ENGROSSED
H. B. 2495
(By Delegate Warner)
[Introduced March 11, 1997; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact sections twenty-fourand forty-six,
article ten, chapter five of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
the West Virginia public employees retirement act; annuity
options; providing options when a member obtains a divorce;
and requiring a divorced member to prove that there is no
qualified domestic relations order in effect as a condition
for the member to elect certain annuity options; clarifying
that public employees retirements are subject to qualified
domestic relations orders.
Be it enacted by the Legislature of West Virginia:
That sections twenty-four and forty-six, 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.
§5-10-24. Annuity options.
Prior to the effective date of his or her retirement, but not thereafter except upon the death of a spouse, a member may elect
to receive his or her annuity as a straight life annuity payable
throughout his or her life, or he or she may elect to receive the
actuarial equivalent, at the time, of his or her straight life
annuity in a reduced annuity payable throughout his or her life,
and nominate a beneficiary, in accordance with option A or B set
forth below:
Option A -- Joint and survivor annuity. -- Upon the death of
a retirant, who elected option A, his or her reduced annuity
shall be continued throughout the life of and paid to the
beneficiary, having an insurable interest in the retirant's life,
whom the retirant nominated by written designation duly executed
and filed with the board of trustees prior to the effective date
of his or her retirement; or
Option B -- Modified joint and survivor annuity. -- Upon the
death of a retirant who elected option B, one half of his or her
reduced annuity shall be continued throughout the life of and
paid to the beneficiary, having an insurable interest in the
retirant's life, whom the retirant nominated by written
designation duly executed and filed with the board of trustees
prior to the effective date of his or her retirement.
Upon the death of a spouse, a retirant may elect any of the
retirement options offered by the provisions of this section in
an amount adjusted on a fair basis to be of equal actuarial value
as the annuity prospectively in effect relative to the surviving
member at the time the new option is elected. A divorced member
may elect any retirement options offered by the provisions of this section, upon the divorce of that member, in an amount
adjusted on a fair basis to be of equal actuarial value of the
annuity prospectively in effect relative to the member at the
time the option is elected. The member must prove to the
satisfaction of the executive secretary that a qualified domestic
relations order has not been entered that is binding on the
member, before the change in election of options may be
authorized.
NOTE: The purpose of this bill is to provide that a divorced
member of the West Virginia Public Employees Retirement System
may elect any of the retirement options otherwise available if
the member proves that the member is not bound by a qualified
domestic relations order.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that
would be added.
HB2495 HFA Staton 3/27 #1
Delegates Staton and Michael move to amend the bill striking
out the enacting section, and inserting in lieu thereof the
following:
"
That sections twenty-four and forty-six, 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:
",
And,
On page three, following section twenty-four, by inserting the
following section:
"§5-10-46. Right to benefits not subject to execution, etc.;
assignments prohibited; subject to qualified domestic relations
order; deductions for group insurance; setoffs for fraud.
The right of a person to any benefit provided for in this
article shall not be subject to execution, attachment,
garnishment, the operation of bankruptcy or insolvency laws, or
other process whatsoever, nor shall any assignment thereof be
enforceable in any court, with the exception that such benefits
are subject to a qualified domestic relations order as that term
is defined in section 414 (p) of the Internal Revenue Cod:
Provided, That should a member be covered by a group insurance or
prepayment plan participated in by a participating public
employer, and should he or she be permitted to, and elect to,
continue such coverage as a retirant, he may authorize the board
of trustees to have deducted from his or her annuity the payments
required of him to continue coverage under such group insurance
or prepayment plan:
Provided, however, That a participating
public employer shall have the right of setoff for any claim arising from embezzlement by, or fraud of, a member, retirant or
beneficiary."
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