H. B. 2852
(By Delegates Staton, J. Smith and Keener)
[Introduced
March 14, 2001
; Referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact sections one and seven, article ten-d,
chapter five of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; all relating to the
consolidated public retirement board and clarifying that
assets of the public retirement systems administered by the
consolidated public retirement board shall be held in trust;
clarifying the applicability of the compensation limitations
under section 401(a)(17) of the Internal Revenue Code to the
contributions and benefits under the qualified retirement plan
systems administered by the consolidated public retirement
board; authorizing the board to adopt policies and procedures
to comply with the compensation limitations and to take other
actions to comply with these limitations as required by the
Internal Revenue Service; and relating to providing investment
management consulting services for the teachers' defined contribution system.
Be it enacted by the Legislature of West Virginia:
That sections one and seven, article ten-d, chapter five of
the code of West Virginia, one thousand nine hundred thirty-one,
as amended, are amended and restated, 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 10D. CONSOLIDATED PUBLIC RETIREMENT BOARD.
§5-10D-1. Consolidated public retirement board created;
transition; members; vacancies; investment of plan funds.
(a) There is hereby continued a consolidated public retirement
board to administer all public retirement plans in this state. It
shall administer the public employees retirement system established
in article ten of this chapter; the teachers retirement system
established in article seven-a, chapter eighteen of this code; the
teachers' defined contribution retirement system created by article
seven-b, chapter eighteen of this code; the death, disability and
retirement fund of the department of public safety created by
article two, chapter fifteen of this code; (the death, disability
and retirement fund for deputy sheriffs created by article
fourteen-d, chapter seven of this code;) and the judges' retirement
system created under article nine, chapter fifty-one of this code.
(b) The consolidated public retirement board shall begin
administration the death, disability and retirement fund for deputy
sheriffs established in article fourteen-d, chapter seven of this
code on the first day of July, one thousand nine hundred
ninety-eight.
(c) The membership of the consolidated public retirement board
consists of:
(1) The governor or his or her designee;
(2) The state treasurer or his or her designee;
(3) The state auditor or his or her designee;
(4) The secretary of the department of administration or his
or her designee;
(5) Four residents of the state, who are not members,
retirants or beneficiaries of any of the public retirement systems,
to be appointed by the governor, with the advice and consent of the
Senate; and
(6) A member, annuitant or retirant of the public employees
retirement system who is or was a state employee; a member,
annuitant or retirant of the public employees retirement system who
is not or was not a state employee; a member, annuitant or retirant
of the teachers retirement system; a member, annuitant or retirant
of the department of public safety death, disability and retirement
fund; a member, annuitant or retirant of the deputy sheriff's
death, disability and retirement fund; and a member, annuitant or retirant of the teachers' defined contribution retirement system,
all to be appointed by the governor, with the advice and consent of
the Senate.
(d) The appointed members of the board shall serve five-year
terms. The governor shall appoint the member representing the
deputy sheriff's death, disability and retirement fund by the first
day of July, one thousand nine hundred ninety-eight to a five-year
term. A member appointed pursuant to subdivision
(5) (6),
subsection (c) of this section ceases to be a member of the board
if he or she ceases to be a member of the represented system. If
a vacancy occurs in the appointed membership, the governor, within
sixty days, shall fill the vacancy by appointment for the unexpired
term. No more than five appointees shall be of the same political
party.
(e) The consolidated public retirement board has all the
powers, duties, responsibilities and liabilities of the public
employees retirement system established pursuant to article ten, of
this chapter; the teachers retirement system established pursuant
to article seven-a, chapter eighteen of this code; the teachers'
defined contribution system established pursuant to article
seven-b, chapter eighteen of this code; the death, disability and
retirement fund of the department of public safety created pursuant
to article two, chapter fifteen of this code; the death, disability
and retirement fund for deputy sheriffs created pursuant to article fourteen-d, chapter seven of this code; and the judges' retirement
system created pursuant to article nine, chapter fifty-one of this
code and their appropriate governing boards. The consolidated
public retirement board may propose for promulgation all rules
necessary to effectuate its powers, duties and responsibilities
pursuant to article three, chapter twenty-nine-a of this code:
Provided, That the board may adopt any or all of the rules,
previously promulgated, of a retirement system which it
administers.
(f) Effective on the first day of July, one thousand nine
hundred ninety-six, the consolidated public retirement board shall,
within two business days of receipt, transfer all funds received by
the consolidated public retirement board for the benefit of the
retirement systems within the consolidated pension plan as defined
in section three-c, article six-b, chapter forty-four of this code,
including, but not limited to, all employer and employee
contributions, to the West Virginia investment management board:
Provided, That the employer and employee contributions of the
teachers' defined contribution system, established in section
three, article seven-b, chapter eighteen of this code, and
voluntary deferred compensation funds invested by the West Virginia
consolidated public retirement board pursuant to section five,
article ten-b of this chapter, may not be transferred to the West
Virginia investment management board.
(g)
Notwithstanding any provision to the contrary in the code
or any legislative rule, all assets of the public retirement plans
set forth in subsection (a) of this section shall be held in trust.
The consolidated public retirement board shall be a trustee for all
public retirement plans, except with regard to the investment of
funds:
Provided, That the consolidated public retirement board
shall be a trustee with regard to the investments of the teachers'
defined contribution system,
and the voluntary deferred
compensation funds invested pursuant to section five, article ten-b
of this chapter
and any other assets of the public retirement plans
administered by the consolidated public retirement board as set
forth in subsection (a) of this section for which no trustee has
been expressly designated in this code.
(h) The board is hereby empowered and authorized to employ the
West Virginia investment management board to provide
§5-10D-7. Compensation limitations; effective dates.
(a) Effective for plan years beginning after the thirty-first
day of December, one thousand nine hundred ninety-five, the annual
compensation of a participant taken into account in determining
benefits or contributions under any of the public retirement plans
administered by the board and which are qualified plans under
section 401(a)
(17) of the Internal Revenue Code may not exceed one
hundred fifty thousand dollars, as indexed
in accordance with the
provisions of section 401(a)(17) of the Internal Revenue Code. This provision shall apply notwithstanding any other provision to
the contrary in this code and not withstanding any provisions of
any legislative rule.
(b) In applying the limitations of subsection (a) of this
section, the consolidated public retirement board is authorized to:
(1) adopt policies or procedures as might be necessary or
appropriate in applying compensation limitations of section 401
(a)(17) of the Internal Revenue Code to participants, including,
without limitation, the adoption and application of transition
rules to implement the compensation limitations; and (2) take any
actions required by the Internal Revenue Service to comply with
section 401(a)(17), including without limitation, distributions,
credits, set-asides or other adjustments.
NOTE:
The purpose of this bill is to clarify that assets of
the public retirement systems administered by the consolidated
public retirement board shall be held in trust. The bill also
clarifies the applicability of the compensation limitations under
section 401(a)(17) of the Internal Revenue Code to the
contributions and benefits under the qualified retirement plan
systems administered by the consolidated public retirement board
and authorizes the board to adopt policies and procedures to comply
with these compensation limitations and to take other actions to
comply with these limitations as may be required by the Internal
Revenue Service. The bill also empowers the CPRB to hire the WV
Investment Management Board to provide investment management
consulting services for the investment funds in the teachers'
defined contribution system.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would be added.
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