COUNTY OF ALBEMARLE
Law Enforcement Employees VRS Retirement Option
Adoption of a resolution to increase the retirement multiplier for law enforcement employees
Messrs. Tucker, Elliott, Davis, Breeden
LEGAL REVIEW: Yes
June 6, 2007
ACTION: X INFORMATION:
Legislation enacted by the 2007 Virginia General Assembly (Senate Bill 1166) provides localities the option to increase the VRS retirement benefits for employees included in the Law Enforcement Officers Retirement System (LEOs). Eligible employees include all employees deemed to provide hazardous duties in the Police Department, the Fire Rescue Department, and the Sheriff’s Office. This option is also available and may be considered by the Regional Jail Authority for its LEOs eligible employees.
STRATEGIC PLAN: Fund the Future
The amendment to Virginia Code § 51.1-206, effective July 1, 2007, provides a locality the option to adopt a resolution to increase the retirement Multiplier used by VRS from 1.70 percent to 1.85 percent for employees eligible for the LEOs benefits. This change would impact approximately 240 employees in the Police Department, the Fire Rescue Department, and the Sheriff’s Office. The VRS Multiplier factor times the years of service times the average final salary determines an employee’s retirement income and has the potential to increase retirement income for LEOs eligible retirees by 8 to 10%. Once adopted by the County, this option cannot be revoked and will apply to all current and future County employees meeting the eligibility criteria. The increased retirement Multiplier of 1.85 percent can apply only to LEOs eligible employees who retire on or after July 1, 2007.
Approval of this change would result in an increase to our overall VRS rate by 0.47%. The new rate would be 13.43% instead of the 12.96% budgeted for FY08. The cost of this change currently would be approximately $142,000 in annual reoccurring expense. Implementing the change effective January 1, 2008 would result in a FY08 impact of one-half that amount, approximately $71,000.
This option is available beginning July 1, 2007 or at a later date upon the Board’s adoption of the referenced Resolution and sixty days notice to VRS.
In recognition of the hazardous duties performed by County Police, Fire/Rescue, and Sheriff’s Office personnel, it is recommended that the Board adopt the attached Resolution establishing a 1.85 VRS Multiplier for all LEOs eligible employees effective January 1, 2008.
ATTACHMENTSA - Resolution
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