H. B. 4574
(By Delegate Lane)
[Introduced February 15, 2006; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §7-14D-7, §7-14D-11 and §7-14D-12 of
the Code of West Virginia, 1931, as amended, all relating to
increasing deputy sheriffs' pension benefit by one-half of one
percent, while increasing the employer contribution by one
percent.
Be it enacted by the Legislature of West Virginia:
That §7-14D-7, §7-14D-11 and §7-14D-12 of the Code of West
Virginia, 1931, as amended, be amended and reenacted, all to read
as follows:
ARTICLE 14D. DEPUTY SHERIFF RETIREMENT SYSTEM ACT.
§7-14D-7. Members' contributions; employer contributions.
(a) There shall be deducted from the monthly salary of each
member and paid into the fund an amount equal to eight and one-half
percent of his or her monthly salary. An additional amount shall
be paid to the fund by the county commission of the county in which
the member is employed in covered employment in an amount
determined by the board:
Provided, That
beginning with the first day of July, two-thousand six, the board shall increase each county
commission's contribution to the fund by one-percent: Provided,
however, That in no year may the total of the contributions
provided in this section, to be paid by the county commission,
exceed ten and one-half percent of the total payroll for the
members in the employ of the county commission for the preceding
fiscal year. If the board finds that the benefits provided by this
article can be actually funded with a lesser contribution, then the
board shall reduce the required member or employer contributions or
both. The sums withheld each calendar month shall be paid to the
fund no later than fifteen days following the end of the calendar
month.
(b) Any active member who has concurrent employment in an
additional job or jobs and the additional employment requires the
deputy sheriff to be a member of another retirement system which is
administered by the Consolidated Public Retirement Board pursuant
to article ten-d, chapter five of this code shall make an
additional contribution to the fund of eight and one-half percent
of his or her monthly salary earned from any additional employment
which requires the deputy sheriff to be a member of another
retirement which is administered by the Consolidated Public
Retirement Board pursuant to article ten-d, chapter five of this
code. An additional amount shall be paid to the fund by the
concurrent employer for which the member is employed in an amount
determined by the board:
Provided, That beginning with the first
day of July, two-thousand six, the board shall increase each concurrent employer's contribution to the fund by one-percent:
Provided,
however, That in no year may the total of the
contributions provided in this section, to be paid by the
concurrent employer, exceed ten and one-half percent of the monthly
salary of the employee. If the board finds that the benefits
provided by this article can be funded with a lesser contribution,
then the board shall reduce the required member or employer
contributions or both. The sums withheld each calendar month shall
be paid to the fund no later than fifteen days following the end of
the calendar month.
§7-14D-11. Retirement benefits.
This section provides for the adjustment of a member's accrued
benefit to reflect the difference in age, in years and months,
between the member's annuity starting date and the date the member
attains normal retirement age. This age adjustment shall be made
based upon the normal form of benefit and shall be the actuarial
equivalent of the accrued benefit at the member's normal retirement
age. The member shall receive the age adjusted retirement income
in the normal form or in an actuarial equivalent amount in an
optional form as provided under section twelve of this chapter.
The first day of the calendar month of birth shall be used in lieu
of any birth date that does not fall on the first day of a calendar
month.
(a)
Normal retirement. -- A member whose annuity starting date
is the date the member attains normal retirement age, is entitled
to his or her accrued benefit without adjustment for age at commencement. To the extent that a member's starting date is later
than his or her normal retirement age, the amount of that member's
retirement income benefit shall be adjusted as provided in
subsection (c) of this section.
(b)
Early retirement. -- A member who ceases covered
employment and has attained early retirement age while in covered
employment may elect to receive retirement income payments
commencing on the first day of the month coincident with or
following the date the member ceases covered employment. "Normal
retirement age" for such a member is the first day of the calendar
month coincident with or next following the month in which the
member attains the age of fifty years. If the member's annuity
starting date is prior to the date the member attains normal
retirement age, his or her accrued benefit is reduced to the
actuarial equivalent benefit amount based on the years and months
by which his or her annuity starting date precedes the date he or
she attains normal retirement age. If the member's annuity
starting date is later than the date the member attains the age of
fifty years, the accrued benefit is adjusted as provided in
subsection (c) of this section.
(c)
Late retirement. -- A member whose annuity starting date
is later than the date the member attains normal retirement age
shall receive retirement income payments in the normal form which
is the actuarial equivalent of the benefit to which he or she would
have been entitled had the retirement income payments commenced at
the member's normal retirement age.
(d) Retirement benefits shall be paid monthly in an amount
equal to one twelfth of the retirement income payments elected and
at those times established by the board. Notwithstanding any other
provision of the plan, a member who is married on the annuity
starting date will receive his or her retirement income payments in
the form of a sixty-
six and two-thirds seven and one-sixth percent
joint and survivor annuity with his or her spouse unless prior to
the annuity starting date the spouse waives the form of benefit.
§7-14D-12. Annuity options.
Prior to the effective date of retirement, but not thereafter,
a member may elect to receive retirement income payments in the
normal form, or the actuarial equivalent of the normal form from
the following options:
(a)
Option A -- Joint and Survivor Annuity. -- A life annuity
payable during the joint lifetime of the member and his or her
beneficiary who is a natural person with an insurable interest in
the member's life. Upon the death of either the member or his or
her beneficiary, the benefit shall continue as a life annuity to
the survivor in an amount equal to fifty
and one-half percent,
sixty-
six and two-thirds seven and one sixth percent, seventy-five
and one-half percent or one hundred percent of the amount paid
while both were living as selected by the member. If the retiring
member is married, the spouse shall sign a waiver of benefit rights
if the beneficiary is to be other than the spouse.
(b)
Option B -- Contingent Joint and Survivor Annuity. -- A
life annuity payable during the joint lifetime of the member and his or her beneficiary who must be a natural person with an
insurable interest in the member's life. Upon the death of the
member, the benefit shall continue as a life annuity to the
beneficiary in an amount equal to fifty
and one-half percent,
sixty-
six and two-thirds seven and one sixth percent, seventy-five
and one-half percent or one hundred percent of the amount paid
while both were living as selected by the member. If the
beneficiary dies first, the monthly amount of benefits may not be
reduced, but shall be paid at the amount that was in effect before
the death of the beneficiary. If the retiring member is married,
the spouse shall sign a waiver of benefit rights if the beneficiary
is to be other than the spouse.
(c)
Option C -- Ten Years Certain and Life Annuity. -- A life
annuity payable during the member's lifetime but in any event for
a minimum of ten years. If the member dies before the expiration
of ten years, the remaining payments shall be made to a designated
beneficiary, if any, or otherwise to the member's estate.
(d)
Option D -- Level Income Annuity. -- A life annuity
payable monthly in an increased amount "A" from the time of
retirement until the member is social security retirement age, and
then a lesser amount "B" payable for the member's lifetime
thereafter, with these amounts computed actuarially to satisfy the
following two conditions:
(1)
Actuarial equivalence. -- The actuarial present value at
the date of retirement of the member's annuity if taken in the
normal form must equal the actuarial present value of the term life annuity in amount "A" plus the actual present value of the deferred
life annuity in amount "B"; and
(2)
Level income. -- The amount "A" equals the amount "B" plus
the amount of the member's estimated monthly social security
primary insurance amount that would commence at the date amount "B"
becomes payable. For this calculation, the primary insurance
amount is estimated when the member applies for retirement, using
social security law then in effect, using assumptions established
by the board.
In the case of a member who has elected the options set forth
in subdivisions (a) and (b) of this section, respectively, and
whose beneficiary dies prior to the member's death, the member may
name an alternative beneficiary. If an alternative beneficiary is
named within eighteen months following the death of the prior
beneficiary, the benefit shall be adjusted to be the actuarial
equivalent of the benefit the member is receiving just after the
death of the member's named beneficiary. If the election is not
made until eighteen months after the death of the prior
beneficiary, the amount shall be reduced so that it is only ninety
and one-half percent of the actuarial equivalent of the benefit the
member is receiving just after the death of the member's named
beneficiary.
NOTE: The purpose of this bill is to increase deputy
sheriffs' pension benefit by one-half percent, while increasing the
employer contribution by one percent.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.