H. B. 2225
(By Delegate Warner)
[Introduced January 14, 1999; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact section twenty-four, 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.
Be it enacted by the Legislature of West Virginia:
That section twenty-four, 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.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.