S PEN ORG3 3/1 CFB
Senate Bill No. 597
(By Senators Plymale, Helmick, Jackson, Manchin,
Walker, Boley and Kimble)
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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 one, article ten-D, chapter
five of the code of West Virginia, one thousand nine hundred
thirty-one, and to amend chapter seven of said code, by adding
thereto a new article designated article fourteen-D, all
relating to retirement, death and disability benefits for
deputy sheriffs; creating a deputy sheriff's retirement
system; authorizing the transfer of fair asset share of the
public employees retirement system attributable to
transferring deputy sheriffs to the deputy sheriff's
retirement system; and providing for entitlement to benefits.
Be it enacted by the Legislature of West Virginia:
That section one, article ten-D, chapter five of the code of
West Virginia, one thousand nine hundred thirty-one, as amended, be
amended and reenacted; and that chapter seven of said code be
amended by adding thereto a new article, designated article
fourteen-D, to read as follows:
§5-10D-1. Consolidated public retirement board created; transition;
members; vacancies.
(a) There is hereby created a consolidated public retirement
board to administer all public retirement plans in this state. It
shall administer the public employees retirement system established
in article ten, chapter five of this code; the teachers retirement
system established in article seven-a, chapter eighteen of this
code; the teachers' defined contribution retirement system created
by article seven-b, chapter eighteen of this code; the death,
disability and retirement fund of the department of public safety
created by article two, chapter fifteen of this code; the death,
disability and retirement fund for deputy sheriffs created by
article 14D, chapter seven of said code; and the judges' retirement
system created under article nine, chapter fifty-one of this code;
(b)The consolidated public retirement board shall begin
administration of the systems listed in subsection (a) of this
section on the first day of July, one thousand nine hundred ninety-
one: Provided, That the board shall begin administration of (1) the
teachers' defined contribution retirement system established in
article seven-b, chapter eighteen of this code on the first day of
January, one thousand nine hundred ninety-one, (2) and the death,
disability and retirement fund for deputy sheriffs established in
article 14D, chapter seven of this code on the first day of July,
one thousand nine hundred ninety-six. Prior to that date the
existing entities which administer the system shall cooperate with
the board in the orderly transition of all duties, responsibilities, records and other materials in their possession;
(c)The membership of the consolidated public retirement
board consists of:
(1)The governor or his or her designee;
(2)The state auditor or his or her designee;
(3)The secretary of the department of administration or his
or her designee;
(4)Four residents of the state, who are not members,
retirants or beneficiaries of any of the public retirement systems,
to be appointed by the governor, with the advice and consent of the
Senate;
(5)A member, annuitant or retirant of the public employees
retirement system who is or was a state employee; a member,
annuitant or retirant of the public employees retirement system who
is not or was not a state employee; a member, annuitant or retirant
of the teachers retirement system; a member, annuitant or retirant
of the department of public safety death, disability and retirement
fund; a member, annuitant or retirant of the deputy sheriff's
death, disability and retirement fund and a member, annuitant or
retirant of the teachers' defined contribution retirement system,
all to be appointed by the governor, with the advice and consent of
the Senate.
(d)The appointed members of the board shall serve five-year
terms. Of the members initially appointed, three shall be
appointed for two-year terms; three shall be appointed for three-
year terms; and three shall be appointed for five-year terms. Thereafter, all members shall serve full five-year terms. A member
appointed pursuant to subdivision (5), subsection (c) of this
section ceases to be a member of the board if he or she ceases to
be a member of the represented system. If a vacancy occurs in the
appointed membership, the governor, within sixty days, shall fill
the vacancy by appointment for the unexpired term. No more than
five appointees shall be of the same political party.
(e)The consolidated public retirement board shall have all
the powers, duties, responsibilities and liabilities of the public
employees retirement system established pursuant to article ten,
chapter five of this code; the teachers retirement system
established pursuant to article seven-a, chapter eighteen of this
code; the teachers' defined contribution system established
pursuant to article seven-b, chapter eighteen of this code; the
death, disability and retirement fund of the department of public
safety created pursuant to article two, chapter fifteen of this
code, the death, disability and retirement fund for deputy sheriffs
created pursuant to article 14D, chapter seven of this code, and
the judges' retirement system created pursuant to article nine,
chapter fifty-one of this code and their appropriate governing
boards. The consolidated public retirement board may promulgate
all rules necessary to effectuate its powers, duties and
responsibilities: Provided, That the board may adopt any or all of
the rules and regulations, previously promulgated, of a retirement
system which it administers.
ARTICLE 14D. DEPUTY SHERIFF RETIREMENT ACT.
§7-14D-1. Short title.
This article shall be known and may be cited as the "West
Virginia Deputy Sheriff Retirement System Act".
§7-14D-2. Definitions.
As used in this article, unless the context clearly requires
a different meaning:
(1) "Accrued Benefit" means on behalf of any member 2½% of
such member's final average salary multiplied by the member's years
of credited service. A member's accrued benefit may not exceed the
limits of section 415 of the code which provisions are incorporated
by reference.
(2) "Accumulated Contributions" means the sum of all amounts
deducted from the compensation of a member (or paid on his or her
behalf pursuant to Chapter 5, Article 10C of this code) either
pursuant to section 7 of this article or section 29, article 10,
chapter 5, of this code as a result of covered employment together
with regular interest thereon.
(3) "Active military duty" means full-time active duty with
the armed forces of the United States, namely, the United States
air force, army, coast guard, marines or navy; and service with the
national guard or reserve military forces of any of such armed
forces when the member has been called to active full-time duty and
has received no compensation during the period of such duty from
any person other than the armed forces.
(4) "Actuarial Equivalent" means a benefit of equal value
computed upon the basis of such mortality table and interest rates as the CPRB shall from time to time adopt.
(5) "Annual Compensation" shall mean the wages paid to the
member during covered employment within the meaning of section
3401(a) of the code but determined without regard to any rules that
limit the remuneration included in wages based upon the nature or
location of employment or services performed during the plan year
plus amounts excluded under section 414(h)(2) of the Code and less
reimbursements or other expense allowances, fringe benefits (cash
or noncash) deferred compensation and welfare benefits. Annual
compensation for determining benefits during any determination
period shall not exceed $150,000 as adjusted for cost of living in
accordance with section 401(a)(17)(B) of the code.
(6) "Annual Leave Service". A member at the cessation of his
or her covered employment may elect to convert unused sick and/or
annual leave to additional service for purposes of calculating
their accrued benefit. Each such day shall be treated as 1/130 of
a year and shall be expressed as annual leave service in whole
years and/or fractions thereof.
(7) "Annuity Starting Date" means the first day of the first
period for which an amount is received as an annuity by reason of
retirement.
(8) "Base salary" means a member's cash compensation exclusive
of overtime from covered employment during the last 12 months of
employment and until a member has worked 12 months, annualized base
salary is used as base salary.
(9) "County Commission" has the meaning ascribed to it in section 1, article 1, chapter 7 of this code.
(10) "covered employment" means either employment as a deputy
sheriff and the active performance of the duties required thereof
or that period of time which active duties are not performed but
the member receives disability benefits under sections 13 or 14 of
this article.
(11) "CPRB" means the consolidated public retirement board
created pursuant to article ten-d, chapter five of this code.
(12) "Credited Service" shall mean the sum of a member's (i)
years of service, (ii) military service, (iii) disability service,
and annual leave service.
(13) "Deputy Sheriff" means an individual employed as a law
enforcement deputy sheriff within a county within West Virginia and
as defined by section two, article fourteen, chapter seven of this
code.
(14) "Dependent Child or Children" shall mean
(a)Any unmarried child up until 12:00 a.m. on his 18th
birthday who is either:
(i)A blood descendant of the first degree of the member; or
(ii)A legally adopted child of the member including a child
who was at the time of the member's death living with the member as
an adopting parent during any period of probation; or
(iii)A stepchild of the member residing in the member's
household at the time of the member's death.
b)Any unmarried child, up until 12:00 a.m. on his 22nd
birthday, (i) who is enrolled as a full-time student in an accredited college or university, (ii) was claimed as a dependent
by the member for Federal income tax purposes at the time of
member's death, and (iii) whose relationship with the member is
described in (a)(i), (ii) or (iii) above.
(15)"Dependent Parent or Parents" shall mean the father
and/or mother of the member and whom was claimed as a dependent by
the member for Federal income tax purposes at the time of the
member's death.
(16)"Disability Service". A member shall receive disability
service expressed in whole years and fractions thereof equal to
one-half of the whole years and fractions thereof during which such
time a member receives disability benefits under sections 13 or 14
of this article.
(17)"Early Retirement Age" shall mean attainment of age 40
years and completion of 20 years of service.
(18)"Effective Date" shall mean July 1, 1996.
(19)"Final average salary" means the average of the highest
annual compensation received for covered employment by the member
during any three consecutive plan years within the member's last
ten years of service. If member did not have annual compensation
for the three full plan years preceding the member's attainment of
normal retirement age and during such period of time member
received disability benefits under section 13 or 14 of this article
then "final average salary" shall be the average of the monthly
salary deemed paid to member during such period as determined under
section 17 of this article multiplied by 12.
(20)"Fund" means the West Virginia deputy sheriff retirement
fund created pursuant to section 3 of this article.
(21)"Hour of Service" means
(1)each hour for which a member is paid, or entitled to
payment, for covered employment during which time active duties are
performed. These hours will be credited to the member for the plan
year in which the duties are performed; and
(2)each hour for which a member is paid by his or her
county, or entitled to payment by his or her county for covered
employment during a plan year on account of a period of time during
which no duties are performed (irrespective of whether the
employment relationship is terminated) due to vacation, holiday,
illness, incapacity (including disability), layoff, jury duty,
military duty or leave of absence. Hours under this paragraph will
be calculated and credited pursuant to section 2530.200b-2 of the
Department of Labor regulations which are incorporated herein by
reference; a member will not be credited with any hours of service
during the time he or she is receiving benefits under sections 13
and 14 of this article; and
(3)each hour for which back pay, irrespective of mitigation
of damages, is either awarded or agreed to by the employing county
commission. The same hours of service will not be credited both
under paragraph (1) or (2), as the case may be, and under this
paragraph (3). These hours will be credited to the member for the
plan year or years to which the award or agreement pertains, rather
than the plan year in which the award, agreement, or payment is made.
(22)"member" means a deputy sheriff first hired as such after
the effective date or a deputy sheriff first hired prior to the
effective date and who elects to become a member pursuant to
section 5 of this article. A member shall remain a member until
the benefits to which he or she is entitled under this article are
paid or forfeited.
(23)"Monthly Salary" shall mean that part of a member's
annual compensation which is paid to him or her during a month.
(24)"Normal Form" shall mean a monthly annuity which is
1/12th of the amount of the member's accrued benefit which is
payable for the member's life and if the member dies before the sum
of the payments he or she receives equals his or her accumulated
contributions on the annuity starting date, his or her named
beneficiary shall receive in one lump sum the difference between
his or her accumulated contributions at the annuity starting date
and the total of the retirement income payments made to the member.
(25)"Normal Retirement Age" shall mean the first to occur of
the following:
(i)attainment of age fifty years or more and the completion
of 20 or more years of service;
(ii)while still in covered employment, attainment of at least
age 50 and when the sum of member's age as of his or her last
birthday and years of service equal or exceed 70;
(iii)while still in covered employment attainment of at
least age 60 and completion of five years of service;
(iv)attainment of age 62 and completion of at least five
years of service.
(26)"Partially Disabled". A member shall be considered
partially disabled and in a condition of partial disability if he
or she is unable to engage in the duties of deputy sheriff by
reason of any medically determinable physical or mental impairment
that can be expected to result in death or that has lasted or can
be expected to last for a continuous period of not less than 12
months but, is able to engage in other gainful employment which
exists within West Virginia but which would not enable him or her
to earn an amount at least equal to two-thirds of the annual
compensation earned by all active members of this plan during the
plan year ending as of the most recent June 30 as of which plan
data has been assembled and used for the actuarial valuation of the
plan.
(27)"PERS" shall mean the West Virginia Public Employee
Retirement System created by Chapter 5, Article 10 of the Code.
(28)"Plan" means the West Virginia deputy sheriff death,
disability, and retirement plan established by this article.
(29)"plan year" means the twelve month period commencing on
July 1 and ending on the next June 30.
(30)"Regular Interest" means such rate or rates of interest
per annum, compounded annually, as CPRB shall from time to time
adopt.
(31)"Retirement Income Payments" means the annual retirement
income payments payable under the plan.
(32)"Spouse" shall mean the individual to whom the member is
legally married at the time of the annuity starting date.
(33)"Surviving Spouse" shall mean the individual to whom the
member was legally married at the time of the member's death and
who survived the member.
(34)"Totally Disabled". A member shall be considered totally
disabled and in a condition of total disability, if he or she is
unable to engage in any substantial gainful activity by reason of
any medically determined physical or mental impairment that can be
expected to result in death or that has lasted or can be expected
to last for a continuous period of not less than 12 months. For
purposes hereof (i) a member shall be determined to be under a
total disability and to be totally disabled only if his or her
physical or mental impairment or impairments are of such severity
that he or she is not only unable to do his or her previous work as
a deputy sheriff but cannot, considering his or her age, education
and work experience, engage in any other kind or substantial
gainful work which exists in the economy of West Virginia
regardless of whether such work exists in the immediate area in
which he or she lives or whether a specific job vacancy exists for
him or her, or whether he or she would be hired if he or she
applied for work, (ii) "physical or mental impairment" is an
impairment that results from an anatomical, physiological, or
psychological abnormalities that are demonstrated by medically
accepted clinic and laboratory diagnostic technics.
A member's receipt of Social Security disability benefits shall create a rebuttable presumption that the member is totally
disabled for purposes of this plan. Gainful employment shall rebut
the presumption of total disability.
(35)"Year of Service". A member shall, except in his or her
first and last years of covered employment, be credited with year
of service credit based upon the hours of service performed as
covered employment and credited to the member during the plan year
based upon the following schedule:
Hours of ServiceYear of Service Credited
Less than 5000
500 but less than 1,0001/3
1,000 but less than 1,5002/3
1,500 or more1
During a member's first and last year of covered employment,
the member shall be credited with 1/12 of a year of service for
each month during the plan year in which the member is credited
with an hour of service. A member shall not be entitled to credit
for years of service during any period of time which he or she is
receiving disability payments under sections 13 or 14 of this
article. Except as specifically excluded, years of service include
covered employment prior to the effective date.
Years of service which are credited to a member prior to a
member receiving his or her accumulated contributions upon
termination of employment pursuant to section 12 of this article or
section 30, article 10, chapter 5 of this code shall be disregarded
for all purposes under this plan unless the member repays the accumulated contributions with interest pursuant to section 12 of
this article or had prior to the effective date made such repayment
pursuant to section 18, article 10, chapter 5 of this code.
(36) The masculine gender shall include the feminine gender,
and words of the singular number with respect to persons shall
include the plural number, and vice versa.
§7-14D-3. Creation and administration of West Virginia deputy
sheriff retirement system.
There is hereby created the West Virginia deputy sheriff
retirement system to provide for the orderly retirements of deputy
sheriffs, who become superannuated because of age or permanent
disability and to provide certain survivor death benefits. The
retirement system shall constitute a body corporate. All business
of the system shall be transacted in the name of the West Virginia
deputy sheriff retirement system.
§7-14D-4. Article to be liberally construed, supplements federal
social security.
The provisions of this article shall be liberally construed so
as to provide a general retirement system for deputy sheriffs
eligible to retire under the provisions of this plan: Provided,
however, that nothing in this article shall be construed as
permitting any county to substitute this plan for federal Social
Security now in force in West Virginia.
The retirement system and plan shall be administered by CPRB
and CPRB may sue and be sued, contract and be contracted with and
conduct all the business of the system in the name of the plan. CPRB is authorized to make such rules and regulations that it may
deem necessary to carry out the provisions of the plan and to
employ such persons as it deems necessary or desirable in the
administration of the plan. The primary responsibility of CPRB
shall be to administer the plan for the exclusive benefit of the
members and their beneficiaries subject to the specific provisions
of the plan. CPRB shall administer the plan in accordance with its
terms and shall have the power and discretion to construe the terms
of the plan and determine all questions arising in connection with
the administration, interpretation and application of the plan. It
is intended that this plan and the moneys held in trust hereunder
constitute a qualified trust under section 401 of the code and it
shall be administered and construed as such.
§7-14D-5. Members.
Any deputy sheriff first employed by a county in covered
employment after the effective date of this article shall be a
member of this retirement system and plan and may not qualify for
membership in any other retirement system administered by the CPRB,
so long as he or she remains employed in covered employment.
Any deputy sheriff employed in covered employment on the
effective date of this article shall within thirty days of the
effective date notify in writing both the county commission in the
county in which he or she is employed and the CPRB of his or her
desire to become a member. Any deputy sheriff who so elects shall
cease to be a member or have any credit for employment in any other
retirement system administered by the CPRB and shall continue to be ineligible so long as the deputy sheriff remains employed in
covered employment. Any deputy sheriff who does not affirmatively
elect to become a member of the plan shall continue to be eligible
for such other retirement system as is from time to time offered to
other county employees but shall be forever ineligible for this
plan regardless of any subsequent termination of employment and
rehire.
In the case of a deputy sheriff who was employed as a deputy
sheriff prior to the effective date but was not employed as a
deputy sheriff on the effective date, such deputy sheriff upon
being employed as a deputy sheriff after the effective date shall
become a member. However, the member's years of service and
credited service prior to the effective date will not be counted
for any purposes under this plan unless (i) the deputy sheriff had
not received the return of his or her accumulated contributions
pursuant to section 30, article 10, chapter 10 of this code or (ii)
if the accumulated contributions had been returned, they are repaid
pursuant to section 12 of this article. If the conditions of (i)
or (ii) above are met, all years of the deputy sheriff's covered
employment shall be counted as years of service. In connection
with each deputy sheriff receiving credit for prior employment as
described in the preceding three sentences, a transfer from PERS to
this plan shall be made pursuant to the procedures described in
section 8 of this article.
Once made the election is irrevocable. All deputy sheriffs
first employed after the effective date and deputy sheriffs electing to become members as described above shall be required to
be members as a condition of their employment and shall be required
to make the contributions required by section 7 of this article.
§7-14D-6. Creation of fund; investments.
There is hereby created the "West Virginia deputy sheriff
retirement fund" for the benefit of the members of the retirement
system created pursuant to this article and the dependents of any
deceased or retired member of the system.
All moneys paid into and accumulated in the fund, except such
amounts as shall be designated or set aside by CPRB for payments of
benefits as provided in this article, shall be held in trust by and
invested by the state board of investments as provided by law.
§7-14D-7. members' contributions; employer contributions.
There shall be deducted from the monthly salary of each member
and paid into the fund created pursuant to section 6 of this
article, eight and one-half percent of the amount of his or her
monthly salary. An additional twelve percent of the monthly salary
of each member shall be paid to the fund by the county commission
of the county in which the member is employed in covered
employment. Should CPRB determine that the benefits provided by
this article can be adequately provided by lesser contribution,
CPRB shall reduce the required member and employer contribution
proportionally.
§7-14D-8. Transfer from PERS.
In connection with those deputy sheriffs who were
participating in PERS and who have elected to join the plan, the board of trustees of PERS shall within 90 days of the effective
date, transfer assets from the PERS trust fund into the trust fund
to be established for the plan. The amount of assets to be
transferred shall be computed as of July 1, 1995, using the
actuarial valuation assumptions in effect for the July 1, 1995,
actuarial valuation of PERS, and updated with 7.5% annual interest
to the date of the actual asset transfer. Market value of the
assets in PERS shall be determined as of the end of the month
preceding the actual transfer. The computation of asset share to
be transferred will be determined by CPRB as follows:
(a)Compute the market value of the PERS assets;
(b)Compute the accrued liability for all PERS retirees,
beneficiaries, disabled retirees, and terminated inactive members;
(c)Reduce the market value of PERS assets by the accrued
liability determined in (b) above.
(d)Compute the Entry Age Method accrued liability for all
active PERS members.
(e)Compute the share of accrued liability as determined
pursuant to (d) above, that is attributable to those deputy
sheriffs in PERS who have elected to transfer to plan.
(f)Compute the percentage of active's accrued liability
computed to the deputy sheriffs by dividing (e) by (d) above.
(g)Determine the asset share to be transferred from PERS to
plan by multiplying (c) times (f) above.
§7-14D-9. Retirement; commencement of benefits.
A member may retire and commence to receive retirement income payments upon attaining early or normal retirement age by filing
with the CPRB his or her voluntary petition in writing for
retirement. Notwithstanding the above, retirement income payments
shall commence no later than the later of the April 1 following the
member's 70½ year birthday or the cessation of covered employment.
Upon receipt of the petition, CPRB shall promptly provide member
with an explanation of his or her optional forms of retirement
benefits and upon receipt of properly executed forms from the
member, CPRB shall process member's request for and commence
payments as soon as administratively feasible.
§7-14D-10. Retirement Benefits.
(a)Normal Retirement. A member who ceases covered
employment, has attained normal retirement age and whose annuity
starting date is within 45 days of the later of the date he or she
ceased covered employment or his normal retirement age shall
receive retirement income payments equal to his or her accrued
benefit in the normal form or retirement income payments in an
optional form as provided under section 11 of this article which is
the actuarial equivalent of his or her accrued benefit in the
normal form.
(b)Early Retirement. A member who ceases covered
employment, has attained early retirement age while in covered
employment may elect to receive retirement income payments
commencing prior to his or her normal retirement age which is the
actuarial equivalent of the member's accrued benefit which would
have been payable at the member's normal retirement age based upon his or her final average salary and years of credited service
determined at the cessation of his or her covered employment.
Payments will be in the normal form or in an optional form as
allowed in section 11 of this article which is the actuarial
equivalent of the normal form (as reduced for early commencement).
(c)Late Retirement. A member whose annuity starting date is
more than 45 days after the later of his or her attainment of
normal retirement age or the cessation of his or her covered
employment shall receive retirement income payments equal to his
accrued benefit in the normal form which is the actuarial
equivalent of the benefit to which he or she would be entitled to
had the retirement income payments commenced within forty-five days
of the later of his or her attainment of normal retirement age or
cessation of covered employment.
Retirement Benefits shall be paid monthly in an amount equal
to 1/12 of the retirement income payments elected and at such time
as established by CPRB. Notwithstanding any other provision of the
plan, a member who is married on the annuity starting date will
receive his retirement income payments in the form of a 66-2/3%
joint and survivor annuity with his spouse unless prior to the
annuity starting date, the spouse waives the form of benefit.
§7-14D-11. Annuity Options.
Prior to the annuity starting date, but not thereafter, a
member may elect to receive his retirement income payments in the
normal form or, he or she may elect to receive the actuarial
equivalent of the normal form from the following options:
Option A - Joint & Survivor Annuity. A life annuity payable
during the joint lifetime of the member and his or her beneficiary
who must be a natural person having an insurable interest in the
member's life. If the retiring member is married, the spouse must
sign a waiver of the benefits rights if the beneficiary is to be
other than the spouse. Upon the death of either annuitant, the
pension continues as a life annuity to the survivor in an amount
equal to the amounts selected from the following: 50%, 66-2/3%,
75% or 100% of the amount paid while both were living.
Option B - Contingent Joint & Survivor Annuity. A life
annuity payable during the joint lifetime of the member and his
beneficiary who must be a natural person with an insurable interest
in the member. If the retiring member is married, the spouse must
sign a waiver of benefit rights if the beneficiary is to be other
than the spouse. Upon the death of the member, the pension
continues as a life annuity to the beneficiary in an amount (as
selected) equal to 50%, 66-2/3%, 75% or 100% of the amount paid
while both were living. If the beneficiary dies first, the monthly
amount is not reduced.
Option C - Ten Years Certain and Life Annuity. A life annuity
payable during the member's lifetime but for a minimum of ten years
in any event. If the member dies before ten years of annuity
payments, the remaining payments will be made to a designated
beneficiary, if any, or otherwise to the member's estate.
Option D - Level Income Annuity. A life annuity payable
monthly in an increased amount "A" from the time of retirement until the Member is Social Security retirement age, and then a
lesser amount "B" payable for the Member's lifetime thereafter,
with these amounts computed actuarially to satisfy two conditions.
(1) Actuarial equivalence (the annuities must be of equal
expected value): The actuarial present value at the date of
retirement of the member's annuity if taken in the normal form must
equal the actuarial present value of the term life annuity in
amount A plus the actual present value of the deferred life annuity
in amount B.
(2) Level income: The amount A equals the amount B plus the
amount of the member's estimated monthly Social Security Primary
Insurance Amount (PIA) that would commence at the date amount B
becomes payable. For this calculation, the PIA is estimated when
the member applies for retirement, using Social Security law then
in effect, using assumptions established by CPRB.
Option E - Level Income Joint and Survivor Annuity. An
annuity structured under the same methodology as D above with the
term annuity amount "A" payable until the member's Social Security
Retirement age and the amount "B" payable as a 50%, 66-2/3%, 75% or
100% joint and survivor annuity upon the member's attaining Social
Security Retirement Age. If the retiring member is married, the
spouse must sign a waiver of benefit rights if the beneficiary is
to be other than the spouse.
Option F - Increasing Annuity. A life annuity payable in any
of the forms described above (and subject to the conditions set
forth above) with the amount of monthly payment increasing at 1½%, 2% or 2½% annually (compounded) throughout the life of the annuity.
Annuities taken in this form will be adjusted each April 1
following the member's annuity starting date with a prorated
increase given on the first April 1 to retirees who have not yet
been retired a full year on that date.
In the case of a member who has elected either Option B or E
above and whose beneficiary dies prior to such member's death, the
member may name an alternative beneficiary. If an alternative
beneficiary is named within eighteen months following the death of
the prior beneficiary, the benefit will be adjusted actuarially to
be the actuarial equivalent of the member's normal form of benefit.
If the election is not made until eighteen months after the death
of the prior beneficiary, the amount will be reduced so that it is
only 90% of the actuarial equivalent of the member's normal form of
benefit.
§7-14D-12. Refunds to certain members upon discharge or
resignation; deferred retirement.
(a)Any member who terminates covered employment and is not
eligible to receive disability benefits under this article may by
written request filed with CPRB be entitled to receive from the
fund the member's accumulated contributions. Except as set forth
in (b) below upon such withdrawal the member shall forfeit his or
her accrued benefit and cease to be a member.
(b)Any member withdrawing accumulated contributions from
either this plan or PERS who may thereafter be reemployed in
covered employment shall not receive any credited service for such prior employment unless following his or her reenlistment, the
member shall redeposit in the fund the amount of the accumulated
contributions, together with interest thereon at the rate of seven
and one-half percent per annum from the date of withdrawal to the
date of redeposit, in which case he or she shall receive the same
credit on account of his or her former service as if no refund had
been made. Such repayment must be made within 60 months of the
deputy sheriff's reemployment in a lump sum or if later, within 60
months of the effective date.
(c)Every member who completes sixty months of covered
employment is eligible, upon cessation of covered employment, to
either withdraw his or her accumulated contributions in accordance
with subsection (a) of this section, or to choose not to withdraw
his or her accumulated contribution and to receive retirement
income payments upon attaining early or normal retirement age.
§7-14D-13. Awards and benefits for disability -- Duty Related.
Any member who after the effective date and during covered
employment has been or shall become either totally or partially
disabled by injury, illness or disease resulting from any
occupational risk or hazard inherent in or peculiar to the services
required of members and incurred while performing law enforcement
functions during either scheduled work hours or at any other time
shall, if, in the opinion of the CPRB, he or she is by reason of
such cause unable to perform adequately the duties required of him
or her as a deputy sheriff, be entitled to receive and there shall
be paid to the member from the fund in monthly installments during the lifetime of the member, or if sooner until the member attains
normal retirement age or until such disability shall sooner
terminate, either (a) or (b) below:
(a)If the member is totally disabled, ninety percent of such
member's average monthly compensation (as adjusted pursuant to
section 17 of this article) for the twelve month period preceding
the member's disability (or such shorter period if member has not
worked twelve months).
(b)If the member is partially disabled, forty-five percent
of such member's average monthly compensation (as adjusted pursuant
to section 17 of this article) for the twelve month period
preceding the member's disability (or such shorter period if member
has not worked twelve months).
If the member remains disabled until attaining normal
retirement age, the member shall then receive the retirement
benefit provided for in sections 10 and 11 of this article.
§7-14D-14. Same -- Due to other causes.
Any member who after the effective date and during covered
employment has or shall become totally or partially disabled from
any cause other than those set forth in section 13 of this article
and not due to vicious habits, intemperance or willful misconduct
on his or her part, shall, if, in the opinion of CPRB, he or she is
by reason of such cause unable to perform adequately the duties
required of him or her as a deputy sheriff, be entitled to receive
and there be paid to the member from the fund in monthly
installments during the lifetime of the member; or if sooner until the member attains normal retirement age or until such disability
shall sooner terminate, either (a) or (b) below:
(a)If the member is totally disabled, eighty percent of such
member's average monthly compensation (as adjusted pursuant to
section 17 of this article) for the twelve month period preceding
the member's disability (or such shorter period, if member has not
worked twelve months).
(b)If the member is partially disabled, forty percent of
such member's average monthly compensation (as adjusted pursuant to
section 17 of this article) for the twelve month period preceding
the member's disability (or such shorter period if member has not
worked twelve months).
If the member remains disabled until attaining normal
retirement age, the member shall then receive the retirement
benefit provided for in sections 10 and 11 of this article.
§7-14D-15. Same -- Physical Examinations; Termination of
Disability.
CPRB may require any member who has applied for or is
receiving disability benefits under this article to submit to a
physical and/or mental examination by a physician or physicians
selected or approved by the CPRB and cause all costs incident to
such examination including hospital, laboratory, X-ray, medical and
physicians' fees to be paid from the fund, and a report of the
findings of such physician or physicians shall be submitted in
writing to the CPRB for its consideration. If from the report,
independent information, or from the reports and hearing thereon the CPRB shall be of opinion and find that (i) the member has
become reemployed as a law enforcement officer, (ii) two physicians
who have examined the member have found that considering the
opportunities for law enforcement in West Virginia, the member
could be so employed or (iii) such other facts exist to demonstrate
that the member is no longer totally disabled or partially disabled
as the case may be, then such disability benefits shall cease. If
the member was totally disabled and is found to have recovered, the
CPRB must determine whether such member continues to be partially
disabled. If the CPRB shall find that the member although no
longer totally disabled is partially disabled, then the member
shall continue to receive partial disability benefits in accordance
with this article. Benefits shall cease once the member has been
found to no longer be either totally or partially disabled.
§7-14D-16. Prior Disability.
Any deputy sheriff who became totally disabled prior to the
effective date shall be a member and shall be entitled to
disability, death, and retirement benefits under this article in
lieu of any other disability, death or retirement benefits provided
by the State or his or her county. The amounts of such benefits
shall be determined as if the disability first commenced after the
effective date with monthly compensation equal to that average
monthly compensation which the member was receiving in the plan
year prior to the initial disability as adjusted pursuant to
section 17 of this article.
§7-14D-17. Disability - Benefit Adjustment Factor.
For each member who is receiving disability payments under
this article, the CPRB shall adjust the monthly compensation upon
which such disability payments are based on each annual
determination date by the lesser of 2% or the percentage increase
in the Urban Consumer Price Index between (i) the month that
precedes the month of determination date by two months, and (ii)
the month one year previous to that month (or else the month
containing the month of disablement, if less than one year has
passed as of the determination date). The annual determination
date shall be established by the CPRB. Such annual redetermination
of monthly compensation will affect disability benefits paid to the
member during the twelve months beginning with the first month that
follows the determination date by at least one month (or if
shorter, when the disability payments terminate).
§7-14D-18. Awards and benefits to surviving spouse -- When member
dies in performance of duty, etc.
The surviving spouse of any member who after the effective
date while in covered employment has lost or shall lose his or her
life by reason of injury, illness or disease resulting from an
occupational risk or hazard inherent in or peculiar to the service
required of members while the member was or shall be engaged in the
performance of his or her duties as a deputy sheriff, or the
survivor spouse of a member who dies from any cause while receiving
benefits pursuant to section 13 of this article, shall be entitled
to receive and shall be paid from the fund benefits as follows: To
the surviving spouse annually, in equal monthly installments during his or her lifetime an amount equal to the greater of (i) two
thirds of the base salary received in the preceding twelve-month
period by the deceased member; (ii) if the member dies after his or
her early or normal retirement age, the monthly amount which the
spouse would have received had the member retired the day before
his or her death and elected a 100% joint and survivor annuity,
with the spouse as the joint annuitant and had then died. Where
the member is receiving disability benefits under section 13 of
this article at the time of his death, the most recent monthly
compensation determined under section 17 of this article shall be
substituted for base salary in (i) above.
Benefits for a surviving spouse of a member received under
this section, section 20 and section 21 of this article shall be in
lieu of receipt of any other benefits under this article for such
spouse or any other person or under the provisions of any other
state retirement system based upon such member's covered
employment.
§7-14D-19. Same -- When member dies from nonservice-connected
causes.
In any case where a member while in covered employment after
the Effective Date has died or shall die from any cause other than
those specified in section 18 of this article and not due to
vicious habits, intemperance or willful misconduct on his or her
part, there shall be paid annually in equal monthly installments
from the fund to the surviving spouse of the member during his or
her lifetime, a sum equal to the greater of (i) one half of the base salary received in the preceding twelve-month employment
period by the deceased member; (ii) if the member dies after his or
her early or normal retirement age, the monthly amount which the
spouse would have received had the member retired the day before
his or her death and elected a 100% Joint and Survivor Annuity,
with the spouse as the joint annuitant and had then died. Where
the member is receiving disability benefits under section 14 of
this article at the time of his or her death, the most recent
monthly compensation determined under section 17 of this article
shall be substituted for base salary in (i) above.
Benefits for a surviving spouse of a member received under
this section, section 20 and section 21 of this article shall be in
lieu of receipt of any other benefits under this article for such
spouse or any other person or under the provisions of any other
state retirement system based upon such member's covered
employment.
§7-14D-20. Additional death benefits and scholarships - dependent
children.
In addition to the spousal death benefits in sections 18 and
19 of this article, the surviving spouse shall be entitled to
receive and there shall be paid to such spouse one hundred dollars
monthly for each dependent child or children.
If the surviving spouse dies or if there is no surviving
spouse, there shall be paid monthly to each dependent child or
children from the fund a sum equal to one fourth of the surviving
spouse's entitlement under either section 18 or 19 of this article. If there are no surviving spouse and no dependent child or
children, there shall be paid in equal monthly installments from
the fund to the dependent parents of the deceased member during
their joint lifetimes a sum equal to the amount which a surviving
spouse, without children, would have received: Provided, That when
there is but one dependent parent surviving, that parent is
entitled to receive during his or her lifetime one half the amount
which both parents, if living, would have been entitled to receive.
Any person qualifying as a dependent child under this shall,
in addition to any other benefits due under this or other sections
of this article, be entitled to receive a scholarship to be applied
to the career development education of that person. This sum, up
to but not exceeding ten thousand dollars per year, shall be paid
from the fund to any university or college in this state or to any
trade or vocational school or other entity in this state approved
by the CPRB, to offset the expenses of tuition, room and board,
books, fees or other costs incurred in a course of study at any of
these institutions so long as the recipient makes application to
the CPRB on an approved form and under such rules as the CPRB may
provide, and maintains scholastic eligibility as defined by the
institution or the CPRB. The CPRB may by appropriate rules define
age requirements, physical and mental requirements, scholastic
eligibility, disbursement methods, institutional qualifications and
other requirements as necessary and not inconsistent with this
section.
§17-14D-21. Burial benefit.
Any member who dies while in covered employment after the
effective date shall be entitled to a lump sum burial benefit of
ten thousand dollars. If the member is married, the burial benefit
will be paid to the member's spouse and if not married, it will be
paid to the member's estate for the purposes of paying burial
expenses and/or settling the member's final affairs with any
unspent balance being distributed as a part of the member's estate.
If the member is not entitled to a death benefit under sections 19
and 20 above, then if greater, the amount payable to the member's
estate shall be his or her accumulated contributions.
§7-14D-22. Double death benefits prohibited.
No surviving spouse shall be entitled to death benefits under
this article as a result of the death of two or more members to
whom the spouse was married. Any spouse who becomes eligible for
a subsequent death benefit under this article while receiving a
death benefit under this article shall receive the higher but not
both.
§7-14D-23. Loans to members.
A member who is not yet receiving disability or retirement
income benefits from the plan may borrow from the plan an amount up
to one-half of his or her accumulated contributions but not less
than five hundred dollars nor more than eight thousand dollars. No
loan shall be made from the plan if CPRB determines that such loans
constitute more than 15% of the amortized cost value of the assets
of the plan as of the last day of the preceding plan year. CPRB
also may discontinue loans at any time that it determines that cash flow problems might develop as a result of such loans. Each loan
shall be repaid through monthly installments over periods of six
through sixty months and carry interest on the unpaid balance and
an annual effective interest rate that is 200 basis points higher
than the most recent rate of interest used by CPRB for determining
actuarial contributions levels. Monthly loan payments shall be
calculated to be as nearly equal as possible with all but the final
payment being an equal amount. An eligible member may make
additional loan payments or pay off the entire loan balance at any
time without incurring any interest penalty. At the member's
option, the monthly loan payment may include a level premium
sufficient to provide declining term insurance with the plan as
beneficiary to repay the loan in full upon the member's death. If
a member declines such insurance and dies before the loan is
repaid, the unpaid balance of the loan will be deducted from the
lump sum insurance benefit payable under section 21 of this
article.
A member with an unpaid loan balance who wishes to retire may
have the loan repaid in full by accepting retirement income
payments reduced by deducting from the actuarial reserve for the
accrued benefit the amount of the unpaid balance and then
converting the remaining of the reserve to a monthly pension
payable in the form of the annuity desired by the member.
§7-14D-24. Service as Sheriff.
Any member who after the effective date is elected sheriff of
a county in West Virginia may elect to continue as a member in this plan by paying the amounts required by section 7. Upon such
election, service as a sheriff shall be treated as covered
employment and the sheriff shall not be entitled to any credit for
such service under any other retirement system of the state.
§7-14D-25. Exemption from taxation, garnishment and other process.
The moneys in the fund and the right of a member, spouse or
other beneficiary to benefits under this article, to the return of
contributions, or to any retirement, death or disability payments
under the provisions of this article, are hereby exempt from any
state or municipal tax; shall not be subject to execution,
garnishment, attachment or any other process whatsoever; and shall
be unassignable except as is provided in this article.
§7-14D-26. Fraud; penalties; and repayment.
Any person who knowingly makes any false statement or who
falsifies or permits to be falsified any record or records of the
retirement system in any attempt to defraud that system is guilty
of a misdemeanor, and, upon conviction, shall be punished by a fine
not to exceed one thousand dollars, or confinement in the county
jail not to exceed one year or both. Any increased benefit
received by any person as a result of the above shall be returned
to the fund upon demand by the CPRB.
§7-14D-27. Credit toward retirement for member's prior military
service; credit toward retirement when member has joined armed
forces in time of armed conflict.
(a) Any member who has previously served on active military
duty is entitled to receive additional years of service for the purpose of determining such member's years of credited service for
a period equal to the active military duty not to exceed the lesser
of five years or 25% of the member's years of service ("Military
Service"), subject to the following:
(1) That he or she has been honorably discharged from the
armed forces;
(2) That he or she substantiates by appropriate documentation
or evidence his or her period of active military duty;
(3) That he or she is receiving no benefits from any other
retirement system for his or her active military duty; and
(b) In addition, any member who while in covered employment
was commissioned, enlisted or inducted into the armed forces of the
United States or, being a member of the reserve officers' corps,
was called to active duty in the armed forces between the first day
of September, one thousand nine hundred forty, and the close of
hostilities in World War II, or between the twenty-seventh day of
June, one thousand nine hundred fifty, and the close of the armed
conflict in Korea on the twenty-seventh day of July, one thousand
nine hundred fifty-three, between the first day of August, one
thousand nine hundred sixty-four and the close of the armed
conflict in Vietnam, or during any other period of armed conflict
by the United States whether sanctioned by a declaration of war by
the Congress or by executive or other order of the President, is
entitled to and shall receive credited service, for a period equal
to the full time that he or she has or, pursuant to that
commission, enlistment, induction or call, shall have served with the armed forces subject to the following:
(1) That he or she has been honorably discharged from the
armed forces;
(2) That within ninety days after honorable discharge from the
armed forces, he or she presented himself or herself to the county
commission and offered to resume service as a deputy sheriff; and
(3) That he or she has made no voluntary act, whether by
reenlistment, waiver of discharge, acceptance of commission or
otherwise, to extend or participate in extension of the period of
service with the armed forces beyond the period of service for
which he or she was originally commissioned, enlisted, inducted or
called.
(c) The total amount of service allowable under subsections
(a) and (b) may not exceed the lesser of five years or 25% of the
member's years of service (Military Service).