H. B. 2116
(By Delegate Fragale)
[Introduced February 11, 2009; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §5-10-22
of the Code of West Virginia,
1931, as amended, relating to retirement annuity of public
employees and retirees; increasing the multiplier and removing
the provision which permits an increase in annuity payments
for retired Legislators relative to legislative salary
increases.
Be it enacted by the Legislature of West Virginia:
That §5-10-22
of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-22. Retirement annuity.
(a) Upon a member's retirement, as provided in this article,
he or she shall receive a straight life annuity equal to one and
five-tenths percent of his or her final average salary multiplied
by the number of years, and fraction of a year, of his or her credited service in force at the time of his or her retirement:
Provided, That the final average salary used in this calculation
does not include any lump sum payment for unused, accrued leave of
any kind or character. The credited service used for this
calculation may not include any period of limited credited service:
Provided, however, That after March 1, 1970, all members retired
and all members retiring shall receive a straight life annuity
equal to two percent of his or her final average salary multiplied
by the number of years, and fraction of a year, of his or her
credited service, exclusive of limited credited service in force at
the time of his or her retirement.
After July 1, 2009, all members
retiring shall receive a straight life annuity equal to two and
one-half percent of his or her final average salary multiplied by
the number of years, and fraction of a year, of his or her credited
service in force at the time of his or her retirement.
In either
any event, upon his or her retirement he or she has the right to
elect an option provided in section twenty-four of this article.
All annuity payments shall commence effective the first day of the
month following the month in which a member retires or a member
dies leaving a beneficiary entitled to benefits and shall continue
to the end of the month in which the retirant or beneficiary dies,
and the annuity payments may not be prorated for any portion of a
month in which a member retires or retirant or beneficiary dies.
Any member receiving an annuity based in part upon limited credited service is not eligible for the supplements provided for in
sections twenty-two-a through twenty-two-d, inclusive, of this
article.
(b) The annuity of any member of the Legislature who
participates in the retirement system as a member of the Legislature
and who retires under this article or of any former member of the
Legislature who has retired under this article (including any former
member of the Legislature who has retired under this article and
whose annuity was readjusted as of the first day of March, one
thousand nine hundred seventy, under the former provisions of this
section) shall be increased from time to time during the period of
his or her retirement when and if the legislative compensation paid
under section two, article two-a, chapter four of this code, to a
member of the Legislature shall be increased to the point where a
higher annuity would be payable to the retirant if he or she were
retiring as of the effective date of the latest increase in
legislative compensation, but on the basis of his or her years of
credited service to the date of his or her actual retirement.
NOTE: The purpose of this bill is to increase the multiplier
for a retirement annuity in the Public Employees Retirement System
from 2 to 2.5.
This bill also deletes language declared improper by the
Supreme Court of Appeals which allows increases in annuity payments
for retired Legislators relative to legislative salary increases.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.