Senate Bill No. 615
(By Senators Wooton, Caldwell, Fanning, Hunter,
Kessler, Minard, Mitchell, Oliverio, Redd, Ross, Rowe,
Facemyer and McKenzie)
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[Originating in the Committee on the Judiciary;
reported February 15, 2002.]
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A BILL to amend and reenact section eight, article ten-a, chapter
five of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, relating to disqualification for
public retirement benefits; setoffs against unpaid benefits;
and freezing of moneys pending court resolution where theft of
government moneys occurs.
Be it enacted by the Legislature of West Virginia:
That section eight, article ten-a, 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 10A. DISQUALIFICATION FOR PUBLIC RETIREMENT PLAN BENEFITS.
§5-10A-8. Setoff; unpaid benefits subject to execution, freezing
of account upon finding of probable cause.
(a) The state of West Virginia or any of its political subdivisions shall have the right of setoff against any unpaid
benefits which have accrued or may thereafter accrue under the
plan, including any contributions by the participant, for any claim
caused by less than honorable service by the participant.
(b) Notwithstanding any provision of this article to the
contrary, upon being notified by an agency of the state of West
Virginia or any of its political subdivisions that an employee has
been charged by criminal complaint, indictment or information with
an offense which constitutes less than honorable service and
larceny of funds or property from a state agency or political
subdivision, the retirement board shall withhold payment or
refunding of any participant contributions until it receives an
order from a court of competent jurisdiction reflecting that the
charge has been dismissed, the participant found not guilty or
ordering the release of all or part of the funds or directing
restitution to the state or political subdivision.
(c) Notwithstanding any provision of the law to the contrary,
any unpaid benefits which have accrued or may thereafter accrue
shall be subject to execution, garnishment, attachment or any other
legal process for collection of a judgment for the recovery of loss
or damages incurred by the state or its political subdivision,
caused by the participant's less than honorable service.
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(NOTE: The purpose of this bill is to preclude persons who
are subject to losing their pension rights under the public employees' retirement system for larceny type offenses from
removing their contributions from the system. The rationale for
this bill is to protect the government's right to restitution.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.)