H. B. 4717
(By Delegate Rowan)
[Introduced February 22, 2006; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §18-7B-7 of the Code of West Virginia,
1931, as amended, relating to providing the option for former
state employees who were members of the West Virginia Public
Employees Retirement System prior to the first day of July,
one thousand nine hundred ninety-one, who became employed with
a school district after the first day of July, one thousand
nine hundred ninety-one, and who were precluded from becoming
members of the State Teachers Retirement System in favor of
the Defined Contribution Retirement System, to exercise the
option to transfer to the State Teachers Retirement System.
Be it enacted by the Legislature of West Virginia:
That §18-7B-7 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 7B. TEACHERS' DEFINED CONTRIBUTION RETIREMENT SYSTEM.
§18-7B-7. Participation in Teachers' Defined Contribution Retirement System; limiting participation in existing
Teachers Retirement System.
(a) Beginning the first day of July, one thousand nine hundred
ninety-one, and except as provided in this section, the Teachers'
Defined Contribution Retirement System shall be the single
retirement program for all new employees whose employment commences
on or after that date and all new employees shall be required to
participate. No additional new employees except as may be provided
in this section may be admitted to the existing Teachers Retirement
System.
(b) Members of the existing Teachers Retirement System whose
employment continues beyond the first day of July, one thousand
nine hundred ninety-one, and those whose employment was terminated
after the thirtieth day of June, one thousand nine hundred
ninety-one, under a reduction in force are not affected by
subsection (a) of this section and shall continue to contribute to
and participate in the existing Teachers Retirement System without
a change in plan provisions or benefits.
(c) Any person who was previously a member of the Teachers
Retirement System and who left participating employment before the
creation of the Defined Contribution System on the first day of
July, one thousand nine hundred ninety-one, and who later returned
to participating employment after the effective date of this
section has the right to elect to return to the existing Teachers Retirement System or to elect to participate in the Defined
Contribution System. The election shall be made at the time of his
or her re-employment, is irrevocable and shall be made upon forms
approved by and filed with the West Virginia Consolidated Public
Retirement Board.
(d) Any person who was, prior to the first day of July, one
thousand nine hundred ninety-one, a member of the existing Teachers
Retirement System who left participating employment before the
creation of the Teachers' Defined Contribution Retirement System on
the first day of July, one thousand nine hundred ninety-one, and
who later returned to participating employment after that date and
who was precluded from returning to the existing Teachers
Retirement System as a result of prior provisions of this section,
may elect, pursuant to the provisions of this section, re-admission
to the existing Teachers Retirement System: Provided, That persons
who are eligible to, and who make the election to, terminate their
participation in the Defined Contribution System and to return to
participation in the existing Teachers Retirement System as
provided in this section shall make the election, on a form
approved by and filed with the West Virginia Consolidated Public
Retirement Board on or before the thirtieth day of June, two
thousand two: Provided, however, That as a condition of the right
of re-admission to the existing Teachers Retirement System, a
person making the election provided in this section whose Defined Contribution Account had not, prior to election, been divided by a
qualified domestic relations order, shall pay an additional
contribution to the existing Teachers Retirement System equal to
one and one-half percent of his or her annual gross compensation
earned for each year during which he or she participated in the
Defined Contribution System and shall consent and agree to the
transfer of his or her total account balance in the Defined
Contribution System as of the most recent plan valuation
immediately preceding his or her transfer to the existing Teachers
Retirement System. For a person making the election provided in
this section whose Defined Contribution Account had, prior to the
election, previously been divided by a qualified domestic relations
order, the cost to transfer to the existing Teachers Retirement
System shall be actuarially determined by the Consolidated Public
Retirement Board. Upon verification of that person's eligibility
to return to participation in the existing Teachers Retirement
System and the tender and transfer of funds as provided in this
subsection, a person making this election shall receive service
credit for the time the member participated in the Defined
Contribution System as if his or her participation had been in the
existing Teachers Retirement System: Provided further, That the
right to terminate participation in the Defined Contribution System
and to resume participation in the existing Teachers Retirement
System as provided in this section is irrevocable and shall not apply to any person who, while a member of the Teachers Retirement
System, voluntarily elected to terminate his or her membership in
the Teachers Retirement System and to become a participant in the
Defined Contribution System pursuant to section eight of this
article.
(e) Any employee whose employment with an employer was
suspended or terminated while he or she served as an officer with
a statewide professional teaching association, is eligible for
re-admission to the existing retirement system in which he or she
was a member.
(f) An employee whose employment with an employer or an
existing employer is suspended as a result of an approved leave of
absence, approved maternity or paternity break in service or any
other approved break in service authorized by the board is eligible
for re-admission to the existing retirement system in which he or
she was a member.
(g) In all cases in which a question exists as to the right of
an employee to readmission to membership in the existing Teachers
Retirement System, the Consolidated Public Retirement Board shall
decide the question.
(h) Any individual who is not a "member" or "employee" as
defined by section two of this article and any individual who is a
leased employee is not eligible to participate in the Teachers
Defined Contribution System. For purposes of this section, a "leased" employee means any individual who performs services as an
independent contractor or pursuant to an agreement with an employee
leasing organization or other similar organization. In all cases
in which a question exists as to whether an individual is eligible
for membership in this system, the Consolidated Public Retirement
Board shall decide the question.
(i) Effective the first day of July, two thousand five and
continuing through the first day of two thousand six, any employee
of River Valley Child Development Services, Inc., who is a member
of the Teachers' Defined Contribution Retirement System may elect
to withdraw from membership and join the private pension plan
provided by River Valley Child Development Services, Inc.
(j) River Valley Child Development Services, Inc., and its
successors in interest shall provide for their employees a pension
plan in lieu of the Teachers' Defined Contribution Retirement
System on or before the first day of July, two thousand five, and
continuing thereafter during the existence of the River Valley
Child Development Services, Inc., and its successors in interest.
All new employees hired after the thirtieth day of June, two
thousand five, shall participate in the pension plan in lieu of the
Teachers' Defined Contribution Retirement System.
(k) The administrative body of River Valley Child Development
Services, Inc., shall, on or before the first day of June, two
thousand five, give written notice to each employee who is a member of the Teachers' Defined Contribution 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, prepared by an independent actuary, 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 Teachers' Defined Contribution
Retirement System until retirement, disability or death, in
comparison with the projected return upon withdrawing from the
Teachers' Defined Contribution Retirement System and joining a
private pension plan provided by River Valley Child Development
Center, Inc., and remaining therein until retirement, disability or
death. The administrative body shall keep in its records a
permanent record of each employee's signature confirming receipt of
the notice.
(l) Any person who was, prior to the first day of July, one
thousand nine hundred ninety-one, a participating member of the
West Virginia Public Employees Retirement System and who after the
first day of July, one thousand nine hundred ninety-one, became a
participating member of the Teachers' Defined Contribution
Retirement System as a result of prior provisions of this section,
may elect, pursuant to the provisions of this section, admission to the existing Teachers' Retirement System: Provided, That persons
who are eligible to, and who make the election to terminate their
participation in the Defined Contribution System and to participate
in the existing Teachers Retirement System, as provided in this
section, shall make the election on a form approved by and filed
with the West Virginia Consolidated Public Retirement Board on or
before the thirteenth day of June, two thousand seven: Provided,
however, That as a condition of the right of admission to the
existing Teachers Retirement System, persons who make the election
provided in this section, whose Defined Contribution Account had
not, prior to such election, been divided by a qualified domestic
relations order, shall pay an additional contribution to the
existing Teachers Retirement System, equal to one and one-half
percent of his or her annual gross compensation earned each year
during which he or she participated in the Defined Contribution
System. They shall, additionally, consent and agree to the
transfer of their total account balance in the Defined Contribution
System, as of the most recent plan evaluation, immediately
preceding their transfer to the existing Teachers Retirement
System. For persons making the election provided in this section,
whose Defined Contribution Account had, prior to making the
election, previously been divided by a qualified domestic relations
order, the cost to the person to transfer to the existing Teachers
Retirement System shall be determined by the Consolidated Public Retirement Board. Upon verification of that person's eligibility
to participate in the existing Teachers Retirement System and on
the tender and transfer of funds as provided in this subsection,
persons making this election shall receive service credit for the
time the member participated in the Defined Contribution System as
if his or her participation had been in the existing Teachers
Retirement System: Provided further, That the right to terminate
participation in the Defined Contribution System and to participate
in the existing Teachers Retirement System, as provided in this
section, is irrevocable.
NOTE: The purpose of this bill is to provide the option for
teachers and other education personnel who were employed by the
state prior to July 1, 1991, and who after that date became
employed by a county school board and who were precluded from
becoming a member of the State Teachers Retirement System in favor
of the Defined Contribution Retirement System, to exercise the
option to transfer to the State Teachers Retirement System. The
bill would allow persons who were employed by the state prior to
the creation of the Defined Contribution System and who transferred
to a county school system after the creation of the Defined
Contribution System the same option as state employees who were
employed by the state and transferred to a county school system
prior to the creation of the Defined Contribution System.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.