H. B. 2382
(By Delegates Howard, Sobonya and Sumner)
[Introduced February 16, 2005; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §18-7B-8 of the code of West Virginia,
1931, as amended, relating to providing the option for
teachers who withdrew from the State Teachers Retirement
System in favor of the Defined Contribution Retirement System,
to exercise the option to return to the State Teachers
Retirement System.
Be it enacted by the Legislature of West Virginia:
That §18-7B-8 of the code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 7B. TEACHERS' DEFINED CONTRIBUTION RETIREMENT SYSTEM.
§18-7B-8. Voluntary participation in system.
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: Provided further, That any former member of the Teachers Retirement System who withdrew his or her contributions to be
included in the Defined Contribution Retirement System under the
provisions of this article shall be afforded the option to convert
back to the retirement system provided under this article. In
order to reenlist into the State Teachers Retirement System, he or
she shall deposit in the teachers accumulation fund established
under the provisions of section eighteen of this article, a sum in
the amount previously withdrawn and transferred, and may
additionally deposit any additional sum accumulated under the
Defined Contribution Retirement System since such withdrawal and
transfer. Any sums so deposited shall be made together with
interest thereon at a rate percentage per annum sufficient to
insure the actuarial soundness of the fund. The Consolidated
Public Retirement Board shall propose legislative rules in
accordance with article three, chapter twenty-nine-a of the code,
designed to effectuate this provision.
NOTE: The purpose of this bill is to provide the option for
teachers who withdrew from the State Teachers Retirement System in
favor of the Defined Contribution Retirement System, to exercise
the option to return to the State Teachers Retirement System.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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