COMMITTEE SUBSTITUTE
FOR
H. B. 2635
(By Delegates Hubbard and Jenkins)
(Originating in the Committee on Pensions and Retirement)
[April 2, 1997]
A BILL to amend and reenact sections one and three, article seven- a, chapter eighteen of the code of West Virginia, one thousand
nine hundred thirty-one, as amended; and to amend and reenact
sections one, two, three and five, article seven-b, chapter
eighteen of said code, relating to the state teachers
retirement system; renaming the state teachers retirement
system; providing that the new name for the state teachers
retirement system shall be the "Education Employees Retirement
System"; teachers' defined contribution system; renaming the
teachers' defined contribution system; and providing that the
teachers' defined contribution system shall be known as the
"Education Employees Defined Contribution System".
Be it enacted by the Legislature of West Virginia:
That sections one and three, article seven-a, chapter eighteen
of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that sections one, two,
three and five, article seven-b, chapter eighteen of said code, all
to read as follows:
ARTICLE 7A. STATE TEACHERS EDUCATION EMPLOYEES
RETIREMENT
SYSTEM.
§18-7A-1. Establishment of retirement system.
A retirement system to be known as the "state teachers
retirement system" is hereby established for the purpose of
providing retirement allowances for the teachers of West Virginia:
Provided, That on and after the first day of July, one thousand
nine hundred ninety-nine, the retirement system established herein
shall be known as the "education employees retirement system."
§18-7A-3. Definitions.
"Teacher member" means the following persons, if regularly
employed for full-time service: (a) Any person employed for
instructional service in the public schools of West Virginia; (b)
principals; (c) public school librarians; (d) superintendents of
schools and assistant county superintendents of schools; (e) any
county school attendance director holding a West Virginia teacher's
certificate; (f) the executive secretary of the retirement board;
(g) members of the research, extension, administrative or library
staffs of the public schools; (h) the state superintendent of
schools, heads and assistant heads of the divisions under his
supervision, or any other employee thereunder performing services of an educational nature; (I) employees of the state board of
education who are performing services of an educational nature; (j)
any person employed in a nonteaching capacity by the state board of
education, the West Virginia board of regents, any county board of
education, the state department of education or the teachers
retirement board, if such person was formerly employed as a teacher
in the public schools; (k) all classroom teachers, principals and
educational administrators in schools under the supervision of the
department of corrections, the department of health or the
department of human services; and (l) employees of the state board
of school finance, if such person was formerly employed as a
teacher in the public schools.
"Nonteaching member" means any person, except a teacher
member, who is regularly employed for full-time service by (a) any
county board of education, (b) the state board of education, (c)
the West Virginia board of regents or (d) the teachers retirement
board.
"Members of the administrative staff of the public schools"
means deans of instruction, deans of men, deans of women, and
financial and administrative secretaries.
"Members of the extension staff of the public schools" means
every agricultural agent, boys' and girls' club agent, and every
member of the agricultural extension staff whose work is not
primarily stenographic, clerical or secretarial.
"Retirement system" means the state teachers retirement system
provided for in this article.
"Present teacher" means any person who was a teacher within
the thirty-five years beginning July one, one thousand nine hundred
thirty-four, and whose membership in the retirement system is
currently active.
"New entrant" means a teacher who is not a present teacher.
"Regularly employed for full-time service" means employment in
a regular position or job throughout the employment term regardless
of the number of hours worked or the method of pay.
"Employment term" means employment for at least ten months, a
month being defined as twenty employment days.
"Present member" means a present teacher who is a member of
the retirement system.
"Total service" means all service as a teacher while a member
of the retirement system since last becoming a member and, in
addition thereto, credit for prior service, if any.
"Prior service" means all service as a teacher completed prior
to July first, one thousand nine hundred forty-one, and all service
of a present member who was employed as a teacher, and did not
contribute to a retirement account because he was legally
ineligible for membership during such service.
"Average final salary" means the average of the five highest
fiscal year salaries earned as a member within the last fifteen fiscal years of total service credit, including military service as
provided herein, or if total service is less than fifteen years,
the average annual salary for the period on which contributions
were made.
"Accumulated contributions" means all deposits and all
deductions from the earnable compensation of a contributor minus
the total of all supplemental fees deducted from his compensation.
"Regular interest" means interest at three percent compounded
annually, or a higher earnable rate if approved by the retirement
board.
"Refund interest" means interest compounded annually at a rate
of three percent.
"Employer" means the agency of and within the state which has
employed or employs a member.
"Contributor" means a member of the retirement system who has
an account in the teachers accumulation fund.
"Beneficiary" means the recipient of annuity payments made
under the retirement system.
"Refund beneficiary" means the estate of a deceased
contributor, or such person as he shall have nominated as
beneficiary of his contributions by written designation duly
executed and filed with the retirement board.
"Earnable compensation" means the full compensation actually
received by members for service as teachers whether or not a part of such compensation is received from other funds, federal or
otherwise, than those provided by the state or its subdivisions.
Allowances from employers for maintenance of members shall be
deemed a part of earnable compensation for such members whose
allowances were approved by the teachers retirement board and
contributions to the teachers retirement system were made, in
accordance therewith, on or before the first day of July, one
thousand nine hundred eighty.
"Annuities" means the annual retirement payments for life
granted beneficiaries in accordance with this article.
"Member" means a member of the retirement system.
"Public schools" means all publicly supported schools,
including normal schools, colleges and universities in this state.
"Deposit" means a voluntary payment to his account by a
member.
The masculine gender shall be construed so as to include the
feminine.
Age in excess of seventy years shall be deemed to be seventy
years.
ARTICLE 7B. TEACHERS' EDUCATION EMPLOYEES DEFINED CONTRIBUTION
RETIREMENT SYSTEM.
§18-7B-1. Short title.
This article shall be known and may be cited as the "Teacher's
Retirement Reform Act". On and after the first day of July, one thousand nine hundred ninety-seven, this article shall be known and
may be cited as the "Education Employees Defined Contribution
Retirement System."
§18-7B-2. Definitions.
As used in this article, unless the context clearly requires
a different meaning:
(1) "Defined contribution system" or "system" means the
teachers' defined contribution retirement system created and
established by this article;
(2) "Existing retirement system" means the state teachers
retirement system established in article seven-a of this chapter;
(3) "Existing employer" means any employer who employed or
employs a member of the existing retirement system;
(4) "Consolidated board" or "board" means the consolidated
public retirement board created and established pursuant to article
ten-d, chapter five of this code;
(5) "Member" or "employee" means the following persons, if
regularly employed for full-time service: (a) Any person employed
for instructional service in the public schools of West Virginia;
(b) principals; (c) public school librarians; (d) superintendents
of schools and assistant county superintendents of schools; (e) any
county school attendance director holding a West Virginia teacher's
certificate; (f) the executive secretary of the retirement board;
(g) members of the research, extension, administrative or library staffs of the public schools; (h) the state superintendent of
schools, heads and assistant heads of the divisions under his
supervision, or any other employee thereunder performing services
of an educational nature; (I) employees of the state board of
education who are performing services of an educational nature; (j)
any person employed in a non-teaching capacity by the state board
of education, any county board of education, the state department
of education or the teachers retirement board, if such person was
formerly employed as a teacher in the public schools; (k) all
classroom teachers, principals and educational administrators in
schools under the supervision of the department of corrections, the
department of health or the department of human services; (l) any
person who is regularly employed for full-time service by any
county board of education, the state board of education or the
teachers retirement board; and (m) the administrative staff of the
public schools including deans of instruction, deans of men and
deans of women, and financial and administrative secretaries;
(6) "Regularly employed for full-time service" means
employment in a regular position or job throughout the employment
term regardless of the number of hours worked or the method of pay;
(7) "Year of employment service" means employment for at least
ten months, a month being defined as twenty employment days:
Provided,
That no more than one year of service may be accumulated
in any twelve-month period;
(8) "Employer" means the agency of and within the state which
has employed or employs a member;
(9) "Compensation" means the full compensation actually
received by members for service whether or not a part of such
compensation is received from other funds, federal or otherwise,
than those provided by the state or its subdivisions;
(10) "Public schools" means all publicly supported schools,
including normal schools, colleges and universities in this state;
(11) "Member contribution" means an amount reduced from the
employee's regular pay periods, and deposited into the member's
individual annuity account within the defined contribution
retirement system;
(12) "Employer contribution" means an amount deposited into
the member's individual annuity account on a periodic basis
coinciding with the employee's regular pay period by an employer
from its own funds;
(13) "Annuity account" or "annuity" means an account
established for each member to record the deposit of member
contributions and employer contributions and interest, dividends or
other accumulations credited on behalf of the member;
(14) "Retirement" means a member's withdrawal from the active
employment of a participating employer and completion of all
conditions precedent to retirement;
(15) "Permanent, total disability" means a mental or physical incapacity requiring the absence from employment service for at
least six months: Provided,
That such incapacity is shown by an
examination by a physician or physicians selected by the board.
§18-7B-3. Defined contribution retirement system created and
established; body corporate.
The teachers' education employees defined contribution
retirement system is hereby created and established to provide for
the secure, fair and orderly retirement of the teachers and related
personnel of the state. The defined contribution retirement system
shall constitute a body corporate and all business of the system
shall be transacted in the name of the teachers' defined
contribution retirement system.
§18-7B-5. Administration of the teachers' education employees
defined contribution retirement system.
The consolidated public retirement board created pursuant to
article ten-d, chapter five of this code shall administer the
teachers' defined contribution retirement system established by
this article. The board may sue and be sued, contract and be
contracted with and conduct all the business of the defined
contribution system in the name of the teachers' defined
contribution retirement system: Provided, That on and after the
first day of July, one thousand nine hundred ninety-seven, the name
shall be the education employees defined contribution system.