Senate Bill No. 234
(By Senators Scott and Plymale)
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[Introduced January 28, 1998; referred to the Committee
on Pensions; and then to the Committee on Finance.]
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A BILL to amend and reenact section eighteen, article ten,
chapter five of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to the public
employees retirement system; termination of membership;
reentry; and extending the time in which to make repayments
for certain members.
Be it enacted by the Legislature of West Virginia:
That section eighteen, 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.
§5-10-18. Termination of membership; reentry.
(a) When a member of the retirement system retires or dies,
he or she ceases to be a member. When a member leaves the employ of a participating public employer for any other reason, he or
she ceases to be a member and forfeits service credited to him or
her at that time. If he or she becomes reemployed by a
participating public employer he or she shall be reinstated as a
member of the retirement system and his or her credited service
last forfeited by him or her shall be restored to his or her
credit: Provided, That he or she must be reemployed for a period
of one year or longer to have the service restored: Provided,
however, That he or she returns to the members' deposit fund the
amount, if any, he or she withdrew from the fund, together with
regular interest on the withdrawn amount from the date of
withdrawal to the date of repayment, and that the repayment
begins within two years of the return to employment and that the
full amount is repaid within five years of the return to
employment: Provided further, That any member who withdrew from
the fund before the thirty-first day of December, one thousand
nine hundred sixty-nine, and has reentered the system may repay
the full amount on or before the thirty-first day of December,
one thousand nine hundred ninety-nine.
(b) Effective on the first day of July, one thousand nine
hundred ninety-seven, and continuing through the first day of
July, one thousand nine hundred ninety-eight, any employee of the
Prestera center for mental health services, valley comprehensive mental health center, Westbrook health services and eastern
panhandle mental health center who is a member of the retirement
system may elect to withdraw from membership without forfeiting
service credited to him or her.
(c) The Prestera center for mental health services, valley
comprehensive mental health center, Westbrook health services and
eastern panhandle mental health center, and their successors in
interest, shall provide for their employees a pension plan in
lieu of the public employees retirement system on or before the
first day of July, one thousand nine hundred ninety-seven, and
continuing thereafter during the existence of the named mental
health centers and their successors in interest.
(d) The administrative bodies of the Prestera center for
mental health services, valley comprehensive mental health
center, Westbrook health services and eastern panhandle mental
health center shall, on or before the first day of May, one
thousand nine hundred ninety-seven, give written notice to each
employee who is a member of the public employees retirement
system of the option to withdraw from or remain in the system.
The notice shall include a copy of this section and a statement
explaining the member's options regarding membership. The notice
shall include a statement in plain language giving a full
explanation and actuarial projection figures in support of the explanation regarding the individual member's current account
balance, vested and nonvested, and his or her projected return
upon remaining in the public employees retirement system until
retirement, disability or death, in comparison with the projected
return upon withdrawing from the public employees retirement
system and joining a private pension plan provided by the
community mental health center and remaining therein until
retirement, disability or death. The administrative bodies shall
keep in their respective records a permanent record of each
employee's signature confirming receipt of the notice.
NOTE: The purpose of this bill is to extend the time in
which certain members of the retirement system have to repay
contributions that were withdrawn, when the member reenters the
retirement system. If the person withdrew from the system before
December 31, 1969, and reenters the system, that person may pay
back funds withdrawn, together with interest, on or before
December 31, 1999, in order to get credit for retirement.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.