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HB 1306

Virginia Retirement System; return to work, break in service.

2026 Regular Session Introduced by Mitchell Cornett

HB 1306 modifies Virginia Retirement System rules for calculating benefits and service credit when employees return after breaks in employment, with fiscal impacts requiring system analysis.

Subcommittee recommends striking from the docket (7-Y 0-N)
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Bill Summary · HB 1306

Legislative bill overview

HB 1306 addresses provisions in the Virginia Retirement System (VRS) governing employees who return to work after a break in service. The bill likely modifies how service credit is calculated, vesting, or benefit eligibility for individuals who leave employment and later return to VRS-covered positions. The specific mechanics depend on amendments to existing VRS statutes regarding break-in-service rules.

Why is this important

VRS covers hundreds of thousands of Virginia public employees (teachers, state workers, local government staff). Changes to return-to-work provisions directly affect retirement benefits for employees with non-continuous careers and can have significant long-term costs for state and local government budgets. The fiscal impact statement from VRS suggests material financial implications warranted formal analysis.

Potential points of contention

  • Service credit treatment: Disagreement over whether returning employees should receive credit for pre-break service, how long breaks disqualify service, and whether employees must re-vest after returning
  • Employer cost liability: Changes could shift retirement obligations between employers, affecting unfunded liability and contribution rates across different public agencies
  • Equity concerns: Policy may advantage certain employee groups (e.g., those with resources to leave/return) while disadvantaging others with continuous service histories

Compiled from official sources — confirm details with the bill’s official record.

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