General Assembly Substitute Bill No. 5401 proposes amendments to the laws governing credit for military service under the Municipal Employees' Retirement System. The bill revises definitions and conditions for members of fund B to purchase credit for military service, requiring contributions at a rate of two percent of the member's first year's salary, with interest, before retirement. It also allows for refunds of contributions if military service credit does not increase disability retirement benefits, and mandates municipal employer contributions for members who were prisoners of war. The bill includes provisions for members serving during war, hostilities, or national emergencies, and sets the effective date for these changes as October 1, 2024, applying to applications made on or after this date.

Additionally, the bill addresses the repayment of withdrawn contributions with interest for members who are reinstated after leaving employment, and the return of contributions to municipalities under certain conditions. It details the distribution of a deceased member's contributions to beneficiaries or the member's estate, with special handling for small amounts. The bill makes language changes, such as replacing "which" with "that" and correcting subsection references, and clarifies that the amendments apply to applications to purchase credit made on or after October 1, 2024. The act is intended to take effect on October 1, 2024, with the goal of updating and clarifying the procedures for retirement contributions and benefits within the municipal employees' retirement system.

Statutes affected:
Raised Bill: 7-436b
VA Joint Favorable: 7-436b
File No. 194: 7-436b
PD Joint Favorable: 7-436b