ENGROSSED

COMMITTEE SUBSTITUTE

FOR


Senate Bill No. 425

(By Senators Plymale and Jenkins)

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[Originating in the Committee on Education;

reported February 12, 2003.]

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A BILL to amend and reenact section one-d, article one, chapter eighteen-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to authorizing the higher education policy commission to participate in retirement and separation incentives.

Be it enacted by the Legislature of West Virginia:
That section one-d, article one, chapter eighteen-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 1. GOVERNANCE.
§18B-1-1d. Retirement and separation incentives.
(a) Notwithstanding any other provisions provision of this code to the contrary, each state institution of higher education may include in its strategic plan, pursuant to section one-c of this article, policies that offer various incentives for voluntary, early or phased retirement of employees or voluntary separation from employment when necessary to implement programmatic changes effectively pursuant to the findings, directives, goals and objectives of this article: Provided, That such the incentives for voluntary, early or phased retirement of employees or voluntary separation from employment must shall be submitted by the governing board to the legislative joint committee on pensions and retirement and approved before such the policies are adopted as part of the institution's strategic plan.
(b) Effective the first day of July, two thousand one, each state institution of higher education may implement, under its institutional compact created pursuant to section two, article one- a of this chapter, policies that offer various incentives for voluntary, early or phased retirement of employees, or voluntary separation from employment, when necessary to implement programmatic changes effectively: Provided, That the institution shall meet all the requirements, including the requirement for obtaining legislative approval, set forth in this section.
(c) The policies may include the following provisions:
(1) Payment of a lump sum to an employee to resign or retire;
(2) Continuation of full salary to an employee for a predetermined period of time prior to the employee's resignation or retirement and a reduction in the employee's hours of employment during the predetermined period of time;
(3) Continuation of insurance coverage pursuant to the provisions of article sixteen, chapter five of this code for a predetermined period;
(4) Continuation of full employer contributions to an employee's retirement plan during a phased retirement period; and
(5) That an employee retiring pursuant to an early or phased retirement plan may begin collecting Collection of an annuity from the employee's retirement plan prior to the statutorily designated retirement date without terminating his or her service with the institution.
(d) No incentive provided for in this section shall be granted except in furtherance of programmatic changes undertaken pursuant to the findings, directives, goals and objectives set forth in this article.
(e) No incentive proposed by an institution pursuant to this section shall become a part of the institution's approved strategic plan or institutional compact or be implemented without approval of the legislative joint committee on pensions and retirement.
(f) Any costs associated with any incentive adopted or implemented in accordance with this section shall be borne entirely by the institutions, the West Virginia network for educational telecomputing or the policy commission, whichever is applicable. and no No incentive shall be granted that imposes costs on the retirement systems of the state or the public employees insurance agency unless those costs are paid entirely by the institutions, the West Virginia network for educational telecomputing or the policy commission, whichever is applicable.
(f) (g) The Legislature further finds and declares that there is a compelling state interest in restricting the availability and application of these incentives to individual employees determined by the institutions to be in furtherance of the aims of this section. and nothing herein shall Nothing in this section may be interpreted as granting a right or entitlement of any such incentive to any individual or group of individuals. Any employee granted incentives shall be is ineligible for reemployment by the institutions during or after the negotiated period of his or her incentive concludes, including contract employment in excess of five thousand dollars the amount specified by the social security administration for retirees below the full retirement age per fiscal year.
(g) (h) The policy commission and the West Virginia network for educational telecomputing may utilize use the incentives contained in any policy set forth in this section if approved by the legislative joint committee on pensions and retirement pursuant to this section as required in subsection (a) of this section.