WEST virginia legislature
2019 regular session
Originating
Senate Bill 617
By Senators Azinger, Hamilton, Plymale, and Ihlenfeld
[Originating in the Committee on Pensions; Reported on February 14, 2019]
A BILL to amend and reenact §8-22-19 of the Code of West Virginia, 1931, as amended, relating to method of payment of municipal contributions to the Municipal Pensions Security Fund.
Be it enacted by the Legislature of West Virginia:
§8-22-19. Levy to maintain fund.
(a)(1) In order for a municipal policemen’s or firemen’s
pension and relief fund to receive the allocable portion of moneys from the
Municipal Pensions and Protection Fund established in section fourteen-d,
article three, chapter thirty-three of this code and funds from the
Municipal Pensions Security Fund created in §8-22-18b of this code, the
governing body of the municipality shall levy annually and in the manner
provided by law for other municipal levies and include within the maximum levy
or levies permitted by law and, if necessary, in excess of any charter
provision, a tax at such rate as will, after crediting: (A) The amount of the
contributions received during the year from the members of the respective paid
police department or paid fire department; and (B) the allocable portion of the
Municipal Pensions and Protection Fund established in section fourteen-d,
article three, chapter thirty-three of this code and funds from the
Municipal Pensions Security Fund created in §8-22-18b of this code,
provide funds equal to the amount necessary to meet the minimum standards for
actuarial soundness as provided in section twenty of this article
§8-22-20 of this code. The amount shall be irrevocably contributed, accumulated,
and invested as fund assets as described in sections twenty-one and
twenty-two of this article §8-22-21 and §8-22-22 of this code. One twelfth
of each municipality’s annual contributions shall be deposited with the
municipality’s pension trust funds as fund assets on at least a monthly basis
and any revenues received from any source by a municipality which are
specifically collected for the purpose of allocation for deposit into the
policemen’s pension and relief fund or firemen’s pension and relief fund shall
be so deposited within five days of receipt by the municipality. A
municipality may prepay its monthly required contributions in increments
greater than one-twelfth. Heretofore surplus reserves accumulated before
the effective date of this section shall be irrevocably contributed, aggregated,
and invested as fund assets described in sections twenty-one and twenty-two
of this article §8-22-21 and §8-22-22 of this code. Any actuarial
deficiency arising under this section and section twenty of this article
§8-22-20 of this code shall not be the obligation of the State of West
Virginia.
(2) The levies authorized under the provisions of this section, or any part of them, may by the governing body be laid in addition to all other municipal levies and, to that extent, beyond the limit of levy imposed by the charter of the municipality; and the levies shall supersede and if necessary exclude levies for other purposes, where other purposes have not already attained priority, and within the limitations on taxes or tax levies imposed by the constitution and laws.
(b) The public corporations are authorized to take by gift, grant, devise, or bequest any money or real or personal property on such terms as to the investment and expenditures thereof as may be fixed by the grantor or determined by the trustees.
(c) Notwithstanding provisions in section six of this
article, in In addition to all other sums provided for pensions in
this section, it is the duty of every municipality in which any fund or funds
have been or shall be established to assess and collect from each member of the
paid police department or paid fire department or both each month, the sum of
seven percent of the actual salary or compensation of such member; and the
amount so collected shall become a regular part of the policemen’s pension and
relief fund, if collected from a policeman, and of the firemen’s pension and
relief fund, if collected from a fireman: Provided, That for members of
the funds who are police officers or firefighters newly hired on or after
January 1, 2010, the municipality shall assess and collect nine and one-half
percent of the actual salary or compensation. Only those funds for which the
board of trustees has collected and paid the contributions as herein provided
and meeting minimum standards for actuarial soundness shall be eligible to
receive moneys from the additional fire and casualty insurance premium tax as
provided in section fourteen-d, article three, chapter thirty-three of this
code §33-3-14d of this code: Provided, however, That the
board of trustees for each pension and relief fund may assess and collect from
each member of the paid police department or paid fire department or both each
month not more than an additional two and one-half percent of the actual salary
or compensation of each member, but not to exceed nine and one-half percent
total contribution: Provided further, That if any board of trustees
decides to assess and collect any additional amount pursuant to this
subdivision above the member contribution required by this section, then that
board of trustees may not reduce the additional amount until the respective
pension and relief fund no longer has any actuarial deficiency: And provided
further, That if any board of trustees decides to assess and collect any
additional amount, any board of trustees decision and any additional amount is
not the liability of the State of West Virginia. Member contributions shall be
deposited in the pension and relief fund within five days of being collected.
(d)(1) For the fiscal year beginning on July 1, 2010, and
subject to provisions of subsection (c), section eighteen-b of this article
and section fourteen-d, article three, chapter thirty-three §8-22-18(b)
and §33-3-14(b) of this code and for each fiscal year thereafter, the
Municipal Pensions Oversight Board shall receive and retain the moneys
allocated to the Municipal Pensions Security Fund until such time as the
treasurer of the municipality applies for the allocable portion and certifies
in writing to Municipal Pensions Oversight Board that:
(A) The municipality has irrevocably contributed the amount
required under this section and section twenty of this article §8-22-20
of this code to the pension and relief fund for the required period; and
(B) The board of trustees of the pension and relief fund has made a report to the governing body of the municipality and to the oversight board on the condition of its fund with respect to the fiscal year.
(2) When the aforementioned application and certification
are made, the allocable portion of moneys from the Municipal Pensions and
Protection Fund, or the Municipal Pensions Security Fund, once
established, shall be paid to the corresponding policemen’s or firemen’s
pension and relief fund. Payment to a municipal pension and relief fund shall
be made by electronic funds transfer.
(e) The State Auditor and the oversight board have the
power, and the duty as each considers necessary, to perform or review audits on
the pension and relief funds or to employ an independent consulting actuary or
accountant to determine the compliance of the aforementioned certification with
the requirements of this section and section twenty of this article
§8-22-20 of this code. The expense of the audit or determination shall be paid from
the portion of the Municipal Pensions and Protection Fund allocable to
municipal policemen’s and firemen’s pension and relief funds or from the
Municipal Pensions Security Fund pursuant to provisions of subsection (c),
section eighteen-b of this article §8-22-18b(c) of this code. If the
allocable portion of the Municipal Pensions and Protection Fund or the
Municipal Pensions Security Fund is not paid to the pension and relief fund
within 18 months, the portion is forfeited by the pension and relief fund and
is allocable to other eligible municipal policemen’s and firemen’s pension and
relief funds in accordance with section fourteen-d, article three, chapter
thirty-three §33-3-14(d) of this code.
NOTE: The purpose of this bill is to allow a municipality to prepay its required contributions to the municipal police and municipal fire pensions funds.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.