ENROLLED
H. B. 101
(By Mr. Speaker, Mr. Thompson, and Delegate Armstead)
[By Request of the Executive]
[Passed March 16, 2008; in effect from passage.]
AN ACT
to repeal §18-7C-1, §18-7C-2, §18-7C-3, §18-7C-4, §18-7C-5,
§18-7C-6, §18-7C-7, §18-7C-8, §18-7C-9, §18-7C-10, §18-7C-11,
§18-7C-12, §18-7C-13, and §18-7C-14 of the Code of West
Virginia, 1931, as amended; to amend and reenact §18-7A-14,
§18-7A-18, §18-7A-34 and §18-7A-40 of said code; to amend and
reenact §18-7B-7, §18-7B-7a and §18-7B-8 of said code; and to
amend said code by adding thereto a new article, designated
§18-7D-1, §18-7D-2, §18-7D-3, §18-7D-4, §18-7D-5, §18-7D-6,
§18-7D-7, §18-7D-8, §18-7D-9, §18-7D-10, and §18-7D-11, all
relating to the State Teachers Retirement System and the
Teachers' Defined Contribution System generally; relating to
the voluntary transfer of assets from the Teachers' Defined
Contribution Retirement System to the State Teachers
Retirement System; computing teachers' service; authorizing
certain loans; providing legislative findings and purpose; providing definitions; providing opportunities for members of
the State Teachers' Defined Contribution Retirement System to
affirmatively elect to transfer their assets to the State
Teacher's Retirement System; establishing requirements and
processes for members to affirmatively elect to transfer;
providing responsibilities of the Consolidated Public
Retirement Board; setting forth dates and time periods for
members to affirmatively elect to transfer; providing for
education about the opportunity to affirmatively elect to
transfer; requiring notice to members; allowing Consolidated
Public Retirement Board to contract directly for professional
services for purposes of performing its responsibilities
related to the voluntary transfer; providing for voluntary
transfer from the Teachers Defined Contribution Retirement
System to the State Teachers Retirement System if sixty-five
percent or more of the actively contributing members
affirmatively elect to transfer; providing for transfer of
assets from the Teachers Defined Contribution Retirement
System to the State Teachers Retirement System upon the
affirmative election of sixty-five percent or more of the
actively contributing members; providing for service credit in
the State Teachers Retirement System; permitting transferring
members to pay an Actuarial Reserve in order to receive full
credit upon transfer if at least sixty-five percent but less than seventy-five percent of actively contributing members
affirmatively elect to transfer; permitting transferring
members to pay a one and one-half percent contribution plus
interest in order to receive full credit upon transfer if
seventy-five percent or more of actively contributing members
affirmatively elect to transfer; addressing withdrawals and
cash outs; addressing qualified domestic relations orders;
providing for vesting and minimum guarantees of benefits for
members affirmatively electing to transfer; and prohibiting
retirement without appropriate notice.
Be it enacted by the Legislature of West Virginia:
That §18-7C-1, §18-7C-2, §18-7C-3, §18-7C-4, §18-7C-5, §18-7C-
6, §18-7C-7, §18-7C-8, §18-7C-9, §18-7C-10, §18-7C-11, §18-7C-12,
§18-7C-13, and §18-7C-14 of the Code of West Virginia, 1931, as
amended, be repealed; that §18-7A-14, §18-7A-18, §18-7A-34 and §18-
7A-40 of said code be amended and reenacted; that §18-7B-7, §18-7B-
7a and §18-7B-8 of said code be amended and reenacted; and that
said code be amended by adding thereto a new article, designated
§18-7D-1, §18-7D-2, §18-7D-3, §18-7D-4, §18-7D-5, §18-7D-6, §18-7D-
7, §18-7D-8, §18-7D-9, §18-7D-10, and §18-7D-11, all to read as
follows:
ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.
§18-7A-14. Contributions by members; contributions by employers.
(a) At the end of each month every member of the retirement system shall contribute six percent of that member's monthly gross
salary to the retirement board:
Provided, That any member employed
by a state institution of higher education shall contribute on the
member's full earnable compensation, unless otherwise provided in
section fourteen-a of this article. The sums are due the Teachers
Retirement System at the end of each calendar month in arrears and
shall be paid not later than fifteen days following the end of the
calendar month. Each remittance shall be accompanied by a detailed
summary of the sums withheld from the compensation of each member
for that month on forms, either paper or electronic, provided by
the Teachers Retirement System for that purpose.
(b) Annually, the contributions of each member shall be
credited to the member's account in the Teachers Retirement System
Fund. The contributions shall be deducted from the salaries of the
members as prescribed in this section and every member shall be
considered to have given consent to the deductions. No deductions,
however, shall be made from the earnable compensation of any member
who retired because of age or service and then resumed service
unless as provided in section thirteen-a of this article.
(c) The aggregate of employer contributions, due and payable
under this article, shall equal annually the total deductions from
the gross salary of members required by this section. Beginning the
first day of July, one thousand nine hundred ninety-four, the rate
shall be seven and one-half percent; beginning on the first day of July, one thousand nine hundred ninety-five, the rate shall be nine
percent; beginning on the first day of July, one thousand nine
hundred ninety-six, the rate shall be ten and one-half percent;
beginning on the first day of July, one thousand nine hundred
ninety-seven, the rate shall be twelve percent; beginning on the
first day of July, one thousand nine hundred ninety-eight, the rate
shall be thirteen and one-half percent; and beginning on the first
day of July, one thousand nine hundred ninety-nine and thereafter,
the rate shall be fifteen percent:
Provided, That the rate shall be
seven and one-half percent for any individual who becomes a member
of the Teachers Retirement System for the first time on or after
the first day of July, two thousand five, or any individual who
becomes a member of the Teachers Retirement System as a result of
the voluntary transfer contemplated in article seven-d of this
chapter.
(d) Payment by an employer to a member of the sum specified in
the employment contract minus the amount of the employee's
deductions shall be considered to be a full discharge of the
employer's contractual obligation as to earnable compensation.
(e) Each contributor shall file with the retirement board or
with the employer to be forwarded to the retirement board an
enrollment form showing the contributor's date of birth and other
data needed by the retirement board.
§18-7A-18. Teachers Employers Contribution Collection Account; Teachers Retirement System Fund; transfers.
(a) There is hereby created in the State Treasury a special
revenue account designated the "Teachers Employers Contribution
Collection Account" to be administered by the Consolidated Public
Retirement Board. The Teachers Employers Contribution Collection
Account shall be an interest-bearing account with interest credited
to and deposited in the account and transferred in accordance with
the provisions of this section.
(b) There shall be deposited into the Teachers Employers
Contribution Collection Account the following:
(1) Contributions of employers, through state appropriations,
and such amounts shall be included in the budget bill submitted
annually by the Governor;
(2) Beginning on the first day of July, two-thousand five,
contributions from each county in an amount equal to fifteen
percent of all salary paid in excess of that authorized for minimum
salaries in sections two and eight-a, article four, chapter
eighteen-a of this code and any salary equity authorized in section
five of said article or any county supplement equal to the amount
distributed for salary equity among the counties for each
individual who was a member of the Teachers' Retirement System
before the first day of July, two-thousand five:
Provided, That
the rate shall be seven and one-half percent for any individual who
becomes a member of the Teachers Retirement System for the first time on or after the first day of July, two-thousand five or any
individual who becomes a member of the Teachers' Retirement System
as a result of the transfer contemplated in article seven-d of this
chapter;
(3) The amounts transferred pursuant to section eighteen-a of
this article; and
(4) Any other moneys, available and not otherwise expended,
which may be appropriated or transferred to this account.
(c) Moneys on deposit in the Teacher Employers Contribution
Collection Account shall be transferred monthly in the following
order:
(1) To the Teachers' Retirement System Fund the amount
certified by the Consolidated Public Retirement Board as the
actuarially required contribution; and
(2)The balance, if any, to the Employee Pension and Health
Care Benefits Fund established under section thirty-nine, article
seven-a of this chapter.
(d) There is hereby continued in the State Treasury a separate
irrevocable trust designated the Teachers' Retirement System Fund.
The Teachers' Retirement System Fund shall be invested as provided
in section nine-a, article six, chapter twelve of this code.
(e) There shall be deposited into the Teachers' Retirement
System Fund, the following:
(1) Moneys transferred from the Teachers Employers Contribution Collection Account;
(2) Member contributions provided for in section fifteen of
this article;
(3) Gifts and bequests to the fund and any accretions and
accumulations which may properly be paid into and become a part of
the fund;
(4) Specific appropriations to the fund made by the
Legislature;
(5) Interest on the investment of any part or parts of the
fund; and
(6) Any other moneys, available and not otherwise expended,
which may be appropriated or transferred to the Teachers Retirement
System or the Fund.
(f) The Teachers Retirement System Fund shall be the fund from
which annuities shall be paid.
(g) The Consolidated Public Retirement Board has sole
authority to direct and approve the making of any and all fund
transfers as provided in this section, anything in this code to the
contrary notwithstanding.
(h) References in the code to the Teachers Accumulation Fund,
the Employers Accumulation Fund, the Benefit Fund, the Reserve Fund
and the Expense Fund mean the Teachers Retirement System Fund.
§18-7A-34. Loans to members.
(a) An actively contributing member of the retirement system upon written application may borrow from his or her individual
account in the Teachers Retirement System, subject to these
restrictions:
(1) Loans shall be made in multiples of ten dollars, the
minimal loan being one hundred dollars and the maximum being eight
thousand dollars:
Provided, That the maximum amount of any loan
when added to the outstanding balance of all other loans shall not
exceed the lesser of the following: (A) Eight thousand dollars
reduced by the excess (if any) of the highest outstanding balance
of loans during the one-year period ending on the day before the
date on which the loan is made, over the outstanding balance of
loans to the member on the date on which the loan is made; or (B)
fifty percent of the member's contributions to his or her
individual account in the Teachers Retirement System:
Provided,
however, That if the total amount of loaned money outstanding
exceeds forty million dollars, the maximum shall not exceed three
thousand dollars until the Retirement Board determines that loans
outstanding have been reduced to an extent that additional loan
amounts are again authorized:
Provided further, That the amount of
any loan made pursuant to article seven-d of this chapter is not
included for the purposes of determining if the forty million
dollar threshold has been exceeded.
(2) Interest charged on the amount of the loan shall be six
percent per annum, or a higher rate as set by the Board:
Provided, That interest charged shall be commercially reasonable in
accordance with the provisions of section 72(p)(2) of the Internal
Revenue Code, and the federal regulations issued thereunder. If
repayable in installments, the interest shall not exceed the annual
rate so established upon the principal amount of the loan, for the
entire period of the loan, and such charge shall be added to the
principal amount of the loan. The minimal interest charge shall be
for six months.
(3) No member is eligible for more than one outstanding loan
at any time:
Provided, That the foregoing provision does not apply
to any loan made pursuant to article seven-d of this chapter. Upon
full payment of a loan, a member may apply for a subsequent loan
after sixty days beginning the first day of the month following
receipt of final payment.
(4) If a refund is payable to the borrower or his or her
beneficiary before he or she repays the loan with interest, the
balance due with interest to date shall be deducted from the
refund.
(5) From his or her monthly salary as a teacher or a
nonteacher the member shall pay the loan and interest by deductions
which will pay the loan and interest in substantially level
payments in not more than sixty nor less than six months. Upon
notice of loan granted and payment due, the employer is responsible
for making the salary deductions and reporting them to the Retirement Board. At the option of the board, loan deductions may
be collected as prescribed herein for the collection of members'
contribution, or may be collected through issuance of warrant by
employer. If the borrower is no longer employed as a teacher or
nonteaching member, the borrower must make monthly loan payments
directly to the Consolidated Public Retirement Board and the Board
must accept the payments.
(6) The entire unpaid balance of any loan, and interest due
thereon, shall, at the option of the board, become due and payable
without further notice or demand upon the occurrence with respect
to the borrowing member of any of the following events of default:
(A) Any payment of principal and accrued interest on a loan remains
unpaid after it becomes due and payable under the terms of the loan
or after the grace period established in the discretion of the
Board; (B) the borrowing member attempts to make an assignment for
the benefit of creditors of his or her refund or benefit under the
retirement system; or (C) any other event of default set forth in
rules promulgated by the board in accordance with the authority
granted pursuant to section one, article ten-d, chapter five of
this code:
Provided, That any refund or offset of an unpaid loan
balance shall be made only at the time the member is entitled to
receive a distribution under the retirement system.
(7) Loans shall be evidenced by such form of obligations and
shall be made upon such additional terms as to default, prepayment, security, and otherwise as the board determines.
(8) Notwithstanding anything herein to the contrary, the loan
program authorized by this section shall comply with the provisions
of Section 72(p)(2) and Section 401 of the Internal Revenue Code,
and the federal regulations issued thereunder, and accordingly, the
Retirement Board is authorized to: (A) Apply and construe the
provisions of this section and administer the plan loan program in
such a manner as to comply with the provisions of Section 72(p)(2)
and Section 401 of the Internal Revenue Code and the federal
regulations issued thereunder; (B) adopt plan loan policies or
procedures consistent with these federal law provisions; and (C)
take such actions as it deems necessary or appropriate to
administer the plan loan program created hereunder in accordance
with these federal law provisions. The Retirement Board is further
authorized in connection with the plan loan program to take any
actions that may at any time be required by the Internal Revenue
Service regarding compliance with the requirements of Section
72(p)(2) or Section 401 of the Internal Revenue Code, and the
federal regulations issued thereunder, notwithstanding any
provision in this article to the contrary.
(b) Notwithstanding anything in this article to the contrary,
the loan program authorized by this section shall not be available
to any teacher or nonteacher who becomes a member of the Teachers
Retirement System on or after the first day of July, two thousand five:
Provided, That a member is eligible for a loan under article
seven-d of this chapter to pay all or part of the Actuarial
Reserve, or if available in accordance with the provisions of
subsection (d), section six, article seven-d of this chapter, the
one and one-half percent contribution for service in the Teachers'
Defined Contribution System for the purpose of receiving additional
service credit in the State Teachers Retirement System pursuant to
section six, article seven-d, of this chapter.
§18-7A-40. Higher education employees.
Nothing in this article or article seven-b of this chapter
shall be construed:
(1) To be in conflict with section four-a, article
twenty-three, chapter eighteen of this code; or
(2) To affect the membership of higher education employees who
are currently members of either the State Teachers Retirement
System created in this article or the Teachers' Defined
Contribution Retirement System created in article seven-b of this
chapter:
Provided, That any higher education employees who are
currently members of the Teachers' Defined Contribution Retirement
System may become members of the Teachers Retirement System upon
meeting the requirements of article seven-d of this chapter.
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 Teachers' Defined Contribution Retirement System on
the first day of July, one thousand nine hundred ninety-one, and
who later returns to participating employment after the effective
date of this section shall return to the existing Teachers
Retirement System.
(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 become a member of the Teachers Retirement System upon meeting
the requirements provided in article seven-d of this chapter.
(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
readmission 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 readmission 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 Retirement 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 Teacher's 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.
§18-7B-7a. Plan closed to persons employed for the first time
after June, 2005; former employees.
The retirement system created and established in this article
shall be closed and no new members accepted in the system after the
thirtieth day of June, two thousand five. Notwithstanding the
provisions of sections seven and eight of this article, all persons
who are regularly employed for full-time service as a member or an
employee whose initial employment commences after the thirtieth day
of June, two thousand five, shall become a member of the State
Teachers' Retirement System created and established in article
seven-a of this chapter:
Provided, That any person rehired after
the thirtieth day of June, two thousand five, shall become a member
of the Teachers' Defined Contribution Retirement System created and
established in this article, or of the Teachers Retirement System
created and established in article seven-a of this chapter,
depending upon which system he or she last contributed to while he
or she was employed with an employer mandating membership and
contributions to one of those plans:
Provided, however, That a
rehired person who thereby becomes a member of the Teachers'
Defined Contribution Retirement System may become a member of the
Teachers Retirement System within the applicable time periods and
upon meeting the requirements provided in article seven-d of this
chapter.
§18-7B-8. Voluntary participation in system; expiration of right
to elect membership in defined contribution system.
(1) Any employee who is a member of the existing retirement system may, upon written election, voluntarily elect membership in
the Teachers' Defined Contribution Retirement System, on a
prospective basis, on or after the first day of July, one thousand
nine hundred ninety-one. All benefits earned by any employee
making a voluntary election under the existing retirement system
prior to the voluntary election shall be frozen and made available
to that employee upon retirement as provided by the existing
retirement system. A member of the existing retirement system who
has less than five years of contributing service in the existing
retirement system may elect to withdraw his or her contribution
plus interest thereon as if the member is terminating employment
and upon withdrawal shall deposit the funds in the defined
contribution system:
Provided, That the member's years of
contributing service in the existing system shall be applied toward
the years of employment service required under section eleven of
this article:
Provided, however, That this election is allowed on
a retroactive basis to the first day of July, one thousand nine
hundred ninety-one. For the purposes of this section, "frozen"
means that the member's salary, years of service and any other
factor to determine benefits shall be calculated as of the date
that the member elected membership in the defined contribution
system and after that date no increase in salary, years of service
or any other factor may be used to increase the retirement benefit
above that which it would be if a person retired upon the date that the election is made. After having made the election, the employee
may not change such election or again become a member of the
existing retirement system.
(2) Notwithstanding any provision of this section to the
contrary, after the thirtieth day of June, two thousand five, no
person who is a member of the State Teachers Retirement System may
elect membership in the Teachers' Defined Contribution Retirement
System.
ARTICLE 7D. VOLUNTARY TRANSFER FROM TEACHERS' DEFINED CONTRIBUTION
RETIREMENT SYSTEM TO STATE TEACHERS RETIREMENT
SYSTEM.
§18-7D-1. Legislative findings and purpose.
(
a) The Legislature hereby finds and declares as follows:
(1) That the quality of this state's education system is
largely dependent upon the quality of its teachers and educational
service personnel;
(2) That many West Virginia teachers and education service
personnel who currently are members of the Teachers' Defined
Contribution Retirement System desire to join a defined benefit
system, which relieves participants of bearing the risk of
investment performance and offers the security of providing
participants with advanced knowledge of their anticipated
retirement benefit;
(3) That other members of the Teachers' Defined Contribution Retirement System remain comfortable with bearing the attendant
market risks and performance of their investments associated with
managing the individual retirement accounts of that system;
(4)
That it is in the best interests of the teachers and
education service personnel in this state, as well as the state's
system of public education as a whole, to permit members of the
Teachers' Defined Contribution Retirement System to voluntarily
elect membership in the State Teachers Retirement System pursuant
to the provisions of this article; and
(5) That the prudent and fiscally sound management of the
State Teachers Retirement System
necessitates that a
sufficient
number of members of the Teachers' Defined Contribution Retirement
System
elect to voluntarily transfer their assets to the State
Teachers Retirement System
in accordance with the provisions of
this article.
§18-7D-2. Definitions.
As used in this article, unless the context clearly requires
a different meaning:
(1)
"Actively contributing member of the Teachers' Defined
Contribution Retirement System" means a member of that retirement
system who was actively contributing to the Teachers' Defined
Contribution Retirement System on the thirty-first day of December,
two thousand seven.
(2) "Actuarial Reserve" means the Actuarial Reserve Lump Sum Value of the additional service credit being purchased by a member
so electing in accordance with the provisions of section six of
this article.
(3) "Actuarial Reserve Adjusted Salary" means either:
(A) For a member with a full year service credit in the fiscal
year ending the thirtieth day of June, two thousand seven, the
member's two thousand seven fiscal year salary increased by seven
percent;
(B) For a member with less than a full year service credit in
the fiscal year ending the thirtieth day of June, two thousand
seven, the member's two thousand seven fiscal year salary
annualized to a full year based on the partial year service credit
increased by seven percent; or
(C) For a member without service credit in the fiscal year
ending the thirtieth day of June, two thousand seven, the member's
annualized contract salary in effect on the thirty-first day of
December, two thousand seven increased by seven percent, or the
member's annual contract salary on the date of rehire if after the
thirty-first day of December, two thousand seven.
(4) "Actuarial Reserve Benefit Date" means the first day of
the month coincident with or next following the date at which the
member attains the age of sixty, or the thirtieth day of June, two
thousand nine, whichever is later.
(5) "Actuarial Reserve Benefit Date Factors" mean the actuarial lump sum value factors based on a life only annuity
starting on the Actuarial Reserve Benefit Date applying the 1983
Group Annuity Mortality Tables on a seventy-five percent female and
a twenty-five percent male blended Unisex basis and interest at
seven and one-half percent.
(6) "Actuarial Reserve Discount Factor" means the annual
discount factor applied for the period between the thirtieth day of
June, two thousand nine and the Actuarial Reserve Benefit Date, if
any. Such factor based on the State Teachers Retirement System
actuarial valuation assumptions shall estimate the impact of
mortality, disability, and economic factors for such discount
period by application of a net four percent discount rate.
(7) "Actuarial Reserve Lump Sum Value" means a single sum
amount calculated as: A benefit of two percent multiplied by the
Defined Contribution Retirement System service credit being
purchased multiplied by the Actuarial Reserve Adjusted Salary; such
benefit multiplied by the Actuarial Reserve Benefit Date Factors to
determine the lump sum value multiplied by the Actuarial Reserve
Discount Factor.
(8) "Affirmatively elect to transfer" means the voluntary
execution and delivery to the Consolidated Public Retirement Board,
by a member of the Teachers' Defined Contribution Retirement System
of a document in a form prescribed by the board that irrevocably
authorizes the board to transfer the member and all the member's assets in the Teachers' Defined Contribution Retirement System to
the State Teachers Retirement System: Provided, That delivery of
the document to the Consolidated Public Retirement Board may be
accomplished through submission of the document to the supervisor
of a work site pursuant to section seven of this article: Provided,
however, That any previous member of the State Teachers Retirement
System who voluntarily elected to terminate his or her membership
in the State Teachers Retirement System to become a member of the
Teachers' Defined Contribution Retirement System and signed an
irrevocable transfer request also may affirmatively elect to
transfer notwithstanding the prior transfer request.
(9) "Assets" means all member contributions and employer
contributions made on the member's behalf to the Defined
Contribution Retirement System and earnings thereon, less any
applicable fees as approved by the board: Provided, That if a
member has withdrawn or cashed out any amounts, the amounts must
have been repaid.
(10) "Board" means the Consolidated Public Retirement Board
established in article ten-d, chapter five of this code, and its
employees.
(11) "Date of transfer" means, in the event that sixty-five
percent or more of the actively contributing members of the Defined
Contribution Retirement System affirmatively elect to transfer to
the State Teachers Retirement System within the period provided in section seven of this article, the first day of July, two thousand
eight.
(12) "Defined Contribution Retirement System" means the
Teachers' Defined Contribution Retirement System established in
article seven-b of this chapter.
(13) "Member" means any person who has an account balance
standing to his or her credit in the Teachers' Defined Contribution
Retirement System.
(14) "Salary" means:
(A) For a member contributing to the Defined Contribution
Retirement System during the two thousand seven fiscal year, the
actual salary earned for the two thousand seven fiscal year divided
by the employment service earned in the two thousand seven fiscal
year.
(B) For a member not contributing to the Defined Contribution
Retirement System during the two thousand seven fiscal year, the
contract salary on the date of rehire.
(15) "State Teachers Retirement System" means the State
Teachers Retirement System established in article seven-a of this
chapter.
§18-7D-3. Voluntary transfers.
(a) In accordance with the provisions of this article, the
Consolidated Public Retirement Board shall effect the voluntary
transfer of members of the Teachers' Defined Contribution Retirement System to the State Teachers Retirement System.
(b) If at least sixty-five percent of actively contributing
members of the Teachers' Defined Contribution 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 to the State
Teachers Retirement System, effective the first day of July, two
thousand eight, all members who affirmatively elected to do so
during that period. If at least sixty-five percent of actively
contributing members of the Teachers' Defined Contribution
Retirement System do not affirmatively elect to transfer to the
State Teachers Retirement System within that period, the Defined
Contribution Retirement System continues as the retirement system
for all members in that system as of the thirtieth day of June, two
thousand eight.
§18-7D-4. Notice, education, record-keeping requirements.
(a) Commencing not later than the first day of April, two
thousand eight, the board shall begin an educational program with
respect to the voluntary transfer of actively contributing members
of the Teachers' Defined Contribution Retirement System and their
assets to the State Teachers Retirement System.
(1) This educational program shall address, at a minimum:
(A) The law providing for the transfer;
(B) The mechanics of the transfer;
(C) The process by which an actively contributing member may
affirmatively elect to transfer;
(D) Relevant dates and time periods;
(E) The benefits, potential advantages and potential
disadvantages if members fail or refuse to affirmatively elect to
transfer;
(F) The benefits, potential advantages and potential
disadvantages of becoming a member of the State Teachers Retirement
System;
(G) Potential state and federal tax implications attendant to
the various options available to the members;
(H) For each member, a summary to include his or her most
recent account balance;
the average rate of return of the Standard
and Poor's and the Lehman U. S. Corporate/Government Index for the
previous ten years; the average rate of return of an indexed
balanced fund for the previous ten years
; the member's projected
account balance if he or she retires at age sixty and age sixty-
five; the current cost of purchasing a monthly annuity under the
Teachers' Defined Contribution Retirement System; the monthly
annuity that the member would receive under the Teachers Retirement
System if the member chooses to purchase the full service credit
and retire at age sixty and age sixty-five; the monthly annuity
under the Teachers Retirement System if the participant chooses not
to purchase the full service credit and retires at age sixty and age sixty-five, and the potential cost to the member of purchasing
the Actuarial Reserve or the one and one-half percent contribution
plus accrued interest, as the case may be, not including the cost
of obtaining a loan under section five of this article.
(I) Any other pertinent information considered relevant by the
board.
(2) The board shall disseminate the information through:
(A) Its website;
(B) Computer programs;
(C) Written or electronic materials, or both;
(D) Classes or seminars, pursuant to subdivision (3) of this
subsection;
(E) At the discretion of the board, through a program of
individual counseling which is optional on the part of the member;
and
(F) Through any other educational program considered necessary
by the board.
(3) The Consolidated Public Retirement Board shall provide the
information set forth in subdivision (1) of this subsection through
classes or seminars in accordance with the following:
(A) The Consolidated Public Retirement Board shall provide
training for conducting the classes or seminars for employees of
county boards, for employees of state institutions of higher
education or for any other person that the county board or the institution of higher learning determines, with the approval of the
Consolidated Public Retirement Board, would be appropriate to
conduct the classes or seminars;
(B) Each county board shall require at least two
representatives to attend the training. The representatives must
be approved by the Consolidated Public Retirement Board prior to
attending the Board
'
s training class;
(C) Each county board shall ensure that each employee of that
county board who is a member of the Teachers' Defined Contribution
Retirement System has had an opportunity to attend a class or a
seminar on the topics set forth in subdivision (1) of this
subsection at his or her work site during his or her workday;
(D) The class or seminar shall be conducted by any person who
attended the training or by a representative of a school personnel
organization that the Consolidated Public Retirement Board
considers qualified to conduct the class or seminar;
(E) The classes or seminars may be conducted at the time
allocated for professional activities for teachers on instructional
support and enhancement days, before school, after school and at
any other time during an employee's work day: Provided, That the
classes or seminars may interfere with instructional time only if
no other time is available to conduct the classes or seminars;
(F) Each county board shall ensure that informational booths
are set up at each work site under the jurisdiction of the county board and that the booths are attended on a rotating basis by an
person trained to conduct the classes or seminars or by a
representative of a school personnel organization that the
Consolidated Public Retirement Board considers qualified to attend
the booth;
(G) During the period provided by this section for the
educational program, each county board and its superintendent shall
allow representatives of the Consolidated Public Retirement Board
entry upon the premises of each school in this state where the
Consolidated Public Retirement Board determines appropriate on at
least one occasion for the duration of at least sixty minutes
during regular school hours to provide educational programs as the
Consolidated Public Retirement Board determines appropriate for
members of the Teachers' Defined Contribution Retirement System;
(b) The board shall provide each actively contributing member
with a copy of the written or electronic educational materials and
with a copy of the notice of the opportunity to affirmatively elect
to transfer, to the extent deliverable, by mailing a copy thereof,
first class postage prepaid, through the United States mails to the
most current mailing address provided by the member to the board.
The board is not required to deliver, nor is any member entitled to
delivery of, these materials by any other means. The notice shall
provide full and appropriate disclosure regarding the process by
which a member may affirmatively elect to transfer, including the period of the opportunity to affirmatively elect to transfer.
(c) It is the responsibility of each member of the Teachers'
Defined Contribution Retirement System to keep the board informed
of his or her current address. A member who does not is considered
to have waived his or her right to receive any information from the
board with respect to the purposes of this article.
(d) Once the board has complied with the provisions of this
section, each actively contributing member of the Teachers' Defined
Contribution Retirement System is considered to have actual notice
of the opportunity to affirmatively elect to transfer and all
matters pertinent thereto.
(e) The executive director of the Consolidated Public
Retirement Board shall report to the Governor, the President of the
Senate, and the Speaker of the House of Delegates no later than
April, 1, two thousand eight, a plan for the execution of the
education and outreach requirements set forth in this section.
§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.
(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 until the
thirtieth day of June, two thousand nine.
(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, 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) 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 the thirtieth day of June, two thousand nine.
(d) If at least 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, members who affirmatively
elected to transfer shall pay into the State Teachers Retirement
System a one and one-half percent contribution. 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.
(A) For a member contributing to the Defined Contribution
Retirement System at any time during the two thousand eight fiscal
year and commencing membership in the State Teachers Retirement
System on the first day of July, two thousand eight:
(i) The estimated total earnings shall be calculated based on
the member's salary and the member's age nearest birthday on the thirtieth day of June, two thousand eight;
(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 two thousand eight 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 the first day
of July, two thousand seven, prepared for the Consolidated Public
Retirement Board. This salary scale shall be applied regardless of
breaks in service.
(e) 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) 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 the first day of September, two thousand
eight:
Provided, That the Consolidated Public Retirement Board may
not retire any member who is eligible to retire during the school
year beginning two thousand eight during the school year two
thousand eight unless the member has provided a written notice to
his or her county board of education by the first day of July, two thousand eight, of his or her intent to retire.
§18-7D-7. Period for affirmative election to transfer; board may
contract for professional services.
(a) The board shall provide the members of the Teachers'
Defined Contribution Retirement System an opportunity to
voluntarily execute and deliver to the Consolidated Public
Retirement Board, or its designee, a written document in a form
prescribed by the board that irrevocably authorizes the board to
transfer the member and all the member's assets in the Teachers'
Defined Contribution Retirement System to the State Teachers
Retirement System in accordance with the provisions of this
article.
(b) 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:
(1) The Consolidated Public Retirement Board shall, for each
member who affirmatively elected to transfer as provided in this
section, transfer the assets held in the Teachers' Defined
Contribution Retirement System's Trust Fund in trust for that
member to the State Teachers Retirement System on the first day of
July, two thousand eight;
(2) On the first day of July, two thousand eight, each member
who so elected becomes a member of the State Teachers Retirement System and after working one or more hours and contributing to the
State Teachers Retirement System is entitled to the benefits of the
State Teachers Retirement System; and
(3) Each such member is governed by the provisions of the
State Teachers Retirement System subject to the provisions of this
article.
(c) If fewer than sixty-five percent of actively contributing
members of the Teachers' Defined Contribution Retirement System
affirmatively elect to transfer to the State Teachers Retirement
System, the transfers described in this section shall not occur.
(d) Any person who has one dollar or more in assets in the
Teachers' Defined Contribution Retirement System on the last day of
December, two thousand seven, may and is eligible to affirmatively
elect to transfer to the State Teachers Retirement System as
provided in this section. For purposes of this article:
(1) The tabulation of the percentage required for transfer as
required in this article shall only include documents affirmatively
electing to transfer submitted under the provisions of this
subsection by those who are actively contributing members of the
Teachers' Defined Contribution Retirement System as that term is
defined in section two of this article; and
(2) Notwithstanding the opportunity to submit documents
affirmatively electing to transfer extended by this article to
members other than those who are actively contributing members of the Teachers' Defined Contribution Retirement System, there shall
be no duty or other obligation on the part of the board to provide
any education, information or notice regarding matters contained in
this article to members who are not actively contributing members
of the Teachers' Defined Contribution Retirement System regarding
any matter described in this article, nor any right on the part of
those other members to receive the same.
(e) Notwithstanding any other provision of this code to the
contrary, the board may do all things necessary and convenient to
maintain the Teachers' Defined Contribution Retirement System and
the State Teachers Retirement System during the transitional period
and may retain the services of the professionals it considers
necessary to do so. The board may also retain the services of
professionals necessary to:
(1) Assist in the preparation of educational materials;
(2) Assist in the educational process;
(3) Assist in the process for submission of the documents
whereby members may affirmatively elect to transfer; and
(4) Ensure compliance with all relevant state and federal
laws.
(f) Due to the time constraints inherent in the initial
processes established for the submission of documents affirmatively
electing to transfer set forth in this article in specific, and due
to the nature of the professional services required by the Consolidated Public Retirement Board in general, the provisions of
article three, chapter five-a of this code, do not apply to any
materials, contracts for any actuarial services, investment
services, legal services or other professional services authorized
under the provisions of this article and the provisions of article
six, chapter twenty-nine do not apply to any employment of or
contracting for personnel by the board for the purposes of
implementing the provisions of this article.
(g) The submission of the documents whereby members may
affirmatively elect to transfer may be held through any method the
board determines is in the best interest of the members: Provided,
That for members of the Teachers' Defined Contribution Retirement
System, the submission of the documents whereby those members elect
to transfer shall be pursuant to the procedure established by the
Consolidated Public Retirement Board set forth in subsection (j) of
this section.
(h) The period for submission of the documents whereby members
may affirmatively elect to transfer shall begin not later than the
first day of April, two thousand eight. The board shall ascertain
the results of the submissions not later than the last day of May,
two thousand eight. The board shall certify the results of the
submissions to the Governor, the Legislature and the members not
later than the fifth day of June, two thousand eight.
(i) The submission period terminates and elections to transfer may not be accepted from a member after the twelfth day of May, two
thousand eight, subject to the following:
(1) If elections to transfer are permitted through the mail,
any submission postmarked later than the twelfth day of May, two
thousand eight, is void and may not be counted;
(2) If elections to transfer are delivered to a supervisor on
selection day or on or before the ninth day of May, two thousand
eight, any submission postmarked or deposited with a commercial
carrier later than the thirteenth day of May, two thousand eight,
is void and may not be counted: Provided, That delivery by mail
must be by certified mail, return receipt requested or delivery by
commercial courier that requires written confirmation by the board
of delivery;
(3) The fifth day of May, two thousand eight, is selection day
upon which each county board and superintendent shall provide an
opportunity in each school within the county for members of the
Teachers' Defined Contribution System to affirmatively elect to
transfer.
(j) The Consolidated Public Retirement Board shall collaborate
with the state superintendent, the Chancellor for Higher Education
and the Chancellor for Community and Technical College Education to
establish a procedure whereby all actively contributing members of
the Teachers' Defined Contribution Retirement System may deliver to
the Consolidated Public Retirement Board or its designee the written document authorizing transfer through a supervisor at each
work site where any contributing member of the Defined Contribution
Retirement System is employed. The procedure shall include at
least the following:
(1) The supervisor at each work site is responsible for
collecting the written documents authorizing the transfer from all
actively contributing members of the Teachers' Defined Contribution
Retirement System employed at the work site who choose to submit
the written document. The supervisor shall record the receipt of
all written documents authorizing transfer, shall direct the member
submitting the written document to initial a receipt log and shall
issue a receipt to the member submitting the written document.
(2) On and after the sixth day of May, two thousand eight, but
on or before the ninth day of May, two thousand eight, the
supervisor at the work site shall make reasonable efforts to
contact verbally and in writing all actively contributing members
of the Teachers' Defined Contribution Retirement System employed at
the work site that have not submitted their written documents as of
that date to remind those members of the upcoming deadline for
submitting their written document authorizing transfer: Provided,
That failure of the supervisor to make contact with any of those
members shall not be a basis for a cause of action to allow a
member to transfer after the period provided in this section or for
any other cause of action.
(3) The supervisor at each work site shall forward all of the
written documents to the Consolidated Public Retirement Board, or
its designee, through certified mail, or delivery by commercial
courier that requires written confirmation by the board of
delivery, no later than the thirteenth day of May, two thousand
eight. The work site supervisor shall inform the Consolidated
Public Retirement Board of all of the written documents received
each day so that the board, or its designee, can record which
members of the Teachers' Defined Contribution Retirement System
have submitted their written documents authorizing transfer
pursuant to subsection (k) of this section.
(4) For the purposes of this subdivision, the principal of a
school with any of grades prekindergarten through twelve is the
work site supervisor. For the purposes of this subdivision, for
any work site under the jurisdiction of the Higher Education Policy
Commission or the West Virginia Council for Community and Technical
College Education, the human resource administrator or other
designee may be considered the work site supervisor. In any case
where the person who is the work site supervisor is in question,
the state board, the Chancellor for Higher Education or the
Chancellor for Community and Technical College Education, whichever
entity has jurisdiction over the work site, shall designate the
supervisor.
(5) The state board, the Chancellor for Higher Education and the Chancellor for Community and Technical College Education shall
ascertain the names of all work site supervisors under their
jurisdiction and transmit a list of the names of the work site
supervisors to the Consolidated Public Retirement Board on or
before the thirty-first day of March, two thousand eight.
(k) The Consolidated Public Retirement Board, or its designee,
shall record the receipt of all written documents authorizing the
transfer so that it knows the percentage of contributing members of
the Teachers' Defined Contribution Retirement System that have
submitted the written documents by work site and by county.
§18-7D-8. Results considered final.
Every member of the Teachers' Defined Contribution Retirement
System is considered to have made an informed, educated, knowing
and voluntary decision and choice with respect to the opportunities
provided by this article to transfer membership and assets to the
State Teachers Retirement System. Each member who failed or
refused to affirmatively elect to transfer is also considered to
have made an informed, educated, knowing and voluntary decision and
choice with respect thereto and is bound by the results thereof,
except as may be required by federal law.
§18-7D-9. Qualified domestic relations orders.
Any transferring member having a qualified domestic relations
order against his or her defined contribution account is allowed to
repurchase service in the State Teachers Retirement System. The member shall repay any moneys previously distributed to the
alternate payee along with the interest as set by the board. The
member shall repay by the last day of June, two thousand fourteen.
The provisions of this section are void and of no effect if there
is no transfer from the Teachers' Defined Contribution Retirement
System to the State Teachers Retirement System. An alternate payee
is not, solely as a result of that status, a member of either the
Teachers' Defined Contribution Retirement System or the State
Teachers Retirement System for any purpose under the provisions of
this article and no interest held by the alternate payee is
transferred to the State Teachers Retirement System pursuant
thereto.
§18-7D-10. Vesting.
Any member who works one hour or more after his or her assets
are transferred to the State Teachers Retirement System pursuant to
this article is subject to the vesting schedule set forth in
article seven-a of this chapter: Provided, That if a member is
vested under the Teachers' Defined Contribution Retirement System
and his or her last contribution was not made to the State Teachers
Retirement System, that member is subject to the vesting schedule
set forth in article seven-b of this chapter.
§18-7D-11. Minimum guarantees.
(a) Any member of the Teachers' Defined Contribution
Retirement System who works one hour or more and who has made a contribution to the State Teachers Retirement System after his or
her assets are transferred to the State Teachers Retirement System
pursuant to this article, is guaranteed a minimum benefit equal to
his or her member contributions plus the vested portion of employer
contributions made on his or her behalf to the Teachers' Defined
Contribution Retirement System, plus any earnings thereon, as of
the thirtieth day of June, two thousand eight, as stated by the
board.
(b) A member of the Teachers' Defined Contribution Retirement
System who works one hour or more and who has made contributions to
the State Teachers Retirement System after his or her assets are
transferred to the State Teachers Retirement System, upon
eligibility to receive a distribution under article seven-a of this
chapter, shall have at a minimum the following three options:
(1) The right to receive an annuity from the State Teachers
Retirement System based upon the provisions of article seven-a of
this chapter;
(2) The right to withdraw from the State Teachers Retirement
System and receive his or her member accumulated contributions in
the State Teachers Retirement System, plus refund interest thereon,
as set forth in article seven-a of this chapter; or
(3) The right to withdraw and receive his or her member
contributions plus the vested portion of employer contributions
made on his or her behalf to the Teachers' Defined Contribution Retirement System, plus any earnings thereon as of the date his or
her assets are transferred to the State Teachers Retirement System
pursuant to this article, as determined by the board pursuant to
the vesting provisions of article seven-a of this chapter. This
amount shall be distributed in a lump sum.
(c) Any member of the Teachers' Defined Contribution
Retirement System who does not work one hour or more and who makes
no contribution to the State Teachers Retirement System after his
or her assets are transferred to the State Teachers Retirement
System pursuant to this article, is guaranteed the receipt of the
amount in his or her total vested account in the Teachers' Defined
Contribution Retirement System on the date of the transfer, plus
interest thereon, at four percent accruing from the date of the
transfer. This amount shall be distributed in a lump sum:
Provided, That no benefits may be obtained under this subsection
solely by the reciprocity provisions of sections three, four, and
six, article thirteen, chapter five of this code.