H. B. 2975
(By Delegate Kominar)
[Introduced February 12, 2003; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact section eighteen, article ten, chapter
five of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, relating to providing a time period a
member of the public employees retirement system has to
repurchase service credit previously forfeited.
Be it enacted by the Legislature of West Virginia:
That section eighteen, article ten, 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 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-18. Termination of membership; reentry.
(a) When a member of the retirement system retires or dies, he
or she ceases to be a member. When a member leaves the employ of
a participating public employer for any other reason, he or she
ceases to be a member and forfeits service credited to him or her at that time. If he or she becomes reemployed by a participating
public employer he or she shall be reinstated as a member of the
retirement system and his or her credited service last forfeited by
him or her shall be restored to his or her credit: Provided, That
he or she must be reemployed for a period of one year or longer to
have the service restored: Provided, however, That he or she
returns to the members' deposit fund the amount, if any, he or she
withdrew from the fund, together with regular interest on the
withdrawn amount from the date of withdrawal to the date of
repayment, and that the repayment begins within two years of the
return to employment and that the full amount is repaid within five
years of the return to employment.
(b) Effective on the first day of July, one thousand nine
hundred ninety-seven, and continuing through the first day of July,
one thousand nine hundred ninety-eight, any employee of the
Prestera center for mental health services, valley comprehensive
mental health center, Westbrook health services and eastern
panhandle mental health center who is a member of the retirement
system may elect to withdraw from membership without forfeiting
service credited to him or her.
(c) The Prestera center for mental health services, valley
comprehensive mental health center, Westbrook health services and
eastern panhandle mental health center, and their successors in
interest, shall provide for their employees a pension plan in lieu of the public employees retirement system on or before the first
day of July, one thousand nine hundred ninety-seven, and continuing
thereafter during the existence of the named mental health centers
and their successors in interest.
(d) The administrative bodies of the Prestera center for
mental health services, valley comprehensive mental health center,
Westbrook health services and eastern panhandle mental health
center shall, on or before the first day of May, one thousand nine
hundred ninety-seven, give written notice to each employee who is
a member of the public employees retirement system of the option to
withdraw from or remain in the system. The notice shall include a
copy of this section and a statement explaining the member's
options regarding membership. The notice shall include a statement
in plain language giving a full explanation and actuarial
projection figures in support of the explanation regarding the
individual member's current account balance, vested and nonvested,
and his or her projected return upon remaining in the public
employees retirement system until retirement, disability or death,
in comparison with the projected return upon withdrawing from the
public employees retirement system and joining a private pension
plan provided by the community mental health center and remaining
therein until retirement, disability or death. The administrative
bodies shall keep in their respective records a permanent record of
each employee's signature confirming receipt of the notice.
(e) Effective the first day of March, one thousand nine
hundred ninety-eight two thousand three, and ending the thirty-
first day of December, two thousand two ten, any member may
purchase credited service previously forfeited by him or her and
such credited service shall be restored to his or her credit:
Provided, That he or she returns to the members' deposit fund the
amount, if any, he or she withdrew from the fund, together with
interest on the withdrawn amount from the date of withdrawal to the
date of repayment at a rate to be determined by the board. The
repayment under this section may be made by lump sum or repaid over
a period of time not to exceed sixty months. Where the member
elects to repay the required amount other than by lump sum, the
member is required to pay interest at the rate determined by the
board until all sums are fully repaid.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.