§ 3-2-2. Definitions. Unless provided otherwise in another Section, the following definitions shall apply to this Article:

(a)

Accrued sick leave credit shall mean:

(1)

For employees who are members of Plans A or B, the credit allowed a member with more than five years of service for purposes of determining retirement eligibility. Credit shall be allowed at the rate of one month for every 172 hours of accrued unused sick leave, and pro rata credit shall be allowed for each fraction thereof.

(2)

For employees who are members of Plans C, D or E, the credit allowed a member with more than five years of service for purposes of determining retirement eligibility. Credit shall be allowed at the rate of one month for every 172 hours of accrued unused sick leave, and pro rata credit shall be allowed for each fraction thereof; however, for employees whose County or School Board employment commenced by reporting to work on or after January 1, 2013, notwithstanding the amount of the employee's accrued sick leave balance, the maximum amount of accrued sick leave credit that may be used for determining retirement eligibility and for computing the member's retirement allowances and benefits shall be the employee's accrued sick leave balance or 2,080 hours, whichever is less.

(b)

Accumulated contributions shall mean the sum of all amounts deducted or picked up from the compensation of a member and credited to his or her individual account in the members' contribution account, any amounts transferred from another retirement plan pursuant to Section 3-2-24.1, together with interest credited on such amounts and any other amounts he or she shall have contributed, or transferred thereto, as provided in Section 3-2-28(c).

(c)

Actuarial equivalent shall mean a benefit of equal value when computed upon the basis of such actuarial tables as are adopted by the Board.

(d)

Average final compensation shall mean the average annual creditable compensation of a member during the 36 consecutive months (78 consecutive pay periods for members who are paid on a biweekly basis) in which the member received his or her highest creditable compensation.

(1)

In the event that a member's creditable service is less than 36 months (78 pay periods) his or her average final compensation shall be his or her average monthly creditable compensation received during the entire period of creditable service multiplied by 12 (average biweekly creditable compensation multiplied by 26 for biweekly paid members).

(2)

In determining average final compensation for members who retire after July 1, 1988, the member's accrued unused sick leave at the time of retirement may, at the option of the member, be substituted for an equivalent period of creditable service as if the member had continued to work at his or her final salary during the period of his or her accrued unused sick leave; provided, that in determining the average final compensation for members who became members of the System on or after January 1, 2013 (members of Plans C, D or E), no more than 2,080 hours of the member's accrued unused sick leave may be used for this purpose.

(3)

For purposes of computing a service-connected disability retirement allowance under Section 3-2-36, a member's average final compensation shall be computed as if a member had received compensation (including salary increases which the Board determines would have been awarded to the member) for any period prior to retirement during which the member ceased employment on account of a disability for which he or she received compensation benefits under the Virginia Workers' Compensation Act.

(4)

Notwithstanding the foregoing, whenever the Director of the Department of Human Resources, at the request of the Board, the member, or the member's beneficiary, determines that the member's receipt of a merit increment was delayed as a result of either or both of the amendments to Section 4.3-2 of the Personnel Regulations, effective July 13, 1991, and July 11, 1992, respectively, and that the member would otherwise have been entitled to such merit increment under the Personnel Regulations, based upon the Human Resources Director's review of the member's County personnel and payroll records, the Board shall calculate the member's average final compensation in a manner which approximates the average final compensation the member would have if the member had received the merit increment at the time he or she would have been entitled to receive such merit increment but for the aforesaid amendments to Section 4.3-2 of the Personnel Regulations. In performing such calculation, the Board shall utilize the following assumptions:

(A)

If the employee was scheduled to receive a merit increment in fiscal years 1992 and/or 1993, then it was delayed.

(B)

The employee received no promotions, demotions, reclassifications or regrades from the date of the delayed merit increment(s).

(C)

The employee moved through the steps of the pay grade as quickly as possible according to his or her respective pay plan.

(D)

The delayed merit increments and all future merit increments occurred on the day and the month which is the same day and month when the employee retires.

(E)

The employee is in full employment each year if in full employment at the time of the delayed merit increment and also at the time of retirement.

A factor shall be derived utilizing these assumptions, and then used to calculate the increase, if any, in the member's final average compensation. If at the time of retirement, the employee has service credit for three years or more at the longevity step of the pay grade in which his or her position falls, then there shall be no adjustment to the member's average final compensation. This rule shall apply to all applications for allowances and benefits filed with the Board on or after July 13, 1991. The Board shall make any necessary retroactive adjustments to allowances and benefits.

(5)

Notwithstanding the foregoing, in the case of any SESRP member, creditable compensation for each year after the effective date of the agreement referenced in Subsection (dd) shall equal 1.05634 times the SESRP member's unadjusted compensation.

(6)

Periods of leave without pay under the federal Family and Medical Leave Act of 1993 (FMLA) shall be disregarded in determining periods of consecutive months or pay periods in calculating average final compensation.

(e)

Beneficiary shall mean any person, other than a member, entitled to receive benefits as provided by the System. The Board shall provide a member with a form on which to designate in writing one or more beneficiaries of the member's benefits upon the member's death. The Board shall maintain any such written designation on file. A designated beneficiary may be changed from time to time by written notice by the member filed with the Board.

(f)

Board shall mean the Board of Trustees of the System, as provided for in this Article.

(g)

Creditable compensation shall mean the full compensation, including pick-up contributions, holiday hours worked, administrative emergency leave worked, shift differential paid and civilian roll call hours paid, but excluding all overtime pay except roll call hours paid, earned on or after July 1, 1993, and excluding performance bonuses, and amounts paid upon separation from employment which represent the unused portion of the employee's accrued annual leave. In cases where the compensation includes maintenance and other prerequisites, the Board shall fix the value of that portion of the compensation not paid in money. Effective for plan years after December 31, 1988, compensation in excess of $200,000.00, as indexed under Section 415(d) of the Internal Revenue Code, shall be disregarded. Notwithstanding the foregoing, effective for members whose County or School Board employment commenced by reporting for work on or after July 1, 1996, compensation in excess of the limit set forth in Section 401(a)(17) of the Internal Revenue Code shall be disregarded. In determining the compensation of an employee under this definition, the rules of Section 415(c)(3) of the Internal Revenue Code shall apply. Effective for plan years on or after January 1, 2001, an employee's compensation shall include amounts not includible in gross income by reason of Section 132(f)(4) of the Internal Revenue Code.

(h)

Creditable service shall mean the sum of membership service credit, plus prior service credit, plus portability service credit purchased pursuant to Section 3-2-24.1, plus accrued sick leave credit.

(i)

DROP shall mean the Deferred Retirement Option Program, as provided for by Section 3-2-56.

(j)

Employee shall mean any person regularly employed in rendering service to the County whose compensation is fully or partially paid directly or indirectly by the County. It shall also include all officers and other persons regularly employed by the School Board who are not eligible for membership in the Virginia Retirement System (VRS).

(k)

Employer shall mean the School Board or an authority in the general County having the power to appoint an employee to office or employment paid directly or indirectly by the County and/or the Board of Trustees of the System.

(l)

Executive Director shall mean the Executive Director of the Fairfax County Retirement Administration Agency.

(m)

Internal Revenue Code shall mean the federal income tax statutes, as they may be amended or superseded from time to time in the future.

(n)

Medical Examining Board shall mean the physician or physicians provided for by Section 3-2-9.

(o)

Member shall mean any person included in the membership of the System as provided for by Section 3-2-19.

(p)

Membership service credit shall mean credit for service rendered while a member of the System, or as otherwise provided in Section 3-2-23. Service rendered while a member of SESRP shall be treated without duplication as service rendered while a member of the System.

(q)

Normal retirement date shall mean:

(1)

For employees whose County or School Board employment commenced by reporting for work before January 1, 2013 (members of Plans A and B),

(A)

The date on which a member in service attains the age of 50 years, provided said member's age while in service, combined with the years of his or her creditable service, equals at least the sum of 80 years; or

(B)

The date on which a member attains the age of 65 years.

(2)

For employees whose County or School Board employment commenced by reporting for work on or after January 1, 2013 and before July 1, 2019 (members of Plans C and D),

(A)

The date on which a member in service attains the age of 55 years, provided said member's age while in service, combined with the years of his or her creditable service, equals at least the sum of 85 years; or

(B)

The date on which a member attains the age of 65 years.

(3)

For employees whose County or School Board employment commenced by reporting for work on or after July 1, 2019 (members of Plan E),

(A)

The date on which a member in service attains the age of 55 years, provided said member's age while in service, combined with the years of his or her creditable service, equals at least the sum of 85 years; or

(B)

The date on which a member attains the age of 65 years.

(r)

Pick-up contributions shall mean a member's regular contributions which is picked up, through a salary reduction by the County from the member's compensation for service rendered on or after December 22, 1984.

(s)

Plan A shall mean the option effective July 1, 1981, available to employees whose County or School Board employment commenced by reporting for work on or before December 31, 2012, providing for current and new members to:

(1)

Contribute four percent of compensation up to the taxable wage base and five and one-third percent of compensation in excess of the taxable wage base; and

(2)

Receive normal (and early) service retirement benefits based on one and eight-tenths percent of average final compensation up to the social security breakpoint plus two percent of average final compensation in excess of the social security breakpoint times years of service.

(t)

Plan B shall mean the option effective July 1, 1981, available to employees whose County or School Board employment commenced by reporting for work on or before December 31, 2012, providing for current and new members to:

(1)

Contribute five and one-third percent of all compensation; and

(2)

Receive normal (and early) service retirement benefits based on two percent of the average final compensation times years of service.

(u)

Plan C shall mean the option effective January 1, 2013, available to employees whose County or School Board employment commenced by reporting for work on or after January 1, 2013, and before July 1, 2019, providing for current and new members to:

(1)

Contribute four percent of compensation up to the taxable wage base and five and one-third percent of compensation in excess of the taxable wage base; and

(2)

Receive normal (and early) service retirement benefits based on one and eight-tenths percent of average final compensation up to the social security breakpoint plus two percent of average final compensation in excess of the social security breakpoint times years of service; subject to the definitions, terms and conditions applicable to Plan C set forth herein.

(v)

Plan D shall mean the option effective January 1, 2013, available to employees whose County or School Board employment commenced by reporting for work on or after January 1, 2013, and before July 1, 2019, providing for current and new members to:

(1)

Contribute five and one-third percent of all compensation; and

(2)

Receive normal (and early) retirement benefits based on two percent of the average final compensation times years of service; subject to the definitions, terms and conditions applicable to Plan D set forth herein.

(w)

Plan E shall mean the plan effective July 1, 2019, available to employees whose County or School Board employment commenced by reporting for work on or after July 1, 2019, providing for current and new members to:

(1)

Contribute five and one-third percent of all compensation; and

(2)

Receive normal (and early) retirement benefits based on two percent of the average final compensation times years of service; subject to the definitions, terms and conditions applicable to Plan E set forth herein.

(x)

Primary social security benefit shall mean the primary insurance amount to which the member is entitled, for old age or disability, as the case may be, pursuant to the federal Social Security Act as in effect at his or her date of retirement, under the provisions of this Chapter, except as otherwise specifically provided.

(y)

Prior service credit shall mean credit for service rendered prior to the establishment of the Fairfax County Supplemental Retirement System (the predecessor of this System) on July 1, 1955, as provided in Section 3-2-24.

(z)

Retirement allowance shall mean the retirement payments to which a member is entitled as provided in this Article.

(aa)

School Board shall mean the Fairfax County School Board, a political subdivision of the Commonwealth of Virginia.

(bb)

Service shall mean service as an employee for which compensation is paid by the employer, but shall not include time spent on leave without pay.

(cc)

SESRP shall mean the former Fairfax County Senior Executive Service Retirement Plan.

(dd)

SESRP member shall mean an individual who entered into an agreement with the County to participate in SESRP in lieu of further participation in the System and who was either still an active participant in SESRP or still receiving benefits under SESRP on January 1, 1996.

(ee)

Social security shall mean the federal Social Security Act and its programs for old age, survivors and disability insurance and benefits, as applicable.

(ff)

Social security breakpoint shall mean the average of the taxable wage base for the 35 calendar years ending with the year in which the member attains social security normal retirement age. In determining a member's social security breakpoint during any particular plan year, it is assumed that the taxable wage in effect at the beginning of the plan year shall remain the same for all future years.

(gg)

System shall mean the Fairfax County Employees' Retirement System. When any part of this Article refers to multiple retirement systems, the Employees' Retirement System shall be referred to as "this System," rather than "the System."

(hh)

Taxable wage base shall mean the maximum amount of wages received during the calendar year on which social security taxes are payable by a member and by the employer, as such amount is defined in Section 3121(a) of the Internal Revenue Code. (20-81-3; 5-85-3; 28-89-3; 27-90-3, § 1; 15-93-3; 22-93-3; 37-94-3; 25-95-3; 27-97-3; 14-00-3; 10-01-3; 18-01-3; 8-03-3; 8-04-3; 26-12-3; 2-16-3; 09-19-3.)