Senate Bill No. 496

(By Senator Wiedebusch)

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[Introduced February 20, 1995; referred to the Committee
on Pensions; and then to the Committee on Finance.]
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A BILL to amend chapter seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article fourteen-c; and to amend and reenact section fourteen-d, article three, chapter thirty-three of said code, all relating to the creation of a deputy sheriffs' pension and relief fund; creation of boards of trustees; continuance of funds; powers and duties of board of trustees; members of board of trustees; how members of board of trustees are elected; presiding officers of board of trustees; secretary of board of trustees; minimum standards for actuarial soundness of pension and relief funds; investment of funds; exercise of judgment in making investments; actuarial studies required; annual report; rules as to distribution of funds; proof of age of members; eligibility for total and temporary disability pensions and total and permanent disability pensions; supplemental pension benefits entitlement; benefit payable; application of section; construction; general provisions concerning disability pensions, retirement pensions and death benefits; increasing the additional fire and casualty insurance premium tax to two percent; and adding deputy sheriffs' pension and relief funds created by article fourteen-c, chapter seven of this code to the applicability of the provisions of section fourteen-d, article three, chapter thirty-three of this code regarding allocation of proceeds.

Be it enacted by the Legislature of West Virginia:
That chapter seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article fourteen-c; and to amend and reenact section fourteen-d, article three, chapter thirty-three of said code, all to read as follows:
CHAPTER 7. COUNTY COMMISSIONS AND OFFICERS.

ARTICLE 14C. RETIREMENT BENEFITS GENERALLY; DEPUTY SHERIFFS' PENSION AND RELIEF FUND.

PART III. DEPUTY SHERIFFS' PENSION AND RELIEF FUND.

§7-14C-1. Pension and relief funds for deputy sheriffs; creation

of board of trustees; definitions; continuance of funds; allowance of withdrawal of funds from public employees retirement system.

In every county, deputy sheriffs shall be afforded the opportunity to vote in support or against the creation of a deputy sheriffs' pension and relief fund. Upon a majority vote in favor of a deputy sheriffs' pension and relief fund, the county commission shall also vote in support or against the creation of such fund. Upon a majority vote in favor of the fund, the county commissioner shall, by order, provide for the establishment and maintenance of such deputy sheriffs' pension and relief fund for the purposes hereinafter enumerated, and, thereupon, there shall be created a board of trustees which shall administer and distribute the moneys authorized to be raised by this section and the following sections of this article. Unless and until other provision is made by subsequent legislative action, any deputy sheriffs' pension and relief fund shall be or remain mandatory and shall be governed by the provisions of sections one through fourteen of this article.
After the thirtieth day of June, one thousand nine hundred ninety five, for the purposes of this article the word "member" means any deputy sheriff working in any county in this state.
For purposes of this article the words "salary or compensation" means remuneration actually received by a member, plus such member's deferred compensation under sections 125, 401(k), 414(h)(2) and 457 of the United States Internal Revenue Code of 1986, as amended: Provided, That the remuneration received by such member during any twelve-consecutive-month period utilized in determining benefits which is in excess of an amount which is twenty percent greater than the "average adjusted salary" received by such member in the two consecutive twelve-consecutive-month periods immediately preceding such twelve-consecutive-month period utilized in determining benefits shall be disregarded: Provided, however, That the "average adjusted salary" means the arithmetic average of each year's adjusted salary such adjustment made to reflect current salary rate and such average adjusted salary shall be determined as follows: Assuming "year-one" means the second twelve-consecutive-month period preceding such twelve-consecutive-month period utilized in determining benefits, "year-two" means the twelve-consecutive-month period immediately preceding such twelve-consecutive-month period utilized in determining benefits, and "year-three" means the twelve-consecutive-month period utilized in determining benefits, year-one total remuneration shall be multiplied by the ratio of year-three base salary, exclusive of all overtime and other remuneration, to year-one base salary, exclusive of all overtime and other remuneration, such product shall equal "year-one adjusted salary"; year-two total remuneration shall be multiplied by the ratio of year-three base salary, exclusive of all overtime and other remuneration, to year-two base salary, exclusive of all overtime and other remuneration, such product shall equal "year-two adjusted salary"; and the arithmetic average of year-one adjusted salary and year-two adjusted salary shall equal the average adjusted salary.
Any deputy sheriff effected by the provision of this article may withdrawn any amount existing for his or her benefit from the public employees retirement system authorized by the provisions of article ten, chapter five, of this code without penalty and redeposit same into the corresponding deputy sheriffs' pension and relief fund.
§7-14C-2. Powers and duties of board of trustees.
The board of trustees shall be a public corporation by the name and style of "The Board of Trustees of the Deputy Sheriffs' Pension and relief fund of" (name of county), by which name it may sue and be sued, plead and be impleaded, contract and be contracted with, take and hold real and personal property for the use of the pension and relief fund and have and use a common seal. In the absence of such a seal, the seal of the president of any such corporation shall be equivalent to such common seal. The board of trustees may also in its corporate name do and perform any and all other acts and business pertaining to the trust created hereby or by any conveyance, devise or dedication made for the uses and purposes of such board.
After the thirtieth day of June, one thousand nine hundred nineteen ninety-six, any such board of trustees, board of trustees and any members thereof shall, as fund fiduciaries, discharge their duties with respect to such pension and relief funds solely in the interest of the members and members' beneficiaries for the exclusive purpose of providing benefits to members and their beneficiaries and defraying reasonable expenses of administering the fund.
§7-14C-3. Members of board of trustees; how elected; presiding officers; secretary.

The board of trustees of the deputy sheriffs' pension and relief fund shall consist of the president of the county commission of the county wherein such deputies serve and four members of the sheriff's department therein that are deputy sheriffs, to be chosen as hereinafter specified. The president of the county commission shall give notice of an election to be held on the second Monday of the month following the order rendered by the county commission providing for the establishment and maintenance of such fund, which notice shall be served upon each member of the county sheriff's department that is a deputy sheriff and which shall notify each member that between the hours of nine in the forenoon and six in the afternoon, on the day designated for such election, an election will be held for such purpose and that each member shall furnish in writing the names of four members to be voted for; and all votes so cast shall be counted and canvassed by the president of the county commission and the county clerk of the county for the first election, and thereafter the votes shall be counted by the then existing members of such board, who after such election shall announce the results, and the four members receiving the highest number of votes shall, with the president of the county commission, constitute "The Board of Trustees of the Deputy Sheriffs' Pension and Relief Fund of (name of county)." As to the first election held following the order of the county commission providing for the establishment and maintenance of such fund, the member receiving the highest number of votes shall serve for a period of four years, the member receiving the second highest number of votes shall serve for a period of three years, the member receiving the third highest number of votes shall serve for a period of two years, and the member receiving the fourth highest number of votes shall serve for a period of one year. After such first election, the board shall hold a similar election each year to elect one member to succeed, for a term of four years, the retiring member. In the case of a tie vote being received by any two individuals for the office of trustee, such tie vote shall be decided by casting lots, or in any other way which may be agreed upon by the individuals for whom such tie vote was cast. The results of such election shall be entered in the record of the proceedings of the board and the members so elected shall, except as hereinabove specified with respect to the first election, serve for four years and until their successors are elected and have qualified. The election for such members of the board of trustees shall be held annually upon the second Monday of the same month during which the first election was held. In case of a vacancy by death, resignation, or otherwise, among the members so elected, the remaining members of the board shall choose the successor, or successors, until the next annual election at which latter time all vacancies shall be filled.
The presiding officer of the board of trustees shall be the president of the county commission, and the secretary thereof shall be appointed by the board. It shall be the duty of such secretary to keep a full and permanent record of all of the proceedings of the board. The board may fix the secretary's compensation for this work, which shall be paid out of the funds of the deputy sheriffs' pension.
§7-14C-4. Levy to maintain fund.

(a) The provisions of this subsection shall remain in effect through the thirtieth day of June, one thousand nine hundred ninety-seven.
In every county in which there is a deputy sheriffs' pension and relief fund, the same shall be maintained as follows: The county commission shall levy annually and in the manner provided by law for other county levies, and include within the maximum levy or levies permitted by law, a tax at such rate as will, after crediting the amount of the contributions received during such year from the members of the respective county sheriffs' departments, provide funds equal to the sum of: (1) The full amount of estimated expenditures of the board of trustees of the fund; and (2) an additional amount equal to ten percent of such estimated expenditures, said ten percent amount to be taken, accumulated and invested, if possible, as surplus reserve: Provided, That in no event shall such levy for the board of trustees be less than one cent nor more than eight cents on each one hundred dollars of all real and personal property as listed for taxation in such: Provided, however, That in the event that the funds derived above are not sufficient to meet the annual expenditures and the surplus reserve funds for any fiscal year do not contain a sufficient balance to maintain full retirement benefits for that fiscal year, the county shall for only that fiscal year levy an amount not to exceed an additional two cents on each one hundred dollars of all real and personal property listed for taxation in such county: Provided further, That in the event that a county is required to levy an amount for any fiscal year in excess of eight cents on each one hundred dollars of all real and personal property as provided above, the county shall assess and collect for only that fiscal year from each member an additional amount of one percent of the actual salary or compensation for each one cent that the county has levied in excess of the eight cents which shall become a required part of the pension and relief fund to which the member belongs.
The levies authorized under the provisions of this section, or any part of them, may by the county commission be laid in addition to all other county levies, and to that extent, beyond the limit of levy imposed otherwise by law; and such levies shall supersede and if necessary exclude levies for other purposes if such priority or exclusion is necessary under limitations upon taxes or tax levies imposed by law: Provided, That no levy authorized by this article shall become an obligation of the state.
The board of trustees of the deputy sheriffs' pension and relief fund is authorized to take by gift, grant, devise or bequest, any money or real or personal property, upon such terms as to the investment and expenditures thereof as may be fixed by the grantor or determined by said trustees.
In addition to all other sums provided for pensions in this section, it shall be the duty of every county in which any such fund or funds have been or shall be established to assess and collect from each member of the sheriff's department 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 deputy sheriffs' pension and relief fund. Nine and one-half percent of all fees collected from the sale of license plates and renewal of registration decals and fees related to service of process shall be deposited into the deputy sheriffs' pension and relief fund.
(b) (1) After the thirtieth day of June, one thousand nine hundred ninety-seven: In order for a deputy sheriffs' pension and relief fund to receive the allocable portion of moneys from the county pensions and protection fund established in section fourteen-d, article three, chapter thirty-three of this code, the county commission of the county shall levy annually and in the manner provided by law for other county levies, and include within the maximum levy or levies permitted by law: (A) The amount of the contributions received during such year from the members of the respective county sheriffs' department; and (B) the allocable portion of the county pensions and protection fund established in section fourteen-d, article three, chapter thirty-three of this code to provide funds equal to the amount necessary to meet the minimum standards for actuarial soundness as provided in section twenty of this article, said amount to be irrevocably contributed, accumulated and invested as fund assets described in sections six and seven of this article. Such county contributions shall be deposited as such fund assets on at least a quarterly basis and any revenues received from any source by a county which are specifically collected for the purpose of allocation for deposit into such fund shall be so deposited within thirty days of receipt by the county. Such heretofore surplus reserves accumulated before the first day of July, one thousand nine hundred ninety-five, shall be irrevocably contributed, aggregated and invested as fund assets described in sections six and seven of this article. Any actuarial deficiency arising under this section and section five of this article 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 county commission be laid in addition to all other county levies, and such levies shall supersede and if necessary exclude levies for other purposes, where such other purposes have not already attained priority, and within the limitations upon taxes or tax levies imposed by the Constitution and laws.
(3) Such public corporation is authorized to take by gift, grant, devise or bequest, any money or real or personal property, upon such terms as to the investment and expenditures thereof as may be fixed by the grantor or determined by said trustees.
(4) In addition to all other sums provided for pensions in this section, it shall be the duty of the county commission in every county in which any such fund or funds have been or shall be established to assess and collect from each deputy sheriff of the county sheriff's department, 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 deputy sheriffs' pension and relief fund. Such member contributions shall be deposited in such pension and relief fund on at least a monthly basis.
(5) For the fiscal year beginning on the first day of July, one thousand nine hundred ninety-seven, and for each fiscal year thereafter, the state treasurer shall retain the allocable portion of the deputy sheriffs' pensions and protection fund, established in section fourteen-d, article three, chapter thirty-three of this code, until such time as the treasurer of the county applies for such allocable portion and certifies in writing to the state auditor that:
(A) The county has irrevocably contributed the amount required under this section and section five of this article to such pension and relief fund for the fiscal year; and
(B) The board of trustees of such pension and relief fund has made a report to the county commission of the particular county on the condition of its fund with respect to the fiscal year.
(6) When the aforementioned application and certification are made the allocable portion of moneys from the deputy sheriffs' pensions and protection fund shall be paid to the corresponding deputy sheriffs' pension and relief fund.
(7) The state auditor has the power and duty as he deems necessary to perform or review audits on such 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. The expense of such audit or determination shall be paid from the portion of the deputy sheriffs' pensions and protection fund allocable to the deputy sheriffs' pension and relief fund. If such allocable portion of the deputy sheriffs' pensions and protection fund is not paid to such pension and relief fund within thirty-six months, such portion is forfeited by such pension and relief fund and is allocable to other eligible deputy sheriffs' pension and relief funds in accordance with section fourteen-d, article three, chapter thirty-three of this code.
§7-14C-5. Minimum standards for actuarial soundness.

The board of trustees for each pension and relief fund shall have regularly scheduled actuarial valuation reports prepared by a qualified actuary. All of the following standards must be met:
(a) An actuarial valuation report shall be prepared at least once every three years commencing with the later of: (1) The first day of July, one thousand nine hundred ninety-seven; or (2) three years following the most recently prepared actuarial valuation report: Provided, That this most recently prepared actuarial valuation report meets all of the standards of this section.
(b) The actuarial valuation report shall consist of, but is not limited to, the following disclosures: (1) The financial objective of the fund and how the objective is to be attained; (2) the progress being made toward realization of the financial objective; (3) recent changes in the nature of the fund, benefits provided, or actuarial assumptions or methods; (4) the frequency of actuarial valuation reports and the date of the most recent actuarial valuation report; (5) the method used to value fund assets; (6) the extent to which the qualified actuary relies on the data provided and whether the data was certified by the fund's auditor or examined by the qualified actuary for reasonableness; (7) a description and explanation of the actuarial assumptions and methods; and (8) any other information the qualified actuary feels is necessary or would be useful in fully and fairly disclosing the actuarial condition of the fund.
(c) After the thirtieth day of June, two thousand one, and thereafter, the financial objective of each county shall not be less than to contribute to the fund annually an amount which, together with the contributions from the members and the allocable portion of the state premium tax fund for deputy sheriffs' pension and relief funds established under section fourteen-d, article three, chapter thirty-three of this code and other income sources as authorized by law, will be sufficient to meet the normal cost of the fund and amortize any actuarial deficiency over a period of not more than forty years: Provided, That in the fiscal year ending the thirtieth of June, two thousand one, the county commission on behalf of the county may elect to make its annual contribution to the fund utilizing an alternative contribution in an amount not less than: (i) One hundred seven percent of the amount contributed for the fiscal year ending the thirtieth day of June, one thousand nine hundred ninety-nine; or (ii) an amount equal to the average of the contribution payments made in the five highest fiscal years beginning with the fiscal year of one thousand nine hundred ninety-six, whichever is greater: Provided, however, That contribution payments in subsequent fiscal years under this alternative contribution method shall not be less than one hundred seven percent of the amount contributed in the prior fiscal year: Provided further, That prior to utilizing this alternative contribution methodology the actuary of the fund shall certify in writing that the fund is projected to be solvent under the alternative contribution method for the next consecutive fifteen-year period. For purposes of determining this minimum financial objective: (1) The value of the fund's assets shall be determined on the basis of any reasonable actuarial method of valuation which takes into account fair market value; and (2) all costs, deficiencies, rate of interest, and other factors under the fund shall be determined on the basis of actuarial assumptions and methods which, in aggregate, are reasonable (taking into account the experience of the fund and reasonable expectations) and which, in combination, offer the qualified actuary's best estimate of anticipated experience under the fund.
Notwithstanding any other provision of this section or article to the contrary, each county shall contribute annually to the fund an amount which may not be less than the normal cost, as determined by the actuarial report.
(d) For purposes of this section the term "qualified actuary" means only an actuary who is a member of the society of actuaries or the American academy of actuaries. The qualified actuary shall be designated a fiduciary and shall discharge his duties with respect to a fund solely in the interest of the members and member's beneficiaries of that fund. In order for the standards of this section to be met, the qualified actuary shall certify that the actuarial valuation report is complete and accurate and that in his opinion the technique and assumptions used are reasonable and meet the requirements of this section of this article.
(e) The cost of the preparation of the actuarial valuation report shall be paid by the fund.
(f) Notwithstanding any other provision of this section, for the fiscal year ending the thirtieth day of June, two thousand and one, the county may calculate its annual contribution based upon the provisions of the supplemental benefit provided for in this article enacted during the one thousand nine hundred ninety-five regular session of the Legislature.
§7-14C-6. Duties and bond of custodian of funds.

The treasurer of the county shall be the custodian of all of the assets of the deputy sheriffs' pension and relief fund, and shall deposit and pay out the moneys thereof upon, and in accordance with, any proper order of the board of trustees. Such treasurer shall be liable upon his official bond as treasurer for the faithful performance of his duties in respect to such fund or funds, and the official bond of the treasurer covering such fund or funds shall be executed with a good and financially responsible surety company authorized to do business in this state, as surety for such fund or funds. The treasurer of the county shall as a fund fiduciary, discharge his duties with respect to such pension and relief fund solely in the interest of the members and members' beneficiaries for the exclusive purpose of providing benefits to such members and their beneficiaries and defraying reasonable expenses of administering the fund. Such fund or funds shall be trust funds and shall not be used for any other purpose than provided herein. Such treasurer shall keep in convenient form such data as may be necessary for an actuarial valuation report of such fund and for checking the actuarial experience of such fund.
§7-14C-7. Investment of funds; exercise of judgment in making investments; actuarial studies required; annual report.

The board of trustees may invest a portion or all of the fund assets in the consolidated fund or the consolidated pension fund. The board of trustees shall invest any moneys received by it and not invested in the consolidated fund or the consolidated pension fund in the following classes of securities and accounts and not otherwise, which securities and accounts mature on such dates as will make available such amount of cash as is required:
(a) Obligations of the United States or any agency thereof, which are guaranteed by the United States or for which the full faith and credit of the United States is pledged for the payment of principal and interest, or any obligation of an agency of the United States designated in section nine, article six, chapter twelve of this code.
(b) Certificates of deposit secured by: (1) Obligations as listed in subdivision (a) of this section; (2) general obligation or revenue bonds of the state of West Virginia; (3) general obligation bonds of any other state; (4) general obligation bonds of any county in this state or of any county board of education in this state; or (5) general obligation bonds of any municipality in this state.
(c) Interest bearing savings accounts or certificates of deposit in banking institutions, the accounts of which are insured by the federal deposit insurance corporation, or interest bearing savings accounts in federal savings and loan associations, the accounts of which are insured by the federal savings and loan insurance corporation, or interest bearing savings accounts in building and loan associations, the accounts of which are insured by the federal savings and loan insurance corporation: Provided, That an investment in any such savings account in excess of the amount thereof which would be insured by the federal deposit insurance corporation or the federal savings and loan insurance corporation, as the case may be, shall not be made unless such banking institution, federal savings and loan association or building and loan association provides adequate bond or other adequate security for the amount of the proposed county investment in excess of such insurance coverage, the adequacy of any such bond or other security to be determined by the treasurer of such county.
(d) Any security that is secured by a first lien deed of trust or mortgage on real property situate within this state: Provided, That the value of the securing of first lien deed of trust or mortgage shall be at least twice the amount loaned thereon, based on a sound appraisal by a competent appraiser and duly certified by him or federally insured: Provided, however, That the interest for such loan of money at a rate expressed in terms of dollars upon one hundred dollars for a year, shall be not less than the monthly index of long-term government bonds yields for the second preceding calendar month plus an additional one percent a year rounded off to the nearest quarter of one percent a year.
Any investment made under this article shall be made with the exercise of that degree of judgment and care, under circumstances then prevailing, which men of experience, prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation but for investment, considering the probable safety of their capital as well as the probable income to be derived.
§7-14C-8. Rules as to distribution of funds; proof of age.

The board of trustees of the deputy sheriffs' pension and relief fund shall make rules, consistent with the provisions of this article, for the distribution of the moneys of such funds according to the qualifications of those to whom any portion of such moneys shall be paid and the amount thereof: Provided, That such rules shall not be enforced until the same have been approved by the county commission.
At the time of the original appointment of any deputy sheriff of the particular sheriff's department, such deputy sheriff shall, at the request of the board of trustees, furnish to said board a certified copy of his birth certificate or other proof of his date of birth satisfactory to the board.
§7-14C-9. Eligibility for total and temporary disability pensions and total and permanent disability pensions.

(a) All deputy sheriffs applying for total and temporary or total and permanent disability benefits after the thirtieth day of June, one thousand nine hundred ninety-five, shall be examined by at least two physicians under the direction of the staff at Marshall University, Huntington, West Virginia University, Morgantown or West Virginia University, Charleston: Provided, That if such deputy sheriff's medical condition cannot be agreed upon by two such physicians, a third physician shall examine such deputy. Such medical examination shall include the review of such deputy sheriff's medical history. The expense of the deputy sheriff's transportation to such medical examination and the expense of the medical examination shall be paid by the board of trustees, such medical expense shall not exceed the reasonable and customary charges for such services.
(b) Effective for deputy sheriffs becoming eligible for total and temporary disability benefits after the thirtieth day of June, one thousand nine hundred ninety-five, initially or previously under this subsection allowance for initial or additional total and temporary disability payments, the amount thereof to be determined as specified in section nine of this article, shall be paid to such member during such disability for a period not exceeding twenty-six weeks if after a medical examination in accordance with subsection (a) of this section, two examining physicians report in writing to the board of trustees that: (1) Such deputy sheriff has become so totally, physically or mentally disabled, from any reason, as to render such member totally, physically or mentally, incapacitated for employment as a deputy sheriff; and (2) it has not been determined if such disability is permanent or it has been determined that such disability may be alleviated or eliminated if such deputy sheriff follows a reasonable medical treatment plan or reasonable medical advice: Provided, That in any event a deputy sheriff is not eligible for total and temporary disability payments following the fourth consecutive twenty-six week period of total and temporary disability unless such subsequent disability results from a cause unrelated to the cause of the four previous periods of total and temporary disability. During such two-year period of such total and temporary disability, such department is required to restore such deputy sheriff to his or her former position in such department at any time he or she is determined to no longer be disabled: Provided, That the department may refill, on a temporary basis, the position vacated by such deputy sheriff after the first twenty-six weeks of his temporary disability.
(c) Effective for deputy sheriffs becoming eligible for total and permanent disability benefits initially under this subsection or becoming eligible for total and temporary disability benefits under subsection (b) of this section after the thirtieth day of June, one thousand nine hundred ninety-five, allowance for total and permanent disability payments, the amount thereof to be determined as specified in section twenty-four of this article, shall be paid to such member after a medical examination in accordance with subsection (a) of this section, two examining physicians report in writing to the board of trustees that such deputy sheriff has become so totally, physically or mentally, and permanently disabled, as a proximate result of service rendered in the performance of his duties in such department, as to render such deputy sheriff totally, physically or mentally, and permanently incapacitated for employment as a police officer if such deputy sheriff has been a member of such department for a period of not less than five consecutive years preceding such disability, such deputy sheriff has become so totally, physically or mentally, and permanently disabled, from any reason other than service rendered in the performance of his duties in such department, as to render such deputy sheriff totally, physically or mentally, and permanently incapacitated for employment as a police officer. The phrase "totally, physically or mentally, and permanently disabled" shall not be construed to include a medical condition which may be corrected if such deputy sheriff follows a reasonable medical treatment plan or reasonable medical advice.
(d) Effective for deputy sheriffs becoming eligible for total and temporary disability benefits after the thirtieth day of June, one thousand nine hundred ninety-five, under the provisions of subsection (b) of this section, any payments for total and temporary disability for a period during such disability not exceeding twenty-six weeks shall cease at the end of such twenty-six week period under the following conditions:
(1) Such deputy sheriff fails to be examined as provided in subsection (a) of this section; or (2) such deputy sheriff is examined or reexamined as provided in subsection (a) of this section and two examining physicians report to the board of trustees that such deputy sheriff's medical condition does not meet the requirements of subsection (b) or (c) of this section. Effective for deputy sheriffs becoming eligible for total and temporary disability benefits after the thirtieth day of June, one thousand nine hundred ninety-five, under subsection (b) of this section, subsequent to such deputy sheriff's receipt of total and temporary disability payments for a period of two years, such payments shall cease at the end of such two-year period under the following conditions: (1) Such deputy sheriff fails to be examined as provided in subsection (a) of this section or (2) such deputy sheriff is examined or reexamined as provided in subsection (a) of this section and two examining physicians report to the board of trustees that such deputy sheriff's medical condition does not meet the requirements of subsection (c) of this section.
§7-14C-10. Disability pensions.

(a) The monthly sum to be paid to each deputy sheriff eligible for disability received as a proximate result of service rendered in the performance of his or her duties under the provisions of section eight of this article shall be equal to sixty percent of the monthly salary being received by such member, at the time he is so disabled, or the sum of five hundred dollars per month, whichever shall be greater: Provided, That the limitation provided in subsection (b) of this section is not exceeded.
(b) Effective for any deputy sheriff who becomes eligible for disability benefits on or after the first day of July, one thousand nine hundred ninety-five, under the provisions of section nine of this article, as a proximate result of service rendered in the performance of his or her duties within such departments, his or her monthly disability payment as provided in subsection (a) of this section shall not, when aggregated with the monthly amount of state workers' compensation, result in such disabled member receiving a total monthly income from such sources in excess of one hundred percent of the basic compensation which is paid to deputy sheriffs holding the same position which such deputy sheriff held within such department at the time of his disability. Lump sum payments of state workers' compensation benefits shall not be considered for purposes of this subsection unless such lump sum payments represent commuted values of monthly state workers' compensation benefits.
(c) Any deputy sheriff who has served on active duty with the armed forces of the United States as described in section twenty-seven of this article, whether prior or subsequent to becoming a deputy sheriff covered by the provisions of this article, and who, on the first day of July, two thousand one, is receiving or thereafter receives a disability pension, shall receive in addition to the sixty percent or minimum five hundred dollars authorized in subsection (a) of this section, one additional percent for each year served in active military duty, up to a maximum of four additional percent.
(d) Beginning on and after the first day of April, two thousand six, the monthly sum to be paid to a deputy sheriff who becomes eligible for total disability incurred not in the line of duty shall be the monthly benefit provided in subsection (a) of this section: Provided, That the limitation in subsection (b) of this section is not exceeded: Provided, however, That for any person receiving benefits under this subsection who is self-employed or employed by another, there shall be offset against said benefits the amount of one dollar for each three dollars of income derived from self-employment or employment by another: Provided further, That a person receiving disability benefits must file a certified copy of his or her tax return on or before the fifteenth day of April of each year to demonstrate either unemployment or income earned from self-employment or employment by another: And provided further, That there shall be no offset of benefit for any income derived from self-employment or employment by another when the annual total amount of such income is seven thousand five hundred dollars or less.
§7-14C-11. Retirement pensions.

(a) Any deputy sheriff who is entitled to a retirement pension hereunder, and who has been in the honorable service of such department for twenty years, may, upon written application to the board of trustees, be retired from all service in such department without medical examination or disability. On such retirement the board of trustees shall authorize the payment of annual retirement pension benefits commencing upon his retirement or upon his attaining the age of fifty years, whichever is later, payable in twelve monthly installments for each year of the remainder of his life, in an amount equal to sixty percent of such deputy sheriff's average annual salary or compensation received during the three twelve-consecutive-month periods of employment with such department in which such deputy sheriff received his or her highest salary or compensation while a member of the department, or an amount of five hundred dollars per month, whichever is greater.
(b) Any deputy sheriff of any such department who is entitled to a retirement pension under the provisions of subsection (a) of this section and who has been in the honorable service of such department for more than twenty years at the time of his retirement shall receive, in addition to the sixty percent authorized in said subsection (a):
(1) Two additional percent, to be added to the sixty percent for each of the first five additional years of service completed at the time of retirement in excess of twenty years of service up to a maximum of seventy percent; and
(2) One additional percent, to be added to such maximum of seventy percent, for each of the first five additional years of service completed at the time of retirement in excess of twenty-five years of service up to a maximum of seventy-five percent.
The total additional credit provided for in this subsection may not exceed fifteen additional percent.
(c) Any deputy sheriff of any such department whose service has been interrupted by duty with the armed forces of the United States as provided in section fourteen of this article prior to the first day of July, one thousand nine hundred ninety-five, shall be eligible for retirement pension benefits immediately upon retirement, regardless of his age, if he shall otherwise be eligible for such retirement pension benefits.
Any deputy sheriff or previously retired deputy sheriff of any such department who has served in active duty with the armed forces of the United States as described in section fourteen of this article, whether prior to or subsequent to becoming a deputy sheriff covered by the provisions of this article, shall receive, in addition to the sixty percent authorized in subsection (a) of this section and the additional percent credit authorized in subsection (b) of this section, one additional percent for each year so served in active military duty, up to a maximum of four additional percent. In no event, however, may the total benefit granted to any deputy sheriff exceed seventy-five percent of the deputy sheriff's annual average salary calculated in accordance with subsection (a) of this section.
(d) Any deputy sheriff shall be retired at the age of sixty-five years in the manner provided in this subsection. When a deputy sheriff reaches the age of sixty-five years, the said board of trustees shall notify the sheriff of this fact, within thirty days of such deputy sheriff's sixty-fifth birthday. The president of the county commission shall cause such sixty-five year old deputy sheriff to retire within a period of not more than thirty additional days. Upon retirement under the provisions of this subsection, such deputy sheriff shall receive retirement pension benefits payable in twelve monthly installments for each year of the remainder of his or her life in an amount equal to sixty percent of such deputy sheriff's average annual salary or compensation received during the three twelve-consecutive-month periods of employment with such department in which such deputy sheriff received his or her highest salary or compensation while a member of the department, or an amount of five hundred dollars per month, whichever is greater. If such deputy sheriff has been employed in said department for more than twenty years, the provisions of subsection (b) of this section shall apply.
(e) It shall be the duty of each deputy sheriff at the time a fund is hereafter established to furnish the necessary proof of his or her date of birth to the said board of trustees, as specified in section eight of this article, within a reasonable length of time, said length of time to be determined by the said board of trustees. Then the board of trustees and the sheriff shall proceed to act in the manner provided in subsection (d) of this section and shall cause all deputy sheriffs who are over the age of sixty-five years to retire in not less than sixty days from the date the fund is established. Upon retirement under the provisions of this subsection (e), such deputy sheriff, whether he or she has been employed in said department for twenty years or not, shall receive retirement pension benefits payable in twelve monthly installments for each year of the remainder of his or her life in an amount equal to sixty percent of such deputy sheriff's average annual salary or compensation received during the three twelve-consecutive-month periods of employment with such department in which such deputy sheriff received his or her highest salary or compensation while a member of the department, or an amount of five hundred dollars per month, whichever is greater. If such deputy sheriff has been employed in said department for more than twenty years, the provisions of subsection (b) of this section shall apply.
§7-14C-12. Death benefits.

(a) In case:
(1) Any deputy sheriff who has been in continuous service for more than five years dies from any cause other than as specified in subsection (b) of this section before retirement on a disability pension under the provisions of, prior to the first day of July, one thousand nine hundred ninety-five, section ten of this article, or after the thirtieth day of June, one thousand nine hundred ninety-five, sections nine and ten of this article or a retirement pension under the provisions of subsection (a) or both subsections (a) and (b), section eleven of this article, leaving in either case surviving a spouse, or any dependent child or children under the age of eighteen years, or dependent father or mother or both, or any dependent brothers or sisters or both under the age of eighteen years, or any dependent child over the age of eighteen years of age who is totally physically or mentally disabled so long as such condition exists; or
(2) Any former deputy sheriff of any such department who is on a disability pension prior to the first day of July, one thousand nine hundred ninety-five, under section ten of this article, or after the thirtieth day of June, one thousand nine hundred ninety-five, under sections nine and ten of this article, or is receiving or is entitled to receive retirement pension benefits under the provisions of subsection (a) or both subsections (a) and (b), section eleven of this article, dies from any cause other than as specified in subsection (b) of this section leaving in either case surviving a spouse or any dependent child or children under the age of eighteen years or dependent father or mother or both, or any dependent brothers or sisters or both under the age of eighteen years, or any dependent child over the age of eighteen years of age who is totally physically or mentally disabled so long as such condition exists; then in any of the cases set forth above in subdivision (1) and (2) of this section the board of trustees of such pension and relief fund shall, immediately following the death of such deputy sheriff, pay to or for each of such entitled surviving dependents the following pension benefits: To such spouse, until death or remarriage, a sum per month equal to sixty percent of such deputy sheriff's pension or, in the event such deputy sheriff was not receiving a pension at the time of his death, a sum per month equal to sixty percent of the monthly retirement pension such deputy sheriff would have been entitled to receive pursuant to section eleven of this article on the date of his death if such deputy sheriff had then been eligible for a retirement pension thereunder, or the sum of three hundred dollars per month, whichever is greater; to each such dependent child, a sum per month equal to twenty percent of such deputy sheriff's pension or, in the event such deputy sheriff was not receiving a pension on the date of his death, a sum per month equal to twenty percent of the monthly retirement pension such deputy sheriff would have been entitled to receive pursuant to section eleven of this article on the date of his or her death if such deputy sheriff had then been eligible for a retirement pension thereunder, or until such child attains the age of eighteen years or marries, whichever first occurs; to each such dependent orphaned child, a sum per month equal to twenty-five percent of such deputy sheriff's pension or, in the event such deputy sheriff was not receiving a pension at the time of his or her death, a sum per month equal to twenty-five percent of the monthly retirement pension such deputy sheriff would have been entitled to receive pursuant to section eleven of this article on the date of his or her death if such deputy sheriff had then been eligible for a retirement pension thereunder, until such child attains the age of eighteen years or marries, whichever first occurs; to each such dependent orphaned child, a sum per month equal to twenty-five percent of such deputy sheriff's pension or, in the event such deputy sheriff was not receiving a pension on the date of his or her death, a sum per month equal to twenty- five percent of the monthly retirement pension such deputy sheriff would have been entitled to receive pursuant to section twenty-five of this article on the date of his or her death if such deputy sheriff had then been eligible for a retirement pension thereunder, until such child attains the age of eighteen years or marries, whichever first occurs; to each such dependent father or mother, a sum per month for each equal to ten percent of such deputy sheriff's pension or, in the event such deputy sheriff was not receiving a pension on the date of his or her death, a sum per month equal to ten percent of the monthly retirement pension such deputy sheriff would have been entitled to receive pursuant to section eleven of this article on the date of his or her death if such deputy sheriff had then been eligible for a retirement pension thereunder; to each such dependent brother or sister, the sum of fifty dollars per month until such individual attains the age of eighteen years or marries, whichever first occurs, but in no event shall the aggregate amount paid to such brothers and sisters exceed one hundred dollars per month. If at any time, because of the number of dependents, all such dependents cannot be paid in full as herein provided, then each dependent shall receive his pro rata share of such payments. In no case shall the payments to the surviving spouse and children be cut below sixty-five percent of the total amount paid to all dependents.
(b) The surviving spouse, child or children, or dependent father or mother, or dependent brothers or sisters, of any such deputy sheriff who dies by reason of service rendered in the performance of his or her duties shall, regardless of the length of such deputy sheriff's service and irrespective of whether such deputy sheriff was or was not entitled to receive, or was or was not receiving, disability pension or temporary disability payments at the time of his or her death, receive the death benefits provided for in subsection (a) of this section. If such deputy sheriff had less than three years' service at the time of his or her death, the deputy sheriff's pension shall be computed on the basis of the actual number of years of service.
(c) If a deputy sheriff dies without leaving a spouse, dependent child or children, or dependent father or mother, or dependent brothers or sisters, his or her contributions to the fund plus six percent interest shall be refunded to his or her named beneficiary or, if no beneficiary has been named, to his or her estate to the extent that such contributions plus interest exceed any disability or retirement benefits that he or she may have received before his death.
(d) The provisions of this section shall not be construed as creating or establishing any contractual or vested rights in favor of any individual who may be or become qualified as a beneficiary of the death benefits herein authorized to be made, all the provisions hereof and benefits provided for hereunder being expressly subject to such subsequent legislative enactments as may provide for any change, modification or elimination of the beneficiaries or benefits specified herein.
(e) Notwithstanding the provisions of section ten of this article the benefit provided for in this section shall be calculated as if the deputy sheriff had remained unemployed throughout any period of disability.
§7-14C-13. Supplemental pension benefits entitlement; benefit payable; application of section; construction.

(a) Except as otherwise provided in this section, all retirees, surviving beneficiaries, disability pensioners or future retirees shall receive as a supplemental pension benefit an annualized monthly amount commencing on the first day of July, based on a percentage increase equal to any increase in the consumer price index as calculated by the United States Department of Labor, Bureau of Statistics, for the preceding year: Provided, That the supplemental pension benefit specified herein shall not exceed four percent per year: Provided, however, That no retiree shall be eligible for the supplemental pension benefit specified herein until the first day of July after the expiration of two years from the date of retirement of said retiree: Provided further, That persons retiring prior to the effective date of this section shall receive the supplemental benefit provided for in this section immediately upon retirement and shall not be subject to the two-year delay: And provided further, That the supplemental benefit shall only be calculated on the allowable amount, which is the first fifteen thousand dollars of the total annual benefit paid. If at any time, after the supplemental benefit becomes applicable, the total accumulated percentage increase in benefit on the allowable amount becomes less than seventy-five percent of the total accumulated percentage increase in the consumer price index over that same period of time, the four percent limitation shall be inapplicable until such time as the supplemental benefit paid equals seventy-five percent of the accumulated increase in the consumer price index. The supplemental pension benefit payable under the provisions of this section shall be paid in equal monthly installments.
(b) Upon commencement of the payment of death benefits pursuant to section twelve of this article, there shall be calculated on the allowable amount, which is the first fifteen thousand dollars of the annual allowable benefit under said section twenty-six, the supplemental benefit provided for in subsection (a) of this section using the date that the retirement benefit provided for pursuant to section eleven of this article began as the base year. The amount of the death benefit provided pursuant to section thirteen of this article shall be calculated without regard to any supplemental benefit previously paid under this section. After the initial calculation made pursuant to this subsection the beneficiary of the benefits provided for pursuant to section thirteen of this article, shall, after reindexation, thereafter receive the supplemental benefit provided for in subsection (a) of this section.
(c) Persons becoming disabled and eligible for a benefit under subsection (d), section ten of this article after the first day of January, one thousand nine hundred ninety-seven, shall receive as an annualized monthly supplemental benefit commencing on each first day of July an amount based on a percentage increase equal to any increase in the consumer price index as calculated by the United States Department of Labor, Bureau of Statistics, for the preceding year: Provided, That the supplemental pension benefit shall not exceed four percent per year: Provided, however, That the benefit provided herein shall not commence until the first day of July in the second year after what would have been the earliest service retirement date pursuant to section eleven of this article for the person receiving the disability benefit: Provided further, That for persons becoming eligible for a benefit under subsection (d) of this section, who were not employed in the preceding year and files a copy of his or her income tax return by the fifteenth of April each year, evidencing said lack of employment, the benefit provided herein shall commence on the first day of July in the second year after the date of disablement: And provided further, That the supplemental benefit shall only be calculated on the allowable amount, which is the first fifteen thousand dollars of the total annual benefit paid. If at any time after the commencement of the payment of the supplemental benefit provided under this subsection the total accumulated percentage increase in benefit on the allowable amount becomes less than seventy-five percent of the total accumulated increase in the consumer price index for that same period of time, the four percent limitation shall be inapplicable until such time as the supplemental benefit paid equals seventy-five percent of the accumulated increase in the consumer price index.
(d) Persons receiving a disability pension pursuant to section ten of this article prior to the first day of January, one thousand nine hundred ninety-seven, shall receive commencing each first day of July, as an annualized monthly supplemental benefit an amount based on a percentage increase equal to any increase in the consumer price index as calculated by the United States Department of Labor, Bureau of Statistics, for the preceding year: Provided, That the supplemental benefit provided herein shall not exceed two percent per year: Provided, however, That beginning the first day of July two years after what would have been the earliest service retirement date pursuant to section eleven of this article the supplemental benefit provided herein shall not exceed four percent per year. The amount of supplemental benefit provided in this subsection shall not exceed four percent beginning the first day of July in any twelve-month period for any pensioner who files a certified copy of his or her tax return evidencing that said pensioner was unemployed in the preceding year and received no earned income. The tax return shall be filed by the fifteenth of April in any such year. If at any time after the first day of July in the second year from what would have been the earliest service retirement date pursuant to section eleven of this article the total accumulated percentage increase in the supplemental benefit provided pursuant to this subsection on the allowable amount becomes less than the seventy-five percent of the total accumulated percentage increase in the consumer price index over that same period of time, the maximum percentage shall be inapplicable until such time as the percentage increase in the supplemental benefit paid equals seventy-five percent of the accumulated increase in the consumer price index. The supplemental benefit provided in this subsection shall only be calculated on the allowable amount, which is the first fifteen thousand dollars of the annual benefit paid.
(e) Any supplemental benefits paid during a period of nonentitlement may be withheld out of subsequent regular monthly pension benefits.
(f) During the fiscal year ending on the thirtieth day of June, two thousand one, and each year thereafter, each deputy sheriff's pension fund shall be reviewed by a qualified actuary who shall make a determination as to its actuarial soundness. Based upon the actuary's determination of the actuarial soundness of the fund, the actuary shall certify to the board of trustees of the fund the amount of increase in supplemental benefits, if any, which may be paid, and which will preserve the minimum standards for actuarial soundness of the fund. The board of trustees shall increase supplemental benefits by an amount which is equal to the actuary's certified recommendation, up to the four percent limit contained in this section or the increase in the consumer price index, whichever is less. If the actuary determines that it is necessary to preserve the actuarial soundness of the fund, the board of trustees of the fund shall increase the percentage of the members' contribution from seven percent to the amount certified by the actuary not to exceed eight and one-half percent, but only for so long as is necessary to achieve the minimum standards for actuarial soundness required under this article. In any year in which there is no supplemental benefit paid, such year shall not be included in the reindexation calculation provided pursuant to this section.
(g) This section shall be construed liberally to effectuate the purpose of establishing minimum pension benefits under this article for members and surviving spouses.
§7-14C-14. General provisions concerning disability pensions, retirement pensions and death benefits.

(a) In determining the years of service of a deputy sheriff for the purpose of ascertaining certain disability pension benefits, all retirement pension benefits and certain death benefits, the following provisions shall be applicable:
(1) Absence from the service because of sickness or injury for a period of two years or less shall not be construed as time out of service; and
(2) Any deputy sheriff covered by the provisions of this article who has been required to, or shall at any future time be required to, enter the armed forces of the United States by conscription, by reason of being a deputy sheriff of some reserve unit of the armed forces or a member of the West Virginia national guard or air national guard, whose reserve unit or guard unit is called into active duty for one year or more, or who enlists in one of the armed forces of the United States, and who upon receipt of an honorable discharge from such armed forces presents himself or herself for resumption of duty to his or her appointing sheriff within six months from his or her date of discharge, and is accepted by the pension board's board of medical examiners as being mentally and physically capable of performing his or her required duties as a deputy sheriff, shall be given credit for continuous service in said deputy sheriff, and his or her rights shall be governed as herein provided. No deputy sheriff shall be required to pay the monthly assessment as now required by law, during his or her period of service in the armed forces of the United States.
(b) As to any former deputy sheriff receiving disability pension benefits or retirement pension benefits from a deputy sheriffs' pension and relief fund, on the first day of July, one thousand nine hundred ninety-seven, the following provisions shall govern and control the amount of such pension benefits:
(1) A former deputy sheriff who on the thirtieth day of June, one thousand nine hundred seventy-two, was receiving disability pension benefits or retirement pension benefits from a pension and relief fund, shall continue to receive pension benefits, but on and after the first day of July, one thousand nine hundred ninety-seven, such pension benefits shall be no less than the amount of five hundred dollars per month; and
(2) A former deputy sheriff who became entitled to disability pension benefits or retirement pension benefits on or after the first day of July, one thousand nine hundred seventy-two, shall continue to receive pension benefits, but on and after the first day of July, one thousand nine hundred ninety-seven, shall receive the disability pension benefits, or retirement pension benefits provided for in sections ten and eleven of this article, as the case may be.
(c) As to any surviving spouse, dependent child or children, or dependent father or mother, or dependent brothers or sisters, of any former deputy sheriff, receiving any death benefits from a pension and relief fund, on the first day of July, one thousand nine hundred ninety-seven, the following provisions shall govern and control the amount of such death benefits:
(1) A surviving spouse, dependent child or children, or dependent father or mother, or dependent brothers or sisters, of any former deputy sheriff, who on the thirtieth day of June, one thousand nine hundred seventy-two, was receiving any death benefits from a pension and relief fund, shall continue to receive death benefits, but on and after the first day of July, one thousand nine hundred ninety-seven, such death benefits shall be no less than the following amounts: To a surviving spouse, until death or remarriage, the sum of three hundred dollars per month, to each dependent child the sum of thirty dollars per month, until such child shall attain the age of eighteen years or marries, whichever first occurs; to each dependent orphaned child, the sum of forty-five dollars per month, until such child attains the age of eighteen years or marries, whichever first occurs; to each dependent father and mother the sum of thirty dollars per month for each; to each dependent brother or sister, the sum of fifty dollars per month, until such individual attains the age of eighteen years or marries, whichever first occurs, but in no event shall the aggregate amount paid to such brothers and sisters exceed one hundred dollars per month. If at any time, because of the number of dependents, all such dependents cannot be paid in full as herein provided, then each dependent shall receive his pro rata share of such payments. In no case shall the payments to the surviving spouse and children be cut below sixty-five percent of the total amount paid to all dependents; and
(2) A surviving spouse, dependent child or children, or dependent father or mother, or dependent brothers or sisters, of a former deputy sheriff, who became eligible for death benefits on or after the first day of July, one thousand nine hundred seventy-two, shall continue to receive death benefits, but on and after the first day of July, one thousand nine hundred ninety-seven, shall receive the death benefits provided for in section twelve of this article.
(d) A former deputy sheriff who is receiving disability pension benefits on the first day of July, one thousand nine hundred ninety-seven, shall continue to receive disability pension benefits provided for in section ten of this article.
§7-14C-15. Period in which payments limited to income from fund; reduced payments where fund insufficient.

Until the expiration of three years from the time of the creation of any such fund, unless otherwise authorized by order of the county commission, no payment shall be made to any deputy sheriff, former deputy sheriff or beneficiary except from the income arising from said fund; and if at any time prior to the first day of July, one thousand nine hundred ninety-five, there shall not be sufficient money to the credit of said pension and relief fund to pay each deputy sheriff and beneficiary entitled to the benefits thereof the full amount per month, as herein provided, then an equal percentage of such monthly payments shall be made to each deputy sheriff and beneficiary thereof, until the earlier of: (a) The first day of July, one thousand nine hundred ninety-seven; and (b) such time when said fund is so replenished as to warrant payment in full to each of such members and beneficiaries.
CHAPTER 33. INSURANCE.

ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.

§33-3-14d. Additional fire and casualty insurance premium tax; allocation of proceeds; effective date.

(a) For the purpose of providing additional revenue for municipal policemen's and firemen's pension and relief funds and the teachers retirement system reserve fund and for volunteer and part volunteer fire companies and departments and for the deputy sheriffs' pension and relief funds, there is hereby levied and imposed, on and after the first day of January, one thousand nine hundred eighty-two, an additional premium tax equal to one two percent of gross direct premiums collected, less premiums returned to policyholders because of cancellation of policies, for fire insurance and casualty insurance policies. For purposes of this section, casualty insurance shall not include insurance on the life of a debtor pursuant to or in connection with a specific loan or other credit transaction or insurance on a debtor to provide indemnity for payments becoming due on a specific loan or other credit transaction while the debtor is disabled as defined in the policy. Except as otherwise provided in this section, all provisions of this article relating to the levy, imposition and collection of the regular premium tax are applicable to the levy, imposition and collection of the additional tax.
All One half of all moneys collected from this additional tax shall be received by the commissioner and paid by him into a special account in the state treasury, designated the municipal pensions and protection fund and one-half shall be paid into a special account in the state treasury, designated the deputy sheriffs' pensions and protection fund. The net proceeds of this tax after appropriation thereof by the Legislature shall be distributed in accordance with the provisions of this section.
(b) Before the first day of August, one thousand nine hundred eighty-three, and before the first day of August of each calendar year thereafter, the treasurer of each municipality in which a municipal policemen's or firemen's pension and relief fund has been established shall report to the state treasurer the average monthly number of members who worked at least one hundred hours per month of municipal policemen's or firemen's pension systems during the preceding fiscal year. Before the first day of August, one thousand nine hundred ninety-six, and before the first day of August of each calendar year thereafter, the treasurer of each county in which a deputy sheriffs' pension and relief fund has been established shall report to the state treasurer the average monthly number of members who worked at least one hundred hours per month of deputy sheriffs' pension systems during the preceding fiscal year. Before the first day of August, one thousand nine hundred eighty-three, and before the first day of August of each calendar year thereafter, the state fire marshal shall report to the state treasurer the names and addresses of all volunteer and part volunteer fire companies and departments within the state which meet the eligibility requirements established in section eight-a, article fifteen, chapter eight of this code.
Before the first day of September, one thousand nine hundred eighty-three, and in the case of the deputy sheriffs' pensions and protection fund, before the first day of September, one thousand nine hundred ninety-six, and before the first day of September of each calendar year thereafter, the state treasurer shall allocate and authorize for distribution the revenues in the municipal pensions and protection fund and the deputy sheriffs' pensions and protection fund which were collected during the preceding calendar year for the purposes set forth in this section. Sixty-five percent of the aforementioned revenues allocated shall be allocated to municipal policemen's and firemen's pension and relief funds and the deputy sheriffs' pensions and protection fund; twenty-five percent of such allocated revenues shall be allocated to volunteer and part volunteer fire companies and departments, and ten percent of such allocated revenues shall be allocated to the teachers retirement system reserve fund created by section eighteen, article seven-a, chapter eighteen of this code: Provided, That in any year the actuarial report required by section twenty, article twenty-two, chapter eight of this code indicates no actuarial deficiency in the municipal policemen's or firemen's pension and relief fund and the deputy sheriffs' pension and relief fund, no revenues may be allocated from the municipal pensions and protection fund and the deputy sheriffs' pension and relief fund, to that fund. The revenues from the municipal pensions and protection fund and the deputy sheriffs' pension and relief fund shall then be allocated to all other pension funds which have an actuarial deficiency.
(c) (1) Each municipal pension and relief fund and each deputy sheriff's pension and relief fund shall have allocated and authorized for distribution a pro rata share of the revenues allocated to municipal policemen's and firemen's pension and relief funds and the deputy sheriffs' pension and relief funds based upon the corresponding municipality's and corresponding county's average monthly number of members who worked at least one hundred hours per month during the preceding fiscal year. All moneys received by municipal pension and relief funds and deputy sheriffs' pension and relief funds under this section may be expended only for the purposes described in sections sixteen through twenty-eight, article twenty-two, chapter eight and sections one through fourteen, article fourteen-c, chapter seven of this code.
(2) Each volunteer fire company or department shall receive an equal share of the revenues allocated for volunteer and part volunteer fire companies and departments.
(3) In addition to the share allocated and distributed in accordance with subdivision (1) of this subsection, each municipal fire department composed of full-time paid members and volunteers and part volunteer fire companies and departments shall receive a share equal to the share distributed to volunteer fire companies under subdivision (2) of this subsection reduced by an amount equal to such share multiplied by the ratio of the number of full-time paid fire department members who are also members of a municipal firemen's pension system to the total number of members of such fire department.
(d) The allocation and distribution of revenues provided for in this section are subject to the provisions of section twenty, article twenty-two, and sections eight-a and eight-b, article fifteen, chapter eight of this code.




NOTE: The purpose of this bill is to create county deputy sheriffs' pension and relief funds for all deputy sheriffs serving in this state. The bill allows the deputy sheriffs in each county to vote for or against the creation of the pension and relief fund. Upon a majority voting in favor, the county commission then takes a vote. If a majority of the county commission vote in favor of establishing the fund, an order is issued to establish the fund along with a board of trustees to administer it. The bill requires that deputy sheriffs contribute to the pension fund and that a percentage of certain fees for license renewal and service of process be dedicated to the funds. Counties are also authorized to levy taxes to provide funding for the pension and relief fund but the state cannot be obligated relative to the application of any levy. The additional fire and casualty insurance premium tax provided for in §33-3-14d is increased from one percent to two percent to provide additional revenue to the pension and relief funds. The state treasurer is directed to administer the allocation of funds collected from the additional fire and casualty insurance premium tax. Each county is directed to establish a board of trustees to administer the fund, with the president of the county commission acting as chairperson of the board. The bill is fashioned after existing statutory provisions addressing pension and relief funds for municipal police and firefighters.

§7-14c, is new; therefore, strike-throughs and underscoring have been omitted.

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