WEST virginia legislature
2019 regular session
Committee Substitute
for
Senate Bill 26
Senator Blair, original sponsor
[Originating in the Committee on Pensions; Reported on February 7, 2019]
A BILL to amend and reenact §18-7A-3 of the Code of West Virginia, 1931, as amended; and to amend and reenact §18-7B-2 of said code, all relating to permitting full-time employees of educational services cooperatives to participate in the State Teachers Retirement System; and permitting full-time employees of educational services cooperatives to participate in the State Teachers’ Defined Contribution Retirement System.
Be it enacted by the Legislature of West Virginia:
ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.
§18-7A-3. Definitions.
As used in this article, unless the context clearly requires a different meaning:
(1) “Accumulated contributions” means all deposits and
all deductions from the gross salary of a contributor plus regular interest.
(2) “Accumulated net benefit” means the aggregate amount
of all benefits paid to or on behalf of a retired member.
(3) “Actuarially equivalent” or “of equal actuarial
value” means a benefit of equal value computed upon the basis of the mortality
table and interest rates as set and adopted by the retirement board in accordance
with the provisions of this article: Provided, That when used in the
context of compliance with the federal maximum benefit requirements of Section
415 of the Internal Revenue Code, “actuarially equivalent” shall be computed
using the mortality tables and interest rates required to comply with those
requirements.
(4) “Annuities” means the annual retirement payments for
life granted beneficiaries in accordance with this article.
(5) “Average final salary” means the average of the five
highest fiscal year salaries earned as a member within the last 15 fiscal years
of total service credit, including military service as provided in this
article, or if total service is less than 15 years, the average annual salary
for the period on which contributions were made: Provided, That salaries
for determining benefits during any determination period may not exceed the
maximum compensation allowed as adjusted for cost of living in accordance with
§5-10D-7 of this code and Section 401(a)(17) of the Internal Revenue Code.
(6) “Beneficiary” means the recipient of annuity payments
made under the retirement system.
(7) “Contributor” means a member of the retirement system
who has an account in the Teachers Accumulation Fund.
(8) “Deposit” means a voluntary payment to his or her
account by a member.
(9) “Employer” means the agency of and within the state
which has employed or employs a member.
(10) “Employer error” means an omission, misrepresentation,
or violation of relevant provisions of the West Virginia Code, or of the West
Virginia Code of State Regulations, or the relevant provisions of both the West
Virginia Code and of the West Virginia Code of State Regulations by the
participating public employer that has resulted in an underpayment or
overpayment of contributions required. A deliberate act contrary to the
provisions of this section by a participating public employer does not
constitute employer error.
(11) “Employment term” means employment for at least 10
months, a month being defined as 20 employment days.
(12) “Gross salary” means the fixed annual or periodic
cash wages paid by a participating public employer to a member for performing
duties for the participating public employer for which the member was hired.
Gross salary shall be allocated and reported in the fiscal year in which the
work was done. Gross salary also includes retroactive payments made to a member
to correct a clerical error, or made pursuant to a court order or final order
of an administrative agency charged with enforcing federal or state law
pertaining to the member’s rights to employment or wages, with all retroactive
salary payments to be allocated to and considered paid in the periods in which
the work was or would have been done. Gross salary does not include lump sum
payments for bonuses, early retirement incentives, severance pay, or any other
fringe benefit of any kind including, but not limited to, transportation
allowances, automobiles or automobile allowances, or lump sum payments for
unused, accrued leave of any type or character.
(13) “Internal Revenue Code” means the Internal Revenue
Code of 1986, as it has been amended.
(14) “Member” means any person who has accumulated
contributions standing to his or her credit in the State Teachers Retirement
System. A member shall remain a member until the benefits to which he or she is
entitled under this article are paid or forfeited, or until cessation of
membership pursuant to §18-7A-13 of this code.
(15) “Members of the administrative staff of the public
schools” means deans of instruction, deans of men, deans of women, and
financial and administrative secretaries.
(16) “Members of the extension staff of the public
schools” means every agricultural agent, boys and girls club agent, and every
member of the agricultural extension staff whose work is not primarily
stenographic, clerical, or secretarial.
(17) “New entrant” means a teacher who is not a present
teacher.
(18) “Nonteaching member” means any person, except a
teacher member, who is regularly employed for full-time service by: (A) Any
county board of education or
educational services cooperative; (B)
the State Board of Education; (C) the Higher Education Policy Commission; (D)
the West Virginia Council for Community and Technical College Education; or (E)
a governing board, as defined in §18B-1-2 of this code: Provided, That
any person whose employment with the Higher Education Policy Commission, the
West Virginia Council for Community and Technical College Education, or a
governing board commences on or after July 1, 1991, is not considered a
nonteaching member.
(19) “Plan year” means the 12-month period
commencing on July 1 and ending the following June 30 of any designated year.
(20) “Present member” means a present teacher or
nonteacher who is a member of the retirement system.
(21) “Present teacher” means any person who was a teacher
within the 35 years beginning July 1, 1934, and whose membership in the
retirement system is currently active.
(22) “Prior service” means all service as a teacher
completed prior to July 1, 1941, and all service of a present member who was
employed as a teacher and did not contribute to a retirement account because he
or she was legally ineligible for membership during the service.
(23) “Public schools” means all publicly supported
schools, including colleges and universities in this state.
(24) “Refund beneficiary” means the estate of a deceased
contributor or a person he or she has nominated as beneficiary of his or her
contributions by written designation duly executed and filed with the
retirement board.
(25) “Regular interest” means interest at four percent
compounded annually, or a higher earnable rate if set forth in the formula
established in legislative rules, series seven of the Consolidated Public
Retirement Board, 162 CSR 7.
(26) “Regularly employed for full-time service” means
employment in a regular position or job throughout the employment term
regardless of the number of hours worked or the method of pay.
(27) “Required beginning date” means April 1 of the
calendar year following the later of: (A) The calendar year in which the member
attains age 70 and one-half years; or (B) the calendar year in which the member
retires or ceases covered employment under the system after having attained the
age of 70 and one-half years.
(28) “Retirant” means any member who commences an annuity
payable by the retirement system.
(29) “Retirement board” means the Consolidated Public
Retirement Board created pursuant to §5-10D-1 et seq. of this code.
(30) “Retirement system” means the State Teachers
Retirement System established by this article.
(31) “Teacher member” means the following persons, if
regularly employed for full-time service: (A) Any person employed for
instructional service in the public schools of West Virginia; (B) principals;
(C) public school librarians; (D) superintendents of schools and assistant
county superintendents of schools; (E) any county school attendance director
holding a West Virginia teacher’s certificate; (F) members of the research,
extension, administrative, or library staffs of the public schools; (G) the
State Superintendent of Schools, heads and assistant heads of the divisions
under his or her supervision, or any other employee under the state
superintendent performing services of an educational nature; (H) employees of
the State Board of Education who are performing services of an educational
nature; (I) any person employed in a nonteaching capacity by the State Board of
Education, any county board of education, the State Department of Education, or
the State Teachers Retirement Board, if that person was formerly employed as a
teacher in the public schools; (J) all classroom teachers, principals, and
educational administrators in schools under the supervision of the Division of
Corrections, the Division of Health, or the Division of Human Services; (K) an
employee of the State Board of School Finance, if that person was formerly
employed as a teacher in the public schools; (L)
employees of an educational services cooperative who are performing services of
an educational nature; and (L)
(M) any person designated as a
21st Century Learner Fellow pursuant to §18A-3-11 of this code who elects to
remain a member of the State Teachers Retirement System provided in this
article.
(32) “Total service” means all service as a teacher or
nonteacher while a member of the retirement system since last becoming a member
and, in addition thereto, credit for prior service, if any.
Age in excess of 70 years shall be considered to be 70 years.
ARTICLE 7B. TEACHERS’ DEFINED CONTRIBUTION RETIREMENT SYSTEM.
§18-7B-2. Definitions.
As used in this article, unless the context clearly requires a different meaning:
(1) “Annual addition” means, for purposes of the
limitations under Section 415(c) of the Internal Revenue Code, the sum credited
to a member’s account for any limitation year of: (A) Employer contributions;
(B) employee contributions; and (C) forfeitures. Repayment of cash-outs or
contributions as described in Section 415(k)(3) of the Internal Revenue Code,
rollover contributions and picked-up employee contributions to a defined
benefit plan shall may not be treated as annual additions,
consistent with the requirements of Treasury Regulation §1.415(c)-1.
(2) “Annuity account” or “annuity” means an account
established for each member to record the deposit of member contributions and
employer contributions and interest, dividends, or other accumulations credited
on behalf of the member.
(3) “Compensation” means the full compensation actually
received by members for service whether or not a part of the compensation is
received from other funds, federal or otherwise, than those provided by the
state or its subdivisions: Provided, That annual compensation for
determining contributions during any determination period may not exceed the
maximum compensation allowed as adjusted for cost of living in accordance with
§5-10D-7 of this code and Section 401(a)(17) of the Internal Revenue Code:
Provided, however, That solely for purposes of applying the limitations of
Section 415 of the Internal Revenue Code to any annual addition, “compensation”
has the meaning given it in §18-7B-13d of this code.
(4) “Consolidated board” or “board” means the
Consolidated Public Retirement Board created and established pursuant to
§5-10D-1 et seq. of this code.
(5) “Defined contribution system” or “system” means the
Teachers’ Defined Contribution Retirement System created and established by
this article.
(6) “Employer” means the agency of and within the State
of West Virginia which has employed or employs a member.
(7) “Employer contribution” means an amount deposited
into the member’s individual annuity account on a periodic basis coinciding
with the employee’s regular pay period by an employer from its own funds.
(8) “Employment term” means employment for at least 10
months in any plan year with a month being defined as 20 employment days.
(9) “Existing employer” means any employer who employed
or employs a member of the system.
(10) “Existing retirement system” means the State Teachers
Retirement System established in §18-7A-1 et seq. of this code.
(11) “Internal Revenue Code” means the Internal Revenue
Code of 1986, as it has been amended.
(12) “Member” or “employee” means the following persons,
if regularly employed for full-time service: (A) Any person employed for
instructional service in the public schools of West Virginia; (B) principals;
(C) public school librarians; (D) superintendents of schools and assistant
county superintendents of schools; (E) any county school attendance director
holding a West Virginia teacher’s certificate; (F) members of the research,
extension, administrative, or library staffs of the public schools; (G) the
State Superintendent of Schools, heads and assistant heads of the divisions
under his or her supervision, or any other employee under the state
superintendent performing services of an educational nature; (H) employees of
the State Board of Education who are performing services of an educational
nature; (I) any person employed in a nonteaching capacity by the State Board of
Education, any county board of education, or the State Department of Education,
if that person was formerly employed as a teacher in the public schools; (J)
all classroom teachers, principals, and educational administrators in schools
under the supervision of the Division of Corrections and the Department of
Health and Human Resources; (K) any person who is regularly employed for
full-time service by any county board of education, educational services cooperative, or the State Board of Education; (L) the
administrative staff of the public schools including deans of instruction,
deans of men and deans of women, and financial and administrative secretaries; and
(M) any person designated as a 21st Century Learner Fellow pursuant to
§18A-3-11 of this code who elects to remain a member of the Teachers’ Defined
Contribution Retirement System established by this article.
(13) “Member contribution” means an amount reduced from
the employee’s regular pay periods, and deposited into the member’s individual
annuity account within the Teachers’ Defined Contribution Retirement System.
(14) “Permanent, total disability” means a mental or
physical incapacity requiring absence from employment service for at least six
months: Provided, That the incapacity is shown by an examination by a
physician or physicians selected by the board: Provided, however, That
for employees hired on or after July 1, 2005, “permanent, total disability”
means an inability to engage in substantial gainful activity by reason of any
medically determinable physical or mental impairment that can be expected to
result in death, or has lasted or can be expected to last for a continuous
period of not less than 12 months and the incapacity is so severe that the
member is likely to be permanently unable to perform the duties of the position
the member occupied immediately prior to his or her disabling injury or illness.
(15) “Plan year” means the 12-month period commencing on
July 1 of any designated year and ending on the following June 30.
(16) “Public schools” means all publicly supported
schools, including normal schools, colleges, and universities in this state.
(17) “Regularly employed for full-time service” means
employment in a regular position or job throughout the employment term
regardless of the number of hours worked or the method of pay.
(18) “Required beginning date” means April 1 of the
calendar year following the later of: (A) The calendar year in which the member
attains age 70 and one-half years; or (B) the calendar year in which the member
retires or otherwise ceases employment with a participating employer after
having attained the age of 70 and one-half years.
(19) “Retirement” means a member’s withdrawal from the
active employment of a participating employer and completion of all conditions
precedent to retirement.
(20) “Year of employment service” means employment for at
least ten months, with a month being defined as 20 employment days:
Provided, That no more than one year of service may be accumulated in any
12-month period.
NOTE: The purpose of this bill is to permit employees of educational services cooperatives to participate in the State Teachers Retirement System. The bill permits persons employed by educational services cooperatives to participate in the State Teachers’ Defined Contribution Retirement System.