51.1-602 - Deferred compensation plan for employees of the Commonwealth; administered by the Board.
§ 51.1-602. Deferred compensation plan for employees of the Commonwealth;administered by the Board.
A. The Board shall establish and administer a deferred compensation plan foremployees of the Commonwealth and its agencies. The Virginia RetirementSystem Director shall be the chief administrative officer of the plan. TheBoard may contract with private corporations or institutions subject to thestandards set forth in § 51.1-124.30 to provide investment products as wellas any other goods and services related to the administration of the deferredcompensation plan. The Virginia Retirement System is hereby authorized toperform related services including, but not limited to, providingconsolidated billing, individual and collective record keeping andaccountings, and asset purchase, control, and safekeeping. In accordance withsuch plan, and upon contract or agreement with an eligible employee,deferrals of compensation may be accomplished by payroll deductions made bythe appropriate officer of the Commonwealth, with such funds being thereafterheld and administered in accordance with the plan. Administrative feesrelated to the VRS program oversight that otherwise would be charged to anemployee participating in the plan shall be paid by the participatingemployer under procedures established by the Board. Any political subdivisionparticipating in the plan pursuant to § 51.1-603.1 may collect theadministrative fee imposed by the Virginia Retirement System from employeesparticipating in the plan.
B. If it deems it advisable, the Board may create a trust or other specialfund for the segregation of the funds or assets resulting from compensationdeferred at the request of employees of the Commonwealth or its agencies andfor the implementation of such program.
C. The Department of Accounts shall be responsible for the (i) accounting andreconciliations associated with state employees' contributions to the planthrough payroll deductions and (ii) timely transfer of withheld funds to theprivate corporation or institution designated by the Board pursuant tosubsection A. However, any state agency that has decentralized its payrollfunction and any political subdivision of the Commonwealth participating inthe plan pursuant to § 51.1-603.1 shall be responsible for the (i) accountingand reconciliations associated with their employees' contributions to theplan through payroll deductions and (ii) timely transfer of withheld funds tothe private corporation or institution designated by the Board pursuant tosubsection A.
(1974, c. 461, § 51-111.67:17; 1984, cc. 662, 746; 1985, c. 448; 1987, c.619; 1990, c. 832; 1992, c. 276; 1997, c. 174; 1998, c. 658; 2000, c. 395;2004, c. 86; 2008, c. 245.)