Senate Bill No. 150
(By Senators Foster, Jenkins, Browning, Hall and Plymale)
[Introduced January 11, 2012; referred to the Committee on Pensions; and then to the Committee on Finance.]
A BILL to amend and reenact §5-10-31 of the Code of West Virginia, 1931, as amended, relating to the maximum contribution rate to be paid by a participating public employer under the West Virginia Public Employees Retirement System.
Be it enacted by the Legislature of West Virginia:
That §5-10-31 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-31. Employers Accumulation Fund; employers contributions.
(a) The Employers Accumulation Fund is hereby continued. It shall be is the fund in which shall be accumulated the contributions made by the participating public employers to the retirement system are accumulated, and from which transfers shall be are made as provided in this section.
(b) Each participating public employer shall contribute to the
fund an amount determined by the board. However, in no year may the total of the contributions provided in this section, to be paid by any participating public employer, exceed fourteen and five-tenths percent of the total payroll for the members in the employ of the participating public employer for the preceding fiscal year. If the board finds that the benefits provided by this article can be adequately funded with a lesser contribution, then the board shall reduce the required employer contribution.
(b)(c) Based upon the provisions of section thirteen of this article, the participating public employers' contributions to the retirement system, as determined by the Consolidated Public Retirement Board by legislative rule promulgated in accordance with the provisions of article three, chapter twenty-nine-a of this code, shall be a percent of the members' total annual compensation related to benefits under this retirement system. In determining the amount, the board shall give consideration to setting the amount at a sum equal to an amount which, if paid annually by the participating public employers, will be sufficient to provide for the total normal cost of the benefits expected to become payable to all members and to amortize any unfunded liability found by application of the actuarial funding method chosen for that purpose by the Consolidated Public Retirement Board, over a period of years determined actuarially appropriate. When proposing a rule for promulgation which relates to the amount of employer contribution, the board may promulgate emergency rules pursuant to the provisions of article three, chapter twenty-nine-a of this code, if the inability of the board to increase employer contributions will detrimentally affect the actuarial soundness of the retirement system. A signed statement from the state actuary shall accompany the statement of facts and circumstances constituting an emergency which shall be filed in the State Register. For purposes of this section, subdivision (2), subsection (b), section fifteen-a, article three, chapter twenty-nine-a of this code is not applicable to the Secretary of State's determination of whether an emergency rule should be approved.
NOTE: The purpose of this bill is to clarify the authority of the West Virginia Consolidated Public Retirement Board to determine the participating public employer contribution rate under the provisions of the Public Employees Retirement System and to cap the total contribution paid by participating public employers.
Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.