City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 5, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
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Consideration of a Resolution to Opt Out of the Virginia Retirement System (VRS) Virginia Local Disability Program (VLDP). [ROLL-CALL VOTE]
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ISSUE: Consideration of a proposal to opt out of the state-administered Virginia Local Disability Program (VLDP) that takes effect on January 1, 2014.
RECOMMENDATION: That City Council approve the resolution entitled "Irrevocable Election Not to Participate in the Virginia Local Disability Program" (Attachment I) on first reading on June 11, 2013.
BACKGROUND: The 2012 General Assembly created the VLDP for local government and school district employees who will be covered under the Virginia Retirement System (VRS) Hybrid Retirement Plan, which will cover all City employees who become VRS participants on or after January 1, 2014. (New hires that have established membership in VRS through prior employment in another jurisdiction would continue that plan participation and would not be placed in the Hybrid Retirement Plan. Any current or new employees who became a VRS participant prior to January 1, 2014, will have the option of irrevocably opting in to the Hybrid Retirement Plan.) The Hybrid Retirement Plan is a combined plan with both defined benefit and defined contribution elements. Unlike the existing VRS Plans available to employees hired before January 1, 2014, the Hybrid Retirement Plan will not provide VRS Disability Retirement, hence the creation of the VLDP.
The VLDP provides income protection if an employee can't work because of a non-work-related or work-related illness, injury, or other condition, such as surgery, pregnancy, complications from pregnancy, or a catastrophic or major chronic condition. It includes bo...
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