ENGROSSED
Senate Bill No. 596
(By Senator Plymale)
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[Originating in the Committee on Pensions;
reported February 29, 1996.]
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A BILL to amend and reenact section thirty-one-a, article ten,
chapter five of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to contributions for
retroactive service credit; prohibiting the requirement of
interest on employer contributions for retroactive service
credit on service performed before the first day of January,
one thousand nine hundred eighty-nine.
Be it enacted by the Legislature of West Virginia:
That section thirty-one-a, article ten, chapter five of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-31a. Retroactive contributions to the retirement system for
retroactive service credit granted.
Those public employers who are participating in the West
Virginia public employees retirement system and who elected to
participate after the first day of July, one thousand nine hundred sixty-one, and those employers who are eligible but who have not
elected to participate, may elect to cover their employees
retroactive retroactively for the period of their prior employment
by such the employer to the first day of July, one thousand nine
hundred sixty-one, under the following terms and rules and
regulations to be promulgated by the board of trustees of the
retirement system consolidated public retirement board:
(a) The participating employer, in order to provide the
benefits set forth herein in this article, shall pay an additional
contribution to the retirement system as shall be that is the
actuarial equivalent of the amount which would have been
contributed, together with earnings thereon on the amount
contributed, by the employer had the employee who is to receive
retroactive credit been covered during the period of the
retroactive service credit. This contribution may be made by the
employer either in one lump sum or, at the election of the
employer, by level term payments over a period not in excess of
fifteen years or by both lump sum payments and level term payments,
as determined by the employer and the board of trustees
consolidated public retirement board under rules and regulations
promulgated by the board consolidated public retirement board:
Provided, That no earnings or interest shall be paid by the
employer for service performed before the first day of January, one
thousand nine hundred eighty-nine.
(b) The additional service credit shall be is applicable to
employees working for the participating employer on the effective date of the change of date of participation;
(c) There shall be no increase in benefits and annuities paid
to former members of the system who were retired prior to the
effective date of this section;
(d) Employees entitled to such the retroactive service credit
under the provisions of this section shall make such an additional
contribution to the retirement system equal to the actuarial
equivalent of the amount which would have been contributed,
together with earnings thereon on the amounts contributed, by the
employee had the employee been covered during the period of the
retroactive service credit;
(e) Each employer and employee shall be required to pay into
the retirement system in the manner hereinafter provided in this
section the amount necessary for the additional service credit
provided by this section, based upon an actuarial study of each
employer that elects to participate in the retirement system under
this section and as determined by the board of trustees
consolidated public employees retirement board;
(f) The actuarial basis for determining the additional
contributions shall be that currently in effect for the valuation
of the retirement system on the effective date of the employer's
election;
(g) Any new participating employer and any participating
employer which is currently a participant and who began
participating after the first day of July, one thousand nine
hundred sixty-one, who desires additional service credit must elect to provide such service credit within one year following the
effective date of this section;
(h) (g) Any participating employer requesting additional
service credit as provided by this section shall provide such
employee data as may be requested from the board of trustees of the
retirement system consolidated public retirement board for the
determination of the employer's contributions; and
(i) (h) The consulting actuary's fees for computing the
additional contribution rates under this section shall be paid
directly by the participating employer to the consulting actuary
selected by the board of trustees of the retirement system
consolidated public retirement board. and
(j) For the purpose of reopening the effectiveness of the
provisions of this section for a period of one year following the
effective date of the amendment to this section, [Acts 1988,
c. 101: March 12, 1988] and for the purpose of granting,
retroactively service credit to current employees of employers
participating in the public employees retirement system during such
period, this section is hereby renewed and reestablished; but any
such credited service granted hereunder shall be on the actuarially
sound basis for determining required additional contributions, of
both employer and employee, required in light of benefits that
would be computed in respect of such later point in time and such
subsequent final average salary amount.