H. B. 3227
(By Delegates Fragale and Caputo)
[Introduced January 9, 2008; referred to the
Committee on Finance.]
A BILL to amend and reenact §18-7B-7 of the Code of West Virginia,
1931, as amended, relating to providing the option for former
state employees who were members of the West Virginia Public
Employees Retirement System prior to the first day of July,
one thousand nine hundred ninety-one, who became employed with
a school district after the first day of July, one thousand
nine hundred ninety-one, and who were precluded from becoming
members of the State Teachers' Retirement System in favor of
the defined contribution retirement system, to exercise the
option to transfer to the State Teachers' Retirement System.
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 for 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. No additional new employees except as may
be provided for 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 for 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 for 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) Any person who was, prior to the first day of July, one
thousand nine hundred ninety-one, a participating member of the
West Virginia Public Employees Retirement System and who after the
first day of July, one thousand nine hundred ninety-one, became a
participating member of the Teachers' Defined Contribution
Retirement System as a result of prior provisions of this section,
may elect, pursuant to the provisions of this section, admission 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 participate
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 thirteenth day of June, two thousand seven: Provided,
however, That as a condition of the right of admission to the
existing Teachers Retirement System, persons who make 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 into the State Teachers' Retirement System one and one-half of one percent of the member's salary as of
the thirtieth day of June, two thousand seven, multiplied by the
number of years the member transferred from the defined
contribution plan into the State Teachers' Retirement System. They
shall, additionally, consent and agree to the transfer of their
total account balance in the defined contribution system, as of the
most recent plan evaluation, immediately preceding their transfer
to the existing Teachers' Retirement System. For persons making
the election provided in this section, whose defined contribution
account had, prior to making the election, previously been divided
by a qualified domestic relations order, the cost to the person to
transfer to the existing Teachers' Retirement System shall be
determined by the Consolidated Public Retirement Board. Upon
verification of that person's eligibility to participate in the
existing Teachers' Retirement System and on the tender and transfer
of funds as provided 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 participate in the existing
Teachers' Retirement System, as provided in this section, is
irrevocable.
NOTE: The purpose of this bill is to provide the option for
former state employees who were members of the West Virginia Public
Employees Retirement System prior to the first day of July, one
thousand nine hundred ninety-one, who became employed with a school
district after the first day of July, one thousand nine hundred
ninety-one, and who were precluded from becoming members of the
State Teachers' Retirement System in favor of the defined
contribution retirement system, to exercise the option to transfer
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.
Email
Webmaster | © 2024 West Virginia Legislature **
