Introduced Version
House Bill 2249 History
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Key: Green = existing Code. Red = new code to be enacted
H. B. 2249
(By Delegate Azinger)
[Introduced February 13, 2013; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §5-10-24 of the Code of West Virginia,
1931, as amended, relating to requiring that the annuity
option of a modified joint and survivor annuity be the default
option for retirees in the Public Employees Retirement System
unless the spouse of the retiring member approves a different
annuity option.
Be it enacted by the Legislature of West Virginia:
That §5-10-24 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-24. Annuity options.
(a) (1) Prior to retirement a member may elect and receive an
annuity in accordance with any of the annuity options provided in
this section, if the member provides evidence satisfactory to the retirement board that the spouse has approved of the member's
choice of option. If the required evidence is not provided to the
retirement board, upon retirement, the retirant shall receive an
annuity in accordance with a default selection of Option B of
subdivision (2) of this subsection, with the spouse named as the
beneficiary.
_____(a)(2) Subject to subdivision (1) of this subsection, prior to
the effective date of his or her retirement, but not thereafter
except upon the death of a spouse, a member may elect to receive
his or her annuity as a straight life annuity payable throughout
his or her life, or he or she may elect to receive the actuarial
equivalent, at the time, of his or her straight life annuity in a
reduced annuity payable throughout his or her life, and nominate a
beneficiary, in accordance with option A or B set forth below:
Option A -- Joint and survivor annuity. -- Upon the death of
a retirant who elected option A, his or her reduced annuity shall
be continued throughout the life of and paid to the beneficiary,
having an insurable interest in the retirant's life, whom the
retirant nominated by written designation duly executed and filed
with the board of trustees prior to the effective date of his or
her retirement; or
Option B -- Modified joint and survivor annuity. -- Upon the
death of a retirant who elected option B, one half of his or her
reduced annuity shall be continued throughout the life of and paid to the beneficiary, having an insurable interest in the retirant's
life, whom the retirant nominated by written designation duly
executed and filed with the board of trustees prior to the
effective date of his or her retirement.
(b) Upon the death of a spouse, a retirant may elect any of
the retirement options offered by the provisions of this section in
an amount adjusted on a fair basis to be of equal actuarial value
as the annuity prospectively in effect relative to the retirant at
the time the new option is elected.
(c) Upon divorce, a retirant may elect to change any of the
retirement benefit options offered by the provisions of this
section to a life annuity in an amount adjusted on a fair basis to
be of equal actuarial value of the annuity prospectively in effect
relative to the retirant at the time the option is elected:
Provided, That the retirant furnishes to the board satisfactory
proof of entry of a final decree of divorce or annulment:
Provided, however, That the retirant certifies under penalty of
perjury that no qualified domestic relations order, final decree of
divorce, or other court order that would restrict the election is
in effect: Provided further, That no cause of action against the
board may then arise or be maintained on the basis of having
permitted the retirant to name a new spouse as annuitant for any of
the survivorship retirement benefit options.
(d) Upon remarriage, a retirant may name the new spouse as an annuitant for any of the retirement benefit options offered by the
provisions of this section: Provided, That the retirant shall
furnish to the board proof of marriage: Provided, however, That
the retirant certifies under penalty of perjury that no qualified
domestic relations order, final decree of divorce or other court
order that would restrict the designation is in effect: Provided
further, That no cause of action against the board may then arise
or be maintained on the basis of having permitted the retirant to
name a new spouse as annuitant for any of the survivorship
retirement benefit options. If the retirant does not provide
evidence satisfactory to the retirement board that the spouse has
approved of the member's choice of option, the new surviviorship
option shall be by default Option B as provided in subdivision (2),
subsection (a) of this section. The value of the new survivorship
annuity shall be the actuarial equivalent of the retirant's benefit
prospectively in effect at the time the new annuity is elected.
NOTE: The purpose of this bill is to require that the annuity
option of a modified joint and survivor annuity shall be the
default option for retirees in the Public Employees Retirement
System unless the spouse of the retiring member approves a
different annuity option.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.