H. B. 2501
(By Delegates Campbell, Craig, Browning,
Frederick, Williams and Duke)
[Introduced February 18, 2005; 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 providing for the termination of
membership in the Public Employees Retirement System of Jobs
for West Virginia's Graduates; extending the time period for
members to purchase previously forfeited credited service;
effective dates; and specifying interest rate.
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 or dies, he
or she ceases to be a member. When a member leaves the employ of
a participating public employer for any other reason, 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withdrawn amount from the date of withdrawal to the date of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.
(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 the first day of May, one thousand nine
hundred ninety-seven, 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 the first day of March, two thousand three, and
ending the thirty-first day of December, two thousand four, 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) The Jobs for West Virginia's Graduates, and its successor
in interest, shall provide for their employees during the existence
of the agency and any successors in interest to the agency, a
pension plan in lieu of the Public Employees Retirement System. The administrative bodies of the Jobs for West Virginia's Graduates
on or before the first day of May, two thousand five, shall give to
each employee who is a member of the Public Employees Retirement
system, written notice of the option to withdraw from or remain in
the system. This 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 Jobs for West
Virginia's Graduates 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.
NOTE: The purpose of this bill is to provide for the
termination of the agency, Jobs for West Virginia's Graduates, from
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.