ENROLLED
Senate Bill No. 42
(By Senators Craigo, Ross, Sharpe, Walker, Plymale, Oliverio,
Kimble, Love and Schoonover)
____________
[Passed March 8, 1996; in effect ninety days from passage.]
____________
AN ACT 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 tax deferred investments for
teachers and other employees.
A county board of education, the teachers retirement board,
the West Virginia board of education and the 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 the teacher or other employee, and, in consideration thereof,
to pay an amount equal to the amount of the reduction as premiums
on an annuity contract or investments into a custodial account or
other investment owned by the teacher or other employee. The
annuity contract, custodial account or other investment 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 the reduction 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 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
department of education and the arts and their agencies imposes
no liability nor responsibility whatsoever on the boards,
department or members thereof except to show that the payments
have been remitted for the purposes for which deducted.