Senate Bill No. 390
(By Senators Jackson, Wiedebusch, Macnaughtan, McKensie,
Bowman, Bailey, Ball and Schoonover)
____________
[Introduced March 20, 1997; referred to the Committee
on Pensions; and then to the Committee on Finance.]
____________
A BILL to amend and reenact section seven, article seven-b,
chapter eighteen of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, relating to extending
the date that a teacher may reenter the teachers' defined
benefit system from the first day of January, one thousand
nine hundred ninety-six, to the first day of January, one
thousand nine hundred ninety-eight.
Be it enacted by the Legislature of West Virginia:
That section seven, article seven-b, chapter eighteen of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:
ARTICLE 7B. TEACHERS' DEFINED CONTRIBUTION RETIREMENT SYSTEM.
§18-7B-7. Participation in teachers' defined contribution retirement system; limiting participation in existing teachers' retirement system.
Beginning the first day of July, one thousand nine hundred
ninety-one, the teachers' defined contribution retirement system
shall be the single retirement program for all new employees
whose employment commences on or after that date. No additional
new employees except as may be provided herein may be admitted to
the existing retirement system. Members of the existing
retirement system whose employment continues beyond the first day
of July, one thousand nine hundred ninety-one, are not affected
by this article and shall continue to contribute and participate
in the existing system without change in provisions or benefits.
Notwithstanding the provisions of section twenty-three,
article seven-a of this chapter, any employee whose employment
terminates after the thirtieth day of June, one thousand nine
hundred ninety-one, who is later reemployed by an employer shall
be eligible for membership only in the teachers' defined
contribution system: Provided, That if such reemployment with an
existing employer occurs not more than six months after the
employee's previous employment, he or she shall be entitled to
readmission to the existing retirement system in which he or she
was originally a member: Provided, however, That if such the
employee has five or more years of credited service in the existing retirement system, he or she shall be entitled to
readmission into the existing retirement system in which he or
she was originally a member so long as he or she has not
withdrawn his or her contributions from the existing retirement
system: Provided further, That if such the employee has
withdrawn his or her contribution from the existing retirement
system, then readmission shall may not be permitted and the
employee will be entitled only to the defined contribution
system.
An employee whose employment with an employer was suspended
or terminated while he or she served as an officer with a
statewide professional teaching association is eligible for
readmission to the existing retirement system in which he or she
was a member. Any employee reemployed with an employer on or
after the first day of July, one thousand nine hundred
ninety-one, who had five or more years credited service in the
teachers' defined benefit retirement system may elect readmission
to the teachers' defined benefit retirement system in which he or
she was originally a member. Any employee reemployed between the
first day of July, one thousand nine hundred ninety-one, and the
first day of July, one thousand nine hundred ninety-five, and who
was required to participate in the teachers' defined contribution
system but now elects, pursuant to the provisions of this section, readmission to the teachers' defined benefit retirement
system shall pay an additional contribution to the teachers'
defined benefit retirement system equal to one and one-half
percent of his or her annual gross compensation earned for each
year he or she participated in the teachers' defined contribution
system and shall transfer all member and employer contributions
and investment earnings therefrom from the teachers' defined
contribution system to the teachers' defined benefit retirement
system and shall receive service credit for the time the member
participated in the defined contribution system as if that
participation had been in the teachers' defined benefit
retirement system. Any member making an election under the
provisions of this section to reenter the teachers' defined
benefit retirement system who is currently a member of the
defined contribution retirement system must do so on or before
the first day of January, one thousand nine hundred ninety-six
ninety-eight. Any other member reemployed must make the election
as to the retirement system that he or she will be a member of at
the time he or she is reemployed.
An employee whose employment with an employer or an existing
employer is suspended as a result of an approved leave of
absence, approved maternity or paternity break in service, or any
other approved break in service authorized by the board, is
eligible for readmission to the existing retirement system in which he or she was a member.
In all cases where a question exists as to readmission to
membership in the existing retirement system, the board shall
decide the question.
NOTE: The purpose of this bill is to extend the date that a
teacher may reenter the teachers' defined benefit contribution
system from the first day of January, one thousand nine hundred
ninety-six, to the first day of January, one thousand nine
hundred ninety-eight.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that
would be added.