H. B. 2327
(By Delegates Mahan and Moye)
[Introduced February 12, 2009; referred to the
Committee on Education then Finance.]
A BILL to amend and reenact §18-7A-28e of the Code of West
Virginia, 1931, as amended, relating to providing
cost-of-living benefits to retired teachers funded from the
severance tax collections on natural gas.
Be it enacted by the Legislature of West Virginia:
That §18-7A-28e of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.
§18-7A-28e. Limitations on benefit increases.
(a) The state shall may not increase any existing benefits or
create any new benefits for any retirees or beneficiaries currently
receiving monthly benefit payments from the retirement system,
other than an increase in benefits or new benefits effected by
operation of law in effect on the effective date of this article,
in an amount that would exceed more than one percent of the accrued
actuarial liability of the system as of the last day of the preceding fiscal year as determined in the annual actuarial
valuation for each plan completed for the Consolidated Public
Retirement Board as of the first day of the following fiscal year:
Provided, That beginning July 1, 2009, all annuitants at least
sixty years of age and who have been receiving an annuity from this
system for at least five years shall receive a cost-of-living
adjustment in his or her monthly annuity in an amount equal to five
percent of the benefits received by that annuitant. Thereafter all
annuitants shall receive cost-of-living benefits equal to the
annual increase in the consumer price index as published by the
United States Department of Labor, Bureau of Labor Statistics.
These cost-of-living benefits shall be funded from the severance
tax on natural gas imposed under the provisions of section
thirteen-a, article three-a, chapter eleven of this code.
(b) If any increase of existing benefits or creation of new
benefits for any retirees or beneficiaries currently receiving
monthly benefit payments under the retirement system, other than an
increase in benefits or new benefits effected by operation of law
in effect on the effective date of this article, causes any
additional unfunded actuarial accrued liability in any of the West
Virginia state sponsored pension systems as calculated in the
annual actuarial valuation for each plan during any fiscal year,
additional unfunded actuarial accrued liability of that pension
system shall be fully amortized over no more than the six consecutive fiscal years following the date the increase in
benefits or new benefits become effective as certified by the
Consolidated Public Retirement Board. Following the receipt of the
certification of additional actuarial accrued liability, the
Governor shall submit the amount of the amortization payment each
year for the retirement system as part of the annual budget
submission or in an executive message to the Legislature.
(c) Notwithstanding the provisions of subsections (a) and (b)
of this section, the computation of annuities or benefits for
active members due to retirement, death or disability as provided
for in the retirement system shall may not be amended in such a any
manner as to increase any existing benefits or to provide for new
benefits.
(d) The provisions of this section terminate effective July 1,
2034: Provided, That if bonds are issued pursuant to article
eight, chapter twelve of this code, the provisions of this section
shall do not terminate while any of the bonds are outstanding.
NOTE: The purpose of this bill is to provide cost-of-living
benefits to retired teachers to be funded from the severance tax
collected on natural gas.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.