H. B. 2734
(By Delegate Spencer)
[Introduced
February 23, 2009
; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §18-7D-11 of the Code of West Virginia,
1931, as amended, relating to the minimum guarantees provided
to members who elected to transfer from the Teachers' Defined
Contribution System to the Teachers' Retirement System.
Be it enacted by the Legislature of West Virginia:
That §18-7D-11 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 7D. VOLUNTARY TRANSFER FROM TEACHERS' DEFINED CONTRIBUTION
RETIREMENT SYSTEM TO STATE TEACHERS RETIREMENT
SYSTEM.
§18-7D-11. Minimum guarantees.
(a) Any member of the Teachers' Defined Contribution
Retirement System who works one hour or more and who has made a
contribution to the State Teachers Retirement System after his or
her assets are transferred to the State Teachers Retirement System pursuant to this article, is guaranteed a minimum benefit equal to
his or her member contributions plus the vested portion of employer
contributions made on his or her behalf to the Teachers' Defined
Contribution Retirement System, plus any earnings thereon, as of
June 30, 2008, as stated by the board.
(b) A member of the Teachers' Defined Contribution Retirement
System who works one hour or more and who has made contributions to
the State Teachers Retirement System after his or her assets are
transferred to the State Teachers Retirement System, upon
eligibility to receive a distribution under article seven-a of this
chapter, shall have at a minimum the following
three two options:
(1) The right to receive an annuity from the State Teachers
Retirement System based upon the provisions of article seven-a of
this chapter;
or
(2) The right to withdraw from the State Teachers Retirement
System and receive his or her member accumulated contributions in
the State Teachers Retirement System, plus refund interest thereon,
as set forth in article seven-a of this chapter
and the or
(3) The right to withdraw and receive his or her member
contributions plus the vested portion of employer contributions
made on his or her behalf to the Teachers' Defined Contribution
Retirement System, plus any earnings thereon as of the date his or
her assets are transferred to the State Teachers Retirement System
pursuant to this article, as determined by the board pursuant to the vesting provisions of article seven-a of this chapter. This
amount shall be distributed in a lump sum.
(c) Any member of the Teachers' Defined Contribution
Retirement System who does not work one hour or more and who makes
no contribution to the State Teachers Retirement System after his
or her assets are transferred to the State Teachers Retirement
System pursuant to this article, is guaranteed the receipt of the
amount in his or her total vested account in the Teachers' Defined
Contribution Retirement System on the date of the transfer, plus
interest thereon, at four percent accruing from the date of the
transfer. This amount shall be distributed in a lump sum
:
Provided, That no benefits may be obtained under this subsection
solely by the reciprocity provisions of sections three, four, and
six, article thirteen, chapter five of this code.
NOTE: The purpose of this bill is to clarify that upon
withdrawal from either the Teachers' Retirement System or the
Teachers' Defined Contribution Retirement System, members are
eligible to receive a return of their member contributions.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.