H. B. 2405
(By Mr. Speaker, Mr. Kiss By Request, and Delegates Yeager, Hall, Johnson, Campbell, C. White and Jenkins)
[Introduced March 4, 1997; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact section thirty-one-a, article ten,
chapter five of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to reopening the
public employees retirement system one year to permit
current employees of qualified public employers to obtain
service credit retroactively for periods of uncovered
employment; and requiring a qualified employer to notify
each potentially eligible employee in writing of this
additional credit opportunity within thirty days after the
one-year time limit for action commences.
Be it enacted by the Legislature of West Virginia:
That section thirty-one-a, article ten, chapter five of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-31a. Retroactive contributions to the retirement system
for retroactive service credit granted; one-year period for application; written employee notice required.
Those public employers who are participating in the West
Virginia public employees retirement system and elected to
participate after the first day of July, one thousand nine
hundred sixty-one, and those employers who are eligible but who
have not elected to participate, may elect to cover their
employees retroactive retroactively for the any qualifying period
of their prior uncovered employment by such employer to
commencing on or after the first day of July, one thousand nine
hundred sixty-one, under the following terms and rules and
regulations to be promulgated by the board of trustees of the
retirement system:
(a) The participating employer, in order to provide the
benefits set forth herein, shall pay an additional contribution
to the retirement system as shall be the actuarial equivalent of
the amount which would have been contributed, together with
earnings thereon, by the employer had the employee who is to receive retroactive credit been covered during the period of the
retroactive service credit. This contribution may be made by the
employer either in one lump sum or, at the election of the
employer, by level term payments over a period not in excess of
fifteen years or by both lump sum payments and level term
payments, as determined by the employer and the board of trustees
under rules and regulations promulgated by the board;
(b) The additional service credit shall be applicable to
employees working for the participating employer on the effective
date of the change of date of participation;
(c) There shall be no increase in benefits and annuities
paid to former members of the system who were retired prior to
the effective date of this section;
(d) Employees entitled to such the retroactive service
credit under the provisions of this section shall make such the
additional contribution to the retirement system equal to the
actuarial equivalent of the amount which would have been
contributed, together with earnings thereon, by the employee had
the employee been covered during the period of the retroactive
service credit;
(e) Each employer and employee shall be required to pay into
the retirement system in the manner hereinafter provided the amount necessary for the additional service credit provided by
this section, based upon an actuarial study of each employer that
elects to participate in the retirement system under this section
and as determined by the board of trustees;
(f) The actuarial basis for determining the additional
contributions shall be that currently in effect for the valuation
of the retirement system on the effective date of the employer's
election;
(g) Any new participating employer and any participating
employer which is currently a participant and who began
participating after the first day of July, one thousand nine
hundred sixty-one, who desires additional service credit must
elect to provide such the service credit within one year
following the effective date of this section;
(h) Any participating employer requesting additional service
credit as provided by this section shall provide such the
employee data as may be requested from the board of trustees of
the retirement system for the determination of the employer's
contributions;
(i) The consulting actuary's fees for computing the
additional contribution rates under this section shall be paid
directly by the participating employer to the consulting actuary selected by the board of trustees of the retirement system; and
(j) For the purpose of reopening the effectiveness of the
provisions of this section for a period of one year following the
effective date of the amendment to this section enacted during
the regular session one thousand nine hundred ninety-seven, and
for the purpose of granting, retroactively, service credit to
current employees of employers participating in the public
employees retirement system during such the period, this section
is hereby renewed and reestablished; but any such credited
service granted hereunder shall be on the actuarially sound basis
for determining required additional contributions, of both
employer and employee, required in light of benefits that would
be computed in respect of such the later point in time and such
subsequent final average salary amount: Provided, That each
employer qualified to grant additional service credit under the
provisions of this section shall explain in writing to each
potentially eligible employee that the employer can elect to
provide their employees with retroactive service credit and that
all requirements must be fulfilled within one year: Provided,
however, That the written notice to individual employees shall be
issued by the employer no later than thirty days after any
one-year deadline established by this section commences.
NOTE: The purpose of this bill is to reopen the public
employees retirement system one year to permit current employees
of participating employers to obtain service credit retroactively
for uncovered employment that occurred after July 1, 1961, with
a qualified public employer. Employer and employee contributions
must be calculated on an actuarially sound basis and all
employers who are authorized to grant the additional service
credit are required to notify potentially eligible employees of
this opportunity to obtain additional credit no later than thirty
days after the one-year time limit for acting commences.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.