Pension Bond Resolution (C0913338.DOC;1)

ENGROSSED
SENATE JOINT RESOLUTION NO. 101
(By Senators Tomblin, Mr. President, and Sprouse, By Request of the Executive)
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[Introduced January 24, 2005; referred to the Committee on Finance.]
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Proposing an amendment to the Constitution of the State of West Virginia authorizing appropriations and the issuance and sale of additional state general obligation bonds in an amount not exceeding five billion, five hundred million dollars for the purpose of funding all or a portion of the unfunded actuarial accrued liabilities of the state teachers retirement system, §18-7A-1, et seq., of the Code of West Virginia, the judges' retirement system, §51-9-1, et seq., of said Code and the public safety death, disability and retirement system, §15-2-26, et seq., of said Code and paying any costs associated with the issuance of said bonds; authorizing the investment of the funds from such issuance and sale pursuant to the laws and Constitution of the State of West Virginia; numbering and designating such proposed amendment; and providing a summarized statement of the purpose of such proposed amendment.

Resolved by the Legislature of West Virginia, two thirds of the members elected to each house agreeing thereto:
That the question of ratification or rejection of an amendment to the Constitution of the State of West Virginia be submitted to the voters of the State at the next general election to be held in the year two thousand six, or at any special election held prior thereto, which proposed amendment is as follows:
Pension Bond Amendment
The Legislature may authorize the issuing and selling of state general obligation bonds not exceeding in the aggregate five billion, five hundred million dollars, which shall be in addition to all other state bonds heretofore authorized. Such bonds may be issued and sold at such time or times and in such amount or amounts as the Legislature authorizes. When a bond issue as aforesaid is authorized, the Legislature shall direct the investment of such proceeds as permitted by the laws and the Constitution of the State of West Virginia. The proceeds of the bonds hereby authorized to be issued and sold shall be used solely for funding all or a portion of the unfunded actuarial accrued liabilities of the state teachers retirement system, §18-7A-1, et seq., of the Code of West Virginia, the judges' retirement system, §51-9-1, et seq., of said Code and the public safety death, disability and retirement system, §15-2-26, et seq., of said Code and paying any costs associated with the issuance of the bonds. The bond resolution shall pledge that while any of the bonds are outstanding the State will take all reasonable actions to prohibit any unfunded actuarial accrued liability from occurring in the pension systems administered by the State. The bond resolution shall further pledge, and the indenture shall so state, that while any of the bonds are outstanding, should any increase of existing benefits or the creation of new benefits under any of the pension systems administered by the State, other than an increase in benefits or new benefits effected by operation of law in effect on the date of ratification of this amendment, cause any additional unfunded actuarial accrued liability in any of the pension systems administered by the State (calculated in an actuarially sound manner) during any fiscal year, such additional unfunded actuarial accrued liability of that pension system will be fully amortized over no more than the five consecutive fiscal years following the date the increase in benefits or new benefits become effective.
When a bond issue as aforesaid is authorized, the Legislature shall at the same time provide for the levy, collection and dedication of an additional state tax, or enhancement to such other tax as the Legislature may determine, in such amount as may be required to pay annually the interest on such bonds and the principal thereof or premium, if any, within and not exceeding thirty years and all such taxes so levied shall be irrevocably dedicated for the payment of the principal of or premium, if any, and interest on such bonds until such principal of and interest on such bonds are finally paid and discharged. Any of the covenants, agreements or provisions in the Acts of the Legislature levying such taxes shall be enforceable in any court of competent jurisdiction by any of the holders of the bonds.
The Legislature may enact legislation necessary and proper to implement the provisions of this amendment.
Resolved further, That in accordance with the provisions of article eleven, chapter three of the Code of West Virginia, one thousand nine hundred thirty-one, as amended, such proposed amendment is hereby numbered "Amendment No. 1" and designated as the "Pension Bond Amendment" and the purpose of the proposed amendment is summarized as follows: "To amend the State Constitution to permit the issuance and sale of additional state general obligation bonds not exceeding five billion, five hundred million dollars to help provide for the safety and soundness of the state teachers retirement system, the judges' retirement system and the public safety death, disability and retirement system. These additional state general obligation bonds will help the State to fund the unfunded actuarial accrued liabilities of these systems."