SB 950: Virginia Retirement System; increased retirement allowance for certain judges. - Virginia

Enrolled → Chaptered · 1 edit

MINOR

This bill finalizes changes to the Virginia Retirement System's pension formulas for judges, specifically updating the retirement allowance calculations for terms starting on or after July 1, 2026. The primary change corrects a numbering error in the statute by renumbering a clause from (iii) to (ii), ensuring the legal text accurately reflects the intended structure for calculating benefits based on service performed after that date.

Scope change

The scope of the bill remains focused on the Virginia Retirement System and judges, with no change in the general applicability of the law.

TECHNICAL

Corrected a numbering error in the retirement allowance formula for judges appointed after July 1, 2026, changing the second clause from (iii) to (ii) to align with the legislative intent.

Appropriations Substitute → Engrossed · 4 edits · Mar 7, 2025

MODERATE

The bill was significantly narrowed in scope, shifting from a broad amendment affecting multiple retirement sections to a focused update on a single section regarding judges. The primary change removes a temporary transition period that allowed judges to switch retirement plans based on a 2026 deadline, replacing it with a permanent rule that applies the hybrid retirement program to all judges appointed on or after January 1, 2014. Additionally, a new provision was added to protect older judges (55+) appointed after July 1, 2025, by applying their previous retirement benefits with a service multiplier.

Scope change

The bill's scope was reduced from amending five different Code of Virginia sections related to general hybrid retirement programs and contributions to amending only one section specifically about judicial retirement allowances.

SCOPE

Removed amendments to four sections (51.1-169, 51.1-304, 51.1-306, and 51.1-308) that previously detailed general hybrid retirement rules and contribution structures for the Commonwealth.

TIMELINE

Eliminated the temporary transition deadline of July 1, 2026, which previously allowed judges appointed between 2014 and 2026 to eventually switch to a standard retirement plan after that date.

ELIGIBILITY

Established a permanent rule where all judges appointed or elected on or after January 1, 2014, must participate in the hybrid retirement program for their entire tenure.

Created a specific exception for judges appointed on or after July 1, 2025, who are at least 55 years old, allowing them to retain their previous retirement benefits while applying a 3.5 multiplier to their years of service.

Introduced → Appropriations Substitute · 6 edits

MODERATE

The bill was amended from a simple introduction to a House Appropriations Substitute, significantly expanding its scope to amend six different sections of the Virginia Code regarding the Virginia Retirement System and judges. The primary substantive change is the creation of a new 'hybrid retirement program' that combines defined benefit and defined contribution components, replacing the previous uniform retirement structure for judges appointed or elected on or after January 1, 2014. This new program introduces mandatory employee contributions, employer matching funds, and specific investment options, while also adjusting retirement allowance calculations and disability benefits to reflect the hybrid model.

Scope change

The bill's scope expanded from amending only one section (§ 51.1-306.1) to amending six sections (§§ 51.1-169, 51.1-304, 51.1-306, 51.1-306.1, and 51.1-308), effectively rewriting the retirement rules for judges to align them with a new hybrid system.

DEFINITION

A new Section 51.1-169 was added to formally define and establish a 'hybrid retirement program' that blends traditional pension benefits with a 401(k)-style defined contribution plan.

ELIGIBILITY

Judges appointed or elected to an original term on or after January 1, 2014, are now required to participate in the new hybrid retirement program unless they made a specific election to remain in the old plan by April 30, 2014.

FISCAL

The hybrid program mandates that employers contribute 1% of creditable compensation to a defined contribution account and match employee voluntary contributions up to 2.5%, while employees must contribute a mandatory 4% of salary to the program.

REQUIREMENT

Retirement allowance calculations were updated to split service time: service before July 1, 2026, uses the hybrid program rules, while service on or after that date uses the standard defined benefit formula.

Disability retirement allowances for judges in the hybrid program were adjusted to use a 1% rate for service between 2014 and 2026, and a 1.65% rate for service on or after July 1, 2026.

TIMELINE

The bill's effective dates were updated to reflect the 2025 legislative session, with the hybrid program provisions applying to judges appointed or elected on or after January 1, 2014, and prior to July 1, 2026.

Engrossed → Enrolled · 4 edits · Mar 24, 2025

MODERATE

The bill transitioned from an Engrossed version to an Enrolled version, which includes significant formatting changes and a change in the bill's title. The substantive policy content regarding the Virginia Retirement System and judge retirement benefits remains consistent, with the primary change being the formal approval and enrollment of the legislation.

Scope change

The bill's scope remains focused on amending Virginia Code sections related to the Virginia Retirement System and judges, specifically regarding service retirement allowances for judges and the hybrid retirement program.

TECHNICAL

The bill title was updated from 'relating to Virginia Retirement System; judges' to 'relating to Virginia Retirement System; judges' with additional sections listed (51.1-169, 51.1-304, 51.1-306, 51.1-306.1, and 51.1-308) to reflect the final enrolled version.

The date placeholder for judge eligibility was changed from '2025' to '2026' in the enrolled version, indicating the effective date for certain judge retirement provisions.

Additional formatting elements such as session headers, chapter information, and approval stamps were added to the enrolled version to meet final legislative requirements.

Committee referral information and sponsor details from the Engrossed version were removed in the Enrolled version, as these are no longer relevant once the bill is finalized.

Virginia Retirement System; increased retirement allowance for certain judges.

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