FISCAL
NOTE
WEST virginia Legislature
2017 regular session
By
[
to the Committee on Education then Finance.
A BILL to amend and
reenact §18-7D-6 of the Code of West Virginia, 1931, as amended, relating to
extending the time that teachers may pay into the State Teachers Retirement
System after transfer from the Teachers’ Defined Contribution 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 subsection (c) of this
section.
(b) Any 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) More than seventy-five
percent of actively contributing members of the Teachers' Defined Contribution
Retirement System affirmatively elected to transfer to the State Teachers
Retirement System within the period provided in section seven of this article.
Therefore, any member of the Teachers’ Defined Contribution Retirement System
who decides to transfer to the State Teachers Retirement System calculates his
or her service credit in the State Teachers Retirement System 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withdrawn by the member or due to a qualified domestic relations order and not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 and who provided to the board a
signed verification of cost for service credit purchase form by the
effective date of the amendments to this section enacted in the 2009 regular
legislative session shall pay into the State Teachers Retirement System a
one and one-half percent contribution by no later than July 1, 2015, or
no later than ninety days after the postmarked date on a final and definitive
contribution calculation from the board. whichever is later 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 Teachers' Defined
Contribution Retirement System through June 30, 2009, and interest of seven and
one-half percent per annum accumulated from July 1, 2009, through July 1,
2015 the date of reentry into the State Teachers Retirement System: Provided,
That any member who transferred and provided to the board a signed
verification of cost for service credit purchase form by June 30, 2009, but
was unable to complete the purchase of the one and one-half percent
contribution, or any member who did not request a verification of cost
letter but attempted to purchase the one and one-half percent contribution and
was denied in writing by the board on or before December 31, 2009, may
request the board on or before April 15, 2015, to recalculate the
contribution for 2015 amount. To receive full credit, the member
shall pay into the State Teachers Retirement System the recalculated purchase
amount by July 1, 2015, or no later than sixty days six months
after the postmarked date on a contribution recalculation from the board. whichever
is later The recalculated contribution shall include the interest loss at
the actuarial rate of seven and one-half percent. The board's executive
director may correct clerical errors.
(A) For a member
contributing to the Teachers' 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.
(d) 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.
(e) 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 before September 1, 2008: Provided, That the Consolidated
Public Retirement Board may not retire any member who is eligible to retire
during the 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.
(f) The provisions of
section twenty-eight-e, article seven-a of this chapter do not apply to the
amendments to this section enacted during the 2009 regular legislative session
or the 2015 regular legislative session.
NOTE: The purpose of this bill is
to extend the time for certain teachers to pay into the Teachers Retirement
System.
Strike-throughs indicate language
that would be stricken from a heading or the present law, and underscoring
indicates new language that would be added.