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Introduced Version House Bill 2382 History

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hb2382 intr
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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