Senate Bill No. 711
(By Senators Plymale, Fanning, Jackson, Prezioso,
Edgell, McCabe and Sprouse )
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[Originating in the Committee on Pensions; reported March 29,
2001.]
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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 the rights of
members who left employment under the teachers retirement
system before the effective date of the teachers defined
contribution plan; and providing an option for such members to
irrevocably reenter the teachers retirement system upon
reemployment.
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.
(a) Beginning the first day of July, one thousand nine hundred
ninety-one, and except as provided for in this section, the
teachers' defined contribution 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 for in this section may be admitted to the existing
teachers' retirement system.
(b) Members of the existing teachers' retirement system whose
employment continues beyond the first day of July, one thousand
nine hundred ninety-one, and those whose employment was terminated
after the thirtieth day of June, one thousand nine hundred ninety-
one, under a reduction in force are not affected by subsection (a)
of this section and shall continue to contribute to and participate
in the existing teachers' retirement system without change in plan
provisions or benefits.
(c) Any person who was previously a member of the teachers'
retirement system and who left participating employment before the
creation of the defined contribution system on the first day of
July, one thousand nine hundred ninety-one, and who later returned to participating employment after the effective date of this
section shall have the right to elect to return to the existing
teachers' retirement system or to elect to participate in the
defined contribution system. Such election shall be made at the
time of his or her reemployment, shall be irrevocable and shall be
made upon forms approved by and filed with the West Virginia
consolidated public retirement board.
(d) Any person who was, prior to the first day of July, one
thousand nine hundred ninety-one, a member of the existing
teachers' retirement system who left participating employment
before the creation of the teachers defined contribution system on
the first day of July, one thousand nine hundred ninety-one, and
who later returned to participating employment after that date and
who was precluded from returning to the existing teachers'
retirement system as a result of prior provisions of this section,
may elect, pursuant to the provisions of this section, readmission
to the existing teachers' retirement system: Provided, That persons
who are eligible to, and who make the election to, terminate their
participation in the defined contribution system and to return to
participation in the existing teachers retirement system as
provided for in this section shall make such election, on a form
approved by and filed with the West Virginia consolidated public retirement board on or before the thirtieth day of June, two
thousand two: Provided, however, That as a condition of the right
of readmission to the existing teachers' retirement system, persons
making the election provided for in this section shall pay an
additional contribution to the existing teachers' retirement system
equal to one and one-half percent of his or her annual gross
compensation earned for each year during which he or she
participated in the defined contribution system and shall consent
and agree to the transfer of his or her total account balance in
the defined contribution system as of the most recent plan
valuation immediately preceding his or her transfer to the existing
teachers' retirement system. Upon verification of such person's
eligibility to return to participation in the existing teachers'
retirement system and the tender and transfer of funds as provided
for herein, persons making this election shall receive service
credit for the time the member participated in the defined
contribution system as if his or her participation had been in the
existing teachers retirement system: Provided further, That the
right to terminate participation in the defined contribution system
and to resume participation in the existing teachers' retirement
system as provided for in this section is irrevocable and shall not
apply to persons who, while members of the teachers' retirement system, voluntarily elected to terminate his or her membership in
the teachers' retirement system and to become a participant in the
defined contribution system pursuant to section eight of this
article.
(e) Any 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.
(f) 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.
(g) In all cases in which a question exists as to the right of
an employee to readmission to membership in the existing teachers'
retirement system, the consolidated public retirement board shall
decide the question.
(h) Any individual who is not a "member" or "employee" as
defined by section two of this article and any individual who is a
leased employee shall not be eligible to participate in the teachers defined contribution system. For purposes of this
section, 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. In all cases in which a question exists as to
whether an individual is eligible for membership in this system,
the consolidated public retirement board shall decide the question.
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NOTE: This section has been completely rewritten;
therefore, strikethroughs and underscoring have been omitted.)
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FINANCE COMMITTEE AMENDMENTS
On page two, section seven, line fifteen, after the word
"without" by inserting the word "a";
On page two, section seven, line twenty-two, by striking out
the words "shall have" and inserting in lieu thereof the word
"has";
On page two, section seven, line twenty-four, by striking
out the word "Such" and inserting in lieu thereof the word "The";
On page three, section seven, line one, by striking out the
words "shall be" and inserting in lieu thereof the word "is";
On page three, section seven, line seventeen, by striking
out the word "such" and inserting in lieu thereof the word "the";
On page four, section seven, line six, by striking out the
word "such" and inserting in lieu thereof the word "that";
On page four, section seven, line nine, by striking out the
word "herein" and inserting in lieu thereof the words "in this
subsection";
On page four, section seven, line sixteen, by striking out
the word "persons" and inserting in lieu thereof the words "any
person";
And,