
ENGROSSED
H. B. 2816



(By Mr. Speaker, Mr. Kiss, and Delegates



Michael and Ashley)



[Introduced March 9, 2001; referred to the



Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact section seven, article seven-b, chapter
eighteen of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to providing a window
for members of the teacher's defined contribution system to
transfer to the public employees retirement system and setting
forth conditions to be met for such transfer.
Be it enacted by the Legislature of West Virginia:

That section seven, article seven-b, 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 7B. TEACHERS' DEFINED CONTRIBUTION RETIREMENT SYSTEM.
§18-7B-7. Participation in teachers' defined contribution
retirement system; limiting participation in existing
teachers' retirement system.
Beginning the first day of July, one thousand nine hundred ninety-one, the teachers' defined contribution retirement system
shall be the single retirement program for all new employees whose
employment commences on or after that date. No additional new
employees except as may be provided herein may be admitted to the
existing retirement system. Members of the existing retirement
system whose employment continues beyond the first day of July, one
thousand nine hundred ninety-one, are not affected by this article
and shall continue to contribute and participate in the existing
system without change in provisions or benefits.
Notwithstanding the provisions of section twenty-three,
article seven-a of this chapter, any employee whose employment
terminates after the thirtieth day of June, one thousand nine
hundred ninety-one, who is later reemployed by an employer shall be
eligible for membership only in the teachers' defined contribution
system: Provided, That if such reemployment with an existing
employer occurs not more than six months after the employee's
previous employment, he or she shall be entitled to readmission to
the existing retirement system in which he or she was originally a
member: Provided, however, That if such employee has five or more
years of credited service in the existing retirement system, he or
she shall be entitled to readmission into the existing retirement
system in which he or she was originally a member so long as he or
she has not withdrawn his or her contributions from the existing
retirement system: Provided further, That if such employee has withdrawn his or her contribution from the existing retirement
system, then readmission shall not be permitted and the employee
will be entitled only to the defined contribution system.
An employee whose employment with an employer was suspended or
terminated while he or she served as an officer with a statewide
professional teaching association is eligible for readmission to
the existing retirement system in which he or she was a member.
Any employee reemployed with an employer on or after the first day
of July, one thousand nine hundred ninety-one, who had five or more
years credited service in the teachers' defined benefit retirement
system may elect readmission to the teachers' defined benefit
retirement system in which he or she was originally a member. Any
employee reemployed between the first day of July, one thousand
nine hundred ninety-one, and the first day of July, one thousand
nine hundred ninety-five, and who was required to participate in
the teachers' defined contribution system but now elects, pursuant
to the provisions of this section, readmission to the teachers'
defined benefit retirement system shall pay an additional
contribution to the teachers' defined benefit retirement system
equal to one and one-half percent of his or her annual gross
compensation earned for each year he or she participated in the
teachers' defined contribution system and shall transfer all member
and employer contributions and investment earnings therefrom from
the teacher defined contribution system to the teachers' defined benefit system and shall receive service credit for the time the
member participated in the defined contribution system as if that
participation had been in the teachers' defined benefit retirement
system. Any member making an election under the provisions of this
section to reenter the teachers' defined benefit retirement system
who is currently a member of the defined contribution retirement
system must do so on or before the first day of January, one
thousand nine hundred ninety-six. Any other member reemployed must
make the election as to the retirement system that he or she will
be a member of at the time he or she is reemployed.
An employee whose employment with an employer or an existing
employer is suspended as a result of an approved leave of absence,
approved maternity or paternity break in service, or any other
approved break in service authorized by the board, is eligible for
readmission to the existing retirement system in which he or she
was a member.
In all cases where a question exists as to readmission to
membership in the existing retirement system, the board shall
decide the question.
Any individual who is a leased employee shall not be eligible
to participate in the system. For purposes of this system, a
"leased employee" means any individual who performs services as an
independent contractor or pursuant to an agreement with an employee
leasing organization or other similar organization. If a question arises regarding the status of an individual as a leased employee,
the board has final power to decide the question.
Beginning the first day of July, two thousand one and ending
the fifth day of July, two thousand one, any person who has been a
member of this system for at least five years may opt to transfer
from this system to the retirement system established in article
five of chapter ten of this code: Provided, That the following
conditions are met. Any member desiring to avail himself or
herself of this option shall, no later than the fifth day of July,
two thousand one, personally serve upon the executive director of
the consolidated retirement board written notice of the election
along with payment as follows: (1) Both the employee's and
employer's required contribution had he or she been a member of the
public employees retirement system for the entire time he or she
was a member of the teachers' defined contribution system along
with interest at ten per cent, compounded monthly and (2) an amount
equal to the highest value of his or her fund or assets in this
system for the past twenty-four months. Any member so electing
shall lose the right forever to be a member of this system.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.