H. B. 2600
(By Delegates Browning and Kiss)
[Passed March 10, 1995; in effect from passage.]
AN ACT to amend and reenact sections seven and nine, article
seven-b, chapter eighteen of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, all relating
generally to teachers' retirement systems; providing for re-
entry into the defined benefit plan; and authorizing a study
of the feasibility of allowing members to make additional
voluntary contributions to the teachers' defined benefit
contribution retirement system.
Be it enacted by the Legislature of West Virginia:
That sections seven and nine, article seven-b, chapter
eighteen of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted, all to read as
ARTICLE 7B. TEACHERS' DEFINED CONTRIBUTION RETIREMENT SYSTEM.
§18-7B-7. Participation in teachers' defined contribution
retirement system; limiting participation in
existing teachers retirement system.
Beginning the first day of July, one thousand nine hundred
ninety-one, the teachers' defined contribution retirement system
shall be the single retirement program for all new employees
whose employment commences on or after that date. No additional
new employees except as may be provided herein may be admitted to
the existing retirement system. Members of the existing
retirement system whose employment continues beyond the first day
of July, one thousand nine hundred ninety-one, are not affected
by this article and shall continue to contribute and participate
in the existing system without change in provisions or benefits.
Notwithstanding the provisions of section twenty-three,
article seven-a of this chapter, any employee whose employment
terminates after the thirtieth day of June, one thousand nine
hundred ninety-one, who is later reemployed by an employer shall
be eligible for membership only in the teachers' defined
contribution system: Provided, That if such reemployment with an
existing employer occurs not more than six months after the
employee's previous employment, he or she shall be entitled to
readmission to the existing retirement system in which he or she
was originally a member: Provided, however, That if such
employee has five or more years of credited service in the
existing retirement system, he or she shall be entitled to
readmission into the existing retirement system in which he or
she was originally a member so long as he or she has not
withdrawn his or her contributions from the existing retirement
system: Provided further, That if such employee has withdrawn
his or her contribution from the existing retirement system, then readmission shall not be permitted and the employee will be
entitled only to the defined contribution system.
An employee whose employment with an employer was suspended
or terminated while he or she served as an officer with a
statewide professional teaching association is eligible for
readmission to the existing retirement system in which he or she
was a member. Any employee reemployed with an employer on or
after the first day of July, one thousand nine hundred ninety-
one, who had five or more years credited service in the teachers'
defined benefit retirement system may elect readmission to the
teachers' defined benefit retirement system in which he or she
was originally a member. Any employee reemployed between the
first day of July, one thousand nine hundred ninety-one, and the
first day of July, one thousand nine hundred ninety-five, and who
was required to participate in the teachers' defined contribution
system but now elects, pursuant to the provisions of this
section, readmission to the teachers' defined benefit retirement
system shall pay an additional contribution to the teachers'
defined benefit retirement system equal to one and one-half
percent of his or her annual gross compensation earned for each
year he or she participated in the teachers' defined contribution
system and shall transfer all member and employer contributions
and investment earnings therefrom from the teacher defined
contribution system to the teachers' defined benefit retirement
system and shall receive service credit for the time the member
participated in the defined contribution system as if that
participation had been in the teachers' defined benefit retirement system. Any member making an election under the
provisions of this section to reenter the teachers' defined
benefit retirement system who is currently a member of the
defined contribution retirement system must do so on or before
the first day of January, one thousand nine hundred ninety-six.
Any other member reemployed must make the election as to the
retirement system that he or she will be a member of at the time
he or she is reemployed.
An employee whose employment with an employer or an existing
employer is suspended as a result of an approved leave of
absence, approved maternity or paternity break in service, or any
other approved break in service authorized by the board, is
eligible for readmission to the existing retirement system in
which he or she was a member.
In all cases where a question exists as to readmission to
membership in the existing retirement system, the board shall
decide the question.
§18-7B-9. Members' contributions; annuity account established.
Each employee who is a member of the defined contribution
system shall contribute four and one-half percent of his or her
gross compensation by salary reduction. Such salary reductions
shall be made by the employer at the normal payroll intervals and
shall be remitted within five working days to the private
pension, insurance, annuity, mutual fund, or other qualified
company or companies designated by the board to administer the
day-to-day operations of the system.
All member contributions shall be immediately deposited to an account or accounts established in the name of the member and
held in trust for the benefit of the member. An account
agreement shall be issued to each member setting forth the terms
and conditions under which contributions are received, and the
investment and retirement options available to the member. The
board shall promulgate by the thirtieth day of June, one thousand
nine hundred ninety-one, pursuant to section six of this article,
rules defining the minimum requirements for the investment and
retirement options to be provided to the members.
The consolidated public employees retirement board shall
study the feasibility of employees making personal contributions
to the defined contribution system in addition to those required
by this section and the impact of the United States Internal
Revenue Code of one thousand nine hundred eighty-six, as
amended, upon such contributions. The results of said study and
recommendations for legislation to authorize such additional
payments shall be presented to the committee on pensions and
retirement of each house of the Legislature on or before the
first day of October, one thousand nine hundred ninety-six.
Such rules, to the extent not inconsistent with the
applicable provisions of the Internal Revenue Code of the United
States, shall provide for varied retirement options including,
but not limited to:
(1) Lump sum distributions;
(2) Joint and survivor annuities;
(3) Other annuity forms in the discretion of the board;
(4) Variable annuities which gradually increase monthly retirement payments: Provided, That said increased payments are
funded solely by the existing current value of the member's
account at the time the member's retirement payments commencement
and not, to any extent, in a manner which would require
additional employer or employee contributions to any member's
account after retirement or after the cessation of employment;
(5) The instances in which, if any, distributions or loans
can be made to members from their annuity account balances prior
to having attained the age of fifty-five.