ENGROSSED
Senate Bill No. 42
(By Senators Craigo, Ross, Sharpe, Walker, Plymale, Oliverio,
Kimble, Love and Schoonover)
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[Introduced January 12, 1996; referred to the
Committee on Finance.]
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A BILL to amend and reenact section one, article twenty-five,
chapter eighteen of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to authorizing
county boards of education, the teachers retirement board,
the West Virginia board of education and the department of
education and the arts to allow its employees to participate
in certain tax deferred investments; specifying the terms of
the investment and the amount of the reduction; and
providing that the transaction of making an investment
imposes no liability or responsibility on the state
agencies.
Be it enacted by the Legislature of West Virginia:
That section one, article twenty-five, 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 25. TAX DEFERRED INVESTMENTS FOR TEACHERS AND OTHER
EMPLOYEES.
§18-25-1. Authority to make deferred investments for teachers
and other employees.
A county board of education, the teachers retirement board,
the West Virginia board of education and the board of regents
department of education and the arts and their agencies may
provide by written agreement between the department, any such
board or agency and any teacher or other employee to reduce the
cash salary payable to such the teacher or other employee, and,
in consideration thereof, to pay an amount equal to the amount of
such the reduction as premiums on an annuity contract or
investments into a custodial account or other investment owned by
such the teacher or other employee. which The annuity contract,
custodial account or other investment is shall be in such form
and upon such terms as will qualify the payments thereon for tax
deferment under the United States Internal Revenue Code. The
amount of such the reduction shall may not exceed the amount
excludable from income under Section 403(b) of the United States
Internal Revenue Code, and amendments and successor provisions
thereto, and shall be considered a part of the teachers or
employees salary for all purposes other than federal and state
income tax.
The transaction of making such the tax deferred investment
for a teacher or other employee by a board of education, the
teachers retirement board, the West Virginia board of education
and the board of regents department of education and the arts and
their agencies shall impose imposes no liability nor
responsibility whatsoever on said the boards, department or
members thereof except to show that the payments have been
remitted for the purposes for which deducted.