Senate Bill No. 227

(By Senators Wehrle and Lucht)

____________

[Introduced January 31, 1994;; referred to the Committee
on Pensions; and then to the Committee on Finance.]

____________




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.