City of Alexandria, Virginia
________________
MEMORANDUM
DATE: JANUARY 22, 2014
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution to Opt Into the Hazard Duty Positions Alternate Option in the Virginia Retirement System. [ROLL-CALL VOTE]
BODY
_________________________________________________________________
ISSUE: Consideration of a Resolution to provide enhance the eligibility of certain Deputy Sheriffs, Medics and Fire Marshals participating in the Virginia Retirement System
RECOMMENDATION: That City Council adopt the attached resolution (Attachment 1) which eliminates the option of membership in the VRS Hybrid Plan for any future Deputy Sheriffs, Medics and Fire Marshals and provides Plan 2 benefits while using Plan 1 retirement eligibility to existing, impacted employees.
BACKGROUND: There are currently three plans in the Virginia Retirement System, depending on when an employee established membership and when and if the employee has reached 60 months of creditable service. Plan 1 employees became members prior to July 1, 2010, and have accrued 60 months of services before January 1, 2013 (also known as "vested"). Plan 2 employees become members between July 1, 2010, and December 31, 2013, but have not vested. Attachment 2 provides two tables that describe differences in the three Plans. Members of VRS who are in Plan 1 or Plan 2 currently have a one-time, irrevocable option to switch to the Hybrid Plan. Both Plan 1 and Plan 2 are defined benefit plans. The Hybrid Plan is a combined plan with both defined benefit and defined contribution elements.
DISCUSSION: The Hybrid Plan was intended to affect General Schedule (non-uniformed or sworn members) and not individuals in the Police, Fire or Sheriff's Departments. Throughout the State these are covered with a benefit called Enhanced Hazardous Duty Coverage (formerly know...
Click here for full text