Senate Bill No. 95

(By Senator Bailey and Minard)

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[Introduced February 15, 2001; referred to the Committee on Pensions; and then to the Committee on Finace.]
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A BILL to amend and reenact section thirteen, article sixteen, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to amend and reenact section thirty-five-a, article seven-a, chapter eighteen of said code, all relating to providing that members of the public employees retirement system who choose deferred retirement may use accumulated personal leave for the payment of medical insurance premiums; providing that employees who elected to take deferred retirement may use accrued annual leave and sick leave on the basis of two days' retirement service credit for each day of accrued annual and sick leave toward an increase in the employee's retirement benefits; providing that surviving spouses of deceased employees may utilize unused accumulated annual leave of the deceased employee toward the payment of medical insurance premiums and that such election shall be retroactive; providing for the further election of a surviving spouse to receive monetary value in wages of a deceased employee's accumulated annual leave; and providing a prior service credit for former members of the teachers retirement system who were employed in a nonteaching capacity for a board of education but under contract with the comprehensive employment and training act.

Be it enacted by the Legislature of West Virginia:
That section thirteen, article sixteen, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that section thirty-five-a, article seven-a, chapter eighteen of said code be amended and reenacted, all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,

SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD OF

PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS,

OFFICES, PROGRAMS, ETC.

ARTICLE 16. WEST VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT.

§5-16-13. Payment of costs by employer and employee; coverage for employee's spouse and dependents generally; short term continuance of coverage for involuntary employee termination; extended insurance coverage for retired employees with accrued annual leave and sick leave; increased retirement benefits for retired employees with accrued annual and sick leave; additional eligible retired employees; option for health insurance coverage without life insurance coverage made available to retirees; health insurance for surviving dependents of deceased employees.

(a) The director is hereby authorized to provide under any contract or contracts entered into under the provisions of this article that the costs of any such group hospital and surgical insurance, group major medical insurance, group prescription drug insurance, group life and accidental death insurance benefit plan or plans may be paid by the employer and employee. In addition, each employee shall be is entitled to have his or her spouse and dependents, as defined by the rules of the public employees insurance agency, included in any group hospital and surgical insurance, group major medical insurance or group prescription drug insurance coverage: Provided, That such the spouse and dependent coverage shall be is limited to excess or secondary coverage for each spouse and dependent who has primary coverage from any other source. For purposes of this section, the term "primary coverage" means individual or group hospital and surgical insurance coverage or individual or group major medical insurance coverage or group prescription drug coverage in which the spouse or dependent is the named insured or certificate holder. The director may require proof regarding spouse and dependent primary coverage and shall adopt rules governing the nature, discontinuance and resumption of any employee's coverage for his or her spouse and dependents.
(b) Should a participating employee be terminated from employment involuntarily or in reduction of work force, the employee's insurance coverage provided under this article shall continue for a period of three months at no additional cost to the employee. An employee discharged for misconduct shall is not be eligible for extended benefits under this section. Coverage may be extended up to the maximum period of three months, while administrative remedies contesting the charge of misconduct are pursued. If the discharge for misconduct be is upheld, the full cost of the extended coverage shall be reimbursed by the employee. If the employee is again employed or recalled to active employment within twelve months of his or her prior termination, he or she shall not be considered is not a new enrollee and shall may not be required to again contribute his or her share of the premium cost, if he or she had already fully contributed such his or her share during the prior period of employment.
(c) Except as otherwise provided in subsection (f) of this section for higher education full-time faculty employed on an annual contract basis other than for twelve months, when a participating employee, who has elected to participate in the plan before the first day of July, one thousand nine hundred eighty-eight, is compelled or required by law to retire before reaching the age of sixty-five, or when a participating employee voluntarily retires as provided by law or when an employee defers retirement as provided by law, that employee's accrued annual leave and sick leave, if any, shall be credited toward an extension of the insurance coverage provided by this article, according to the following formulae: Such Insurance coverage for a retired employee shall continue one additional month for every two days of annual leave or sick leave, or both, which the employee had accrued as of the effective date of his or her retirement. For a retired employee, his or her spouse and dependents, such insurance coverage shall continue one additional month for every three days of annual leave or sick leave, or both, which the employee had accrued as of the effective date of his or her retirement. Any member of the retirement system who chooses deferred retirement may use accumulated annual leave as a credit towards the payment of medical insurance premiums.
(d) Notwithstanding the preceding subsection, except as otherwise provided in subsection (f) of this section for higher education full-time faculty employed on an annual contract basis other than for twelve months, when a participating employee who elects to participate in the plan on and after the first day of July, one thousand nine hundred eighty-eight, is compelled or required by law to retire before reaching the age of sixty-five, or when such a participating employee voluntarily retires as provided by law or when an employee defers retirement as provided by law, that employee's annual leave or sick leave, if any, shall be credited toward one half of the premium cost of the insurance provided by this article, for periods and scope of coverage determined according to the following formulae: (1) One additional month of single retiree coverage for every two days of annual leave or sick leave, or both, which the employee had accrued as of the effective date of his or her retirement; or (2) one additional month of coverage for a retiree, his or her spouse and dependents for every three days of annual leave or sick leave, or both, which the employee had accrued as of the effective date of his or her retirement. The remaining premium cost shall be borne by such the retired employee if he or she elects such the coverage. For purposes of this subsection, an employee who has been a participant under spouse or dependent coverage and who reenters the plan within twelve months after termination of his or her prior coverage shall be considered to have elected to participate in the plan as of the date of commencement of the prior coverage. For purposes of this subsection, an employee shall not be considered is not a new employee after returning from extended authorized leave on or after the first day of July, one thousand nine hundred eighty-eight.
(e) In the alternative to the extension of insurance coverage through premium payment provided in the two preceding subsections, the participating employee's accrued annual leave and sick leave may be applied, on the basis of two days retirement service credit for each one day of accrued annual and sick leave, toward an increase in the employee's retirement benefits with such the days constituting additional credited service in computation of such the benefits under any state retirement system. However, such the credited service shall may not be used in meeting initial eligibility for retirement criteria, but only as additional service credited in excess thereof: Provided, That employees who choose or have chosen deferred retirement may use accrued annual leave and sick leave, on the basis of two days' retirement service credit for each one day of accrued annual and sick leave toward an increase in the employee's retirement benefits with the days constituting additional credited service in computation of the benefits under any state retirement system.
(f) When a participating employee, who is a higher education full-time faculty member employed on an annual contract basis other than for twelve months, is compelled or required by law to retire before reaching the age of sixty-five, or when such a participating employee voluntarily retires as provided by law, that employee's insurance coverage, as provided by this article, shall be extended according to the following formulae: Such The insurance coverage for a retired higher education full-time faculty member, formerly employed on an annual contract basis other than for twelve months, shall continue beyond the effective date of his or her retirement one additional year for each three and one-third years of teaching service, as determined by uniform guidelines established by the university of West Virginia board of trustees and the board of directors of the state college system, for individual coverage, or one additional year for each five years of teaching service for "family" coverage.
(g) Any employee who retired prior to the twenty-first day of April, one thousand nine hundred seventy-two, and who also otherwise meets the conditions of the "retired employee" definition in section two of this article, shall be is eligible for insurance coverage under the same terms and provisions of this article. The retired employee's premium contribution for any such the coverage shall be established by the finance board.
(h) All retirees under the provisions of this article, including those defined in section two of this article; those retiring prior to the twenty-first day of April, one thousand nine hundred seventy-two; and those hereafter retiring shall be after that date are eligible for and permitted to obtain health insurance coverage. The retired employee's premium contribution for any such coverage shall be established by the finance board.
(i) A surviving spouse and dependents of a deceased employee, who was either an active or retired employee just prior to such the decease, shall be is entitled to be included in any group insurance coverage provided under this article, and such the spouse and dependents shall bear the premium cost of such the insurance coverage. The finance board shall establish the premium cost of any such coverage: Provided, That any surviving spouse of a deceased employee, who was either an active or retired employee immediately prior to his or her death, may use unused accumulated annual leave for the payment of medical insurance premiums pursuant to subsection (c) or (d) of this section: Provided, however, That the right to payment of medical insurance premiums is retroactive and any surviving spouse previously denied the payment of medical insurance premiums from the accumulated annual leave of a deceased spouse has the option, upon request, to receive the benefits that the deceased spouse was entitled to receive immediately prior to his or her decease: Provided further, That if the surviving spouse was not covered by the deceased spouse's medical insurance, or in the event of the election of the surviving spouse, he or she shall be paid the monetary equivalent of wages which the accumulated annual leave would have provided.
(j) In construing the provisions of this section or any other provisions of this code, the Legislature declares that it is not now nor has it ever been the Legislature's intent that elected public officials be provided any sick leave, annual leave or personal leave, and the enactment of this section is based upon the fact and assumption that no statutory or inherent authority exists extending sick leave, annual leave or personal leave to elected public officials and the very nature of such these positions preclude the arising or accumulation of such sick leave, annual leave or personal leave, so as to be thereafter usable as premium paying credits for which such the officials may claim extended insurance benefits.
(k) An employee, eligible for coverage under the provisions of this article who has twenty years of service with any agency or entity participating in the public employees insurance program or who has been covered by the public employees insurance program for twenty years may, upon leaving employment with a participating agency or entity, continue to be covered by the program if the employee pays one hundred and five percent of the cost of retiree coverage: Provided, That the employee shall elect to continue coverage under this subsection within two years of the date the employment with a participating agency or entity is terminated.
CHAPTER 18. EDUCATION.

ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.

§18-7A-35a. Prior service credit for former members of the state teachers retirement system employed in a nonteaching capacity.

Any former member of the state teachers retirement system who was employed as a regular full-time employee in a nonteaching capacity by a board of education, or as a regular employee in a nonteaching capacity for a board of education but under contract with and compensated by the Comprehensive Employment and Training Act, or as a school principal or school administrator, prior to the time he or she became eligible for membership in the state teachers retirement system, shall be is eligible for prior service credit for such the service. Upon making application to the retirement board and providing satisfactory evidence, prior service credit shall be granted and his or her retirement allowance shall be recomputed and adjusted to include such prior service credit. Any increased retirement allowance resulting from the provisions of this section shall may not be retroactive.



NOTE: The purpose of this bill is to provide that members of the public employees retirement system may use accumulated personal leave for the payment of medical premiums. The bill would also provide for the following: That employees who elected to take deferred retirement may use accrued annual leave and sick leave on the basis of two days retirement service credit for each day of accrued annual and sick leave toward an increase in the employee's retirement benefits; that surviving spouses of deceased employees may utilize unused accumulated annual leave of the deceased employee toward the payment of medical insurance premiums and that such election shall be retroactive; that an election would exist for a surviving spouse to receive monetary value in wages of a deceased employee's accumulated annual leave; and, that a prior service credit for former members of the teachers retirement system who were employed in a nonteaching capacity for a board of education but under contract with the Comprehensive Employment and Training Act would exist in order to increase retirement benefits.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.