51.1-139 - Procedure when employer in default. - Virginia Statutes

§ 51.1-139. Procedure when employer in default.

An employer's agreement to contribute on behalf of its employees who becomemembers shall be irrevocable. If an employer for any reason becomesfinancially unable to make the contributions payable on behalf of themembers, the employer shall be deemed to be in default and the employees'membership in the Retirement System shall be terminated. As of the date ofthe default, (i) each member or beneficiary whose coverage under theRetirement System is affected by such default shall become fully vested, (ii)the actuary of the Retirement System shall determine by actuarial valuationthe amount of the reserves held on behalf of each then member and each thenbeneficiary, and (iii) the Retirement System shall credit to each member andeach beneficiary the amount of reserve so held. The reserve so creditedtogether with the amount of the accumulated contributions of each member,shall be disbursed in a manner prescribed by the Board consistent with theapplicable tax qualification rules of the Internal Revenue Code, whereuponthe rights and privileges of the members and beneficiaries shall terminate.

(1952, c. 157, § 51-111.38; 1960, c. 604; 1986, c. 474; 1990, c. 832; 2004,c. 207.)