School Board of the City of Virginia Beach
Policy 2-11

ADMINISTRATION

Retirement Plan for Eligible Employees

1. Generally

Virginia Code § 51.1-126.5 gives the School Board the power to establish and administer a retirement plan for the benefit of eligible employees. The School Board is also authorized to make contributions for the benefit of eligible employees who elect to participate in a plan developed pursuant to this policy, rather than the Virginia Retirement System plan. This policy establishes the retirement plan, defines eligible employees and sets forth the School Board's contribution to such plan. Participants in this plan shall not participate in the Virginia Retirement System, nor shall such employees have contributions/premiums made to the Virginia Retirement System on their behalf, pursuant to School Board Policy 4-37 except for life insurance premiums.

2. Eligible Employees

An eligible employee for purposes of this policy is the Superintendent and/or any employee designated by Virginia Code § 22.1-60.

3. Tax Qualified Defined Contribution Plan

The retirement plan shall be a Defined Contribution Plan, qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended, and sponsored by the School Board (the "Superintendent's Plan"), with administrative, custodial and investment services to be provided by authorized commercial vendor(s) qualified under School Board Policy 4-36 and Division Regulation 4-36.3, as retained by the School Board from time to time. Any present or future eligible employees of the School Board may elect to participate in the Superintendent's Plan, pursuant to Section 4 below. While the School Board has established the Superintendent's Plan with the intention of maintaining such plan on a permanent basis, the School Board reserves the right, in its sole discretion, to amend or terminate the Superintendent's Plan in whole or in part for any reason at any time; provided, however, that no such amendment shall have the effect of decreasing the account balance of any participant. In the event the Plan is terminated, each Participant with an account balance in the Plan at that time will receive a distribution of such balance as soon as practicable thereafter.

4. Plan Election

Any present or future eligible employees of the School Board shall make an irrevocable election to participate in either the Virginia Retirement System plan or the Superintendent's Plan sponsored by the School Board, in accordance with guidelines and forms (Form VRS-71) promulgated by the Virginia Retirement System for making such election. The election provided for herein shall be exercised not later than September 28, 1998, for those employees employed on July 1, 1998, and not later than ninety (90) days from the date performance of duties begins for any eligible employee hired after July 1, 1998.

5. Contributions

The School Board's contribution to the Superintendent's Plan shall be at the same rate (including the employee share paid by the School Board) as that established by the Virginia Retirement System, from time to time, for professional employees of the School Board or at such different rate, if any, as may be specifically approved from time to time by the School Board for the Superintendent's position. Contributions to the Superintendent's Plan and all earnings thereon shall be credited to an account maintained under the Plan for each participating employee. On or before the first School Board meeting in May, starting in May of 1999, the Director of Business Services shall provide a written report to the School Board indicating the contribution rate set by VRS for professional employees for the period beginning the following July 1.

6. Distribution to Terminated Eligible Employees

Following termination of employment of an eligible employee participating in the Superintendent's Plan for any reason, including death, disability or retirement, and following the occurrence of any other event which gives rise to a distribution under the terms of the Superintendent's Plan, the School Board shall take such actions as are necessary and appropriate to promptly effect distribution to such eligible employee of his account balance under the Plan.

7. Administration, Compliance Matters

The School Board shall establish reasonable procedures for administration and legal and regulatory compliance of the Superintendent's Plan and for this purpose the School Board may rely on outside consultants and service providers, as it deems necessary or appropriate. The School Board reserves the right to contract with such service providers as it, in its sole discretion, deems necessary or appropriate to assist it in administering the Plan and/or providing investment vehicles thereunder.

Editor's Note
See School Board Policy 4-36 and Division Regulation 4-36.3 for qualification of authorized commercial vendors.
See School Board Policy 4-37 for alternative retirement plan under VRS.

Legal Reference:

Code of Va., § 51.1-126.5. Certain employees of public school divisions.

Internal Revenue Code Section 401.

Code of Va., § 22.1-60. Appointment and term of superintendent.

 

Adopted by School Board: June 16, 1998
Revised by School Board: October 6, 1998