H. B. 2870
(By Delegates Paxton, Stowers, Perry, Caputo,
Boggs, Pethtel, Fragale, M. Poling,
Duke, Campbell and Spencer)
[Introduced February 27, 2009; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §18-7D-6 of the Code of West Virginia,
1931, as amended, relating to extending the deadline of the
buyback provision provided under the Teachers' Defined
Contribution Retirement System to the State Teachers
Retirement System.
Be it enacted by the Legislature of West Virginia:
That §18-7D-6 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-6. Service credit in State Teachers Retirement System
following transfer; conversion of assets;
adjustments.
(a) Any member who has affirmatively elected to transfer to
the State Teachers Retirement System within the period provided in section seven of this article whose assets have been transferred
from the Teachers' Defined Contribution Retirement System to the
State Teachers Retirement System pursuant to the provisions of this
article and who has not made any withdrawals or cash-outs from his
or her assets is, depending upon the percentage of actively
contributing members affirmatively electing to transfer, entitled
to service credit in the State Teachers Retirement System in
accordance with the provisions of subsections (c) or (d) of this
section.
(b) Any such member who has made withdrawals or cash-outs will
receive service credit based upon the amounts transferred. The
board shall make the appropriate adjustment to the service credit
the member will receive.
(c) If at least sixty-five percent but less than seventy-five
percent of actively contributing members of the Teachers' Defined
Contribution Retirement System affirmatively elect to transfer to
the State Teachers Retirement System within the period provided in
section seven of this article, for any member of the Defined
Contribution Retirement System who elects to transfer to the State
Teachers Retirement System, his or her service credit in the State
Teachers Retirement System is determined as follows:
(1) For any member affirmatively electing to transfer, the
member's State Teachers Retirement System credit shall be
seventy-five percent of the member's Teachers' Defined Contribution Retirement System service credit, less any service previously
withdrawn by the member or due to a qualified domestic relations
order and not repaid;
(2) To receive full credit in the State Teachers Retirement
System for service in the Teachers' Defined Contribution Retirement
System for which assets are transferred, transferring members shall
have the option to pay into the State Teachers Retirement System
the actuarial reserve, as defined in section two of this article,
by no later than June 30, 2009.
(d) If at least seventy-five percent of actively contributing
members of the Teachers' Defined Contribution Retirement System
affirmatively elect to transfer to the State Teachers Retirement
System within the period provided in section seven of this article,
for any member of the Defined Contribution Retirement System who
elects to transfer to the State Teachers Retirement System, his or
her service credit in the State Teachers Retirement System is
determined as follows:
(1) For any member affirmatively electing to transfer, the
member's State Teachers Retirement System credit shall be
seventy-five percent of the member's Teachers' Defined Contribution
Retirement System service credit, less any service previously
withdrawn by the member or due to a qualified domestic relations
order and not repaid;
(2) To receive full credit in the State Teachers Retirement System for service in the Teachers' Defined Contribution Retirement
System for which assets are transferred, members who affirmatively
elected to transfer shall pay into the State Teachers Retirement
System a one and one-half percent contribution
by no later than the
thirtieth day of June December 31, 2009. This contribution shall
be calculated as one and one-half percent of the member's estimated
total earnings for which assets are transferred, plus interest of
four percent per annum accumulated from the date of the member's
initial participation in the Defined Contribution Retirement System
through June 30, 2009.
(A) For a member contributing to the Defined Contribution
Retirement System at any time during the 2008 fiscal year and
commencing membership in the State Teachers Retirement System on
July 1, 2008,
or August 1, 2008, as the case may be:
(i) The estimated total earnings shall be calculated based on
the member's salary and the member's age nearest birthday on June
30, 2008;
(ii) This calculation shall apply both an annual backward
salary scale from that date for prior years' salaries and a forward
salary scale for the salary for the 2008 fiscal year.
(B) The calculations in paragraph (A) of this subdivision are
based upon the salary scale assumption applied in the West Virginia
Teachers Retirement System Actuarial Valuation as of July 1, 2007,
prepared for the Consolidated Public Retirement Board. This salary scale shall be applied regardless of breaks in service.
(e) All service previously transferred from the State Teachers
Retirement System to the Teachers' Defined Contribution Retirement
System is considered Teachers' Defined Contribution Retirement
System service for the purposes of this article.
(f) Notwithstanding any provision of this code to the
contrary, the retirement of a member who becomes eligible to retire
after the member's assets are transferred to the State Teachers
Retirement System pursuant to the provisions of this article may
not commence prior to September 1, 2008:
Provided, That the
Consolidated Public Retirement Board may not retire any member who
is eligible to retire during the
school calendar year
beginning
2008 during the
school calendar year 2008 unless the member has
provided a written notice to his or her county board of education
by July 1, 2008, of his or her intent to retire.
NOTE: The purpose of this bill is to extend the deadline of
the buyback provision for teachers.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.