H. B. 2624
(By Delegates Hubbard and Doyle)
[Introduced February 3, 1999; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact section four-a, article twenty-three,
chapter eighteen of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, additional power,
duties and responsibilities of governing boards of state
institutions of higher education; and the amount of employee
and employer contributions made to supplemental and
additional retirement plans.
Be it enacted by the Legislature of West Virginia:
That section four-a, article twenty-three, chapter eighteen
of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, be amended and reenacted to read as
follows:
ARTICLE 23. ADDITIONAL POWERS, DUTIES AND RESPONSIBILITIES OF
GOVERNING BOARDS OF STATE INSTITUTIONS OF HIGHER EDUCATION.
§18-23-4a. Supplemental and additional retirement plans for
employees; payroll deductions; authority to match
employee contributions; retroactive curative and
technical corrective action.
The governing boards shall have the authority are authorized
to contract for a supplemental retirement plan for any or all of
its employees to supplement the benefits such its employees will
receive under the state teachers retirement system. The
governing boards shall have the authority are further authorized
to make additional periodic deductions from the salary payments
due such employees in the amount they are required to contribute
for the supplemental retirement plan selected by the board. The
additional deductions shall not exceed five percent of the salary
of employees under thirty-five years of age, six percent of the
salary of those thirty-five through forty-four years of age, and
seven and one-half percent of the salary of those forty-five
years of age and above, of four and one-half percent and shall
may not cover any portion of an employee's salary which is
covered by the state teachers retirement system.
The governing boards shall also have the authority are also
authorized to contract for an additional retirement plan for any
of its employees who elect to participate solely in such a retirement plan selected by the governing boards without
participating in the state retirement system. The governing
boards shall have the authority are authorized to make periodic
deductions from the salary payments due such employees in the
amount they are required to contribute to the additional plan,
which deductions shall be the same percentage of four and
one-half percent of the participating employees' salaries as that
deducted from the salaries of members of the state retirement
system.
The board is further authorized, by way of additional
compensation to such its employees, to pay an amount equal to the
contributions of such employees seven and one-half percent of
the participating employees' salaries into either the
supplemental or additional retirement plan from funds
appropriated to it for personal services. Each participating
employee shall have a full and immediate vested interest in the
retirement and death benefits accrued from all the moneys paid
into such the supplemental or additional retirement plan for his
benefit. Upon proper requisition of the board, the auditor shall
periodically issue a warrant, payable as specified in the
requisition, for the total contributions so withheld from the
salaries of all participating employees and for the governing
board's matching funds contribution.
Pursuant to the provisions contained in article seven-a and
article twenty-three of this chapter, once a member has elected
one of the options contained in section fourteen-a, article
seven-a of this chapter and section four-a, article twenty-three
of this chapter, he or she cannot thereafter change such the
election. The Legislature declares that the amendment of this
section in Enrolled Committee Substitute for House Bill No. 4672,
enacted at the regular session, one thousand nine hundred
eighty-eight, was inadvertent and remained in said the bill
contrary to legislative intent that the same be deleted;
therefore, such the language is hereby retroactively deleted and
expunged as of the effective date of said Enrolled Committee
Substitute for House Bill No. 4672 as curative and technical
corrective action. The Legislature further declares that such
the ambiguous and deficient language inadvertently enacted in
said the bill shall be given no force and effect whatsoever in
any litigation involving such that language.
Beginning on the first day of July, one thousand nine
hundred ninety-one, any person whose employment commences on or
after that date and is eligible to participate in an additional
retirement plan provided pursuant to this section shall be is
required to participate in said the additional plan and shall not
be is not eligible to participate in any other state retirement system.
NOTE: The purpose of this bill is to specifically determine
the amount of employee and board contributions to the
supplemental and additional retirement plans selected by the
governing boards of higher education.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.