Richmond, Va., City Code § 22-361 Effective date of transition to the Virginia Retirement System and transition period for City of Richmond Employees.
Sec. 22-361. - Effective date of transition to the Virginia Retirement System and transition period for City of Richmond Employees.
(a) Notwithstanding any section of this chapter to the contrary, an eligible employee hired, or rehired after one full calendar month break in service, by the City of Richmond on or after January 1, 2024, and who is a person for whom "membership in the retirement system" is compulsory pursuant to Code of Virginia, § 51.1-135, shall not become an active member of the System but shall be enrolled in the VRS Retirement Plan for which they are qualified.
(b) Notwithstanding any section of this chapter to the contrary, an eligible employee who is hired, or rehired after one full calendar month break of service on or after January 1, 2024, who is a person for whom "membership in the retirement system" is not compulsory pursuant to section 51.1-135 of the Code of Virginia, shall not become a member of the System, except as follows:
(1) Persons elected on and after January 1, 2024, to the position of mayor for whom "membership in the retirement system" is not compulsory pursuant to Section 51.1-135 of the Code of Virginia shall become a member of the System and of the Senior Executive Group pursuant to Section 22-317.
(2) Persons elected on and after January 1, 2024, to the position of member of the City Council for whom "membership in the retirement system" is not compulsory pursuant to Section 51.1-135 of the Code of Virginia shall become a member of the defined contribution plan established pursuant to Section 22-142.
(c) Eligible employees who are members of the System as of December 31, 2023, may elect to transition to the VRS Retirement Plan for which they qualify. An employee making such an election shall be enrolled in a VRS Retirement Plan as soon as administratively possible.
(d) Eligible employees who are members of the System as of December 31, 2023, who elect to remain enrolled in the System, or who do not elect to transition to a VRS Retirement Plan by December 31, 2024, shall remain active members of the System for so long as they remain employed by a participating employer without a break of service of at least one full calendar month. A member incurring a one full calendar month break of service shall become a transition member if the member, upon rehire, is a person for whom "membership in the retirement system" is compulsory pursuant to Code of Virginia, § 51.1-135. The provisions of this chapter shall continue to apply to any eligible employee who remains an active member of the system.
(e) An eligible employee who is a member of the System but who is not a member of the defined contribution plan established pursuant to Section 22-142 and who elects to transition to a VRS Retirement Plan or who becomes a member of a VRS Retirement System following rehire after one full calendar month break of service shall waive, as a condition of the election or of rehire, any rights to make further contributions to or accrue additional benefits in the system, and the City of Richmond shall make no further contributions to the system on the employee's behalf but shall instead make contributions to a VRS Retirement Plan on the employee's behalf. If such employee is not vested at the time of the election, the employee shall also, as a condition of their election or of rehire, elect to either a trustee-to-trustee transfer of their member contribution account to the Virginia Retirement System, or continue to accrue service towards gaining vested rights to benefits pursuant to Section 22-146.
(f) An eligible employee who is a member of the Defined Contribution Plan established pursuant to Section 22-142 and who elects to transition to a VRS Retirement Plan or who becomes a member of a VRS Retirement Plan following a rehire after a one full calendar month break of service shall waive, as a condition of the election or of rehire, any rights to make additional contributions to or accrue additional benefits in the system, and the City of Richmond shall make no further contributions to the system on the employee's behalf but shall instead make contributions to a VRS Retirement Plan on the employee's behalf. If such employee is not vested at the time of the election, the eligible employee will continue to accrue service towards gaining vested rights to any benefits previously earned pursuant to Section 22-146.
(g) The City of Richmond shall pay an equivalent amount in lieu of member contributions required under Code of Virginia, §§ 51.1-144 and 51.1-169. Any such contribution, although designated as an employee 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 of having them picked up by the participating employer and paid to the Virginia Retirement System.
(Code 2020, § 22-341; Ord. No. 2023-313, § 5, 11-13-2023; Ord. No. 2024-099, § V(§ 1), 5-13-2024)