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Board approves $1,500 Chapter 7 bonus, offers retirement rollover option
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Summary
Roanoke County School staff recommended and the board approved offering the full $1,500 Chapter 7 bonus to eligible employees, with an option to roll the payment into 403(b)/457 retirement plans; staff noted net cash and deadlines for contracts.
School division staff recommended the board provide the full $1,500 Chapter 7 bonus to eligible employees and the board approved that recommendation after discussion about implementation and employee options.
Susan Peterson (speaker 3) presented the budget amendment and said the general assembly and governor finalized a budget that includes funding for a Chapter 7 bonus averaging $1,500 per funded SOQ position. Staff recommended providing the full $1,500 bonus to eligible employees and confirmed with the Virginia Department of Education that employees may elect to roll the bonus into retirement accounts (403(b) or 457) subject to plan provisions and IRS limits: “We have since confirmed with the Virginia Department of Education that this approach is allowable under the language of the chapter 7 legislature,” the presenter said.
Peterson told the board the estimated net cash value of a $1,500 bonus would be approximately $969 after standard withholdings and that employees must sign contracts by June 1 to be eligible. Staff said HR will distribute election forms and that employees choosing to deposit the bonus into their retirement account must have an existing 403(b) or 457 account to receive the transfer.
Board members discussed communication to employees about the option and the tax/plan limits. Staff also noted the division will receive about $1.5 million in state funds and will need to coordinate an ordinance and appropriation with the Board of Supervisors for the additional funding.
The board moved and seconded the budget amendment as presented; the clerk recorded affirmative roll-call responses and the motion carried.
What this means: Eligible employees will receive a $1,500 Chapter 7 bonus; they may elect a cash payment or a rollover into an eligible retirement plan subject to plan rules and IRS contribution limits. The division will finalize administrative procedures, issue election forms, and submit required documentation to the Board of Supervisors for budget appropriation.
