H. B. 2445

(By Delegate Claypole)
[Introduced January 14, 1998; referred to the
Committee on Pensions and Retirement then Finance.]

A BILL to amend, article seven-a, chapter eighteen of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated sections twenty-six-p, relating to supplemental annuities for certain retired employees of the state teachers retirement system.

Be it enacted by the Legislature of West Virginia:
That article seven-a of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section twenty-six-p, to read as follows:
§18-7A-26p. Supplemental benefits for certain annuitants.

As an additional supplement to other retirement allowances provided, each annuitant who is receiving a retirement annuity of less than twenty-five thousand dollars annually, shall receive annually after the effective date of this section a supplemental benefit as an annual cost-of-living supplement which is equal to the annual increase in the consumer price index as published by the United States department of labor or three percent of their annual annuity, whichever is less, if the supplement does not cause the annual retirement annuity to exceed twenty-five thousand dollars. If granting the full supplement to an annuitant would result in the annual annuity exceeding twenty-five thousand dollars then the annuitant shall receive that portion of the supplement that will maintain an annual annuity of twenty-five thousand dollars.

NOTE: The purpose of this bill is to provide an annual cost-of-living increase for retirees in the defined benefit teacher system who receive less than $25,000.00 annually. The supplement is to equal the consumer price index or three percent of the annual annuity, whichever is smaller.

This section is new; therefore, strike-throughs and underscoring have been omitted.