ENROLLED
Senate Bill No. 436
(By Senators Yost, Klempa, Unger and Plymale)
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[Passed March 12, 2011; in effect ninety days from passage.]
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AN ACT to amend and reenact §11-21-12d of the Code of West
Virginia, 1931, as amended, relating to continuing the
personal income tax adjustment to the gross income of certain
retirees receiving pensions from defined pension plans that
terminated and are being paid a reduced maximum benefit
guarantee.
Be it enacted by the Legislature of West Virginia:
That §11-21-12d of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
PART I. RESIDENTS.
§11-21-12d. Additional modification reducing federal adjusted
gross income.
In addition to amounts authorized to be subtracted from
federal adjusted gross income pursuant to subsection (c), section twelve of this article, any person who retires under an employer-
provided defined benefit pension plan that terminates prior to or
after the retirement of that person and the pension plan is covered
by a guarantor whose maximum benefit guarantee is less than the
maximum benefit to which the retiree was entitled had the plan not
terminated may subtract annually from his or her federal adjusted
income a sum equal to the difference in the amount of the maximum
annual pension benefit the person would have received for such tax
year had the plan not terminated and the maximum annual pension
benefit actually received from the guarantor under a benefit
guarantee plan:
Provided, That if the Tax Commissioner determines
that this adjustment reduces the revenues of the state by
$2 million or more in any one year, then the Tax Commissioner shall
reduce the percentage of the reduction to a level at which the
commissioner believes will reduce the cost of the adjustment to
$2 million for the next year. This tax adjustment is effective for
taxable years beginning on and after January 1, 2008:
Provided,
however, That for the taxable year 2007, the tax adjustment shall
be effective and shall apply retroactively:
Provided further, That
the adjustment terminates for the tax years on and after January 1,
2015. This modification is available regardless of the type of
return form filed.