(b) Differential wage payments. For years beginning on or after December 31, 2008, if a participant or member of any plan administered by the board is receiving a differential wage payment (as defined by Section 3401(h)(2) of the Internal Revenue Code), then for purposes of applying the Internal Revenue Code to the plan, all of the following shall apply: (i) The participant or member shall be treated as an employee of the employer making the payment; and (ii) the differential wage payment shall be treated as compensation of the participant or member for purposes of applying the Internal Revenue Code (but not for purposes of determining contributions and benefits under the plan, unless the plan terms explicitly so provide); (iii) the plan shall not be treated as failing to meet the requirements of any provision described in Section 414(u)(1)(C) of the Internal Revenue Code by reason of any contribution or benefit which is based on the differential wage payment.
(c) Nondiscrimination. Subsection (b)(iii) applies only if
all employees of the employer performing service in the uniformed
services described in Section 3401(h)(2)(A) of the Internal Revenue
Code are entitled to receive differential wage payments (as defined
in Section 3401(h)(2) of the Internal Revenue Code) on reasonably
equivalent terms and, if eligible to participate in a retirement
plan maintained by the employer, to make contributions based on the
payments on reasonably equivalent terms.
Note: WV Code updated with legislation passed through the 2016 Regular Session
The West Virginia Code Online is an unofficial copy of the annotated WV Code, provided as a convenience. It has NOT been edited for publication, and is not in any way official or authoritative.