H. B.3093
(By Delegate Craig)
[Introduced March 18; 2005; Referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §18-7B-7 of the Code of West
Virginia, 1931, as amended, relating to membership in the
teachers' defined contribution plan; clarifying that all new
employees are members as a condition of employment;
providing for the termination of membership of River Valley
Child Development Services, Inc.;
providing for withdrawal
from system without forfeiture; specifying time periods;
requiring pension plan in lieu of teachers' defined
contribution plan; notice; and option.
Be it enacted by the Legislature of West Virginia:
That §18-7B-7 of the Code of West Virginia, 1931, as
amended, be amended and reenacted, to read as follows:
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 system shall be the single
retirement program for all new employees whose employment
commences on or after that date
and all new employees are
required to participate as a condition of employment
. 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 defined contribution system on the first day
of July, one thousand nine hundred ninety-one, and who later
returned to participating employment after the effective date of
this section has the right to elect to return to the existing teachers retirement system or to elect to participate in the
defined contribution system. The election shall be made at the
time of his or her reemployment, is irrevocable and shall be made
upon forms approved by and filed with the West Virginia
Consolidated Public Retirement Board.
(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 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 elect, pursuant to the provisions of this
section, readmission to the existing teachers retirement system:
Provided, That persons who are eligible to, and who make the
election to, terminate their participation in the defined
contribution system and to return to participation in the
existing teachers retirement system as provided for in this
section shall make the election, on a form approved by and filed
with the West Virginia Consolidated Public Retirement board on or
before the thirtieth day of June, two thousand two: Provided,
however, That as a condition of the right of readmission to the
existing teachers retirement system, persons making the election provided in this section whose defined contribution account had
not, prior to such election, been divided by a qualified domestic
relations order, shall pay an additional contribution to the
existing teachers retirement system equal to one and one-half
percent of his or her annual gross compensation earned for each
year during which he or she participated in the defined
contribution system and shall consent and agree to the transfer
of his or her total account balance in the defined contribution
system as of the most recent plan valuation immediately preceding
his or her transfer to the existing teachers retirement system.
For persons making the election provided for in this section
whose defined contribution account had, prior to such election,
previously been divided by a qualified domestic relations order,
the cost to such person to transfer to the existing teachers
retirement system shall be actuarially determined by the
Consolidated Public Retirement Board. Upon verification of that
person's eligibility to return to participation in the existing
teachers retirement system and the tender and transfer of funds
as provided for in this subsection, persons making this election
shall receive service credit for the time the member participated
in the defined contribution system as if his or her participation
had been in the existing teachers retirement system: Provided
further, That the right to terminate participation in the defined
contribution system and to resume participation in the existing teachers retirement system as provided in this section is
irrevocable and shall not apply to any person who, while members
of the teachers retirement system, voluntarily elected to
terminate his or her membership in the teachers retirement system
and to become a participant in the defined contribution system
pursuant to section eight of this article.
(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 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
said 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
May, 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.
Note: The purpose of this bill is to permit River Valley
Child Development Services, Inc. to withdraw from TDC. River
Valley is required to provide an alternative plan.
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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