Senate Bill No. 43

(By Senator Chafin)

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[Introduced February 9, 2005; referred to the Committee

on Pensions; and then to the Committee on Finance.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §18-7A-26t, relating to increasing supplemental benefits to certain teacher retirement annuitants.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §18-7A-26t , to read as follows:
ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.
§18-7A-26t. Supplemental benefits for certain annuitants.
As an additional supplement to other retirement allowances provided, each annuitant who is receiving a disability annuity and has been retired for at least five years, or is receiving a retirement annuity and is at least sixty years of age and has been retired for at least five years, shall receive, beginning on the first day of July, two thousand six, and each year thereafter, a supplemental benefit as follows:
An annual cost-of-living supplement which is equal to the percentage increase in the consumer price index as published by the United States Department of Labor or two percent, whichever is less, multiplied by the first fifteen thousand dollars of the retiree's annual annuity. This shall be phased in over a two-year period as follows: One percent in the two thousand six-two thousand seven fiscal year, thereafter increasing to two percent in the two thousand seven-two thousand eight fiscal year, and remaining at the annual cost-of-living supplement or two percent, whichever is less.

NOTE: The purpose of this bill is to provide a cost-of-living increase to certain annuitants under the teachers retirement system. The supplement is equal to the percentage increase in the consumer price index or two percent, whichever is less, multiplied by the first fifteen thousand dollars of the retiree's annual annuity.

This section is new; therefore, strike-throughs and underscoring have been omitted.