Senate Bill No. 227
(By Senators Wehrle and Lucht)
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[Introduced January 31, 1994;; referred to the Committee
on Pensions; and then to the Committee on Finance.]
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A BILL to amend and reenact section ten, article seven-b, chapter
eighteen of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to restoring the
seven and one-half percent employer's contribution rate in
the teachers' defined contribution retirement system.
Be it enacted by the Legislature of West Virginia:
That section ten, article seven-b, 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 7B. TEACHERS' DEFINED CONTRIBUTION RETIREMENT SYSTEM.
§18-7B-10. Employer contributions.
Each participating employer shall annually make a
contribution equal to seven and one-half percent of each member's
the gross compensation of each member whose employment commenced
on or after the first day of July, one thousand nine hundred
ninety-one. Provided, That beginning on the first day of July,
one thousand nine hundred ninety-five, the rate shall be ninepercent; beginning on the first day of July, one thousand nine
hundred ninety-six, the rate shall be ten and one-half percent;
beginning on the first day of July, one thousand nine hundred
ninety-seven, the rate shall be twelve percent; beginning on the
first day of July, one thousand nine hundred ninety-eight, the
rate shall be thirteen and one-half percent; and beginning on
the first day of July, one thousand nine hundred ninety-nine and
thereafter, the rate shall be fifteen percent. The pro rata
share of this amount shall be paid upon each date that a member
contribution is made and shall be remitted as provided for in
section nine of this article for credit to the member's annuity
account. Each participating employer has a fiduciary duty to its
employees to ensure that the employer contributions are timely
made. In the case of an officer or employee of the state, any
unpaid contribution shall be a state debt, contracted as a result
of a casual deficit in state revenues, to be accorded preferred
status over other expenditures.
In the event that any payment is not timely made, the
participating employer shall immediately give to the employee and
the state auditor notice in writing of the nonpayment, in such
form and accompanied by such documentation as may be required by
the auditor. Notice to the auditor shall operate in the manner
of a requisition, and the auditor shall transmit a warrant to
the treasurer. At such time as funds are available in the
appropriate account, the treasurer shall pay the employer
contribution, together with appropriate daily interest.
NOTE: The purpose of this bill is to correct an amendment
erroneously made in section ten, article seven, chapter eighteen
during the 1993 first extraordinary session. That incorrect
amendment gradually increased the employer's contribution to the
Teachers' Defined Contribution Retirement System over a period of
years, to a high of 15% beginning July 1, 1999. This bill
restores the former 7 1/2% employer's contribution rate in this
code section.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.