Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pension Liability topic
No spam. Unsubscribe anytime.
VRS tells Stuart it must fund ~$133,000 death‑in‑service benefit up front; council seeks clarification
Summary
Virginia Retirement System confirmed beneficiaries of the former Clerk are owed a lump‑sum refund of about $133,000 and denied the Town's request to roll the liability into a long‑term payment plan; the council directed staff to ask whether enrolling current employees requires paying back contributions for prior service.
Town Manager Bryce Simmons told the council on March 18 that the Virginia Retirement System (VRS) has confirmed beneficiaries of the former Clerk are owed a lump‑sum death‑in‑service refund of approximately $133,000. Because the Town’s specific plan has zero plan assets, VRS denied the Town’s request to roll that liability into a longer payment arrangement; VRS indicated the Town must fund the amount upfront.
Mr. Simmons said the denial means the town faces an immediate liability unless further clarification or alternative options are provided by VRS. The Council directed the Town Manager and Town Attorney to draft a formal response to VRS asking whether enrolling current employees will require paying back contributions for all prior years of service, or whether the Town can enroll employees prospectively from “day zero.” The council also discussed the cost of a required new actuarial study, with staff citing an evaluation of salaried employees at about $3,000 versus a study covering all full‑time employees at about $4,000.
At this meeting council did not vote on a funding source or approve a payment plan; the action was to request clarification and to prepare next steps. Any payment schedule or budget appropriation would require future council action.
