HOUSE BILL 2415
Sponsors:Speaker Kiss, Delegates Jenkins, Heck, Ashley, Varner, Petit and Staton
Committee Reference: Pensions then Finance
Bill Title: OK
Attorney: Richard J. Lindroth
Code Sections:WVC §5-10D-1 (amend & reenact); §7-14D-1 through §17-14D-30 (new);
§17-4E-1 & 2 (new) & 17A-3-17 (amend & reenact)
The purpose of this bill is to enact a retirement program for Deputy Sheriffs. All other law
enforcement officers of this state, except conservation officers, have a separate retirement plan which
allows retirement benefits to be exempted from the West Virginia Personal Income Tax.
5-10D West Virginia Public Employees Retirement Act.
5-10D-1This section is amended to include the Deputy Sheriff Death, Disability and
Retirement Fund as an additional fund managed by the Consolidated Public
Retirement Board. This section is further amended to include a member, retirement
or annuitant of the Deputy Sheriff's Plan on the Consolidated Public Retirement
7-14D Deputy Sheriff Retirement Act.
Accrued Benefit = 2.25% of Final Average Salary multiplied by Years of Service.
Accumulated Contributions = All sums paid in by members.
Active Military Duty = Full time active duty with any branch of U.S. Armed Forces,
including National Guard, where member has no other compensation from any other
Actuarial Equivalent = Benefit of equal value computed using Mortality table and
Annual Compensation = Wages paid a member during covered employment. Does not
include reimbursements, fringe benefits, deferred compensation or welfare benefits.
Other Definitions include Base Salary; Board; County Commission; Covered Employment;
Credited Service; Conservation Officer; Deputy Sheriff; Dependent Child, Dependent Parent;
is 40 years of age and 20 years of service.
Early Retirement Age
Final Average Salary is average of highest 5 consecutive years of member's last 10
years of service. Other definitions: Effective Date; Fund; Hour of Service; Member
Normal Form - monthly annuity equal to 1/12 of accrued benefit which is payable for
life. If members dies before the sum of payments equals his or her accumulated contributions and total of retirement benefits paid member.
Normal Retirement Age - Age 50 plus 20 or more years of service. Any combination
where age plus service equal 70 if member is at least 50 years of age; Age 60 plus 5
or more years of service; age 62 plus 5 or more years of service.
Partially Disabled - Inability to engage in duties of active deputy sheriff or
Other definitions include Public Employees Retirement System; Plan; Plan Year; Regular
Interest; Retirement Income Payments; Spouse; Surviving Spouse;
Totally Disabled - Members inability to engage in any substantial gainful activity by
reason of medically determined physical or mental impairment expected to result in
death or last for continuous period of at least 12 months.
Other definitions include Physical or Mental Impairment, Years of Service;
7-14D-2aMeaning of Terms - Provides references to Internal Revenue Code same as in West
Virginia Personal Income Tax or CNIT.
7-14D-3Creates plan. "Superannuated" means rated no longer fully or passably efficient in
one's job because of age; incapacitated or disqualified for duty due to advanced age.
7-14D-4Article to be liberally construed and supplements Social Security.
7-14D-5Members include deputies who are hired or rehired after effective date of plan; current
deputies who elect into the plan and transfer from PERS. Once made, the election is
irrevocable. There is a 6 month time period for the deputy to make the election.
7-14D-6Retirement Fund creation and permissible investment.
7-14D-7Members contribute 81/2% of salary employers contribute 91/2% of salary.
7-14D-8Governs transfer from PERS. All assets are transferred; contributions by both
member and employer, plus aggregate actuarially determined with interest at 7.5%
between the date the amount is determined until the date of transfer. Provides that
once a deputy transfers from PERS, that the deputy holds PERS harmless from ever
paying retirement benefits to that deputy. The Consolidated Board is required to
bring a test case in the West Virginia Supreme Court of Appeals regarding transfer
of the assets.
7-14D-9Commencement of Retirement Benefits - member to file a written petition with the
Consolidated Board. In any event, retirement shall begin on later than April 1
following members 70 + ½ year birthday.
7-14D-10Allows member to obtain additional credited service by using accrued annual or sick
leave. Same provisions as in PERS.
Retirement benefits include early retirement - Age 40 - with 20 years of service.
Provides for reduced benefits if early retirement option chosen.
7-14D-12Annuity options - Various annuity options all must be actuarially equivalent. If
married, members spouse must sign written waiver if benefits received in form other
than a joint and survivor annuity.
7-14D-13Refunds - Returns contributions of members only, all else is forfeited.
7-14D-14Duty Related Disability Retirement - 90% for total disability, 45% for partial
disability, percentage is if members last 12 months salary prior to disability. Duty
related total disability is paid to age 65 and duty related partial disability is paid to age
Non-Duty Related Disability - 66 2/3% for total disability and 33 1/3% for partial
disability of members salary prior to disability. Non-duty disability is paid until age
7-14D-16Requires physical examination, mental examination or both by physician or physicians
selected or approved by the Board of any member seeking or receiving disability
7-14D-17This section permits those deputy sheriffs who become totally disabled as a result of
illness or injury incurred in the line of duty prior to the effective date of the Deputy
Sheriff's retirement plan to elect into the plan.
7-14D-18This section provides awards and benefits to a surviving spouse when a member dies
in performance of his or her duties. The plan provides the surviving spouse with an
annual benefit equal paid in equal monthly installments during his or her lifetime an
amount which is 2/3 of the member's base salary received in the 12 months prior to
death or the amount the spouse would have received had the member retired the day
before his or her death and elected a 100% joint and survivor annuity, whichever is
7-14D-19Where a member dies from non-service connected causes the surviving spouse gets
½ of the base salary or the amount the spouse would have received had the member
retired the day before his or her death and elected a 100% joint and survivor annuity,
whichever is greater.
7-14D-20This section provides additional death benefits of $100 per month for each dependent
child. The section allows a $6000 scholarships to the children of the deceased
This section provides a $5000 burial benefit where a deputy sheriff dies as a result of
any services related injury or illness.
7-14D-24This section permits members who are elected as sheriffs after the effective date of the
plan to continue as a member in the plan.
Exempts the fund and the rights of a member, spouse, or other beneficiary from state
or municipal taxes, execution, garnishment, or attachment except for Qualified
Domestic Relation Orders.
7-14D-26This section provides criminal penalties for false statements or defrauding the system.
The penalty is a fine up to $1000, one year in county jail, or both fine and
7-14D-27Provides up to 5 years credit for active duty military service.
Provides for pro-rated reduction in benefits if more than 10% of the retirement fund
is paid out in the previous year.
7-14D-29Makes the effective date of the plan July 1, 1998. Provides that no one may draw
benefits under the pan until January 1, 2000 except those persons who retired or
disability may begin drawing benefits on July 1, 1998 at the PERS rate and on July 1,
1999 at the rate specified in this plan.
7-14D-30Limits county liability to contributions required of the employer.
7-14E Establishment of certain fees.
7-14E-1Sets forth findings and purpose.
7-14E-2Establishes 3 sets of fees. Effective July 1, 1998 (a) minimum of $10 to maximum of
$20 for Traffic Accident Reports, criminal investigation reports, incident reports and property reports - $10 must go to deputy sheriff's fund, (b) sets $5 fee for
fingerprinting, motor vehicle identification reports and identification cards. All $5
goes to deputy sheriff's fund, (c) sets $5 fee for non-governmental background reports
with all fee revenue to plan, (d) exempts governmental agencies from the fee.
17A-3-17Requires all sheriffs to issue license renewals for Class A (passenger vehicles) or G
(motorcycles) motor vehicles with 50 cents of the $1.00 fee to go to Deputy Sheriff's
Effective Date: Regular.
Fiscal Note: 98% to 99% funded, depending upon assumptions without taking into account the