b) The normal contribution for the participating employer for any fiscal year shall be determined on July 1 one year prior to the first day of each fiscal year and shall be computed in accordance with recognized actuarial principles, utilizing methods and assumptions approved by the Board. (c) The accrued liability contribution for the participating employer for any fiscal year shall be determined on July 1 one year prior to the first day of each fiscal year and shall be computed in accordance with recognized actuarial principles, utilizing methods, assumptions, and amortization periods approved by the Board. It shall consist of: (1) The amount necessary to amortize the initial unfunded actuarial accrued liability over a period not to exceed 30 years in accordance with acceptable Governmental Accounting Standards Board guidelines. (2) The contribution necessary to amortize any increase or decrease in the unfunded actuarial accrued liability in future years due to changes in actuarial assumptions; changes in plan provisions, including the granting of cost-of-living increases; or actuarial gains and losses. Each year's increase or decrease in the unfunded actuarial accrued liability shall similarly be amortized over a period not to exceed 30 years in accordance with acceptable Governmental Accounting Standards Board guidelines. (d) The unfunded actuarial accrued liability as of any valuation date shall be determined by using the same actuarial cost method and assumptions used to determine the normal contribution. As of any valuation date, it shall be equal to the excess of: (1) The actuarial accrued liability; over (2) The actuarial value of assets then held in the retirement account. The actuarial value of assets shall be determined under a method which reflects the market value of assets, and which is approved by the Board. (e) The Board shall certify to the Director of Finance the normal contribution and the accrued liability contribution each year. The contributions will be certified as a dollar amount to be paid to the Richmond Retirement System by the City each pay period during the applicable fiscal year. (Code 2020, § 22-113.1; Ord. No. 2023-313, § 3, 11-13-2023)

Richmond, Va., City Code § 22-114 Member contribution account.

Sec. 22-114. - Member contribution account. (a) All member contributions and interest allowances shall be credited to the member contribution account. Member contributions required to be returned to the member or required to be paid in the event of the member's death before retirement shall be paid from the member contribution account. (b) At the end of each payroll period, the participating employer shall transfer to the member contribution account an amount equal to the amount of the employee contribution for such payroll period. (c) Each individual member contribution account shall be credited with interest at the rate specified by the Board from time to time on the accumulated member contributions 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 credited to the member contribution account. (d) Upon the retirement of a member, his member contribution account shall be transferred from the member contribution account to the general assets of the plan. (Code 2004, § 78-113; Code 2015, § 22-114; Code 2020, § 22-114; Ord. No. 2006-60-128, § 3, 5-30-2006; Ord. No. 2006-185-218, § 1, 7-24-2006)
Source: City of Richmond, Virginia, Code (2026 recodification) and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/va/richmond/codes/code_of_ordinances?nodeId=PTIICICO_CH22PURE_ARTIVCOFetched: 11/8/2026

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