Senate Bill No. 42
(By Senators Craigo, Ross, Sharpe, Walker, Plymale, Oliverio,
Kimble, Love and Schoonover)
____________
[Introduced January 12, 1996; referred to the
Committee on Finance.]
____________
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 purchase
certain tax deferred investments; specifying the terms of
the investment and the amount of the reduction; and
providing that the purchase of 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 purchase 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 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 payments
on 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 teacher's or employee's
salary for all purposes other than federal and state income tax.
The purchase of 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.
__________
(NOTE: The purpose of this bill is to authorize the
Department of Education and the Arts to permit employees under
the Department to purchase tax deferred investments eligible
under Section 403 (b) of the United States Internal Revenue Code.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.)
__________
FINANCE COMMITTEE AMENDMENTS
On page _____, section one, by striking out the section
caption and substituting therefor a new section caption, to read
as follows:
§18-25-1. Authority
to make tax deferred investments for teachers
and other employees.;
On page _____, section one, line _____, by striking out the
words "payments on" and inserting in lieu thereof the words
"investments into";
On page _____, section one, line _____, by striking out the
words "purchase of" and inserting in lieu thereof the words
"transaction of making";
And,
On page _____, by striking out the title and substituting
therefor a new title, to read as follows:
Senate Bill No. 42--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.