SENATE
HOUSE
JOINT
BILL STATUS
WV CODE
REPORTS
EDUCATIONAL
CONTACT
home
home

Introduced Version House Bill 2586 History

OTHER VERSIONS  -  Committee Substitute  |  Enrolled Version - Final Version  |     |  Email


FISCAL NOTEWEST virginia Legislature

2017 regular session

Introduced

House Bill 2586

By Delegates Walters, Folk, Anderson, Hamilton,
 O’Neal, E. Evans and Pethtel

[Introduced February 21, 2017; Referred
to the Committee on Pensions and Retirement then Finance.
]

A BILL to amend and reenact §5-10-27b of the Code of West Virginia, 1931, as amended; to amend and reenact §7-14D-9b of said code; to amend and reenact §8-22A-11 of said code; to amend and reenact §15-2-45 of said code; to amend and reenact §15-2A-6b of said code; to amend and reenact §16-5V-13 of said code; to amend and reenact §18-7A-28b of said code; to amend and reenact §18-7B-12a of said code; and to amend and reenact §51-9-12b of said code, all relating to required minimum distribution of retirement benefits of plans administered by the Consolidated Public Retirement Board; clarifying treatment of benefits in the event of a members death; and bringing code into conformity with federal law.

Be it enacted by the Legislature of West Virginia:


That §5-10-27b of the Code of West Virginia, 1931, as amended, be amended and reenacted; that §7-14D-9b of said code be amended and reenacted; that §8-22A-11 of said code be amended and reenacted; that §15-2-45 of said code be amended and reenacted; that §15-2A-6b of said code be amended and reenacted; that §16-5V-13 of said code be amended and reenacted; that §18-7A-28b of said code be amended and reenacted; that §18-7B-12a of said code be amended and reenacted; and that §51-9-12b of said code be amended and reenacted, all to read as follows:


CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR, SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS, OFFICES, PROGRAMS, ETC.

ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.

§5-10-27b. Federal law minimum required distributions.

The requirements of this section apply to any distribution of a member's or beneficiary's interest and take precedence over any inconsistent provisions of this code. This provision applies to plan years beginning after December 31, 1986. Notwithstanding anything in this code to the contrary, the payment of benefits under this article shall be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the federal regulations promulgated thereunder as applicable to governmental plans. Terms used in this section which are defined in the aforesaid Section of the Internal Revenue Code and related regulations, have the same meaning herein unless a different definition or meaning is expressly stated. For this purpose, the following provisions apply:

 (a) The payment of benefits under the retirement system to any member shall be distributed to him or her not later than the required beginning date, or be distributed to him or her commencing not later than the required beginning date, in accordance with regulations prescribed under Section 401(a)(9) of the Internal Revenue Code, over the life of the member or over the lives of the member and his or her beneficiary or over a period not extending beyond the life expectancy of the member and his or her beneficiary: Provided, That the requirements of this section shall not be construed to grant a right to a form of benefit which is not otherwise available to a particular member under this retirement system. Benefit payments under this section shall not be delayed pending, or contingent upon, receipt of an application for retirement from the member.

 (b) If a member dies after distribution to him or her has commenced pursuant to this section but before his or her entire interest in the retirement system has been distributed, then the remaining portion of that interest shall be distributed at least as rapidly as under the method of distribution being used at the date of his or her death.

 (c) If a member dies before distribution to him or her has commenced, then his or her entire interest in the retirement system will shall be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death, except as follows unless the provisions of subsection-d of this section apply.

 (1) (d) If a member dies before distribution to him or her has commenced, and the member's interest is payable eligible to be paid in the form of a survivor annuity to a designated beneficiary, distributions may shall be made over the life of that beneficiary or over a period certain not greater than the life expectancy of that beneficiary, commencing on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a qualified domestic relations order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a qualified domestic relations order, is receiving one hundred percent of the survivor benefit, distributions shall commence on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

 (2) If the member's sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, the date distributions are required to begin shall be no later than the later shall commence on or before the later of:

 (A) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

 (B) The earlier of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year following the calendar year in which the spouse died.

(e) If a member dies before distribution to him or her has commenced and the survivor annuity provisions of subsection (d) of this section are not applicable, any designated beneficiary who is eligible to receive a distribution pursuant to the provisions of subsection-c of this section may elect to have life expectancy treatment apply to the distribution for purposes of determining whether any portion of the distribution is an eligible rollover distribution (rather than five year rule treatment which will apply in the absence of an election hereunder): Provided, That any such election shall not delay the required distribution of the deceased member’s entire interest in the retirement system beyond December 31 of the calendar year containing the fifth anniversary of the member’s death: Provided, however, That the election is timely made in a form acceptable to the board on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member’s sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before the earlier of (A) or (B) below:

(A) The later of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) October 31 of the calendar year containing the fifth anniversary of the member’s death.

CHAPTER 7. COUNTY COMMISSIONS AND OFFICERS.

ARTICLE 14D. DEPUTY SHERIFF RETIREMENT SYSTEM ACT.

§7-14D-9b. Federal law minimum required distributions.


The requirements of this section apply to any distribution of a member's or beneficiary's interest and take precedence over any inconsistent provisions of this plan. This section applies to plan years beginning after December 31, 1986. Notwithstanding anything in the plan to the contrary, the payment of benefits under this article shall be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the regulations thereunder as applicable to governmental plans. Terms used in this section which are defined in the aforesaid section of the Internal Revenue Code and related regulations, shall have the same meaning herein unless a different definition or meaning is expressly stated. For this purpose, the following provisions apply:

(a) The payment of benefits under the plan to any member shall be distributed to him or her not later than the required beginning date, or be distributed to him or her commencing not later than the required beginning date, in accordance with regulations prescribed under Section 401(a)(9) of the Internal Revenue Code, over the life of the member or over the lives of the member and his or her beneficiary or over a period not extending beyond the life expectancy of the member and his or her beneficiary: Provided, That the requirements of this section shall not be construed to grant a right to a form of benefit which is not otherwise available to a particular member under this retirement system. Benefit payments under this section shall not be delayed pending, or contingent upon, receipt of an application for retirement from the member.

(b) If a member dies after distribution to him or her has commenced pursuant to this section but before his or her entire interest in the plan has been distributed, then the remaining portion of that interest shall be distributed at least as rapidly as under the method of distribution being used at the date of his or her death.

(c) If a member dies before distribution to him or her has commenced, then his or her entire interest in the plan shall be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death except as follows unless the provisions of subsection-d of this section apply.

(1) (d) If a member dies before distribution to him or her has commenced, and the member's interest is payable eligible to be paid in the form of a survivor annuity to a designated beneficiary, distributions may shall be made over the life of that beneficiary or over a period certain not greater than the life expectancy of the beneficiary, commencing on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, distributions shall commence on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member's sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, the date distributions are required to begin shall be no later than the later shall commence on or before the later of:

(A) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) The earlier of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year following the calendar year in which the spouse died.

(e) If a member dies before distribution to him or her has commenced and the survivor annuity provisions of subsection (d) of this section are not applicable, any designated beneficiary who is eligible to receive a distribution pursuant to the provisions of subsection (c) of this section may elect to have life expectancy treatment apply to such distribution for purposes of determining whether any portion of such distribution is an eligible rollover distribution (rather than five year rule treatment which will apply in the absence of an election hereunder): Provided, That any such election may not delay the required distribution of the deceased member’s entire interest in the retirement system beyond December 31 of the calendar year containing the fifth anniversary of the member’s death: Provided, however, That the election is timely made in a form acceptable to the board on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member’s sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before the earlier of (A) or (B) below:

(A) The later of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) October 31 of the calendar year containing the fifth anniversary of the member’s death.

CHAPTER 8. MUNICIPAL CORPORATIONS.

ARTICLE 22A - WEST VIRGINIA MUNICIPAL POLICE OFFICERS AND FIREFIGHTERS RETIREMENT SYSTEM.

§8-22A-11. Federal law minimum required distributions.


The requirements of this section apply to any distribution of a member's or beneficiary's interest and take precedence over any inconsistent provisions of this plan. This section applies to plan years beginning after December 31, 1986. Notwithstanding anything in the plan to the contrary, the payment of benefits under this article shall be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and its regulations promulgated thereunder as applicable to governmental plans. Terms used in this section which are defined in the aforesaid Section of the Internal Revenue Code and related regulations, have the same meaning herein unless a different definition or meaning is expressly stated. For this purpose, the following provisions apply:

(a) The payment of benefits under the plan to any member shall be distributed to him or her not later than the required beginning date, or be distributed to him or her commencing not later than the required beginning date, in accordance with regulations prescribed under Section 401(a)(9) of the Internal Revenue Code, over the life of the member or over the lives of the member and his or her beneficiary or over a period not extending beyond the life expectancy of the member and his or her beneficiary: Provided, That the requirements of this section shall not be construed to grant a right to a form of benefit which is not otherwise available to a particular member under this retirement system. Benefit payments under this section shall not be delayed pending, or contingent on, receipt of an application for retirement from the member.

(b) If a member dies after distribution to him or her has commenced pursuant to this section but before his or her entire interest in the plan has been distributed, then the remaining portion of that interest shall be distributed at least as rapidly as under the method of distribution being used at the date of his or her death.

(c) If a member dies before distribution to him or her has commenced, then his or her entire interest in the plan shall be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death except as follows unless the provisions of subsection (d) of this section apply.

(1) (d) If a member dies before distribution to him or her has commenced, and the member's interest is payable eligible to be paid in the form of a survivor annuity to a designated beneficiary, distributions may shall be made over the life of that beneficiary or over a period certain not greater than the life expectancy of the beneficiary, commencing on or before the following: 

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee of a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, distributions shall commence on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member's sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, the date distributions are required to begin shall be no later than the later shall commence on or before the later of:

(A) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) The earlier of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year following the calendar year in which the spouse died.

(e) If a member dies before distribution to him or her has commenced and the survivor annuity provisions of subsection (d) of this section are not applicable, any designated beneficiary who is eligible to receive a distribution pursuant to the provisions of subsection (c) of this section may elect to have life expectancy treatment apply to such distribution for purposes of determining whether any portion of such distribution is an eligible rollover distribution (rather than five year rule treatment which will apply in the absence of an election hereunder): Provided, That any such election shall not delay the required distribution of the deceased member’s entire interest in the retirement system beyond December 31 of the calendar year containing the fifth anniversary of the member’s death: Provided, however, That the election is timely made in a form acceptable to the board on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member’s sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before the earlier of (A) or (B) below:

(A) The later of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) October 31 of the calendar year containing the fifth anniversary of the member’s death.

CHAPTER 15. PUBLIC SAFETY.

ARTICLE 2. WEST VIRGINIA STATE POLICE.

§15-2-45. Federal law minimum required distributions.


The requirements of this section apply to any distribution of a member's or beneficiary's interest and take precedence over any inconsistent provisions of this code. This section applies to plan years beginning after December 31, 1998 1986. Notwithstanding anything in the retirement system to the contrary, the payment of benefits under this article shall be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the regulations thereunder as applicable to governmental plans. Terms used in this section which are defined in the aforesaid Section of the Internal Revenue Code and related regulations, shall have the same meaning herein unless a different definition or meaning is expressly stated. For this purpose, the following provisions apply:

(a) The payment of benefits under the fund to any member shall be distributed to him or her not later than the required beginning date, or be distributed to him or her commencing not later than the required beginning date, in accordance with regulations prescribed under Section 401(a)(9) of the Internal Revenue Code, over the life of the member or over the lives of the member and his or her beneficiary, or over a period not extending beyond the life expectancy of the member and his or her beneficiary: Provided, That the requirements of this section may not be construed to grant a right to a form of benefit which is not otherwise available to a particular member under this retirement system. For purposes of this section, the term "required beginning date" means April 1 of the calendar year following the later of: (i) The calendar year in which the member attains age seventy and one-half; or (ii) the calendar year in which the member retires or otherwise ceases providing covered service under this fund. Benefit payments under this section shall not be delayed pending, or contingent upon, receipt of an application for retirement from the member.

(b) If a member dies after distribution to him or her has commenced pursuant to this section but before his or her entire interest in the retirement system has been distributed, then the remaining portion of that interest shall be distributed at least as rapidly as under the method of distribution being used at the date of his or her death.

(c) If a member dies before distribution to him or her has commenced, then his or her entire interest in the fund shall be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death except as follows unless the provisions of subsection (d) of this section apply.

(1) (d) If a member dies before distribution to him or her has commenced, and the member's interest is payable eligible to be paid in the form of a survivor annuity to a designated beneficiary, distributions may shall be made over the life of that beneficiary or over a period certain not greater than the life expectancy of the beneficiary commencing on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, distributions shall commence on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member's sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, the date distributions are required to begin shall be no later than the later shall commence on or before the later of:

(A) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) The earlier of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year following the calendar year in which the spouse died.

(e) If a member dies before distribution to him or her has commenced and the survivor annuity provisions of subsection (d) of this section are not applicable, any designated beneficiary who is eligible to receive a distribution pursuant to the provisions of subsection (c) of this section may elect to have life expectancy treatment apply to the distribution for purposes of determining whether any portion of the distribution is an eligible rollover distribution (rather than five year rule treatment which will apply in the absence of an election hereunder): Provided, That any such election shall not delay the required distribution of the deceased member’s entire interest in the retirement system beyond December 31 of the calendar year containing the fifth anniversary of the member’s death: Provided, however, That the election is timely made in a form acceptable to the board on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member’s sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before the earlier of (A) or (B) below:

(A) The later of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) October 31 of the calendar year containing the fifth anniversary of the member’s death.

ARTICLE 2A. WEST VIRGINIA STATE POLICE RETIREMENT SYSTEM.

§15-2A-6b.  Federal law minimum required distributions.


The requirements of this section apply to any distribution of a member's interest and take precedence over any inconsistent provisions of this retirement system. This section applies to plan years beginning after December 31, 1986. Notwithstanding anything in the retirement system to the contrary, the payment of benefits under this article shall be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the regulations thereunder as applicable to governmental plans. Terms used in this section which are defined in the aforesaid Section of the Internal Revenue Code and related regulations, have the same meaning herein unless a different definition or meaning is expressly stated. For this purpose, the following provisions apply:

(a) The payment of benefits under the retirement system to any member shall be distributed to him or her not later than the required beginning date, or be distributed to him or her commencing not later than the required beginning date, in accordance with regulations prescribed under Section 401(a)(9) of the Internal Revenue Code, over the life of the member or over the lives of the member and his or her beneficiary or over a period not extending beyond the life expectancy of the member and his or her beneficiary: Provided, That the requirements of this section may not be construed to grant a right to a form of benefit which is not otherwise available to a particular member under this retirement system. Benefit payments under this section shall not be delayed pending, or contingent upon, receipt of an application for retirement from the member.

(b) If a member dies after distribution to him or her has commenced pursuant to this section but before his or her entire interest in the retirement system has been distributed, then the remaining portion of that interest shall be distributed at least as rapidly as under the method of distribution being used at the date of his or her death.

(c) If a member dies before distribution to him or her has commenced, then his or her entire interest in the retirement system shall be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death, except as follows unless the provisions of subsection (d) of this section apply.

(1) (d) If a member dies before distribution to him or her has commenced and the member's interest is payable eligible to be paid in the form or a survivor annuity to a designated beneficiary, distributions may shall be made over the life of that beneficiary or over a period certain not greater than the life expectancy of the beneficiary commencing on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, distributions shall commence on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member's sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, the date distributions are required to begin shall be no later than the later shall commence on or before the later of:

(A) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) The earlier of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year following the calendar year in which the spouse died.

(e) If a member dies before distribution to him or her has commenced and the survivor annuity provisions of subsection (d) of this section are not applicable, any designated beneficiary who is eligible to receive a distribution pursuant to the provisions of subsection (c) of this section may elect to have life expectancy treatment apply to such distribution for purposes of determining whether any portion of such distribution is an eligible rollover distribution (rather than five year rule treatment which will apply in the absence of an election hereunder): Provided, That any such election shall not delay the required distribution of the deceased member’s entire interest in the retirement system beyond December 31 of the calendar year containing the fifth anniversary of the member’s death: Provided, however, That the election is timely made in a form acceptable to the board on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member’s sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before the earlier of (A) or (B) below:

(A) The later of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) October 31 of the calendar year containing the fifth anniversary of the member’s death.

CHAPTER 16. PUBLIC HEALTH.

ARTICLE 5V. EMERGENCY MEDICAL SERVICES RETIREMENT SYSTEM ACT.

§16-5V-13. Federal law minimum required distributions.


The requirements of this section apply to any distribution of a member's or beneficiary's interest and take precedence over any inconsistent provisions of this plan. This section applies to plan years beginning after December 31, 1986. Notwithstanding anything in the plan to the contrary, the payment of benefits under this article shall be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and its regulations promulgated thereunder as applicable to governmental plans. Terms used in this section which are defined in the aforesaid Section of the Internal Revenue Code and related regulations, have the same meaning herein unless a different definition or meaning is expressly stated. For this purpose, the following provisions apply:

(a) The payment of benefits under the plan to any member shall be distributed to him or her not later than the required beginning date, or be distributed to him or her commencing not later than the required beginning date, in accordance with regulations prescribed under Section 401(a)(9) of the Internal Revenue Code, over the life of the member or over the lives of the member and his or her beneficiary or over a period not extending beyond the life expectancy of the member and his or her beneficiary: Provided, That the requirements of this section may not be construed to grant a right to a form of benefit which is not otherwise available to a particular member under this retirement system. Benefit payments under this section shall not be delayed pending, or contingent upon, receipt of an application for retirement from the member.

(b) If a member dies after distribution to him or her has commenced pursuant to this section but before his or her entire interest in the plan has been distributed, then the remaining portion of that interest shall be distributed at least as rapidly as under the method of distribution being used at the date of his or her death.

(c) If a member dies before distribution to him or her has commenced, then his or her entire interest in the plan shall be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death except as follows unless the provisions of subsection (d) of this section apply.

(1) (d) If a member dies before distribution to him or her commenced, and the member's interest is payable eligible to be paid in the form of a survivor annuity to a designated beneficiary, distributions may shall be made over the life of that beneficiary or over a period certain not greater than the life expectancy of the beneficiary, commencing on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, distributions shall commence on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member's sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, the date distributions are required to begin shall be no later than the later shall commence on or before the later of:

(A) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) The earlier of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year following the calendar year in which the spouse died.

(e) If a member dies before distribution to him or her has commenced and the survivor annuity provisions of subsection (d) of this section are not applicable, any designated beneficiary who is eligible to receive a distribution pursuant to the provisions of subsection (c) of this section may elect to have life expectancy treatment apply to the distribution for purposes of determining whether any portion of the distribution is an eligible rollover distribution (rather than five year rule treatment which will apply in the absence of an election hereunder): Provided, That any such election shall not delay the required distribution of the deceased member’s entire interest in the retirement system beyond December 31 of the calendar year containing the fifth anniversary of the member’s death: Provided, however, That the election is timely made in a form acceptable to the board on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member’s sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before the earlier of (A) or (B) below:

(A) The later of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) October 31 of the calendar year containing the fifth anniversary of the member’s death.

CHAPTER 18. EDUCATION.

ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.

§18-7A-28b. Federal law minimum required distributions.


The requirements of this section apply to any distribution of a member's or beneficiary's interest and take precedence over any inconsistent provisions of this retirement system. This section applies to plan years beginning after December 31, 1986. Notwithstanding anything in the retirement system to the contrary, the payment of benefits under this article shall be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the regulations thereunder as applicable to governmental plans. Terms used in this section which are defined in the aforesaid Section of the Internal Revenue Code and related regulations, have the same meaning herein unless a different definition or meaning is expressly stated. For this purpose, the following provisions apply:

(a) The payment of benefits under the retirement system to any member shall be distributed to him or her not later than the required beginning date, or be distributed to him or her commencing not later than the required beginning date, in accordance with regulations prescribed under Section 401(a)(9) of the Internal Revenue Code, over the life of the member or over the lives of the member and his or her beneficiary or over a period not extending beyond the life expectancy of the member and his or her beneficiary: Provided, That the requirements of this section may not be construed to grant a right to a form of benefit which is not otherwise available to a particular member under this retirement system. Benefit payments under this section shall not be delayed pending, or contingent upon, receipt of an application for retirement from the member.

(b) If a member dies after distribution to him or her has commenced pursuant to this section but before his or her entire interest in the retirement system has been distributed, then the remaining portion of that interest shall be distributed at least as rapidly as under the method of distribution being used at the date of his or her death.

(c) If a member dies before distribution to him or her has commenced, then his or her entire interest in the retirement system shall be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death except as follows unless the provisions of subsection (d) of this section apply.

(1) (d) If a member dies before distribution to him or her has commenced, and the member's interest is payable eligible to be paid in the form of a survivor annuity to a designated beneficiary, distributions may shall be made over the life or over a period certain not greater than the life expectancy of the beneficiary commencing on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, distributions shall commence on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member's sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, the date distributions are required to begin shall not be earlier than the later shall commence on or before the later of:

(A) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) The earlier of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year following the calendar year in which the spouse died.

(e) If a member dies before distribution to him or her has commenced and the survivor annuity provisions of subsection (d) of this section are not applicable, any designated beneficiary who is eligible to receive a distribution pursuant to the provisions of subsection (c) of this section may elect to have life expectancy treatment apply to such distribution for purposes of determining whether any portion of such distribution is an eligible rollover distribution (rather than five year rule treatment which will apply in the absence of an election hereunder): Provided, That any such election shall not delay the required distribution of the deceased member’s entire interest in the retirement system beyond December 31 of the calendar year containing the fifth anniversary of the member’s death: Provided, however, That the election is timely made in a form acceptable to the board on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member’s sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before the earlier of (A) or (B) below:

(A) The later of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) October 31 of the calendar year containing the fifth anniversary of the member’s death.

ARTICLE 7B. TEACHERS' DEFINED CONTRIBUTION RETIREMENT SYSTEM.

§18-7B-12a. Federal minimum required distributions.


The requirements of this section apply to any distribution of a member's or beneficiary's interest and take precedence over any inconsistent provisions of this defined contribution system. This section applies to plan years beginning after December 31, 1986. Notwithstanding anything in this system to the contrary, the payment of benefits under this article shall be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the regulations thereunder as applicable to governmental plans, including without limitation the incidental death benefit provisions of Section 401(a)(9)(G) of the Internal Revenue Code and the regulations thereunder. Terms used in this section which are defined in the aforesaid Section of the Internal Revenue Code and related regulations, have the same meaning herein unless a different definition or meaning is expressly stated. For this purpose, the following provisions apply:

 (a) The payment of benefits under the defined contribution system to any member shall be distributed to him or her not later than the required beginning date, or be distributed to him or her commencing not later than the required beginning date, in accordance with regulations prescribed under Section 401(a)(9) of the Internal Revenue Code, over the life of the member or over the lives of the member and his or her beneficiary or over a period not extending beyond the life expectancy of the member and his or her beneficiary: Provided, That the requirements of this section may not be construed to grant a right to a form of benefit which are not otherwise available to a particular member under this retirement system. Benefit payments under this section shall not be delayed pending, or contingent upon, receipt of an application for retirement from the member.

(b) If a member dies after distribution to him or her has commenced pursuant to this section but before his or her entire interest in the system has been distributed, then the remaining portion of that interest shall be distributed at least as rapidly as under the method of distribution being used at the date of his or her death.

(c) If a member dies before distribution to him or her has commenced, then his or her entire interest in the system shall be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death, except as follows unless the provisions of subsection (d) of this section apply.

 (1) (d) If a member dies before distribution to him or her has commenced, and the member's interest is payable eligible to be paid in the form of a survivor annuity to a designated beneficiary, distributions may shall be made over the life of that beneficiary or over a period certain not greater than the life expectancy of the beneficiary commencing on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, distributions shall commence on or before December 31 of the calendar year immediately following the calendar year in which the participant died; or

(2) If the member's sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, the date distributions are required to begin shall be no later than the later shall commence on or before the later of:

(A) December 31 of the calendar year in which the member would have attained age seventy and one-half years; or

(B) The earlier of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year following the calendar year in which the spouse died.

(e) If a member dies before distribution to him or her has commenced and the survivor annuity provisions of subsection (d) of this section are not applicable, any designated beneficiary who is eligible to receive a distribution pursuant to the provisions of subsection (c) of this section may elect to have life expectancy treatment apply to the distribution for purposes of determining whether any portion of the distribution is an eligible rollover distribution (rather than five year rule treatment which will apply in the absence of an election hereunder): Provided, That any such election shall not delay the required distribution of the deceased member’s entire interest in the retirement system beyond December 31 of the calendar year containing the fifth anniversary of the member’s death: Provided, however, That the election is timely made in a form acceptable to the board on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor annuity, election of life expectancy treatment must be made on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member’s sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before the earlier of (A) or (B) below:

(A) The later of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) October 31 of the calendar year containing the fifth anniversary of the member’s death.

(d) (f) For purposes of this section, any amount paid to a child of a member will be treated as if it had been paid to the surviving spouse of the member if the remaining amount becomes payable to the surviving spouse when the child reaches the age of majority.

CHAPTER 51. COURTS AND THEIR OFFICERS.

ARTICLE 9. RETIREMENT SYSTEM FOR JUDGES OF COURTS OF RECORD.

§51-9-12b. Federal minimum required distributions.


The requirements of this section apply to any distribution of a member's or beneficiaries' interest and take precedence over any inconsistent provisions of this retirement system. This section applies to plan years beginning after December 31, 1986. Notwithstanding anything in the retirement system to the contrary, the payment of benefits under this article shall be determined and made in accordance with Section 401(a)(9) of the Internal Revenue Code and the regulations thereunder as applicable to governmental plans. Terms used in this section which are defined in the aforesaid Section of the Internal Revenue Code and related regulations, have the same meaning herein unless a different definition or meaning is expressly stated. For this purpose, the following provisions apply:

 (a) The payment of benefits under the retirement system to any member shall be distributed to him or her not later than the required beginning date, or be distributed to him or her commencing not later than the required beginning date, in accordance with Treasury Regulations regulations prescribed under Section 401(a)(9) of the Internal Revenue Code, over the life of the member or over the lives of the member and his or her beneficiary or over a period not extending beyond the life expectancy of the member and his or her beneficiary: Provided, That the requirements of this section may not be construed to grant a right to a form of benefit which is not otherwise available to a particular member under this retirement system. Benefit payments under this section shall not be delayed pending, or contingent upon, receipt of an application for retirement from the member.

(b) If a member dies after distribution to him or her has commenced pursuant to this section but before his or her entire interest in the retirement system has been distributed, then the remaining portion of that interest shall be distributed at least as rapidly as under the method of distribution being used at the date of his or her death.

(c) If a member dies before distribution to him or her has commenced, then his or her entire interest in the retirement system shall be distributed by December 31 of the calendar year containing the fifth anniversary of the member's death, except as follows unless the provisions of subsection (d) of this section apply.

(1) (d) If a member dies before distributions to him or her has commenced, and the member's interest is payable eligible to be paid in the form of a survivor annuity to a designated beneficiary, distributions may shall be made over the life of that beneficiary or over a period certain not greater than the life expectancy of the beneficiary commencing on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, distributions shall commence on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member's sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, the date distributions are required to begin shall be no later than the later shall commence on or before the later of:

(A) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) The earlier of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year following the calendar year in which the spouse died.

(e) If a member dies before distribution to him or her has commenced and the survivor annuity provisions of subsection (d) of this section are not applicable, any designated beneficiary who is eligible to receive a distribution pursuant to the provisions of subsection (c) of this section may elect to have life expectancy treatment apply to the distribution for purposes of determining whether any portion of the distribution is an eligible rollover distribution (rather than five year rule treatment which will apply in the absence of an election hereunder): Provided, That any such election shall not delay the required distribution of the deceased member’s entire interest in the retirement system beyond December 31 of the calendar year containing the fifth anniversary of the member’s death: Provided, however, That the election is timely made in a form acceptable to the board on or before the following:

(1) If the member has more than one designated beneficiary (including, for this purpose, an alternate payee under a Qualified Domestic Relations Order who is entitled to a portion of the survivor benefit), or if the sole designated beneficiary is neither the member’s surviving spouse nor a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before December 31 of the calendar year immediately following the calendar year in which the member died; or

(2) If the member’s sole designated beneficiary is either the surviving spouse or a former spouse who, as an alternate payee under a Qualified Domestic Relations Order, is receiving one hundred percent of the survivor benefit, election of life expectancy treatment must be made on or before the earlier of (A) or (B) below:

(A) The later of: (i) December 31 of the calendar year immediately following the calendar year in which the member died; or (ii) December 31 of the calendar year in which the member would have attained age seventy and one-half; or

(B) October 31 of the calendar year containing the fifth anniversary of the member’s death.

 

 

NOTE:  The introduction of this bill in the 2017 regular session is requested by the Consolidated Public Retirement Board.  The purpose of this bill is to update the required minimum distribution laws to be in compliance with federal Internal Revenue Code requirements

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.

This Web site is maintained by the West Virginia Legislature's Office of Reference & Information.  |  Terms of Use  |   Web Administrator   |   © 2019 West Virginia Legislature ***


X

Print On Demand

Name:
Email:
Phone:

Print