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Introduced Version House Bill 3093 History

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hb3093 intr
H. B.3093

(By Delegate Craig)

[Introduced March 18; 2005; Referred to the

Committee on Pensions and Retirement then Finance.]






A BILL to amend and reenact §18-7B-7 of the Code of West Virginia, 1931, as amended, relating to membership in the teachers' defined contribution plan; clarifying that all new employees are members as a condition of employment; providing for the termination of membership of River Valley Child Development Services, Inc.; providing for withdrawal from system without forfeiture; specifying time periods; requiring pension plan in lieu of teachers' defined contribution plan; notice; and option.

Be it enacted by the Legislature of West Virginia:
That §18-7B-7 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-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 system shall be the single retirement program for all new employees whose employment commences on or after that date
and all new employees are required to participate as a condition of employment . 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 to participating employment after the effective date of this section has the right to elect to 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 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 for 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, persons making the election provided in this section whose defined contribution account had not, prior to such 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 persons making the election provided for in this section whose defined contribution account had, prior to such election, previously been divided by a qualified domestic relations order, the cost to such person 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 for in this subsection, persons 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 members 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.
(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 said 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 May, 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.


Note: The purpose of this bill is to permit River Valley Child Development Services, Inc. to withdraw from TDC. River Valley is required to provide an alternative plan.

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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