WEST virginia legislature

2017 regular session

Introduced

Senate Bill 371

By Senators Gaunch and Boso

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

A BILL to amend and reenact §18-7A-11 of the Code of West Virginia, 1931, as amended, relating to requiring the Consolidated Public Retirement Board to adopt a four-year smoothing method relating to actuarial gains and losses on Teachers Retirement System Fund assets.

Be it enacted by the Legislature of West Virginia:

            That §18-7A-11 of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:

ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.

§18-7A-11. Records; actuarial data; tables; specification of actuarial assumptions.

The retirement board shall maintain an individual account with each member, showing the amount of the member's contributions and the interest accumulations thereon. It shall collect and keep in convenient form data as may be necessary for the preparation of the required mortality and service tables, and for the compilation of such other information as may be needed for the actuarial valuation of the funds created by this article. The retirement board shall specify and adopt all actuarial assumptions for the system at its first meeting of every calendar year or as soon thereafter as may be practicable, which assumptions shall become part of the terms of the system: Provided, That the retirement board shall adopt smoothing of actuarial gains and losses on state Teachers Retirement System assets using a four-year smoothing method with no corridor as an actuarial assumption for valuations used after June 30, 2016, to determine state Teachers Retirement System funding.

NOTE: The purpose of this bill is to require the Consolidated Public Retirement Board to adopt a four-year smoothing method relating to actuarial gains and losses on Teachers Retirement System Fund assets.

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