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Introduced Version Senate Bill 680 History

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Senate Bill No. 680

(By Senators Helmick and Sprouse)

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[Introduced March 26, 2001; referred to the Committee on Pensions; and then to the Committee on Finance.]

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A BILL to amend and reenact section four-a, article twenty-three, chapter eighteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to the supplemental and additional retirement plans for the employees of state institutions of higher education.

Be it enacted by the Legislature of West Virginia:
That section four-a, article twenty-three, chapter eighteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 23. ADDITIONAL POWERS, DUTIES AND RESPONSIBILITIES OF GOVERNING BOARDS OF STATE INSTITUTIONS OF HIGHER EDUCATION.

§18-23-4a. Supplemental and additional retirement plans for employees; payroll deductions; authority to match employee contributions; retroactive curative and technical corrective action.

The governing boards shall have the authority to contract for a supplemental retirement plan for any or all of its employees to supplement the benefits such employees will receive under the state teachers retirement system. The governing boards shall have the authority to make additional periodic deductions from the salary payments due such employees in the amount they are required to contribute for the supplemental retirement plan selected by the board. The additional deductions shall not exceed five percent of the salary of employees under thirty-five years of age, six percent of the salary of those thirty-five through forty-four years of age, and seven and one-half percent of the salary of those forty-five years of age and above, and shall not cover any portion of an employee's salary which is covered by the state teachers retirement system.
The governing boards shall also have the authority to contract for an additional retirement plan for any of its employees who elect to participate solely in such a retirement plan selected by the governing boards without participating in the state retirement system. The governing boards shall have the authority to make periodic deductions from the salary payments due such employees in the amount they are required to contribute to the additional plan, which deductions shall be the same percentage of the participating employees' salaries as that deducted from the salaries of members of the state retirement system.
The board is further authorized, by way of additional compensation to such employees, to pay an amount equal to the contributions of such employees into either the supplemental or additional retirement plan from funds appropriated to it for personal services. Each participating employee shall have a full and immediate vested interest in the retirement and death benefits accrued from all the moneys paid into such supplemental or additional retirement plan for his or her benefit. Upon proper requisition of the board, the auditor shall periodically issue a warrant, payable as specified in the requisition, for the total contributions so withheld from the salaries of all participating employees and for the governing board's matching funds.
Pursuant to the provisions contained in article seven-a and article twenty-three of this chapter, once a member has elected one of the options contained in section fourteen-a, article seven-a of this chapter and section four-a, article twenty-three of this chapter, he or she cannot thereafter change such election. The Legislature declares that the amendment of this section in Enrolled Committee Substitute for House Bill No. 4672, enacted at the regular session, one thousand nine hundred eighty-eight, was inadvertent and remained in said bill contrary to legislative intent that the same be deleted; therefore, such language is hereby retroactively deleted and expunged as of the effective date of said Enrolled Committee Substitute for House Bill No. 4672 as curative and technical corrective action. The Legislature further declares that such ambiguous and deficient language inadvertently enacted in said bill shall be given no force and effect whatsoever in any litigation involving such language.
Beginning on the first day of July, one thousand nine hundred ninety-one, any person whose employment commences on or after that date and is eligible to participate in an additional retirement plan provided pursuant to this section shall be required to participate in said additional plan and shall not be eligible to participate in any other state retirement system. On or before the first day of January, two thousand two, the governing boards shall provide a choice of no fewer than three vendors and no more than six vendors of retirement products and services who are authorized to do business in this state to all their employees who participate in the additional retirement plan provided pursuant to this section. The vendors shall be chosen by the higher education policy commission, established pursuant to article one-b, chapter eighteen-b of this code, pursuant to a request for proposal issued pursuant to provisions of section four, article five, chapter eighteen-b of this code.


NOTE: The purpose of this bill is to require the governing boards of the state institutions of higher education to provide to its employees a choice of no fewer than three nor more than ten vendors of retirement products and services. Vendors are to be chosen by one board pursuant to a request for proposal.

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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