H. B. 4227
(By Delegates Jenkins, Hubbard and Michael)
[Passed March 14, 1998; in effect from passage.]
AN ACT to amend and reenact section forty-one, article ten, chapter
five of the code of West Virginia, one thousand nine hundred
thirty-one, as amended; to amend and reenact sections two,
three and five, article ten-b of said chapter; to further
amend said article by adding thereto a new section, designated
section ten; and to amend article ten-d of said chapter by
adding thereto a new section, designated section seven, all
relating to the West Virginia Public Employees Retirement Act;
providing that the interest rate calculation be performed on
a calender year basis; incorporating federal tax law
limitations on the maximum compensation that can be taken into
account for the purpose of determining retirement benefits and
contributions to retirement plans; and incorporating federal
requirements that all assets of government deferred pension
plans be held in trust for the benefit of members and their beneficiaries.
Be it enacted by the Legislature of West Virginia:
That section forty-one, article ten, chapter five of the code
of West Virginia, one thousand nine hundred thirty-one, as amended,
be amended and reenacted; that sections two, three and five,
article ten-b of said chapter be amended and reenacted; that said
article be further amended by adding thereto a new section,
designated section ten; and that article ten-d of said chapter be
amended by adding thereto a new section, designated section seven,
all to read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-41. Allowance of regular interest on balances in funds.
The board of trustees shall, at the end of each calendar year,
allow and credit regular interest on the balance at the beginning
of the said fiscal year in each member's individual account in the
members deposit fund, and on the mean balances in the employers
accumulation fund and the retirement reserve fund. The interest so
allowed and credited shall be charged to the income fund.
ARTICLE 10B. GOVERNMENT EMPLOYEES DEFERRED COMPENSATION PLANS.
Unless the context in which used clearly indicates a different
meaning, as used in this article:
(a) "Board" means the consolidated public retirement board
provided for in article ten of this chapter.
(b) "Deferred compensation plan" means a trust whereby the
state of West Virginia, as the public employer, or a public
employer agrees with an employee for the voluntary reduction in
employee compensation for the payment of benefits by the state
employer or the public employer to the employee at a later date
pursuant to this article and the federal laws and regulations
relating to eligible state deferred compensation plans as described
in Section 457 of the Internal Revenue Code.
(c) "Employee" means any person, whether appointed, elected,
or under contract, providing services for the state employer or
public employer, for which compensation is paid.
(d) "Public employer" means counties, municipalities or
political subdivisions of such governmental bodies which meet the
definition of "state" as described in Internal Revenue Code Section
457 (d) (1), but which do not meet the definition of "state
employer" as used in this article.
(e) "State employer" means the state of West Virginia and any
state agency or instrumentality of the state.
§5-10B-3. Contracts for deferred compensation plans -- Approval
of plans -- Approval of companies providing
The state employer or any public employer may, by contract,
agree with any of its employees to defer and hold in trust any
portion of that employee's compensation and may subsequently purchase or acquire from any company licensed to do business in the
state of West Virginia fixed or variable annuities, insurance,
endowment, or savings account for the purpose of carrying out the
objectives of the deferred compensation plan as described in this
§5-10B-5. Investment of funds.
Notwithstanding any other provision of law to the contrary,
the board, as well as the appropriate local officer, board or
committee, designated as responsible for implementing a deferred
compensation plan, is hereby authorized to invest compensation held
pursuant to any such deferred compensation plan in fixed and
variable annuities, mutual funds, insurance, endowment or savings
accounts from any company duly authorized to contract such business
in the state.
§5-10B-10. Deferred compensation plan funds held in trust.
Notwithstanding anything herein to the contrary, as of the
first day of January, one thousand nine hundred ninety-eight, all
assets and income of all deferred compensation plans created or
administered pursuant to this article shall be held in trust for
the exclusive benefit of participants and their beneficiaries.
ARTICLE 10D. CONSOLIDATED PUBLIC RETIREMENT BOARD.
§5-10D-7. Compensation limitations; effective dates.
Effective for plan years beginning after the thirty-first day
of December, one thousand nine hundred ninety-five, the annual compensation of a participant taken into account in determining
benefits or contributions under any of the public retirement plans
administered by the board and which are qualified plans under
section 401(a) of the Internal Revenue Code may not exceed one
hundred fifty thousand dollars. This provision shall apply
notwithstanding any other provision to the contrary in this code
and not withstanding any provisions of any legislative rule.