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SB207 SUB1 Senate Bill 207 History

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SB207 SUB1
COMMITTEE SUBSTITUTE

FOR


Senate Bill No. 207

(By Senators Jenkins, Edgell, McCabe, Boley and Harrison)

____________

[Originating in the Committee on Pensions;

reported March 1, 2005.]

____________


A BILL to amend and reenact §5-10-18 of the Code of West Virginia, 1931, as amended, relating to permitting Jobs for West Virginia's Graduates to provide an alternate retirement plan in lieu of participation in Public Employees Retirement System; providing deadline to establish alternate plan; requiring continuation of plan; setting time period for existing employees to withdraw from or remain in the state retirement system; requiring notice; and requiring record of receipt of notice.

Be it enacted by the Legislature of West Virginia:
That §5-10-18 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-18. Termination of membership; reentry.
(a) When a member of the retirement system retires or dies, he or she ceases to be a member. When a member leaves the employ of a participating public employer for any other reason, he or she ceases to be a member and forfeits service credited to him or her at that time. If he or she becomes reemployed by a participating public employer he or she shall be reinstated as a member of the retirement system and his or her credited service last forfeited by him or her shall be restored to his or her credit: Provided, That he or she must be reemployed for a period of one year or longer to have the service restored: Provided, however, That he or she returns to the members' deposit fund the amount, if any, he or she withdrew from the fund, together with regular interest on the withdrawn amount from the date of withdrawal to the date of repayment, and that the repayment begins within two years of the return to employment and that the full amount is repaid within five years of the return to employment.
(b) The Prestera Center for Mental Health Services, Valley Comprehensive Mental Health Center, Westbrook Health Services and Eastern Panhandle Mental Health Center, and their successors in interest, shall provide for their employees a pension plan in lieu of the Public Employees Retirement System during the existence of the named mental health centers and their successors in interest.
(c) The administrative bodies of the Prestera Center for Mental Health Services, Valley Comprehensive Mental Health Center, Westbrook Health Services and Eastern Panhandle Mental Health Center shall, on or before the first day of May, one thousand nine hundred ninety-seven, give written notice to each employee who is a member of the Public Employees 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 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 Public Employees Retirement System until retirement, disability or death, in comparison with the projected return upon withdrawing from the Public Employees Retirement System and joining a private pension plan provided by the Community Mental Health Center and remaining therein until retirement, disability or death. The administrative bodies shall keep in their respective records a permanent record of each employee's signature confirming receipt of the notice.
(d) Effective the first day of March, two thousand three, and ending the thirty-first day of December, two thousand four, any member may purchase credited service previously forfeited by him or her and the credited service shall be restored to his or her credit: Provided, That he or she returns to the members' deposit fund the amount, if any, he or she withdrew from the fund, together with interest on the withdrawn amount from the date of withdrawal to the date of repayment at a rate to be determined by the board. The repayment under this section may be made by lump sum or repaid over a period of time not to exceed sixty months. Where the member elects to repay the required amount other than by lump sum, the member is required to pay interest at the rate determined by the board until all sums are fully repaid.
(e)(1) Jobs for West Virginia's Graduates and their successors in interest shall provide for their employees a pension plan in lieu of the Public Employees Retirement System on or before the first day of July, two thousand five, and continuing thereafter during the existence of Jobs for West Virginia's Graduates and its successors in interest.
(2) Effective the first day of July, two thousand five, and continuing through the first day of January, two thousand six, any employee of Jobs for West Virginia's Graduates who is a member of the Public Employees Retirement System may elect to remain an active member of the retirement system, to withdraw from membership in the system leaving his or her account balance and retaining service credited to him or her, or to withdraw from membership and cash out any balance due from his or her account.
(3) The administrative body of Jobs for West Virginia's Graduates shall, on or before the first day of June, two thousand five, give to each employee who is a member of the Public Employees Retirement System, written notice of the option to remain in or withdraw from the system. The notice shall include a copy of this section of the West Virginia Code 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 Public Employees Retirement System until retirement, disability or death, in comparison with the projected return upon withdrawing from the Public Employees Retirement System and joining a private pension plan provided by Jobs for West Virginia's Graduates, and remaining therein until retirement, disability or death. The Consolidated Public Retirement Board shall provide projections to the independent actuary retained by the employer relating to each current employee's account balance, vested and nonvested, and his or her projected return upon remaining in the Public Employees Retirement System until retirement, disability or death. The administrative body of Jobs for West Virginia's Graduates shall keep in its records a permanent record of each employee's signature confirming receipt of the notice.

NOTE: The purpose of this bill is to permit
Jobs for West Virginia's Graduates to provide for their employees an alternate pension plan in lieu of the Public Employees Retirement System, and to allow current employees of the organization to elect to remain in the state system or withdraw from the system.

SB207 was recommended by the Joint Committee on Pensions and Retirement.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be adde
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