H. B. 4300

(By Delegates Campbell, J. Smith, Browning,
Hubbard, Keener, Hall and Harrison)
[Introduced January 30, 2002; referred to the
Committee on Pensions and Retirement then Finance.]

A BILL to amend article twenty-two, chapter eight of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section twenty-a, relating to municipal police and firemen's pension and relief funds; requiring the treasurer to select and contract with a single qualified actuary to serve as a technical adviser with respect to same; requiring annual valuations of same; and specifying requirements for reporting said valuations.

Be it enacted by the Legislature of West Virginia:
That article twenty-two, chapter eight of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section twenty-a, to read as follows:

ARTICLE 22. RETIREMENT BENEFITS GENERALLY; POLICEMEN'S PENSION AND RELIEF FUND; FIREMEN'S PENSION AND RELIEF FUND; PENSION PLANS FOR EMPLOYEES OF WATERWORKS SYSTEM, SEWERAGE SYSTEM OR COMBINED WATERWORKS AND SEWERAGE SYSTEM.

§8-22-20a. Hiring of actuary; preparation of actuarial valuations.
(a) Notwithstanding any other provision of this code to the contrary, beginning the first day of July, two thousand two, the state treasurer shall select by competitive bid and contract with a single qualified actuary who shall be the technical advisor to the treasurer with regard to the operation of the municipal police and firemen's pension and relief funds and who shall report annually to the treasurer with regard to all such funds existing in this state by virtue of this article. The treasurer is authorized to pay for costs associated with the actuary's work out of the fund established pursuant to section fourteen-d, article three, chapter thirty-three of this code.
(b) With respect to each municipal police or firemen's pension and relief fund, the actuary shall complete an annual valuation in accordance with actuarial standards of practice promulgated by the actuarial standards board of the American academy of actuaries. The report of the valuation shall include: (1) A summary of the benefit provisions evaluated; (2) a summary of the census data and financial information used in the valuation; (3) a description of the actuarial assumptions, actuarial costs method and asset valuation method used in the valuation, including a statement of the assumed rate of payroll growth and assumed rate of growth or decline in the number of the fund members' contribution to the pension fund; (4) a summary of findings that includes a statement of the actuarially accrued pension liabilities and unfunded actuarial accrued pension liabilities; (5) a schedule showing the effect of any changes in the benefit provisions, actuarial assumptions or cost methods since the last annual actuarial valuation; (6) a statement of whether contributions to the pension fund are in accordance with the provisions of this chapter and whether they are expected to be sufficient; and (7) such other matters as determined by the treasurer to be necessary or appropriate.

NOTE: The purpose of this bill is to require the state treasurer to retain a single qualified actuary to review and evaluate all municipal police and firefighters' pension plans.

This section is new; therefore, strike-throughs and underscoring have been omitted.

This bill is recommended for passage during the 2002 Regular Session by the Joint Committee on Pensions and Retirement.