Senate Bill No. 459
(By Senator Bowman, By Request)
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[Introduced February 19, 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 six, article twenty-two,
chapter eight of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to municipal
retirement systems; and increasing prior military service
credit.
Be it enacted by the Legislature of West Virginia:
That section six, article twenty-two, chapter eight of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
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 or her
monthly salary up to four hundred dollars a month. After June
thirty, one thousand nine hundred sixty-seven, each member shall
contribute six percent of his or her 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 the time as
such that member retires or until he or she 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 that 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 or she returns to the service of the city
within two years from the date of the termination of his or her
service and becomes a member of the fund within such the 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 four 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 or her contributions without interest in lieu of
any benefits to which he or she 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 the employee returns to the service of the city within two years and becomes
a member of the fund, he or she shall be considered as a new
employee and shall have forfeited all prior service credits
unless he or she shall repay to the fund in cash at the time of
reemployment the amount of money which he or she has withdrawn
plus four percent interest compounded annually on said amount
during the time he or she 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 or she shall not be entitled to any prior service
credit nor shall he or she be entitled to redeposit withdrawals
but he or she shall reenter the fund as a new member.
NOTE: The purpose of this bill is to increase the prior
service credit for military service from 2 to 4 years in the
municipal retirement law.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.