Senate Bill No. 707
(By Senator Kessler)
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[Introduced February 20, 2006; referred to the Committee
on Pensions; and then to the Committee on Finance.]
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A BILL to amend and reenact §5-10-24 of the Code of West Virginia,
1931, as amended, relating to retired public employee change
of benefits after the death of a spouse.
Be it enacted by the Legislature of West Virginia:
That §5-10-24 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-24. Annuity options.
Prior to the effective date of his or her retirement, but not
thereafter except upon the death of a spouse, a member may elect to
receive his or her annuity as a straight life annuity payable
throughout his or her life, or he or she may elect to receive the
actuarial equivalent, at the time, of his or her straight life
annuity in a reduced annuity payable throughout his or her life,
and nominate a beneficiary, in accordance with option A or B set
forth below:
Option A -- Joint and survivor annuity. -- Upon the death of a retirant who elected option A, his or her reduced annuity shall
be continued throughout the life of and paid to the beneficiary,
having an insurable interest in the retirant's life, whom the
retirant nominated by written designation duly executed and filed
with the board of trustees prior to the effective date of his or
her retirement; or
Option B -- Modified joint and survivor annuity. -- Upon the
death of a retirant who elected option B, one half of his or her
reduced annuity shall be continued throughout the life of and paid
to the beneficiary, having an insurable interest in the retirant's
life, whom the retirant nominated by written designation duly
executed and filed with the board of trustees prior to the
effective date of his or her retirement.
Option C - Joint and survivor with option. -- Upon the death
of a spouse, a retirant may elect to receive his or her annuity as
a straight life annuity payable throughout his or her life, in an
amount adjusted on a fair basis to be of equal actuarial value as
the annuity prospectively in effect relative to the surviving
member at the time the new option is elected.
Upon the death of a spouse, a retirant may elect any of the
retirement options offered by the provisions of this section in an
amount adjusted on a fair basis to be of equal actuarial value as
the annuity prospectively in effect relative to the surviving
member at the time the new option is elected.
Upon divorce, a member may elect to change any of the
retirement benefit options offered by the provisions of this section to a life annuity in an amount adjusted on a fair basis to
be of equal actuarial value of the annuity prospectively in effect
relative to the retirant at the time the option is elected:
Provided, That the retirant furnishes to the board satisfactory
proof of entry of a final decree of divorce or annulment:
Provided, however, That the retirant certifies under penalty of
perjury that no qualified domestic relations order that would
restrict such an election is in effect:
Provided further, That no
cause of action against the board may then arise or be maintained
on the basis of having permitted the retirant to name a new spouse
as annuitant for any of the survivorship retirement benefit
options.
Upon remarriage, a retirant may name the new spouse as an
annuitant for any of the retirement benefit options offered by the
provisions of this section:
Provided, That the beneficiary shall
furnish to the board proof of marriage:
Provided, however, That
the retirant certifies under penalty of perjury that no qualified
domestic relations order that would restrict such a designation is
in effect:
Provided further, That no cause of action against the
board may then arise or be maintained on the basis of having
permitted the retirant to name a new spouse as annuitant for any of
the survivorship retirement benefit options. The value of the new
survivorship annuity shall be the actuarial equivalent of the
retirant's benefit prospectively in effect at the time the new
annuity is elected.
NOTE: The purpose of this bill is to allow public employees to elect an option to share his or her pension with a spouse and
upon the death of the spouse receive an increase in retirement
benefits.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.