H. B. 4550
(By Delegate Spencer)
[Introduced February 14, 2008; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §16-5V-2, §16-5V-6, §16-5V-8, §16-5V-9,
§16-5V-10, §16-5V-14, §16-5V-18, §16-5V-19, §16-5V-25 and
§16-5V-32 of the Code of West Virginia, 1931, as amended, all
relating to the Emergency Medical Services Retirement System;
adding and modifying definitions; specifying that members
hired after the effective date of this plan are members of the
plan as a condition of employment; clarifying language
relating to the participation of public employers in this
plan; clarifying language relating to the transfer of Public
Employees Retirement System service credit and reinstatement
of service as an emergency medical services officer;
specifying the date on which contributions are due the fund
and providing for delinquency fees for late payments;
clarifying language relating to purchase of prior service and
providing for delinquency fees for late payments; making a correction to the heading in section ten of this article;
eliminating minimum required eligible direct rollover
distributions paid directly to an eligible retirement plan;
allowing distributions totaling less than two hundred dollars
within the definition of eligible rollover distributions;
clarifying the language relating to the benefit awarded for a
duty disability; adding provisions for the payment of
additional death benefits; clarifying language relating to the
effective date for receipt of a duty disability benefit; and
making a correction to the time period for which the Joint
Committee on Government and Finance shall conduct an interim
study on the potential effects of the implementation of this
plan.
Be it enacted by the Legislature of West Virginia:
That §16-5V-2, §16-5V-6, §16-5V-8, §16-5V-9, §16-5V-10, §16-
5V-14, §16-5V-18, §16-5V-19, §16-5V-25 and §16-5V-32 of the Code of
West Virginia, 1931, as amended, be amended and reenacted, all to
read as follows:
ARTICLE 5V. EMERGENCY MEDICAL SERVICES RETIREMENT SYSTEM ACT.
§16-5V-2. Definitions.
As used in this article, unless a federal law or regulation or
the context clearly requires a different meaning:
(a) "Accrued benefit" means on behalf of any member two and
six-tenths percent per year of the member's final average salary for the first twenty years of credited service. Additionally, two
percent per year for twenty-one through twenty-five years and one
percent per year for twenty-six through thirty years will be
credited with a maximum benefit of sixty-seven percent. A member's
accrued benefit may not exceed the limits of Section 415 of the
Internal Revenue Code and is subject to the provisions of section
twelve of this article.
(1) The board may upon the recommendation of the board actuary
increase the employees' contribution rate to ten and five-tenths
percent should the funding of the plan not reach seventy percent
funded by the first day of July, two thousand twelve. The board
shall decrease the contribution rate to eight and one-half percent
once the plan funding reaches the seventy percent support objective
as of any later actuarial valuation date.
(2) Upon reaching the seventy-five percent actuarial funded
level, as of an actuarial valuation date, the board shall increase
the two and six-tenths percent to two and three-quarter percent for
the first twenty years of credited service. The maximum benefit
will also be increased from sixty-seven percent to seventy percent.
(b) "Accumulated contributions" means the sum of all
retirement contributions deducted from the compensation of a
member, or paid on his or her behalf as a result of covered
employment, together with regular interest on the deducted amounts.
(c) "Active military duty" means full-time active duty with any branch of the Armed Forces of the United States, including
service with the National Guard or reserve military forces when the
member has been called to active full-time duty and has received no
compensation during the period of that duty from any board or
employer other than the Armed Forces.
(d) "Actuarial equivalent" means a benefit of equal value
computed upon the basis of the mortality table and interest rates
as set and adopted by the board in accordance with the provisions
of this article.
(e) "Annual compensation" means the wages paid to the member
during covered employment within the meaning of Section 3401(a) of
the Internal Revenue Code, but determined without regard to any
rules that limit the remuneration included in wages based upon the
nature or location of employment or services performed during the
plan year plus amounts excluded under Section 414(h)(2) of the
Internal Revenue Code and less reimbursements or other expense
allowances, cash or noncash fringe benefits or both, deferred
compensation and welfare benefits. Annual compensation for
determining benefits during any determination period may not exceed
one hundred thousand dollars as adjusted for cost-of-living in
accordance with Section 401(a)(17)(B) of the Internal Revenue Code.
(f) "Annual leave service" means accrued annual leave.
(g) "Annuity starting date" means the first day of the month
for which an annuity is payable after submission of a retirement application. For purposes of this subsection, if retirement income
payments commence after the normal retirement age, "retirement"
means the first day of the month following or coincident with the
latter of the last day the member worked in covered employment or
the member's normal retirement age and after completing proper
written application for such "retirement" on an application
supplied by the board.
(h) "Board" means the Consolidated Public Retirement Board.
(i) "County commission or political subdivision" has the
meaning ascribed to it in this code.
(j) "Covered employment" means either: (1) Employment as an
a full-time emergency medical technician, emergency medical
technician/paramedic or emergency medical services/registered nurse
and the active performance of the duties required of emergency
medical services officers; or (2) the period of time during which
active duties are not performed but disability benefits are
received under this article; or (3) concurrent employment by an
emergency medical services officer in a job or jobs in addition to
his or her employment as an emergency medical services officer
where such secondary employment requires the emergency medical
services officer to be a member of another retirement system which
is administered by the Consolidated Public Retirement Board
pursuant to this code: Provided, That the emergency medical
services officer contributes to the fund created in this article the amount specified as the member's contribution in section eight
of this article.
(k) "Credited service," means the sum of a member's years of
service, active military duty, disability service and accrued
annual and sick leave service.
(m) (l) "Dependent child" means either:
(1) An unmarried person under age eighteen who is:
(A) A natural child of the member;
(B) A legally adopted child of the member;
(C) A child who at the time of the member's death was living
with the member while the member was an adopting parent during any
period of probation; or
(D) A stepchild of the member residing in the member's
household at the time of the member's death; or
(2) Any unmarried child under age twenty-three:
(A) Who is enrolled as a full-time student in an accredited
college or university;
(B) Who was claimed as a dependent by the member for federal
income tax purposes at the time of member's death; and
(C) Whose relationship with the member is described in
paragraph (A), (B) or (C), subdivision (1) of this subsection.
(n) (m) "Dependent parent" means the father or mother of the
member who was claimed as a dependent by the member for federal
income tax purposes at the time of the member's death.
(o) (n) "Disability service" means service received by a
member, expressed in whole years, fractions thereof or both, equal
to one half of the whole years, fractions thereof, or both, during
which time a member receives disability benefits under this
article.
(o) "Early retirement age" means age forty-five or over and
completion of twenty years of service.
(p) "Effective date" means the first day of January, two
thousand eight.
(l) (q) "Emergency medical services officer" means an
individual employed by the state, county or other political
subdivision as a medical professional that is qualified to respond
to medical emergencies, aids the sick and injured and arranges or
transports to medical facilities, as defined by the West Virginia
Office of Emergency Medical Services Division of Homeland Security
and Emergency Management. This definition is construed to include
employed ambulance providers and other services such as law
enforcement, rescue, or fire department personnel who primarily
perform these functions and are not provided any other credited
service benefits or retirement plans. These persons may hold the
rank of emergency medical technician/basic, emergency medical
technician/paramedic, emergency medical services/registered nurse,
or others as defined by the West Virginia Office of Emergency
Medical Services Division of Homeland Security and Emergency Management.
and the Consolidated Public Retirement Board.
(q) (r) "Final average salary" means the average of the
highest annual compensation received for covered employment by the
member during any five consecutive plan years within the member's
last ten years of service while employed, prior to any disability
payment. If the member did not have annual compensation for the
five full plan years preceding the member's attainment of normal
retirement age and during that period the member received
disability benefits under this article then "final average salary"
means the average of the monthly salary determined paid to the
member during that period as determined under section twenty-two of
this article multiplied by twelve. "Final average salary" does not
include any lump sum payment for unused, accrued leave of any kind
or character.
(s) "Full-time employment" means permanent employment of an
employee by a participating public employer in a position which
normally requires twelve months per year service and requires at
least one thousand forty hours per year service in that position.
(r) (t) "Fund" means the West Virginia Emergency Medical
Services Retirement Fund created by this article.
(s) (u) "Hour of service" means:
(1) Each hour for which a member is paid or entitled to
payment for covered employment during which time active duties are
performed. These hours shall be credited to the member for the plan year in which the duties are performed; and
(2) Each hour for which a member is paid or entitled to
payment for covered employment during a plan year but where no
duties are performed due to vacation, holiday, illness, incapacity
including disability, layoff, jury duty, military duty, leave of
absence or any combination thereof, and without regard to whether
the employment relationship has terminated. Hours under this
subdivision shall be calculated and credited pursuant to West
Virginia Division of Labor rules. A member will not be credited
with any hours of service for any period of time he or she is
receiving benefits under section nineteen or twenty of this
article; and
(3) Each hour for which back pay is either awarded or agreed
to be paid by the employing county commission or political
subdivision, irrespective of mitigation of damages. The same hours
of service shall not be credited both under subdivision (1) or (2)
of this subsection and under this subdivision. Hours under this
paragraph shall be credited to the member for the plan year or
years to which the award or agreement pertains, rather than the
plan year in which the award, agreement or payment is made.
(t) (v) "Member" means a person first hired as an emergency
medical services officer by an employer which is a participating
public employer of the Public Employees Retirement System or the
Emergency Medical Services Retirement System after the effective date of this article, as defined in subsection (p) of this section,
or an emergency medical services officer of an employer which is a
participating public employer of the Public Employees Retirement
System first hired prior to the effective date and who elects to
become a member pursuant to this article. A member shall remain a
member until the benefits to which he or she is entitled under this
article are paid or forfeited.
(u) (w) "Monthly salary" means the W-2 reportable compensation
received by a member during the month.
(v) (x) "Normal form" means a monthly annuity which is one
twelfth of the amount of the member's accrued benefit which is
payable for the member's life. If the member dies before the sum
of the payments he or she receives equals his or her accumulated
contributions on the annuity starting date, the named beneficiary
shall receive in one lump sum the difference between the
accumulated contributions at the annuity starting date and the
total of the retirement income payments made to the member.
(w) (y) "Normal retirement age" means the first to occur of
the following:
(1) Attainment of age fifty years and the completion of twenty
or more years of regular contributory service, excluding active
military duty, disability service and accrued annual and sick leave
service;
(2) While still in covered employment, attainment of at least age fifty years and when the sum of current age plus regular
contributory years of service equals or exceeds seventy years;
(3) While still in covered employment, attainment of at least
age sixty years and completion of ten years of regular contributory
service; or
(4) Attainment of age sixty-two years and completion of five
or more years of regular contributory service.
(z) "Political subdivision" means a county, city or town in
the state; any separate corporation or instrumentality established
by one or more counties, cities or towns, as permitted by law; any
corporation or instrumentality supported in most part by counties,
cities or towns; and any public corporation charged by law with the
performance of a governmental function and whose jurisdiction is
coextensive with one or more counties, cities or towns: Provided,
That any public corporation established under section four, article
fifteen, chapter seven of this code is considered a political
subdivision solely for the purposes of this article.
(x) (aa) "Public Employees Retirement System" means the West
Virginia Public Employee's Retirement System created by West
Virginia Code.
(y) (bb) "Plan" means the West Virginia Emergency Medical
Services Retirement System established by this article.
(z) (cc) "Plan year" means the twelve-month period commencing
on the first day of January of any designated year and ending the following thirty-first day of December.
(aa) (dd) "Regular interest" means the rate or rates of
interest per annum, compounded annually, as the board adopts in
accordance with the provisions of this article.
(bb) (ee) "Retirement income payments" means the monthly
retirement income payments payable under the plan.
(cc) (ff) "Spouse" means the person to whom the member is
legally married on the annuity starting date.
(dd) (gg) "Surviving spouse" means the person to whom the
member was legally married at the time of the member's death and
who survived the member.
(ee) (hh) "Totally disabled" means a member's inability to
engage in substantial gainful activity by reason of any medically
determined physical or mental impairment that can be expected to
result in death or that has lasted or can be expected to last for
a continuous period of not less than twelve months.
For purposes of this subsection:
(1) A member is totally disabled only if his or her physical
or mental impairment or impairments is so severe that he or she is
not only unable to perform his or her previous work as an emergency
medical services officer but also cannot, considering his or her
age, education and work experience, engage in any other kind of
substantial gainful employment which exists in the state regardless
of whether: (A) The work exists in the immediate area in which the member lives; (B) a specific job vacancy exists; or (C) the member
would be hired if he or she applied for work. For purposes of this
article, substantial gainful employment is the same definition as
used by the United States Social Security Administration.
(2) "Physical or mental impairment" is an impairment that
results from an anatomical, physiological or psychological
abnormality that is demonstrated by medically accepted clinical and
laboratory diagnostic techniques. The board may require submission
of a member's annual tax return for purposes of monitoring the
earnings limitation.
(gg) (ii) "Required beginning date" means the first day of
April of the calendar year following the later of: (1) The
calendar year in which the member attains age seventy and one-half;
(2) the calendar year in which he or she retires or otherwise
separates from covered employment; or (3) for members who are
covered under the Public Employees Retirement System, their service
shall be recognized upon transfer of asset from the Public
Employees Retirement System according to the provisions of section
nine of this article. Prior service for members not covered under
the Public Employees Retirement System shall be recognized only
upon repayment of amounts covered under the provisions of section
six of this article.
(ff) (jj) "Year of service" means a member shall, except in
his or her first and last years of covered employment, be credited with years of service credit based upon the hours of service
performed as covered employment and credited to the member during
the plan year based upon the following schedule:
Hours of Service Year of Service Credited
Less than 500 ........................ 0
500 to 999 ........................... 1/3
1,000 to 1,499 ....................... 2/3
1,500 or more ........................ 1
During a member's first and last years of covered employment,
the member shall be credited with one twelfth of a year of service
for each month during the plan year in which the member is credited
with an hour of service for which contributions were received by
the fund. A member is not entitled to credit for years of service
for any time period during which he or she received disability
payments under section nineteen or twenty of this article. Except
as specifically excluded, years of service include covered
employment prior to the effective date.
Years of service which are credited to a member prior to his
or her receipt of accumulated contributions upon termination of
employment pursuant to section eighteen of this article or section
thirty, article ten, chapter five of this code, shall be
disregarded for all purposes under this plan unless the member
repays the accumulated contributions with interest pursuant to
section eighteen of this article or had prior to the effective date made the repayment pursuant to section eighteen, article ten,
chapter five of this code.
§16-5V-6. Members.
(a) Any emergency medical services officer first employed by
a county or political subdivision in covered employment after the
effective date of this article shall be a member of this retirement
system and plan as a condition of employment and upon such
membership does not qualify for membership in any other retirement
system administered by the board, so long as he or she remains
employed in covered employment.
(b) Any emergency medical services officer employed in covered
employment by an employer which is currently a participating public
employer of the Public Employees Retirement System shall notify in
writing both the county commission in the county or officials in
their political subdivision in which he or she is employed and the
board of his or her desire to become a member of the plan by the
thirty-first day of December, two thousand seven. Any emergency
medical services officer who elects to become a member of the plan
ceases to be a member or have any credit for covered employment in
any other retirement system administered by the board and shall
continue to be ineligible for membership in any other retirement
system administered by the board so long as the emergency medical
services officer remains employed in covered employment by an
employer which is currently a participating public employer of the Public Employees Retirement System in this plan: Provided, That
any emergency medical services officer who does not affirmatively
elect to become a member of the plan continues to be eligible for
any other retirement system as is from time to time offered to
other county employees but is ineligible for this plan regardless
of any subsequent termination of employment and rehire.
(c) Any emergency medical services officer who was employed as
an emergency medical services officer prior to the effective date,
but was not employed on the effective date of this article, shall
become a member upon rehire as an emergency medical services
officer. For purposes of this section, the member's years of
service and credited service prior to the effective date shall not
be counted for any purposes under this plan unless: (1) The
emergency medical services officer has not received the return of
his or her accumulated contributions in the Public Employees
Retirement Fund System pursuant to section thirty, article ten,
chapter five of this code; or (2) the accumulated contributions
returned to the member from the Public Employees Retirement System
have been repaid pursuant to this article. If the conditions of
subdivision (1) or (2) of this subsection are met, all years of the
emergency medical services officer's covered employment shall be
counted as years of service for the purposes of this article. Each
transferring emergency medical services officer shall be given
credited service for the purposes of this article for all covered employment transferred from the Public Employees Retirement System
regardless of whether the credited service (as that term is defined
in section two, article ten, chapter five of this code) was earned
as an emergency medical services officer. All service in the Public
Employees Retirement System accrued by a transferring emergency
medical services officer shall be transferred into the plan created
by this article and the transferring emergency medical services
officer shall be given the same credit for the purposes of this
article for all covered service which is transferred from the
Public Employees Retirement System as that transferring emergency
medical services officer would have received from the Public
Employees Retirement System if the transfer had not occurred. In
connection with each emergency medical services officer receiving
credit for prior employment provided in this subsection, a transfer
from Public Employees Retirement System to this plan shall be made
pursuant to the procedures described in this article.
(d) Any emergency medical services officer employed in covered
employment on the effective date of this article who has timely
elected to transfer into this plan as provided in subsection (b) of
this section shall be given credited service at the time of
transfer for all credited service then standing to such emergency
medical services officer's service credit in the Public Employees
Retirement System regardless of whether the credited service (as
that term is defined in section two, article ten, chapter five of this code) was earned as an emergency medical services officer.
All such credited service standing to such transferring emergency
medical services officer's credit in the Public Employees
Retirement System at the time of transfer into this plan shall be
transferred into the plan created by this article, and the
transferring emergency medical services officer shall be given the
same credit for the purposes of this article for all service
transferred from the Public Employees Retirement System as that
transferring emergency medical services officer would have received
from the Public Employees Retirement System as if the transfer had
not occurred. In connection with each such transferring emergency
medical services officer receiving credit for prior employment as
provided in this subsection, a transfer from the Public Employees
Retirement System to this plan shall be made pursuant to the
procedures described in this article: Provided, That any member of
this plan who has elected to transfer from the Public Employees
Retirement System into this plan pursuant to subsection (b) of this
section may not, after having transferred into and become an active
member of this plan, reinstate to his or her credit in this plan
any service credit relating to periods in which the member was not
in covered employment as an emergency medical services officer and
which service was withdrawn from the Public Employees Retirement
System prior to his or her elective transfer into this plan.
(d) (e) Once made, the election made under this section is irrevocable. All emergency medical services officers employed by
an employer which is a participating public employer of the Public
Employees Retirement System after the effective date and emergency
medical services officers electing to become members as described
in this section shall be members as a condition of employment and
shall make the contributions required by this article.
(e) (f) Notwithstanding any other provisions of this article,
any individual who is a leased employee is not eligible to
participate in the plan. For purposes of this plan, a "leased
employee" means any individual who performs services as an
independent contractor or pursuant to an agreement with an employee
leasing organization or similar organization. If a question arises
regarding the status of an individual as a leased employee, the
board has final power to decide the question.
§16-5V-8. Members' contributions; employer contributions.
There shall be deducted from the monthly salary of each member
and paid into the fund an amount equal to eight and one-half
percent of his or her monthly salary. Any active member who has
concurrent employment in an additional job or jobs and such
additional employment requires the emergency medical services
officer to be a member of another retirement system which is
administered by the Consolidated Public Retirement Board pursuant
to article ten-d, chapter five of this code shall contribute to the
fund the sum of eight and one-half percent of his or her monthly salary earned as an emergency medical services officer as well as
the sum of eight and one-half percent of his or her monthly salary
earned from any additional employment which additional employment
requires the emergency medical services officer to be a member of
another retirement system which is administered by the Consolidated
Public Retirement Board pursuant to article ten-d, chapter five of
this code. An additional ten and one-half percent of the monthly
salary of each member shall be paid to the fund by the concurrent
employer by which the member is employed. All required deposits
shall be remitted to the board no later than fifteen days following
the end of the calendar month for which the deposits are required.
If the board upon the recommendation of the board actuary finds
that the benefits provided by this article can be actuarially
funded with a lesser contribution, then the board shall reduce the
required member and employer contributions proportionally. Any
county commission or political subdivision which fails to make any
payment due the Emergency Medical Services Retirement Fund by the
fifteenth day following the end of each calendar month in which
contributions are due may be required to pay the actuarial rate of
interest lost on the total amount owed for each day the payment is
delinquent. Accrual of the loss of earnings owed by the delinquent
county commission or political subdivision commences after the
fifteenth day following the end of the calendar month in which
contributions are due and continues until receipt of the delinquent amount. Interest compounds daily and the minimum surcharge is
fifty dollars.
§16-5V-9. Transfer from Public Employees Retirement System.
(a) The Consolidated Retirement Board shall, within one
hundred eighty days of the effective date of the transfer of an
emergency medical services officer from the Public Employees
Retirement System to the plan, transfer assets from the Public
Employees Retirement System Trust Fund into the West Virginia
Emergency Medical Services Trust Fund.
(b) The amount of assets to be transferred for each
transferring emergency medical services officer shall be computed
as of the first day of January, two thousand eight, using the first
day of July, two thousand seven, actuarial valuation of the Public
Employees Retirement System, and updated with seven and one-half
percent annual interest to the date of the actual asset transfer.
The market value of the assets of the transferring emergency
medical services officer in the Public Employees Retirement System
shall be determined as of the end of the month preceding the actual
transfer. To determine the computation of the asset share to be
transferred the board shall:
(1) Compute the market value of the Public Employees
Retirement System assets as of the first day of July, two thousand
seven actuarial valuation date, under the actuarial valuation
approved by the board;
(2) Compute the actuarial accrued liabilities for all Public
Employees Retirement System retirees, beneficiaries, disabled
retirees and terminated inactive members as of the first day of
July, two thousand seven actuarial valuation date;
(3) Compute the market value of active member assets in the
Public Employees Retirement System as of the first day of July, two
thousand seven by reducing the assets value under subdivision one
by the inactive liabilities under subdivision (2) of this
subsection;
(4) Compute the actuarial accrued liability for all active
Public Employees Retirement System members as of the first day of
July, two thousand seven actuarial valuation date approved by the
board;
(5) Compute the funded percentage of the active members'
actuarial accrued liabilities under the Public Employees Retirement
System as of the first day of July, two thousand seven by dividing
the active members' market value of assets under subdivision three
by the active members' actuarial accrued liabilities under
subdivision (4) of this subsection;
(6) Compute the actuarial accrued liabilities under the Public
Employees Retirement System as of the first day of July, two
thousand seven for active emergency medical services officers
transferring to the Emergency Medical Services Retirement System;
(7) Determine the assets to be transferred from the Public Employees Retirement System to the Emergency Medical Services
Retirement System by multiplying the active members' funded
percentage determined under subdivision (5) of this subsection by
the transferring active members' actuarial accrued liabilities
under the Public Employees Retirement System under subdivision (6)
of this subsection and adjusting such asset transfer amount by
interest at seven and five-tenths percent for the period from the
calculation date of the first day of July, two thousand seven
through the first day of the month in which the asset transfer is
to be completed.
(c) Once an Emergency Medical Services Officer has elected to
transfer from the Public Employees Retirement System, transfer of
that amount as calculated in accordance with the provisions of
subsection (b) of this section by the Public Employees Retirement
System shall operate as a complete bar to any further liability to
the Public Employees Retirement System, and constitutes an
agreement whereby the transferring emergency medical services
officer forever indemnifies and holds harmless the Public Employees
Retirement System from providing him or her any form of retirement
benefit whatsoever until such time as that emergency medical
services officer obtains other employment which would make him or
her eligible to reenter the Public Employees Retirement System with
no credit whatsoever for the amounts transferred to the Emergency
Medical Services Retirement System.
(d) Eligible emergency medical services officers that transfer
from plans other than the Public Employees Retirement System shall
have service recognized under this plan through the purchase of the
service through payment by the member of sixty percent of the
actuarial accrued liabilities which would result if the service is
fully credited under the Emergency Medical Services Retirement
System. The purchase of the service must begin within twelve months
of the effective date and full payment must be made within sixty
months by either equal monthly or a one time lump sum payment.
(d) Eligible emergency medical services officers that transfer
from plans other than the Public Employees Retirement System shall
have service recognized under this plan through the purchase of the
service through payment by the member of sixty percent of the
actuarial accrued liabilities which would result if the service is
credited under the Emergency Medical Services Retirement System
subject to the following:
(1) The service may be purchased in one year increments of
eligible service or for the total period of eligible service;
(2) Payment must begin within twelve months of the effective
date of this article;
(3) Payment must be made in either a one time lump sum payment
received by the board no later than the thirty-first day of
December, two thousand nine, or in regular installment payments
payable over sixty months with the initial installment received by the board on or before the thirty-first day of December, two
thousand nine;
(4) The rate of interest applicable to regular installment
payments for the purchase of service shall be the actuarial
interest rate assumption as approved by the board for completing
the actuarial valuation for the plan year immediately preceding the
first day of the plan year in which the service purchase is made,
compounded per annum;
(5) Once payments commence, selection of the period of service
being purchased may not be amended; and
(6) Service will be credited only upon receipt by the board of
all payments due.
§16-5V-10. Notice requirements. test case
(a) Each county commission or political subdivision shall
prepare a written notice to be delivered to each emergency medical
services officer employed prior to the first day of July, two
thousand seven. This notice shall clearly and accurately explain
the benefits, financial implications and consequences to an
emergency medical services officer of electing to participate in
the retirement plan created in this article, including the
consequences and financial implications in regard to the benefits
under the Public Employees Insurance Plan as set forth in this code
for those emergency medical services officers employed by a county
commission or political subdivision which participates in that insurance plan. This notice shall be distributed to each emergency
medical services officer and the county or political subdivision
shall obtain a signed receipt from each emergency medical services
officer acknowledging that the emergency medical services officer
was provided a copy of the notice required in this subsection. If
an emergency medical services officer makes the election provided
in section six of this article, he or she shall be considered to
have made a voluntary, informed decision in regard to the election
to participate in the retirement system created in this article.
(b) Nothing in this section may be construed to alter, affect
or change any of the rights and benefits of any emergency medical
services officer who has insurance coverage under article sixteen,
chapter five of this code as a result of being a spouse or
dependent of a participant who is the primary insured under article
sixteen, chapter five of this code.
(c) Nothing contained in this section may be construed to
affect or pertain to any life insurance coverage under article
sixteen, chapter five of this code.
§16-5V-14. Direct rollovers.
(a) This section applies to distributions made on or after the
first day of January, one thousand nine hundred ninety-three.
Notwithstanding any provision of this article to the contrary that
would otherwise limit a distributee's election under this plan, a
distributee may elect, at the time and in the manner prescribed by the board, to have any portion of an eligible rollover distribution
that is equal to at least five hundred dollars paid directly to an
eligible retirement plan specified by the distributee in a direct
rollover. For purposes of this section, the following definitions
apply:
(1) "Eligible rollover distribution" means any distribution of
all or any portion of the balance to the credit of the distributee,
except that an eligible rollover distribution does not include any
of the following: (A) Any distribution that is one of a series of
substantially equal periodic payments not less frequently than
annually made for the life or life expectancy of the distributee or
the joint lives or the joint life expectancies of the distributee
and the distributee's designated beneficiary, or for a specified
period of ten years or more; (B) any distribution to the extent
such distribution is required under Section 401(a)(9) of the
Internal Revenue Code; (C) the portion of any distribution that is
not includable in gross income determined without regard to the
exclusion for net unrealized appreciation with respect to employer
securities; and (D) any hardship distribution described in Section
401(k) (2) (B) (i) (iv) of the Internal Revenue Code. and (E) any
other distribution or distributions reasonably expected to total
less than two hundred dollars during a year.
(2) "Eligible retirement plan" means an individual retirement
account described in Section 408(a) of the Internal Revenue Code, an individual retirement annuity described in Section 408(b) of the
Internal Revenue Code, an annuity plan described in Section 403(a)
of the Internal Revenue Code or a qualified plan described in
Section 401(a) of the Internal Revenue Code that accepts the
distributee's eligible rollover distribution: Provided, That in
the case of an eligible rollover distribution to the surviving
spouse, an eligible retirement plan is an individual retirement
account or individual retirement annuity.
(3) "Distributee" means an employee or former employee. In
addition, the employee's or former employee's surviving spouse and
the employee's or former employee's spouse or former spouse who is
the alternate payee under a qualified domestic relations order, as
defined in Section 414(p) of the Internal Revenue Code with respect
to governmental plans, are distributees with regard to the interest
of the spouse or former spouse.
(4) "Direct rollover" means a payment by the plan to the
eligible retirement plan.
§16-5V-18. Refunds to certain members upon discharge or
resignation; deferred retirement; forfeitures.
(a) Any member who terminates covered employment and is not
eligible to receive disability benefits under this article is, by
written request filed with the board, entitled to receive from the
fund the member's accumulated contributions. Except as provided in
subsection (b) of this section, upon withdrawal the member shall forfeit his or her accrued benefit and cease to be a member.
(b) Any member who withdraws accumulated contributions from
either this plan or the Public Employees Retirement System and
thereafter becomes reemployed ceases employment in covered
employment and active participation in this plan, and who
thereafter becomes reemployed in covered employment may not receive
any credited service for the prior covered employment any prior
withdrawn accumulated contributions from either this plan or the
Public Employees Retirement System unless following his or her
return to covered employment and active participation in this plan,
the member redeposits in the fund the amount of the accumulated
contributions withdrawn from previous covered employment, together
with interest on the accumulated contributions at the rate
determined by the board from the date of withdrawal to the date of
redeposit. Upon repayment he or she shall receive the same credit
on account of his or her former covered employment as if no refund
had been made.
The repayment authorized by this subsection shall be made in
a lump sum within sixty months of the emergency medical services
officer's reemployment in covered employment or if later, within
sixty months of the effective date of this article.
(c) A member of this plan who has elected to transfer from the
Public Employees Retirement System into this plan pursuant to
subsection (b) of section six of this article may not, after having transferred into and become an active member of this plan,
reinstate to his or her credit in this plan any service credit
relating to periods of nonemergency medical services officer
service withdrawn from the Public Employees Retirement System prior
to his or her elective transfer into this plan.
(c) (d) Every member who completes sixty months of covered
employment is eligible, upon cessation of covered employment, to
either withdraw his or her accumulated contributions in accordance
with this section, or to choose not to withdraw his or her
accumulated contribution and to receive retirement income payments
upon attaining early or normal retirement age.
(d) (e) Notwithstanding any other provision of this article,
forfeitures under the plan may not be applied to increase the
benefits any member would otherwise receive under the plan.
§16-5V-19. Awards and benefits for disability -- Duty related.
(a) Any member who after the effective date of this article
and during covered employment: (1) Has been or becomes totally
disabled by injury, illness or disease; and (2) the disability is
a result of an occupational risk or hazard inherent in or peculiar
to the services required of members; or (3) the disability was
incurred while performing emergency medical services functions
during either scheduled work hours or at any other time; and (4) in
the opinion of two physicians after medical examination, one of
whom shall be named by the board, the member is by reason of the disability unable to perform adequately the duties required of an
emergency medical services officer, is entitled to receive and
shall be paid from the fund in monthly installments during the
lifetime of the member, or if sooner until the member attains
normal retirement age or until the disability sooner terminates,
the compensation under this section.
(b) If the member is totally disabled, the member shall
receive ninety percent of his or her average full monthly
compensation for the twelve-month period preceding the member's
disability, or the shorter period if the member has not worked
twelve months.
(c) If the member remains totally disabled until attaining
sixty-five years of age, the member shall then receive the
retirement benefit provided in sections sixteen and seventeen of
article.
§16-5V-25. Additional death benefits and scholarships --
Dependent children.
(a) In addition to the spouse death benefits in this article,
the surviving spouse is entitled to receive and there shall be paid
to the spouse one hundred dollars monthly for each dependent child.
(b) If the surviving spouse dies or if there is no surviving
spouse, the fund shall pay monthly to each dependent child a sum
equal to one hundred percent of the spouse's entitlement under this
article divided by the number of dependant children. If there is neither a surviving spouse nor a dependent child, the fund shall
pay in equal monthly installments to the dependent parents of the
deceased member during their joint lifetimes a sum equal to the
amount which a surviving spouse, without children, would have
received: Provided, That when there is only one dependent parent
surviving, that parent is entitled to receive during his or her
lifetime one-half the amount which both parents, if living, would
have been entitled to receive: Provided, however, That if there is
no surviving spouse, dependent child, nor dependent parent of the
deceased member, the accumulated contributions shall be paid to a
named beneficiary or beneficiaries: Provided further, That if
there is no surviving spouse, dependent child, nor dependent parent
of the deceased member, nor any named beneficiary or beneficiaries
then the accumulated contributions shall be paid to the estate of
the deceased member.
(c) Any person qualifying as a dependent child under this, in
addition to any other benefits due under this or other sections of
this article, is entitled to receive a scholarship to be applied to
the career development education of that person. This sum, up to
but not exceeding six thousand dollars per year, shall be paid from
the fund to any university or college in this state or to any trade
or vocational school or other entity in this state approved by the
board, to offset the expenses of tuition, room and board, books,
fees or other costs incurred in a course of study at any of these institutions so long as the recipient makes application to the
board on an approved form and under such rules as the board may
provide, and maintains scholastic eligibility as defined by the
institution or the board. The board may propose legislative rules
for promulgation in accordance with article three, chapter
twenty-nine-a of this code which define age requirements, physical
and mental requirements, scholastic eligibility, disbursement
methods, institutional qualifications and other requirements as
necessary and not inconsistent with this section.
§16-5V-32. Effective date; report to Joint Committee on
Government and Finance; special starting date for
benefits.
(a) The provisions of this article become effective the first
day of January, two thousand eight: Provided, That no payout of
any benefits may be made to any person prior to the first day of
January, two thousand eleven: Provided, however, That members
emergency medical services officers who retired due to a disability
retire due to a duty disability pursuant to this article may begin
receiving the benefits at the rate and in the amount specified in
this article, from this fund after the thirtieth day of June, two
thousand eight: Provided further, That until the thirtieth day of
June, two thousand eight those members emergency medical services
officers who retired due to a disability retire due to a duty
disability pursuant to this article may draw benefits from this fund at the rate and in the amount set forth in section
twenty-five, article ten, chapter five of this code.
(b) During the eighteen thirty-six month period before the
payout of benefits begins, the Joint Committee on Government and
Finance shall cause an interim study or studies to be conducted on
potential effects of the implementation of this retirement system,
including, but not limited to, potential funding mechanisms to
provide health insurance coverage for retirees in the fifty to
fifty-five age group: Provided, That after the effective date of
this provision, the Director of the Public Employees Insurance
Agency shall propose a rule for legislative approval in accordance
with the provisions of article three, chapter twenty-nine-a of this
code governing the funding of health insurance coverage for
retirees under the plan provided in this article who are in the
fifty to fifty-five year age group, which rule may be filed as an
emergency rule: Provided, however, That any rule filed as an
emergency rule pursuant to this subsection shall be refiled at the
earliest opportunity as a legislative rule for review and
promulgation in accordance with the provisions of article three,
chapter twenty-nine-a of this code.
NOTE: The purpose of this bill is to add the definitions of
"early retirement age", "full-time employment" and "political
subdivision"; specify the date contributions are due the fund and
provide for delinquency fees; clarify language relating to the purchase of prior service and provide for delinquency fees; make a
correction to the heading in section ten of this article; eliminate
the minimum amount required for eligible direct rollover
distributions; allow for rollover distributions totaling less than
two hundred dollars; clarify language relating to the benefit
awarded for a duty disability; add provisions for payment of
additional death benefits; clarify the language relating to the
effective date for receipt of a duty disability benefit; and make
a correction to the time period for which an interim study shall be
conducted on the potential effects of the implementation of this
plan.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.