H. B. 4679


(By Delegate Brown)
[Introduced March 2, 1994; referred to the
Committee on Pensions and Retirement.]




A BILL to amend article seven-a, chapter eighteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section twenty-five-b, relating to allowing persons receiving disability retirement under teacher's defined contribution retirement system to choose an option allowing for survivor's benefits.
Be it enacted by the Legislature of West Virginia:

That article seven-a, chapter eighteen 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-five-b, to read as follows:
ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.

§ 18-7A-25b. Annuity options for disability retirement.

Prior to the effective date of his or her retirement, but not thereafter, a member may elect to receive any disability annuity, as provided in section twenty-five of this article, that he or she may be entitled to as a straight disability annuity payable throughout the term of his or her disability, or he or she may elect to receive the actuarial equivalent, at the time, of his or her straight disability annuity in a reduced annuity payable throughout his or her disability, and nominate a beneficiary, in accordance with option A or B set forth below:

 Option A -- Joint and survivor annuity. -- Upon the death of a disabled retirant, who elected Option A, his or her reduced annuity shall be continued throughout the life of and paid to such person, having an insurable interest in his or her life, as he or she shall have nominated by written designation duly executed and filed with the board prior to the effective date of his or her retirement and, in any event, prior to any extended period of disability: Provided , That for the purpose of this section "extended period of disability" means a period of time wherein a member has continuously been on disability status pursuant to the requirements to qualify for such status as set forth in section twenty-five of this article for six consecutive months; or
 Option B -- Modified joint and survivor annuity. -- Upon the death of a disabled retirant, who elected Option B, one half of his or her reduced annuity shall be continued throughout the life of and paid to such person, having an insurable interest in his or her life, as he or she shall have nominated by written designation duly executed and filed with the board prior to the effective date of his or her retirement and, in any event, prior to any extended period of disability as such period is defined in the preceding paragraph.



NOTE: The purpose of this bill is to allow persons receiving disability retirement under the teacher's defined contribution retirement system to choose an option allowing for survivor's benefits.

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