COMMITTEE SUBSTITUTE
FOR
H. B. 4496
(By Mr. Speaker (Mr. Thompson) and Delegate Armstead)
[By Request of the Executive]
(Originating in the Committee on Finance)
[February 14, 2008]
A BILL to amend and reenact §18-7A-14, §18-7A-18, §18-7A-34 and
§18-7A-40 of the Code of West Virginia, 1931, as amended; to
amend and reenact §18-7B-7, §18-7B-7a and §18-7B-8 of said
code; to amend and reenact §18-7C-1, §18-7C-2, §18-7C-3, §18-
7C-4, §18-7C-5, §18-7C-6, §18-7C-7, §18-7C-8, §18-7C-9, §18-
7C-10, §18-7C-11, §18-7C-12, §18-7C-13 and §18-7C-14 of said
code; and to further amend said code by adding thereto a new
section, designated §18-7C-15, all relating to providing
opportunities for members of the teachers' defined
contribution retirement system to the state teachers
retirement system; providing for contributions by employers
and members; authorizing loans to members; providing for
transfer of higher education employees who are members of the
teachers' defined contribution retirement system; providing
for transfer of certain members returning to employment with
participating employer; prohibiting transfers to teachers' defined contribution retirement system; providing findings and
purposes of enactment; providing definitions of terms;
establishing percentage of actively contributing members of
the Teachers' Defined Contribution Retirement System
voluntarily and affirmatively electing to transfer to the
State Teachers Retirement System that required to authorize
those transfers; providing for notice, counseling and other
education prior to opportunity to affirmatively electing to
transfer; providing for access to schools; establishing July
1, 2008, as effective date of transfer; requiring additional
contribution upon transfer and establishing reduction in
service credit if additional contribution not made;
establishing an initial date for retirement; providing for
loans to make additional contribution and payroll deduction
program for repayment; establishing processes for members of
the Teachers' Defined Contribution Retirement System to
affirmatively elect to transfer; establishing powers and
duties of the consolidated public retirement board relating to
the process and transfers; providing for effect of transfers
on qualified domestic relations orders and vesting; providing
guaranteed minimum benefits; providing certain appellate
processes; and providing for additional opportunity to
transfer in certain limited circumstances; providing increased
cost to member for transferring under those circumstances; establishing July 1, 2009, as final effective date of transfer
and exceptions; and providing for funding needed to offset any
additional unfunded actuarially accrued liability.
Be it enacted by the Legislature of West Virginia:
That §18-7A-14, §18-7A-18, §18-7A-34 and §18-7A-40 of the Code
of West Virginia, 1931, as amended, be amended and reenacted; that
§18-7B-7, §18-7B-7a and §18-7B-8 of said code be amended and
reenacted; that §18-7C-1, §18-7C-2, §18-7C-3, §18-7C-4, §18-7C-5,
§18-7C-6, §18-7C-7, §18-7C-8, §18-7C-9, §18-7C-10, §18-7C-11, §18-
7C-12, §18-7C-13 and §18-7C-14 of said code be amended and
reenacted; and that said code be further amended by adding thereto
a new section, designated §18-7C-15, all to read as follows:
ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.
§18-7A-14. Contributions by members; contributions by employers.
(a) At the end of each month every member of the retirement
system shall contribute six percent of that member's monthly gross
salary to the retirement board:
Provided, That any member employed
by a state institution of higher education shall contribute on the
member's full earnable compensation, unless otherwise provided in
section fourteen-a of this article. The sums are due the Teachers
Retirement System at the end of each calendar month in arrears and
shall be paid not later than fifteen days following the end of the
calendar month. Each remittance shall be accompanied by a detailed
summary of the sums withheld from the compensation of each member for that month on forms, either paper or electronic, provided by
the Teachers Retirement System for that purpose.
(b) Annually, the contributions of each member shall be
credited to the member's account in the Teachers Retirement System
Fund. The contributions shall be deducted from the salaries of the
members as prescribed in this section and every member shall be
considered to have given consent to the deductions. No deductions,
however, shall be made from the earnable compensation of any member
who retired because of age or service and then resumed service
unless as provided in section thirteen-a of this article.
(c) The aggregate of employer contributions, due and payable
under this article, shall equal annually the total deductions from
the gross salary of members required by this section. Beginning
the first day of July, one thousand nine hundred ninety-four, the
rate shall be seven and one-half percent; beginning on the first
day of July, one thousand nine hundred ninety-five, the rate shall
be nine percent; beginning on the first day of July, one thousand
nine hundred ninety-six, the rate shall be ten and one-half
percent; beginning on the first day of July, one thousand nine
hundred ninety-seven, the rate shall be twelve percent; beginning
on the first day of July, one thousand nine hundred ninety-eight,
the rate shall be thirteen and one-half percent; and beginning on
the first day of July, one thousand nine hundred ninety-nine and
thereafter, the rate shall be fifteen percent:
Provided, That the rate shall be seven and one-half percent for any individual who
becomes a member of the Teachers Retirement System for the first
time on or after the first day of July, two thousand five, or any
individual who becomes a member of the Teachers Retirement System
as a result of the
merger transfer contemplated in article seven-c
of this chapter.
(d) Payment by an employer to a member of the sum specified in
the employment contract minus the amount of the employee's
deductions shall be considered to be a full discharge of the
employer's contractual obligation as to earnable compensation.
(e) Each contributor shall file with the retirement board or
with the employer to be forwarded to the retirement board an
enrollment form showing the contributor's date of birth and other
data needed by the retirement board.
§18-7A-18. Teachers Employers Contribution Collection Account;
Teachers Retirement System Fund; transfers.
(a) There is hereby created in the State Treasury a special
revenue account designated the "Teachers Employers Contribution
Collection Account" to be administered by the Consolidated Public
Retirement Board. The Teachers Employers Contribution Collection
Account shall be an interest-bearing account with interest credited
to and deposited in the account and transferred in accordance with
the provisions of this section.
(b) There shall be deposited into the Teachers Employers Contribution Collection Account the following:
(1) Contributions of employers, through state appropriations,
and such amounts shall be included in the budget bill submitted
annually by the Governor;
(2) Beginning on the first day of July, two-thousand five,
contributions from each county in an amount equal to fifteen
percent of all salary paid in excess of that authorized for minimum
salaries in sections two and eight-a, article four, chapter
eighteen-a of this code and any salary equity authorized in section
five of said article or any county supplement equal to the amount
distributed for salary equity among the counties for each
individual who was a member of the Teachers' Retirement System
before the first day of July, two-thousand five:
Provided, That
the rate shall be seven and one-half percent for any individual who
becomes a member of the Teachers Retirement System for the first
time on or after the first day of July, two-thousand five or any
individual who becomes a member of the Teachers' Retirement System
as a result of the
merger transfer contemplated in article seven-c
of this chapter;
(3) The amounts transferred pursuant to section eighteen-a of
this article; and
(4) Any other moneys, available and not otherwise expended,
which may be appropriated or transferred to this account.
(c) Moneys on deposit in the Teacher Employers Contribution Collection Account shall be transferred monthly in the following
order:
(1) To the Teachers' Retirement System Fund the amount
certified by the Consolidated Public Retirement Board as the
actuarially required contribution;
and
(2)
To the Pension Liability Redemption Fund the amount, if
any, appropriated in accordance with section eight, article eight,
chapter twelve of this code; and
(3) The balance, if any, to the Employee Pension and Health
Care Benefits Fund established under section thirty-nine, article
seven-a of this chapter.
(d) There is hereby continued in the State Treasury a separate
irrevocable trust designated the Teachers' Retirement System Fund.
The Teachers' Retirement System Fund shall be invested as provided
in section nine-a, article six, chapter twelve of this code.
(e) There shall be deposited into the Teachers' Retirement
System Fund, the following:
(1) Moneys transferred from the Teachers Employers
Contribution Collection Account;
(2) Member contributions provided for in section fifteen of
this article;
(3) Gifts and bequests to the fund and any accretions and
accumulations which may properly be paid into and become a part of
the fund;
(4) Specific appropriations to the fund made by the
Legislature;
(5) Interest on the investment of any part or parts of the
fund; and
(6) Any other moneys, available and not otherwise expended,
which may be appropriated or transferred to the Teachers Retirement
System or the Fund.
(f) The Teachers Retirement System Fund shall be the fund from
which annuities shall be paid.
(g) The Consolidated Public Retirement Board has sole
authority to direct and approve the making of any and all fund
transfers as provided in this section, anything in this code to the
contrary notwithstanding.
(h) References in the code to the Teachers Accumulation Fund,
the Employers Accumulation Fund, the Benefit Fund, the Reserve Fund
and the Expense Fund mean the Teachers Retirement System Fund.
§18-7A-34. Loans to members.
(a) An actively contributing member of the retirement system
upon written application may borrow from his or her individual
account in the Teachers
Accumulation Fund Retirement System,
subject to these restrictions:
(1) Loans shall be made in multiples of ten dollars, the
minimal loan being one hundred dollars and the maximum being eight
thousand dollars:
Provided, That the maximum amount of any loan when added to the outstanding balance of all other loans shall not
exceed the lesser of the following: (A) Eight thousand dollars
reduced by the excess (if any) of the highest outstanding balance
of loans during the one-year period ending on the day before the
date on which the loan is made, over the outstanding balance of
loans to the member on the date on which the loan is made; or (B)
fifty percent of the member's contributions to his or her
individual account in the Teachers
Accumulations Fund Retirement
System:
Provided, however, That if the total amount of loaned
money outstanding exceeds forty million dollars, the maximum shall
not exceed three thousand dollars until the Retirement Board
determines that loans outstanding have been reduced to an extent
that additional loan amounts are again authorized.
(2) Interest charged on the amount of the loan shall be six
percent per annum, or a higher rate as set by the Board:
Provided,
That interest charged shall be commercially reasonable in
accordance with the provisions of section 72(p)(2) of the Internal
Revenue Code, and the federal regulations issued thereunder. If
repayable in installments, the interest shall not exceed the annual
rate so established upon the principal amount of the loan, for the
entire period of the loan, and such charge shall be added to the
principal amount of the loan. The minimal interest charge shall be
for six months.
(3) No member is eligible for more than one outstanding loan at any time.
(4) If a refund is payable to the borrower or his or her
beneficiary before he or she repays the loan with interest, the
balance due with interest to date shall be deducted from the
refund.
(5) From his or her monthly salary as a teacher or a
nonteacher the member shall pay the loan and interest by deductions
which will pay the loan and interest in substantially level
payments in not more than sixty nor less than six months. Upon
notice of loan granted and payment due, the employer is responsible
for making the salary deductions and reporting them to the
Retirement Board. At the option of the Board, loan deductions may
be collected as prescribed herein for the collection of members'
contribution, or may be collected through issuance of warrant by
employer. If the borrower is no longer employed as a teacher or
nonteaching member, the borrower must make monthly loan payments
directly to the Consolidated Public Retirement Board and the Board
must accept the payments.
(6) The entire unpaid balance of any loan, and interest due
thereon, shall, at the option of the Board, become due and payable
without further notice or demand upon the occurrence with respect
to the borrowing member of any of the following events of default:
(A) Any payment of principal and accrued interest on a loan remains
unpaid after it becomes due and payable under the terms of the loan or after the grace period established in the discretion of the
Board; (B) the borrowing member attempts to make an assignment for
the benefit of creditors of his or her refund or benefit under the
retirement system; or (C) any other event of default set forth in
rules promulgated by the Board in accordance with the authority
granted pursuant to section one, article ten-d, chapter five of
this code:
Provided, That any refund or offset of an unpaid loan
balance shall be made only at the time the member is entitled to
receive a distribution under the retirement system.
(7) Loans shall be evidenced by such form of obligations and
shall be made upon such additional terms as to default, prepayment,
security, and otherwise as the Retirement Board may determine.
(8) Notwithstanding anything herein to the contrary, the loan
program authorized by this section shall comply with the provisions
of Section 72(p)(2) and Section 401 of the Internal Revenue Code,
and the federal regulations issued thereunder, and accordingly, the
Retirement Board is authorized to: (A) Apply and construe the
provisions of this section and administer the plan loan program in
such a manner as to comply with the provisions of Section 72(p)(2)
and Section 401 of the Internal Revenue Code and the federal
regulations issued thereunder; (B) adopt plan loan policies or
procedures consistent with these federal law provisions; and (C)
take such actions as it deems necessary or appropriate to
administer the plan loan program created hereunder in accordance with these federal law provisions. The Retirement Board is further
authorized in connection with the plan loan program to take any
actions that may at any time be required by the Internal Revenue
Service regarding compliance with the requirements of Section
72(p)(2) or Section 401 of the Internal Revenue Code, and the
federal regulations issued thereunder, notwithstanding any
provision in this article to the contrary.
(b) Notwithstanding anything in this article to the contrary,
the loan program authorized by this section shall not be available
to any teacher or nonteacher who becomes a member of the Teachers
Retirement System on or after the first day of July, two thousand
five:
Provided, That a member is eligible for loan under
subsection (c), section six, article seven-c of this chapter to pay
all or part of the one and one-half percent contribution for
service in the
Teachers' Defined Contribution
Plan Retirement
System.
§18-7A-40. Higher education employees.
Nothing in this article or article seven-b of this chapter
shall be construed:
(1) To be in conflict with section four-a, article
twenty-three, chapter eighteen of this code; or
(2) To affect the membership of higher education employees who
are currently members of either the State Teachers Retirement
System created in this article or the Teachers' Defined Contribution Retirement System created in article seven-b of this
chapter:
Provided, That
if the merger contemplated by article
seven-c of this chapter occurs, any higher education employees who
are currently members of the Teachers' Defined Contribution
Retirement System
shall may become members of the Teachers
Retirement System
upon meeting the requirements of article seven-c
of this chapter.
ARTICLE 7B. TEACHERS' DEFINED CONTRIBUTION RETIREMENT SYSTEM.
§18-7B-7. Participation in Teachers' Defined Contribution
Retirement System; limiting participation in existing
Teachers Retirement System.
(a) Beginning the first day of July, one thousand nine hundred
ninety-one, and except as provided in this section, the Teachers'
Defined Contribution Retirement System shall be the single
retirement program for all new employees whose employment commences
on or after that date and all new employees shall be required to
participate. No additional new employees except as may be provided
in this section may be admitted to the existing Teachers Retirement
System.
(b) Members of the existing Teachers Retirement System whose
employment continues beyond the first day of July, one thousand
nine hundred ninety-one, and those whose employment was terminated
after the thirtieth day of June, one thousand nine hundred
ninety-one, under a reduction in force are not affected by subsection (a) of this section and shall continue to contribute to
and participate in the existing Teachers Retirement System without
a change in plan provisions or benefits.
(c) Any person who was previously a member of the Teachers
Retirement System and who left participating employment before the
creation of the Defined Contribution System on the first day of
July, one thousand nine hundred ninety-one, and who later
returned
returns to participating employment after the effective date of
this section
has the right to elect to shall return to the existing
Teachers Retirement System
or to elect to participate in the
Defined Contribution System. The election shall be made at the
time of his or her reemployment, is irrevocable and shall be made
upon forms approved by and filed with the West Virginia
Consolidated Public Retirement Board.
(d) Any person who was, prior to the first day of July, one
thousand nine hundred ninety-one, a member of the existing Teachers
Retirement System who left participating employment before the
creation of the Teachers' Defined Contribution Retirement System on
the first day of July, one thousand nine hundred ninety-one, and
who later returned to participating employment after that date and
who was precluded from returning to the existing Teachers
Retirement System as a result of prior provisions of this section,
may
elect, pursuant to the provisions of this section, readmission
to the existing Teachers Retirement System: Provided, That persons who are eligible to, and who make the election to, terminate their
participation in the Defined Contribution System and to return to
participation in the existing Teachers Retirement System as
provided in this section shall make the election, on a form
approved by and filed with the West Virginia Consolidated Public
Retirement Board on or before the thirtieth day of June, two
thousand two: Provided, however, That as a condition of the right
of readmission to the existing Teachers Retirement System, a person
making the election provided in this section whose Defined
Contribution Account had not, prior to election, been divided by a
qualified domestic relations order, shall pay an additional
contribution to the existing Teachers Retirement System equal to
one and one-half percent of his or her annual gross compensation
earned for each year during which he or she participated in the
Defined Contribution System and shall consent and agree to the
transfer of his or her total account balance in the Defined
Contribution System as of the most recent plan valuation
immediately preceding his or her transfer to the existing Teachers
Retirement System. For a person making the election provided in
this section whose defined contribution account had, prior to the
election, previously been divided by a qualified domestic relations
order, the cost to transfer to the existing Teachers Retirement
System shall be actuarially determined by the Consolidated Public
Retirement Board. Upon verification of that person's eligibility to return to participation in the existing Teachers Retirement
System and the tender and transfer of funds as provided in this
subsection, a person making this election shall receive service
credit for the time the member participated in the Defined
Contribution System as if his or her participation had been in the
existing Teachers Retirement System: Provided further, That the
right to terminate participation in the Defined Contribution System
and to resume participation in the existing Teachers Retirement
System as provided in this section is irrevocable and shall not
apply to any person who, while a member of the Teachers Retirement
System, voluntarily elected to terminate his or her membership in
the Teachers Retirement System and to become a participant in the
Defined Contribution System pursuant to section eight of this
article become a member of the Teachers Retirement System upon
meeting the requirements provided in article seven-c of this
chapter.
(e) Any employee whose employment with an employer was
suspended or terminated while he or she served as an officer with
a statewide professional teaching association, is eligible for
readmission to the existing retirement system in which he or she
was a member.
(f) An employee whose employment with an employer or an
existing employer is suspended as a result of an approved leave of
absence, approved maternity or paternity break in service or any other approved break in service authorized by the Board is eligible
for readmission to the existing retirement system in which he or
she was a member.
(g) In all cases in which a question exists as to the right of
an employee to readmission to membership in the existing Teachers
Retirement System, the Consolidated Public Retirement Board shall
decide the question.
(h) Any individual who is not a "member" or "employee" as
defined by section two of this article and any individual who is a
leased employee is not eligible to participate in the Teachers
Defined Contribution System. For purposes of this section, a
"leased" employee means any individual who performs services as an
independent contractor or pursuant to an agreement with an employee
leasing organization or other similar organization. In all cases
in which a question exists as to whether an individual is eligible
for membership in this system, the Consolidated Public Retirement
Board shall decide the question.
(i) Effective the first day of July, two thousand five and
continuing through the first day of two thousand six, any employee
of River Valley Child Development Services, Inc., who is a member
of the Teachers' Defined Contribution Retirement System may elect
to withdraw from membership and join the private pension plan
provided by River Valley Child Development Services, Inc.
(j) River Valley Child Development Services, Inc., and its successors in interest shall provide for their employees a pension
plan in lieu of the Teachers' Defined Contribution Retirement
System on or before the first day of July, two thousand five, and
continuing thereafter during the existence of the River Valley
Child Development Services, Inc., and its successors in interest.
All new employees hired after the thirtieth day of June, two
thousand five, shall participate in the pension plan in lieu of the
Teachers' Defined Contribution Retirement System.
(k) The administrative body of River Valley Child Development
Services, Inc., shall, on or before the first day of June, two
thousand five, give written notice to each employee who is a member
of the Teachers' Defined Contribution Retirement System of the
option to withdraw from or remain in the system. The notice shall
include a copy of this section and a statement explaining the
member's options regarding membership. The notice shall include a
statement in plain language giving a full explanation and actuarial
projection figures, prepared by an independent actuary, in support
of the explanation regarding the individual member's current
account balance, vested and nonvested, and his or her projected
return upon remaining in the Teacher's Defined Contribution
Retirement System until retirement, disability or death, in
comparison with the projected return upon withdrawing from the
Teachers' Defined Contribution Retirement System and joining a
private pension plan provided by River Valley Child Development Center, Inc., and remaining therein until retirement, disability or
death. The administrative body shall keep in its records a
permanent record of each employee's signature confirming receipt of
the notice.
§18-7B-7a. Plan closed to persons employed for the first time
after June, 2005; former employees.
The Retirement System created and established in this article
shall be closed and no new members accepted in the system after the
thirtieth day of June, two thousand five. Notwithstanding the
provisions of sections seven and eight of this article, all persons
who are regularly employed for full-time service as a member or an
employee whose initial employment commences after the thirtieth day
of June, two thousand five, shall become a member of the State
Teachers' Retirement System created and established in article
seven-a of this chapter:
Provided, That any person rehired after
the thirtieth day of June, two thousand five, shall become a member
of the Teachers' Defined Contribution Retirement System created and
established in this article, or of the Teachers Retirement System
created and established in article seven-a of this chapter,
depending upon which system he or she last contributed to while he
or she was employed with an employer mandating membership and
contributions to one of those plans:
Provided, however, That
if,
and only if, the Teachers' Defined Contribution Retirement System
is merged and consolidated with the Teachers Retirement System pursuant to the provisions of article seven-c of this chapter, then
all employees shall be a member of the Teachers Retirement System
as of the first day of July, two thousand six, as provided in
article seven-c of this chapter a rehired person who thereby
becomes a member of the Teachers' Defined Contribution Retirement
System may thereafter become a member of the Teachers Retirement
System if within the applicable time periods and upon meeting the
requirements provided in article seven-c of this chapter.
§18-7B-8. Voluntary participation in system; expiration of right
to elect membership in defined contribution system.
(1) Any employee who is a member of the existing retirement
system may, upon written election, voluntarily elect membership in
the defined contribution system, on a prospective basis, on or
after the first day of July, one thousand nine hundred ninety-one.
All benefits earned by any employee making such voluntary election
under the existing retirement system prior to such a voluntary
election shall be frozen and made available to that employee upon
retirement as provided by the existing retirement system. A member
of the existing retirement system who has less than five years of
contributing service in the existing retirement system may elect to
withdraw his or her contribution plus interest thereon as if such
member is terminating employment and upon withdrawal shall deposit
such funds in the defined contribution system:
Provided, That such
member's years of contributing service in the existing system shall be applied toward the years of employment service required under
section eleven of this article:
Provided, however, That this
election shall be allowed on a retroactive basis to the first day
of July, one thousand nine hundred ninety-one. For the purposes of
this section, "frozen" means that the member's salary, years of
service and any other factor to determine benefits shall be
calculated as of the date that the member elected membership in the
defined contribution system and after that date no increase in
salary, years of service or any other factor may be used to
increase the retirement benefit above that which it would be if a
person retired upon the date that the election is made. After
having made such election, the employee may not change such
election or again become a member of the existing retirement
system.
(2) Notwithstanding any provision of this section to the
contrary, after the thirtieth day of June, two thousand five, no
person who is a member of the state teachers retirement system may
elect membership in the teachers' defined contribution system.
ARTICLE 7C. MERGER OF TRANSFER FROM TEACHERS' DEFINED
CONTRIBUTION RETIREMENT SYSTEM WITH TO STATE
TEACHERS RETIREMENT SYSTEM.
§18-7C-1. Short title.
This article may be cited as the "Teachers Retirement
Equity
Transfer Act".
§18-7C-2. Legislative findings and purpose.
(a)
The Legislature declares that the State of West Virginia
and its citizens have always believed in a strong public education
system. The Constitution of this state mandates a thorough and
efficient public education system. The Legislature notes that the
quality of our state's education system is dependent, inter alia,
upon the motivation and quality of its teachers and educational
service personnel.
(b) The Legislature finds and declares that the State of West
Virginia is privileged to be the home of some of the best teachers
and education service personnel in this nation and that our
teachers and education service personnel are dedicated and
hard-working individuals. The Legislature further finds and
declares that our teachers and education service personnel deserve
a retirement program whereby they know in advance what their
retirement benefit will be, a defined benefit retirement program
where our teachers and service personnel will not have to bear the
risk of investment performance to receive their full retirement
benefit. The Legislature notes that uncertainty exists in the
investment markets, especially in the post-September eleventh era,
and that placing this risk and uncertainty upon the state in the
form of a defined benefit plan will protect and ensure a meaningful
retirement benefit for our teachers and educational service
personnel.
(c) The Legislature declares that it is in the best interests
of the teachers and
education service personnel in this state, as
well as its entire system of public education
in this state, and
conducive to the fiscal solvency of the State Teachers Retirement
System, that
members of the Teachers' Defined Contribution
Retirement System be
merged with afforded the opportunity to
transfer from that retirement system to the State Teachers
Retirement System
in a manner that is consistent with the prudent
and fiscally sound management of the State Teachers Retirement
System .
(d) The Legislature also finds that a fiscally sound
retirement program with an ascertainable benefit aids in the
retention and recruitment of teachers and school service personnel
and that the provisions of this article are designed to accomplish
the goals set forth in this section.
(e) The Legislature has studied this matter diligently and in
making the determination to merge the two plans has availed itself
of an actuarial study of the proposed merger by the actuary of the
Consolidated Public Retirement Board and has engaged the service of
two independent actuaries.
(f) The Legislature further finds and declares that members of
a defined contribution system who must bear the attendant market
risk and performance of their investments are truly being provided
a significant and greater benefit where the defined contribution system is replaced with a defined benefit system in which the
employer bears the risk of market fluctuations and investment
performance, especially where those members decide through an
election process whether to trade the defined contribution system
for a defined benefit system.
(b) It is the purpose of this article to provide a process for
members of the Teachers' Defined Contribution Retirement System to
transfer to the State Teachers Retirement System in the manner the
Legislature has determined by this enactment to be the most
conducive to the prudent and fiscally sound management of the State
Teachers Retirement System.
§18-7C-3. Definitions.
As used in this article, unless the context clearly requires
a different meaning:
(1)
"Actively contributing member of the Teachers' Defined
Contribution Retirement System" means a member of that retirement
system who was actively contributing to the Teachers' Defined
Contribution Retirement System on the thirty-first day of December,
two thousand seven.
(2) "Affirmatively elect to transfer" means the voluntary
execution and delivery to the Consolidated Public Retirement Board
by a member of the Teachers' Defined Contribution Retirement System
of a document in a form prescribed by the Board that irrevocably
authorizes the Board to transfer the member and all the member's assets in the Teachers' Defined Contribution Retirement System to
the State Teachers Retirement System;
(3) "Assets" means all member contributions and employer
contributions made on the member's behalf to the Defined
Contribution Retirement System and earnings thereon, less any
applicable fees as approved by the board:
Provided, That if a
member has withdrawn or cashed out any amounts, the amounts must
have been repaid.
(2)(4) "Board" means the Consolidated Public Retirement Board
established in article ten-d, chapter five of this code, and its
employees.
(3) "Date of merger" means, in the event of a positive vote on
the merger, the first day of July, two thousand six.
(4)(5) "Defined Contribution Retirement System" means the
Teachers' Defined Contribution Retirement System established in
article seven-b of this chapter.
(5)(6) "Salary" means:
(A) For a member contributing to the Defined Contribution
Retirement System during the two thousand
five seven fiscal year,
the actual salary earned for the two thousand
five seven fiscal
year divided by the employment service earned in the two thousand
five seven fiscal year.
(B) For a member not contributing to the Defined Contribution
Retirement System during the two thousand
five seven fiscal year, the contract salary on the date of rehire.
(6)(7) "State Teachers Retirement System" means the State
Teachers Retirement System established in article seven-a of this
chapter.
§18-7C-4. Merger Voluntary transfers.
(a)
Subject to In accordance with the provisions of
subsection
(b) of this
section article,
on the first day of July, two thousand
six, the Consolidated Public Retirement Board shall effect the
voluntary transfer of members of the Defined Contribution
Retirement System
shall be merged and consolidated with to the
State Teachers Retirement System.
pursuant to the provisions of
this article.
(b) If
a majority of the eligible voting at least seventy-five
percent of actively contributing members of the Teachers' Defined
Contribution Retirement System
affirmatively elect to transfer to
the State Teachers Retirement System within the period provided in
section eight of this article, then the Consolidated Public
Retirement Board shall transfer to the State Teachers Retirement
System, effective the first day of July, two thousand eight, all
members who affirmatively elected to do so during that period. If
at least seventy-five percent of actively contributing members of
the Teachers' Defined Contribution Retirement System do not
affirmatively elect to transfer to the State Teachers Retirement
System within that period, do not elect in favor of the merger, then
all of the provisions of this article are void and of no force
and effect and the Defined Contribution Retirement System continues
as the retirement system for all members in that system as of the
thirtieth day of June, two thousand
six eight.
§18-7C-5. Notice, education, record-keeping requirements.
(a) Commencing not later than the
first fifteenth day of
August, two thousand five March, two thousand eight, the
Consolidated Public Retirement Board shall begin an educational
program with respect to the
voluntary transfer of members of merger
of the Defined Contribution Retirement System
with and their assets
to the State Teachers Retirement System.
(1) This educational program shall address, at a minimum:
(A) The law providing for the
merger transfer;
(B) The mechanics of the
merger transfer;
(C) The
election process processes by which a member may
affirmatively elect to transfer;
(D) Relevant dates and time periods;
(E) The benefits, potential advantages and potential
disadvantages if members fail or refuse to
approve the merger
affirmatively elect to transfer and thereby elect to remain in the
Defined Contribution Retirement System;
(F) The benefits, potential advantages and potential
disadvantages of becoming a member of the State Teachers Retirement
System;
(G) Potential state and federal tax implications in general
attendant to the various options available to the members; and
(H) Any other pertinent information considered relevant by the
board.
(2) The board shall disseminate the information through:
(A) Its website;
(B) Computer programs;
(C) Written or electronic materials, or both
, delivered to
each member;
(D) Classes or seminars, if in the best judgment of the board
classes or seminars are required to provide the necessary education
for a member to make an informed decision with respect to the
election opportunity to affirmatively elect to transfer;
(E) At the discretion of the board, through a program of
individual counseling which is optional on the part of the member;
and
(F) Through any other educational program considered necessary
by the board.
(3) During the period provided by this section for the
educational program, each county board of education and its
superintendent shall allow representatives of the Consolidated
Public Retirement Board entry upon the premises of each school in
this state where the Consolidated Public Retirement Board
determines it to be appropriate on at least one occasion for the duration of at least sixty minutes during regular school hours to
provide such educational programs as the Consolidated Public
Retirement Board may determine appropriate for members of the
Teachers' Defined Contribution Retirement System.
(b) The board shall provide each member with a copy of the
written or electronic educational materials and with a copy of the
notice of the
election opportunity to affirmatively elect to
transfer, to the extent deliverable, by mailing a copy thereof,
first class postage prepaid, through the United States mails to the
most current mailing address provided by the member to the board.
The board is not required to deliver, nor is any member entitled to
delivery of, these materials by any other means.
(1) The notice shall provide full and appropriate disclosure
regarding the
merger and the election process
by which a member may
affirmatively elect to transfer, including the
date period of the
election opportunity to affirmatively elect to transfer.
(2) The board also shall cause notice of the
election
opportunity to affirmatively elect to transfer to be published in
at least ten newspapers of general circulation in this state. This
notice shall be:
(A) By Class III legal advertisement published in accordance
with the provisions of article three, chapter fifty-nine of this
code; and
(B) Published
not later than thirty days prior to the beginning of the election period and not sooner than sixty days
prior to the beginning of the election period pursuant to section
eight of this article at such time or times as the board, in its
discretion, may determine.
(c) It is the responsibility of each member of the Defined
Contribution Retirement System to keep the board informed of his or
her current address. A member who does not is considered to have
waived his or her right to receive any information from the board
with respect to the purposes of this article.
(d) Once the board has complied with the provisions of this
section, each member of the Defined Contribution Retirement System
is considered to have actual notice of the
election opportunity to
affirmatively elect to transfer and all matters pertinent
to the
election thereto.
§18-7C-6. Conversion of assets from Defined Contribution
Retirement System to State Teachers Retirement
System; contributions; loans.
(a)
If a majority of members voting elect to merge the Defined
Contribution Retirement System into the State Teachers Retirement
System:
(1) The consolidation and merger is governed by the provisions
of this article;
(2) The Defined Contribution Retirement System does not exist
after the thirtieth day of June, two thousand six; and
(3) If at least seventy-five percent of actively contributing
members of the Teachers' Defined Contribution Retirement System
affirmatively elect to transfer to the State Teachers Retirement
System within the period provided in section eight of this article,
then the Consolidated Public Retirement Board shall transfer the
members and all properties held in the Defined Contribution
Retirement System's Trust Fund in trust for those members who
affirmatively elected to do so during that period to the State
Teachers Retirement System, effective on the first day of July, two
thousand eight. All members of that system become members of the
State Teachers Retirement System as provided in this article.
(b) Following the election, if the vote is in favor of the
merger, the board shall transfer all properties held in the Defined
Contribution Retirement System's Trust Fund to the State Teachers
Retirement System.
(c)(b) To receive full credit in the State Teachers Retirement
System for service in the Defined Contribution Retirement System
for which assets are transferred, members
who affirmatively elected
to transfer within the period provided in section eight of this
article shall pay into the State Teachers Retirement System a one
and one-half percent contribution. This contribution shall be
calculated as one and one-half percent of the member's estimated
total earnings for which assets are transferred. Except as
otherwise provided in this section, each member shall pay the contribution required no later than the thirtieth day of June, two
thousand
seven nine.
(1) For a member contributing to the Defined Contribution
Retirement System at any time during the two thousand
five eight
fiscal year and commencing membership in the State Teachers
Retirement System on the first day of July, two thousand
six eight:
(A) The estimated total earnings shall be calculated based on
the member's salary and the member's age nearest birthday on the
thirtieth day of June, two thousand
five seven;
(B) This calculation shall apply both an annual backward
salary scale from that date for prior years' salaries and a forward
salary scale for the salary for the two thousand
six eight fiscal
year.
(2)
For a member not contributing to the Defined Contribution
Retirement System during the two thousand five fiscal year:
(A) The estimated total earnings shall be calculated based on
the member's salary and the member's age nearest birthday on the
member's date of rehire.
(B) This calculation shall apply a backward salary scale from
the member's date of rehire for prior years' salaries.
(3) The calculations in
subdivisions subdivision(1)
and (2) of
this subsection are based upon the salary scale assumption applied
in the West Virginia Teachers Retirement System Actuarial Valuation
as of the first day of July, two thousand
four seven, prepared for the Consolidated Public Retirement Board. This salary scale shall
be applied regardless of breaks in service.
(d) The board shall make available to each member a loan for
the purpose of paying all or part of the one and one-half percent
contribution required in this section. The loan shall be offered
in accordance with the provisions of section thirty-four, article
seven-a of this chapter.
(1) Notwithstanding any provision of this code, rule or policy
of the board to the contrary, the interest rate on any such loan
may not exceed seven and one-half percent per annum. The
amount
total
amount borrowed may not exceed
twelve twenty thousand
dollars.
(2) In the event a loan made pursuant to this section is used
to pay the one and one-half percent, the board shall make any
necessary adjustments at the time the loan is made.
(3)
Subject to the provisions of subdivision (4) of this
section, the The board shall make this loan available for members
until the thirtieth day of June, two thousand
seven nine.
(4) Upon returning to employment, a member who has left
employment but not withdrawn his or her funds shall pay the one and
one-half percent contribution within one year of being rehired.
The member is eligible for one year following the date of rehire to
obtain a loan for paying the contribution.
(e) The board shall develop and institute a payroll deduction program for repayment of the loan established in this section.
(f)
If the merger and consolidation is duly elected If at
least seventy-five percent of actively contributing members of the
Teachers' Defined Contribution Retirement System affirmatively
elect to transfer to the State Teachers Retirement System within
the period provided in section eight of this article:
(1) As of the first day of July, two thousand
six eight, the
transferred members' contribution rate becomes six percent of his
or her salary or wages; and
(2) All
transferred members who make a contribution into the
State Teachers Retirement System on
or after the first day of July,
two thousand
six eight, are governed by the provisions of article
seven-a of this chapter, subject to the provisions of this article.
(g) Subject to the provisions of subdivision (1) of this
subsection, if a member has withdrawn or cashed out part of his or
her assets, that member will not receive credit for those moneys
cashed out or withdrawn. The board shall make a determination as
to the amount of credit a member loses based on the periods of time
and the amounts he or she has withdrawn or cashed out, which shall
be expressed as a loss of service credit.
(1) A member may repay those amounts he or she previously
cashed out or withdrew, along with interest as determined by the
board, and receive the same credit as if the withdrawal or cash-out
never occurred. Such a member also shall pay the one and one-half percent contribution to receive full credit for the cashed-out or
withdrawn amounts being repaid to the State Teachers Retirement
System.
(2) The loan provided in this section is not available to
members to repay previously cashed out or withdrawn moneys.
(3) If the repayment occurs five or more years following the
cash-out or withdrawal, the member also shall repay any forfeited
employer contribution account balance along with interest
determined by the board.
(h) Notwithstanding any provision of subsection (g) to the
contrary, if a member has cashed out or withdrawn any of his or her
assets after the last day of June, two thousand
one three, and that
member chooses to repurchase that service after the thirtieth day
of June, two thousand
six eight, the member shall repay the
previously distributed amounts and any applicable interest to the
State Teachers Retirement System.
(i) Any service in the State Teachers Retirement System a
member has before the date of the
merger transfer is not affected
by the provisions of this article.
(j) The board shall take all necessary steps to see that the
voluntary transfers of persons and assets authorized by this
article do not affect the qualified status with the Internal
Revenue Service of either retirement plan.
§18-7C-7. Service credit in State Teachers Retirement System following
merger transfer; adjustments.
(a) Any member
who has affirmatively elected to transfer to
the State Teachers Retirement System within the period provided in
section eight of this article transferring all of his or her whose
assets
have been transferred from the Defined Contribution
Retirement System to the State Teachers Retirement System pursuant
to the provisions of this article and who has not made any
withdrawals or cash-outs from his or her assets is entitled to
service credit in the State Teachers Retirement System for each
year or part of a year, as governed by the provisions of article
seven-a of this chapter, the member worked and contributed to the
Defined Contribution Retirement System.
(b) Any
such member who has made withdrawals or cash outs will
receive service credit based upon the amounts transferred. The
board shall make the appropriate adjustment to the service credit
the member will receive.
(c) Any
such member's Defined Contribution Retirement System
service credit will be reduced by twenty-five percent if the member
does not pay the one and one-half percent contribution required by
this article upon transfer to the State Teachers Retirement System.
(d) Notwithstanding any provision of this code to the
contrary, the retirement of a member who becomes eligible to retire
after the member's assets are transferred to the state Teachers
Retirement System pursuant to the provisions of this article may not commence prior to the first day of September, two thousand
eight.
§18-7C-8. Election Period for affirmative election to transfer;
board may contract for professional services.
(a) The board shall
arrange for and hold an election for
provide the members of the Defined Contribution Retirement System
who are eligible to vote, pursuant to the provisions of subsection
(d) of this section, on the issue of merging and consolidating the
an opportunity to voluntarily execute and deliver to the
Consolidated Public Retirement Board a written document in a form
prescribed by the Board that irrevocably authorizes the Board to
transfer the member and all the member's assets in the Teachers'
Defined Contribution Retirement System
into to the State Teachers
Retirement System
in accordance with the provisions of this
article.
(b) If
a majority of the eligible voters casting ballots in
the election votes in the affirmative on the issue at least
seventy-five percent of actively contributing members of the
Teachers' Defined Contribution Retirement System affirmatively
elect to transfer to the State Teachers Retirement System:
(1)
All members of the Defined Contribution Retirement System
will transfer, or have transferred, all assets held by them or on
their behalf in the Defined Contribution Retirement System to the
State Teachers Retirement System The Consolidated Public Retirement Board shall, for each member who affirmatively elected to transfer
as provided in this section, transfer the assets held in the
Defined Contribution Retirement System's Trust Fund in trust for
that member to the State Teachers Retirement System on the first
day of July, two thousand eight;
(2) On the
date of the merger first day of July, two thousand
eight, each
member of those members becomes a member and is
entitled to the benefits of the State Teachers Retirement System
;
and
(3) Each member is governed by the provisions of the State
Teachers Retirement System subject to the provisions of this
article.
(c) If fewer than
one half of the members eligible to vote of
the Defined Contribution Plan cast ballots in the election, the
election is not valid and binding seventy-five percent of actively
contributing members of the Teachers' Defined Contribution
Retirement System affirmatively elect to transfer to the State
Teachers Retirement System, the transfers described in this section
shall not occur.
(d) Any person who has one dollar or more in assets in the
Defined Contribution Retirement System on the last day of December,
two thousand
five seven, may and is eligible to
vote in the
election affirmatively elect to transfer to the State Teachers
Retirement System as provided in this section. For purposes of this article, however:
(1) The tabulation of the percentage required for transfer as
required in this article shall only include documents affirmatively
electing to transfer submitted under the provisions of this
subsection by those who are actively contributing members of the
Teachers' Defined Contribution Retirement System as that term is
defined in section three of this article; and
(2) Notwithstanding the opportunity to submit documents
affirmatively electing to transfer extended by this article to
members other than those who are actively contributing members of
the Teachers' Defined Contribution Retirement System, there shall
be no duty or other obligation on the part of the Board to provide
any education, information, notice or other thing regarding matters
contained in this article to members who are not actively
contributing members of the Teachers' Defined Contribution
Retirement System regarding any matter described in this article,
nor any right on the part of those other members to receive the
same.
(e) Notwithstanding any other provision of this code to the
contrary, the board may do all things necessary and convenient to
maintain the Defined Contribution Retirement System and the State
Teachers Retirement System during the transitional period and may
retain the services of the professionals it considers necessary to
do so. The board may also retain the services of the professionals it deems necessary to
:
(1) Assist assist in the preparation of
the educational
materials
, for members of the Defined Contribution Retirement
System who are eligible to vote on the merger to inform these
members of their options in the election;
(2) Assist in the educational process
, of the members who are
eligible to vote on the merger;
(3) Assist in the election process and the election and the
process for the submission of the documents whereby members may
affirmatively elect to transfer;, and
(4) Ensure ensure compliance with all relevant state and
federal laws.
(f) Due to the time constraints inherent in the
merger process
initial processes established for the submission of documents
affirmatively electing to transfer set forth in this article in
specific, and due to the nature of the professional services
required by the Consolidated Public Retirement Board in general,
the provisions of article three, chapter five-a of this code
,
relating to the Division of Purchasing of the Department of
Administration do not apply to any
materials, contracts for any
actuarial services, investment services, legal services or other
professional services authorized under the provisions of this
article.
(g) The
election submission of the documents whereby members may affirmatively elect to transfer may be
held through
certified
mail or in any
other method the board determines is in the best
interest of the members.
Each ballot shall contain the following
language, in bold fifteen-point type: "By casting this ballot I am
making an educated, informed and voluntary choice as to my
retirement and the retirement system of which I wish to be a
member. I am also certifying that I understand the consequences of
my vote in this election." Each ballot shall be signed by the
member voting. The board shall retain the ballots in a permanent
file. Any unsigned ballot is void.
(h) The
election period
for submission of the documents
whereby members may affirmatively elect to transfer shall begin not
later than the first day of
March May, two thousand
six eight. The
board shall ascertain the results of the
election submissions not
later than the last day of
March May, two thousand
six eight. The
board shall certify the results of the
election submissions to the
Governor, the Legislature and the members not later than the fifth
day of
April June, two thousand
six eight.
(i) The
election submission period terminates and
votes
submissions may not be cast or counted after the twelfth day of
March May, two thousand
six eight, unless
the election is conducted
submissions are permitted through the United States mail. If
conducted submissions are permitted through the mail, any
ballot
submission postmarked later than the twelfth day of
March May, two thousand
six eight, is void and may not be counted.
(j) The board shall take all necessary steps to see that the
merger does not affect the qualified status with the Internal
Revenue Service of either retirement plan.
§18-7C-9. Election Results considered final.
(a) The election is considered final and each member, whether
he or she voted or failed to vote, is bound by the results of the
election. Every member
of the Teachers' Defined Contribution
Retirement System is considered to have made an informed, educated,
knowing and voluntary decision and choice with respect to the
election opportunities provided by this article to transfer
membership and assets to the State Teachers Retirement System.
Those members Each member who failed or refused to
vote are
affirmatively elect to transfer is also considered to have made an
informed, educated, knowing and voluntary decision and choice with
respect
to the election and voting thereto and
are is bound by the
results
thereof. of the election as if he or she had voted in the
election.
(b) Only one election may be held pursuant to the provisions
of this article.
§18-7C-10. Qualified domestic relations orders.
Any member having a qualified domestic relations order against
his or her defined contribution account is allowed to repurchase
service in the State Teachers Retirement System. The member shall repay any moneys previously distributed to the alternate payee
along with the interest as set by the board. The member shall
repay by the last day of June, two thousand
twelve fourteen. The
provisions of this section are void and of no effect if
the members
fail to elect to merge and consolidate there is no transfer from
the Defined Contribution Retirement System
with to the State
Teachers Retirement System.
An alternate payee is not, solely as
a result of that status, a member of either the Defined
Contribution Retirement System or the State Teachers Retirement
System for any purpose under the provisions of this article and no
interest held by the alternate payee is transferred to the State
Teachers Retirement System pursuant thereto.
§18-7C-11. Vesting.
Any member who works one hour or more after
the date of merger
occurs his or her assets are transferred to the state teachers
retirement system pursuant to this article is subject to the
vesting schedule set forth in article seven-a of this chapter:
Provided, That if a member is vested under the Defined Contribution
Retirement System and his or her last contribution was not made to
the State Teachers Retirement System, that member is subject to the
vesting schedule set forth in article seven-b of this chapter.
§18-7C-12. Minimum guarantees.
(a) Any member of the Defined Contribution Retirement System
who has made a contribution to the State Teachers Retirement System after
the date of merger his or her assets are transferred to the
state teachers retirement system pursuant to this article is
guaranteed a minimum benefit equal to his or her member
contributions plus the vested portion of employer contributions
made on his or her behalf to the Defined Contribution Retirement
System as of the thirtieth day of June, two thousand
six eight,
plus any earnings thereon, as stated by the board or the board's
professional contractor.
(b) A member of the Defined Contribution Retirement System who
has made contributions to the State Teachers Retirement System
after
the thirtieth day of June, two thousand six, where the
Defined Contribution Retirement System has been merged into the
State Teachers Retirement System his or her assets are transferred
to the state teachers retirement system pursuant to this article,
upon eligibility to receive a distribution under article seven-a of
this chapter, shall have at a minimum the following three options:
(1) The right to receive an annuity from the State Teachers
Retirement System based upon the provisions of article seven-a of
this chapter;
(2) The right to withdraw from the State Teachers Retirement
System and receive his or her member accumulated contributions in
the State Teachers Retirement System, plus regular interest
thereon, as set forth in article seven-a of this chapter; or
(3) The right to withdraw and receive his or her member contributions plus the vested portion of employer contributions
made on his or her behalf to the Defined Contribution Retirement
System, plus any earnings thereon as of the date
of the merger his
or her assets are transferred to the state teachers retirement
system pursuant to this article, as determined by the board or its
professional third-party benefits administrator pursuant to the
vesting provisions of section twelve of this article. This amount
may shall be distributed in a lump sum
or in periodic payments as
elected by the member.
(c) Any member of the Defined Contribution Retirement System
who makes no contribution to the State Teachers Retirement System
following approval of the merger and following the date of merger
after his or her assets are transferred to the state teachers
retirement system pursuant to this article is guaranteed the
receipt of the amount in his or her total vested account in the
Defined Contribution Retirement System on the date of
merger the
transfer, plus interest thereon, at four percent accruing from the
date of
merger the transfer. This amount
may shall be distributed
in a lump sum
or in periodic payments as elected by the member.
§18-7C-13. Due process and right to appeal.
Any If the board determines that at least seventy-five percent
of actively contributing members of the Teachers' Defined
Contribution Retirement System affirmatively elected to transfer to
the State Teachers Retirement System within the period provided in section eight of this article, any person aggrieved by any
determination made by the board
thereafter following the election,
if the result of the election is in favor of merger and
consolidation, may petition the board and receive an administrative
hearing on the matter in dispute. The administrative decision may
be appealed to a circuit court.
§18-7C-14. Nonseverability Additional opportunity for transfer.
If any provision of this article is held unconstitutional or
void, the remaining provisions of this article shall be void and of
no effect and, to this end, the provisions of this article are
hereby declared to be nonseverable.
(a) If at least seventy-five percent of actively contributing
members of the Teachers' Defined Contribution Retirement System
affirmatively elect to transfer to the State Teachers Retirement
System within the period provided in section eight of this article,
then members of the Defined Contribution Retirement System who
failed or refused to affirmatively elect to transfer within the
period provided in said section eight shall have one additional
opportunity to affirmatively elect to transfer, subject to the
conditions and limitations provided by this section.
(b) The additional opportunity described in subsection (a) of
this section is available only if, beginning the first day of July,
two thousand eight through the thirty-first day of December, two
thousand eight, the member voluntarily executes and delivers to the Consolidated Public Retirement Board a written document in a form
prescribed by the Board that irrevocably authorizes the Board to
transfer the member and all the member's assets in the Teachers'
Defined Contribution Retirement System to the State Teachers
Retirement System. The provisions of section five of this article
requiring notice, counseling or any other manner of education are
not applicable to the provisions of this section.
(c)(1) In the event the member affirmatively elects to
transfer to the State Teachers Retirement System within the period
provided in subsection (b) of this section, then the Consolidated
Public Retirement Board shall transfer the member and all
properties held in the Defined Contribution Retirement System's
Trust Fund in trust for the member to the State Teachers Retirement
System, effective on the first day of July, two thousand nine,
subject to conditions provided in subdivision (2) of this
subsection:
(2) To receive full credit in the State Teachers Retirement
System for service in the Defined Contribution Retirement System
for which assets are transferred, the member shall pay into the
State Teachers Retirement System a one and one-half percent
contribution. This contribution shall be calculated as one and
one-half percent of the member's estimated total earnings for which
assets are transferred, plus interest of seven and one-half percent
compounded per annum accumulated from the date of the member's initial participation in the Defined Contribution Retirement
System. Except as otherwise provided in this section, each member
shall pay the contribution required no later than the thirtieth day
of June, two thousand ten.
(A) For a member contributing to the Defined Contribution
Retirement System at any time during the two thousand nine fiscal
year and commencing membership in the State Teachers Retirement
System on the first day of July, two thousand nine:
(i) The estimated total earnings shall be calculated based on
the member's salary and the member's age nearest birthday on the
thirtieth day of June, two thousand eight;
(ii) This calculation shall apply both an annual backward
salary scale from that date for prior years' salaries and a forward
salary scale for the salary for the two thousand nine fiscal year.
(B) The calculations in paragraph (A) of this subdivision are
based upon the salary scale assumption applied in the West Virginia
Teachers Retirement System Actuarial Valuation as of the first day
of July, two thousand eight, prepared for the Consolidated Public
Retirement Board. This salary scale shall be applied regardless of
breaks in service.
(d) Notwithstanding any provision of section six of this
article to the contrary, the loan made available under section six
of this article shall be made available for members who are
transferred on the first day of July, two thousand nine, until the thirtieth day of June, two thousand ten.
(e) Except as provided in this section, the remainder of the
provisions of this article that are applicable to members who are
transferred on the first day of July, two thousand eight, are
applicable to members who are transferred on the first day of July,
two thousand nine
(f)(1) After the thirtieth day of June, two thousand nine, the
Consolidated Public Retirement Board may not transfer any member of
the Defined Contribution Retirement System who fails or refuses to
affirmatively elect to transfer within the additional period
provided in this section except as provided in subdivision (2) of
this subsection.
(2) A member of the Defined Contribution Retirement System who
fails to affirmatively elect to transfer because he or she is on
extended medical leave covered by Workers' Compensation, or on
maternity leave, or was performing service in the Armed Forces of
the United States, may affirmatively elect to transfer after the
expiration of the period described in this section, subject to the
conditions provisions of this section, if the member submits the
required document in a form prescribed by the Board that
irrevocably authorizes the Board to transfer the member and all the
member's assets in the Teachers' Defined Contribution Retirement
System to the State Teachers Retirement System within thirty days
after the member returns to employment.
§18-7C-15. Funding.
To the extent that the Legislature determines that the
operation of the amendment and reenactment of this article in two
thousand eight may cause additional unfunded actuarially accrued
liability in the State Teachers Retirement System, the amounts
provided by the Legislature through appropriations made for the
purpose of offsetting the additional unfunded actuarially accrued
liability shall be applied, together with any savings therefrom, to
the full amortization of the additional amount through two thousand
thirty-four.