Senate Bill No. 299
(By Senators Schoonover, Anderson, Love, Ross, Minear and
Grubb)
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[Introduced February 2, 1996; referred to the Committee
on Pensions; and then to the Committee on Finance.]
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A BILL to amend and reenact section eighteen, article ten,
chapter five of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; and to amend and reenact
section six, article twenty-two, chapter eight of said code,
all relating to reentry by county and municipal employees
into the retirement system.
Be it enacted by the Legislature of West Virginia:
That section eighteen, article ten, chapter five of the code
of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted; and that section six, article
twenty-two, chapter eight of said code be amended and reenacted,
all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,
SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD
OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS,
OFFICES, PROGRAMS, ETC.
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-18. Termination of membership; reentry.
When a member of the retirement system retires or dies, he
ceases to be a member. When a member, including a member who is
a county employee, leaves the employ of a participating public
employer for any other reason, he ceases to be a member and
forfeits service credited to him at that time. If he becomes
reemployed by a participating public employer he shall be
reinstated as a member of the retirement system and his credited
service last forfeited by him shall be restored to his credit:
Provided, That he must be reemployed for a period of one year or
longer to have such service restored: Provided, however, That he
returns to the members' deposit fund the amount, if any, he
withdrew therefrom, together with regular interest thereon from
the date of withdrawal to the date of repayment, and that such
repayment begins within two years of the return to employment and
that the full amount be repaid within five years of the return to
employment.
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 22. RETIREMENT BENEFITS GENERALLY; POLICEMEN'S PENSION
AND RELIEF FUND; FIREMEN'S PENSION AND RELIEF
FUND; PENSION PLANS FOR EMPLOYEES OF WATERWORKS
SYSTEM, SEWERAGE SYSTEM OR COMBINED WATERWORKS AND
SEWERAGE SYSTEM.
§8-22-6. Contributions; prior, earned and total service credits;
service breaks.
Until June thirty, one thousand nine hundred sixty-seven,
each member shall pay into the fund six percent of his monthly
salary up to four hundred dollars a month. After June thirtieth,
one thousand nine hundred sixty-seven, each member shall
contribute six percent of his monthly salary without any such
maximum limitation. Effective the first day of January, one
thousand nine hundred eighty-seven, a city may provide that
contributions made by a member shall be before-tax, as permitted
by section 414(h)(2) of the Internal Revenue Code. Each member
shall continue to make such contributions until such time as such
member retires or until he has contributed to the fund for a
period of thirty-five years, that is, has thirty-five years of
"earned service credit."
For prior service, each participating employee, in the employ of the city on the effective date of the fund, shall be
credited, as of such date, with a prior service credit equal to
the period or periods of service that the member has rendered to
the city prior to the effective date of the fund. Any employee
who is in the employ of the city on the effective date of the
fund and who becomes a member of the fund shall be entitled to
prior service credit even though such prior service was not
continuous. Any individual who is not in the employ of the city
on the effective date of the fund but who has been employed by
the city in the past shall be entitled to prior service credit.
if he returns to the service of the city within two years from
the date of the termination of his service and becomes a member
of the fund within such two-year period.
Effective the first day of January, one thousand nine
hundred eighty-seven, a city may provide that members who have
been honorably discharged from the military shall receive up to
two years prior service credit for military service prior to
their employment with the city.
A member upon separation from the service shall be entitled
to withdraw his contributions without interest in lieu of any
benefits to which he may be entitled. A city may provide that contributions are credited with interest at the rate of six
percent compounded annually from the first day of January, one
thousand nine hundred eighty-seven. If such employee returns to
the service of the city within two years and becomes a member of
the fund, he shall be considered as a new employee and shall have
forfeited all prior service credits unless he shall repay to the
fund in cash at the time of reemployment the amount of money
which he has withdrawn plus four percent interest compounded
annually on said amount during the time he was separated from the
service, but effective the first day of January, one thousand
nine hundred eighty-seven, a city may require six percent
interest. If, however, the break in service of such member is
more than two years, he shall not be entitled to any prior
service credit nor shall he be entitled to redeposit withdrawals
but he shall reenter the fund as a new member.
NOTE: The purpose of this bill is to allow county and
municipal employees to return to the original retirement system
upon reemployment regardless of how long the employee has been
out of the retirement system or the number of prior years
service.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language that would be added.