COMMITTEE SUBSTITUTE
FOR
H. B. 2870
(By Delegates Paxton, Stowers, Perry, Caputo, Boggs, Pethtel,
Fragale, M. Poling, Duke, Campbell and Spencer)
(Originating in the Committee on Finance)
[March 26, 2009]
A BILL to amend and reenact §18-7D-5 and §18-7D-6 of the Code of
West Virginia, 1931, as amended, relating to extending the
deadline of the buyback provision provided under the Teachers'
Defined Contribution Retirement System to the State Teachers
Retirement System; and similarly extending the time for loans
for such buyback.
Be it enacted by the Legislature of West Virginia:
That §18-7D-5 and §18-7D-6 of the Code of West Virginia, 1931,
as amended, be amended and reenacted to read as follows:
ARTICLE 7D. VOLUNTARY TRANSFER FROM TEACHERS' DEFINED CONTRIBUTION
RETIREMENT SYSTEM TO STATE TEACHERS RETIREMENT
SYSTEM.
§18-7D-5. Conversion of assets from Defined Contribution
Retirement System to State Teachers Retirement
System; contributions; loans.
(a) If at least sixty-five percent of actively contributing
members of the Teachers' Defined Contribution Retirement System affirmatively elect to transfer to the State Teachers Retirement
System within the period provided in section seven of this article,
then the Consolidated Public Retirement Board shall transfer the
members and all properties held in the Teachers' Defined
Contribution Retirement System's Trust Fund in trust for those
members who affirmatively elected to do so during that period to
the State Teachers Retirement System, effective on the first day of
July, two thousand eight: Provided, That the board shall, for any
member whose election to transfer was received by the board after
the twelfth day of May, two thousand eight, but on or before the
twentieth day of May, two thousand eight, and has not been
certified as accepted by the board on or before the effective date
of the amendments to this section enacted during the second
extraordinary session of the Legislature, two thousand eight,
effectuate the transfer as provided in this subsection on the first
day of August, two thousand eight.
(b) The board shall make available to each member a loan for
the purpose of paying all or part of the Actuarial Reserve, or if
available in accordance with the provisions of subsection (d),
section six of this article, the one and one-half percent
contribution for service in the Teachers' Defined Contribution
System to receive additional service credit in the State Teachers
Retirement System for service in the Teachers' Defined Contribution
Retirement System pursuant to section six of this article. The
loan shall be offered in accordance with the provisions of section
thirty-four, article seven-a of this chapter.
(1) Notwithstanding any provision of this code, rule or policy
of the board to the contrary, the interest rate on any loan may not
exceed seven and one-half percent per annum. The total amount
borrowed may not exceed forty thousand dollars: Provided, That the
loan may not exceed the limitations of the Internal Revenue Code
Section 72(p).
(2) In the event a loan made pursuant to this section is used
to pay the Actuarial Reserve or the one and one-half percent
contribution, as the case may be, the board shall make any
necessary adjustments at the time the loan is made.
(3) The board shall make this loan available to any member who
has provided to the board by the effective date of the amendments
to this section enacted in the 2009 regular legislative session a
signed verification of cost for service credit purchase form until
the thirtieth day of June, two thousand nine, or no later than
ninety days after the postmarked date on a final and definitive
contribution calculation from the board, whichever is later.
(c) The board shall develop and institute a payroll deduction
program for repayment of the loan established in this section.
(d) If at least sixty-five percent of actively contributing
members of the Teachers' Defined Contribution Retirement System
affirmatively elect to transfer to the State Teachers Retirement
System within the period provided in section seven of this article:
(1) As of the first day of July, two thousand eight, or the
first day of August, two thousand eight, as the case may be, the
transferred members' contribution rate becomes six percent of his or her salary or wages; and
(2) All transferred members who work one hour or more and who
make a contribution into the State Teachers Retirement System on or
after the first day of July, two thousand eight, are governed by
the provisions of article seven-a of this chapter, subject to the
provisions of this article.
(e) Subject to the provisions of subdivision (1) of this
subsection, if a member has withdrawn or cashed out part of his or
her assets, that member will not receive credit for those moneys
cashed out or withdrawn. The board shall make a determination as
to the amount of credit a member loses based on the periods of time
and the amounts he or she has withdrawn or cashed out, which shall
be expressed as a loss of service credit.
(1) A member may repay those amounts he or she previously
cashed out or withdrew, along with interest as determined by the
board, and receive the same credit as if the withdrawal or cash-out
never occurred. To receive full credit for the cashed-out or
withdrawn amounts being repaid to the State Teachers Retirement
System, the member also shall pay the actuarial reserve, or the one
and one-half percent contribution, as the case may be, pursuant to
section six of this article.
(2) The loan provided in this section is not available to
members to repay previously cashed out or withdrawn moneys.
(3) If the repayment occurs five or more years following the
cash-out or withdrawal, the member also shall repay any forfeited
employer contribution account balance along with interest determined by the board.
(f) Notwithstanding any provision of subsection (e) to the
contrary, if a member has cashed out or withdrawn any of his or her
assets after the last day of June, two thousand three, and that
member chooses to repurchase that service after the thirtieth day
of June, two thousand eight, the member shall repay the previously
distributed amounts and any applicable interest to the State
Teachers Retirement System.
(g) Any service in the State Teachers Retirement System a
member has before the date of the transfer is not affected by the
provisions of this article.
(h) The board shall take all necessary steps to see that the
voluntary transfers of persons and assets authorized by this
article do not affect the qualified status with the Internal
Revenue Service of either retirement plan.
§18-7D-6. Service credit in State Teachers Retirement System
following transfer; conversion of assets;
adjustments.
(a) Any member who has affirmatively elected to transfer to
the State Teachers Retirement System within the period provided in
section seven of this article whose assets have been transferred
from the Teachers' Defined Contribution Retirement System to the
State Teachers Retirement System pursuant to the provisions of this
article and who has not made any withdrawals or cash-outs from his
or her assets is, depending upon the percentage of actively contributing members affirmatively electing to transfer, entitled
to service credit in the State Teachers Retirement System in
accordance with the provisions of subsections (c) or (d) subsection
(c) of this section.
(b) Any such member who has made withdrawals or cash-outs will
receive service credit based upon the amounts transferred. The
board shall make the appropriate adjustment to the service credit
the member will receive.
(c) If at least sixty-five percent but less than seventy-five
percent of actively contributing members of the Teachers' Defined
Contribution Retirement System affirmatively elect to transfer to
the State Teachers Retirement System within the period provided in
section seven of this article, for any member of the Defined
Contribution Retirement System who elects to transfer to the State
Teachers Retirement System, his or her service credit in the State
Teachers Retirement System is determined as follows:
(1) For any member affirmatively electing to transfer, the
member's State Teachers Retirement System credit shall be
seventy-five percent of the member's Teachers' Defined Contribution
Retirement System service credit, less any service previously
withdrawn by the member or due to a qualified domestic relations
order and not repaid;
(2) To receive full credit in the State Teachers Retirement
System for service in the Teachers' Defined Contribution Retirement
System for which assets are transferred, transferring members shall
have the option to pay into the State Teachers Retirement System the actuarial reserve, as defined in section two of this article,
by no later than June 30, 2009.
(d) If at least seventy-five More than seventy-five percent of
actively contributing members of the Teachers' Defined Contribution
Retirement System affirmatively elect elected to transfer to the
State Teachers Retirement System within the period provided in
section seven of this article, for. Therefore, any member of the
Defined Contribution Retirement System who elects decides to
transfer to the State Teachers Retirement System, calculates his or
her service credit in the State Teachers Retirement System is
determined as follows:
(1) For any member affirmatively electing to transfer, the
member's State Teachers Retirement System credit shall be
seventy-five percent of the member's Teachers' Defined Contribution
Retirement System service credit, less any service previously
withdrawn by the member or due to a qualified domestic relations
order and not repaid;
(2) To receive full credit in the State Teachers Retirement
System for service in the Teachers' Defined Contribution Retirement
System for which assets are transferred, members who affirmatively
elected to transfer and who provided to the board a signed
verification of cost for service credit purchase form by the
effective date of the amendments to this section enacted in the
2009 regular legislative session shall pay into the State Teachers
Retirement System a one and one-half percent contribution by no
later than June 30, 2009, or no later than ninety days after the postmarked date on a final and definitive contribution calculation
from the board, whichever is later. This contribution shall be
calculated as one and one-half percent of the member's estimated
total earnings for which assets are transferred, plus interest of
four percent per annum accumulated from the date of the member's
initial participation in the Defined Contribution Retirement System
through June 30, 2009.
(A) For a member contributing to the Defined Contribution
Retirement System at any time during the 2008 fiscal year and
commencing membership in the State Teachers Retirement System on
July 1, 2008, or August 1, 2008, as the case may be:
(i) The estimated total earnings shall be calculated based on
the member's salary and the member's age nearest birthday on June
30, 2008;
(ii) This calculation shall apply both an annual backward
salary scale from that date for prior years' salaries and a forward
salary scale for the salary for the 2008 fiscal year.
(B) The calculations in paragraph (A) of this subdivision are
based upon the salary scale assumption applied in the West Virginia
Teachers Retirement System actuarial valuation as of July 1, 2007,
prepared for the Consolidated Public Retirement Board. This salary
scale shall be applied regardless of breaks in service.
(e) (d) All service previously transferred from the State
Teachers Retirement System to the Teachers' Defined Contribution
Retirement System is considered Teachers' Defined Contribution
Retirement System service for the purposes of this article.
(f) (e) Notwithstanding any provision of this code to the
contrary, the retirement of a member who becomes eligible to retire
after the member's assets are transferred to the State Teachers
Retirement System pursuant to the provisions of this article may
not commence prior to September 1, 2008: Provided, That the
Consolidated Public Retirement Board may not retire any member who
is eligible to retire during the calendar year 2008 during the
calendar year 2008 unless the member has provided a written notice
to his or her county board of education by July 1, 2008, of his or
her intent to retire.
(f) The provisions of section twenty-eight-e, article seven-a
of this chapter do not apply to the amendments to this section
enacted during the 2009 regular legislative session.
Email
Webmaster | © 2024 West Virginia Legislature **
