H. B. 2584
(By Delegate Richards)
[Introduced March 12, 1993; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact section twenty-eight, article seven-
a, chapter eighteen of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
permitting surviving retirees or beneficiaries of the
teachers retirement system to change the survivor option in
a retirement annuity in the event of the death of the
retiree or the beneficiary within five years of retirement.
Be it enacted by the Legislature of West Virginia:
That section twenty-eight, article seven-a, chapter eighteen
of the code of West Virginia, one thousand nine hundred thirty-
one, as amended, be amended and reenacted to read as follows:
§18-7A-28. Options to beneficiaries; change of certain options
because of divorce, annulment or death of spouse;
limitation on recalculated monthly benefits.
The retirement board is hereby authorized to offer plans,
optional with the beneficiary, for the payment of allowances due
such beneficiary for retirement, withdrawal or prior servicepensions under the retirement system. No plans shall be offered,
however, which are not approved by competent actuaries.
When a beneficiary and his spouse have been approved for a
retirement plan which provides for them a joint life annuity, and
(1) their marriage is subsequently dissolved, or (2) the spouse
dies during the first five years of the beneficiary's retirement,
the board shall permit such beneficiary to convert to the maximum
life annuity plan approved by the board:
Provided, That
the
beneficiary shall furnish to the board (1) proof of entry of a
final decree of divorce or annulment, or (2) proof of the
spouse's death:
Provided, however,
That a beneficiary who
qualifies for the change of retirement plans afforded by this
section shall be permitted only one such change:
Provided
further,
That the recalculated monthly benefits, independently of
increases granted by law after the beneficiary's retirement,
shall not exceed the monthly benefits which would have been
applicable under the maximum life annuity plan at the time the
beneficiary retired; and with such recalculation to be effective
on the first day of the month following submission to the board
by the beneficiary of proof of entry of a final decree of divorce
or annulment.
NOTE: The purpose of this bill is to permit retired
employees of the teachers retirement system who choose the
survivor option for their retirement annuity or a surviving
beneficiary to change that option in the event of the death of
the employee or beneficiary within five years of retirement.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.