H. B. 2372
(By Delegates Seacrist, Hunt, Ashley and Wallace)
[Introduced February 6, 1995; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend article ten, chapter five of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
by adding thereto a new section, designated section
twenty-two-f, relating to the public employees retirement
act; providing supplemental benefits for retirees and future
retirees under specified conditions.
Be it enacted by the Legislature of West Virginia:
That article ten, chapter five of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, be amended by
adding thereto a new section, designated section twenty-two-f, to
read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-22f. Supplemental benefits for retirees and future
retirees effective July 1, 1995; calculation of
benefits and conditions of payment.
(a) A supplement to retirement benefits provided shall be
paid prospectively to all eligible retirees who have been retired
three years or more prior to the first day of July, one thousand
nine hundred ninety-five, which supplement shall become effective
on the first day of July, one thousand nine hundred ninety-five.
Any such supplement shall be paid in pro rata monthly
installments.
(b) A supplement to retirement benefits provided shall be
paid prospectively to all other retirees, present and future, who
are in the public employees retirement system on or after the
first day of July, one thousand nine hundred ninety-five, upon
the third annual anniversary following each annuitant's effective
date of retirement. Such supplemental payments shall begin in
the month which follows the annuitant's third annual anniversary
following retirement. Provided, That the Legislature, upon a
finding made by the consolidated public retirement board by the
thirty-first day of December in any year that the unfunded accrued liability of the public employees retirement system,
measured on market value, exceeds twenty percent of the fund's
total value, may modify the supplemental benefits herein granted,
which modification may take the form of postponing, for a
temporary period, the right of retirees reaching their third
anniversary to receive their supplements, by both postponing
and/or imposing a pro rata reduction in supplements currently
received under this section, and when absolutely necessary to
preserve the actuarial soundness of the fund, by suspending and
canceling the future payment of all supplements provided under
this section which are to be received. In any succeeding year,
following postponement, pro rata reduction or cancellation, in
which the consolidated public retirement board makes a finding
that the unfunded accrued liability of the public employees
retirement system, measured on market value, is at or below
twenty percent of the fund's total value, the supplements shall
be restored or commenced, prospectively, for all those eligible
at that time.
(c) The total amount of the supplement to be paid to
qualified annuitants under subsections (a) and (b) of this section shall be an amount equal to twelve and one-half percent
of their gross annual retirement benefits at retirement:
Provided, That the supplement shall only be calculated and paid
on twelve and one-half percent of the first twelve thousand
dollars of gross annual benefits at retirement: Provided,
however, That annuitants who have received supplements granted
under the provisions of section twenty-two-e of this article may
elect to receive the supplemental benefit provided in this
section in lieu of, but not in addition to, any incentives
provided under the provisions of section twenty-two-e of this
article.
(d) Each survivor beneficiary shall receive as that survivor
beneficiary's supplement under this section an amount equal to
that pro rata share of that survivor beneficiary's preliminary
supplement, as defined above, as such survivor beneficiary's
benefit, without regard to any supplements, constitutes a pro
rata share of the original benefit of the original retiree:
Provided, That for any person who becomes a survivor beneficiary,
after the first day of July, one thousand nine hundred
ninety-five, the benefit provided under this section shall be recomputed under the provisions of this subsection.
(e) Each disabled retiree shall receive as that disabled
retiree's supplement under this section that pro rata share of
that disabled retiree's preliminary supplement, as defined above,
as such disabled retiree's current benefit, without regard to any
supplements; constitutes as a pro rata share of that disabled
retiree's original benefit: Provided, That any disabled retiree
scheduled under the terms of the retirement system to have a
benefit recomputed at some time subsequent to the effective date
of the section will, at the time of that recomputation, also have
the supplemental benefit recomputed under the terms of the
preceding sentence.
(f) Any supplemental benefit computed under this section
shall only be paid in lieu of, and not in addition to, the
payment of any prior supplemental benefit amounts or incentives
provided by law which are currently being paid: Provided, That
any annuitant receiving a supplemental benefit greater than that
provided in this section shall continue to receive the current
supplemental benefits.
(g) The supplement provided in this section shall be recalculated on a pro rata basis of the preliminary supplement
whenever the original annuity amount is adjusted due to the death
or disability of an annuitant or any other event.
NOTE: The purpose of this bill is to provide a supplement
to retirees who have not previously received supplemental
benefits equal to those provided by this bill, and an equal
supplement to all future retirees upon their third anniversary of
retirement. The Legislature may, under conditions stated herein,
postpone, reduce or cancel supplemental benefits provided by this
bill.
This section is new; therefore, strike-throughs and
underscoring have been omitted.