H. B. 2854
(By Delegate Hunt)
[Introduced March 6, 2013; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §5-10-18 of the Code of West Virginia,
1931, as amended, relating to reentry into the Public
Employees Retirement System by members of the Legislature;
providing for each election or reelection to the Legislature
to begin a new time period in which forfeited service credit
may be restored.
Be it enacted by the Legislature of West Virginia:
That §5-10-18 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-18. Termination of membership; reentry.
(a) When a member of the retirement system retires, withdraws
his or her accumulated contributions, or dies, he or she ceases to
be a member. When a member leaves the employ of a participating public employer for any reason other than retirement or death, and
withdraws his or her accumulated contributions from the system, he
or she ceases to be a member and forfeits service credited to him
or her at that time. If he or she becomes reemployed by a
participating public employer he or she shall be reinstated as a
member of the retirement system and his or her credited service
last forfeited by him or her shall be restored to his or her
credit: Provided, That he or she must be reemployed for a period
of one year or longer to have the service restored: Provided,
however, That he or she returns to the members' deposit fund the
amount, if any, he or she withdrew from the fund, together with
regular interest on the withdrawn amount from the date of
withdrawal to the date of repayment, and that the repayment begins
within two years of the return to employment and that the full
amount is repaid within five years of the return to employment:
Provided further, That for purposes of this subsection, each
election or reelection of a person as a member of the Legislature
shall be considered a new return to employment. Any failure to
repay the full amount in accordance with this section shall be
treated as an overpayment or excess contribution subject to section
forty-four of this article.
(b) The Prestera Center for Mental Health Services, Valley
Comprehensive Mental Health Center, Westbrook Health Services and
Eastern Panhandle Mental Health Center, and their successors in interest, shall provide for their employees a pension plan in lieu
of the Public Employees Retirement System during the existence of
the named mental health centers and their successors in interest.
(c) The administrative bodies of the Prestera Center for
Mental Health Services, Valley Comprehensive Mental Health Center,
Westbrook Health Services and Eastern Panhandle Mental Health
Center shall, on or before May 1, 1997, give written notice to each
employee who is a member of the Public Employees Retirement System
of the option to withdraw from or remain in the system. The notice
shall include a copy of this section and a statement explaining the
member's options regarding membership. The notice shall include a
statement in plain language giving a full explanation and actuarial
projection figures in support of the explanation regarding the
individual member's current account balance, vested and nonvested,
and his or her projected return upon remaining in the Public
Employees Retirement System until retirement, disability or death,
in comparison with the projected return upon withdrawing from the
Public Employees Retirement System and joining a private pension
plan provided by the Community Mental Health Center and remaining
therein until retirement, disability or death. The administrative
bodies shall keep in their respective records a permanent record of
each employee's signature confirming receipt of the notice.
(d) Effective March 1, 2003, and ending December 31, 2004, any
member may purchase credited service previously forfeited by him or her and the credited service shall be restored to his or her
credit: Provided, That he or she returns to the members' deposit
fund the amount, if any, he or she withdrew from the fund, together
with interest on the withdrawn amount from the date of withdrawal
to the date of repayment at a rate to be determined by the board.
The repayment under this section may be made by lump sum or repaid
over a period of time not to exceed sixty months. Where the member
elects to repay the required amount other than by lump sum, the
member is required to pay interest at the rate determined by the
board until all sums are fully repaid.
(e) Effective July 1,2005, and ending December 31, 2006, any
emergency services personnel may purchase service credit for the
time period beginning January 1, 1990, and ending December 31,
1995: Provided, That person was employed as an emergency service
person in this state for that time period: Provided, however, That
any person obtaining service credit under this subsection is
required to pay the employee's share and the employer's share upon
his or her actual salary for the years in question plus interest at
the assumed actuarial rate of return for the plan year being
repurchased.
(f) Jobs for West Virginia's graduates and their successors
in interest shall provide a pension plan in lieu of the Public
Employees Retirement System for employees hired on or after July 1,
2005.
(g) Wetzel County Hospital and their successors in interest
shall provide a pension plan in lieu of the Public Employees
Retirement System for employees hired on or after July 1, 2005.
NOTE: The purpose of this bill is to consider election or
reelection to a term as a member of the Legislature as a new return
to employment, for purposes of restoring forfeited service credit
in the Public Employees Retirement System.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.