H. B. 2451
(By Delegate Fragale)
[Introduced
February 17, 2005
; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §8-22-19 of the code of West Virginia,
1931, as amended; and to amend and reenact §33-3-14d of said
code, all relating to making additional funds available for
the fire and police pension system; making additional funds
available for volunteer and part volunteer fire departments.
Be it enacted by the Legislature of West Virginia:
That §8-22-19 of the code of West Virginia, 1931, as amended,
be amended and reenacted; and that §33-3-14d of said code be
amended and reenacted, all to read as follows:
CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 22. RETIREMENT BENEFITS GENERALLY; POLICEMEN'S PENSION
AND RELIEF FUND; FIREMEN'S PENSION AND RELIEF
FUND; PENSION PLANS FOR EMPLOYEES OF WATERWORKS
SYSTEM, SEWERAGE SYSTEM OR COMBINED WATERWORKS AND
SEWERAGE SYSTEM.
§8-22-19. Levy to maintain fund.
(a) The provisions of this subsection shall remain in effect
through the thirtieth day of June, one thousand nine hundred
eighty-three.
In every municipality in which there is a policemen's pension
and relief fund or a firemen's pension and relief fund, or both
funds, the
same fund shall be maintained as follows: The governing
body of the municipality shall levy annually and in the manner
provided by law for other municipal levies, and include within the
maximum levy or levies permitted by law, and if necessary in excess
of any charter provision, a tax at such rate as will, after
crediting the amount of the contributions received during
such the
year from the members of the respective paid police department or
paid fire department, provide funds equal to the sum of: (1) The
full amount of estimated expenditures of the boards of trustees of
the respective funds; and (2) an additional amount equal to ten
percent of
such the estimated expenditures,
said the ten percent
amount to be taken, accumulated and invested, if possible, as
surplus reserve:
Provided, That in no event
shall such may the
levy for each of the respective boards of trustees be less than one
cent nor more than eight cents on each one hundred dollars of all
real and personal property as listed for taxation in
such the
municipality:
Provided, however, That
in the event that if the
funds derived above are not sufficient to meet the annual expenditures and the surplus reserve funds for any fiscal year do
not contain a sufficient balance to maintain full retirement
benefits for that fiscal year, the municipality shall for only that
fiscal year levy an amount not to exceed an additional two cents on
each one hundred dollars of all real and personal property listed
for taxation in
such the municipality:
Provided further, That
in
the event that if a municipality is required to levy an amount for
any fiscal year in excess of eight cents on each one hundred
dollars of all real and personal property as provided above, the
municipality shall assess and collect for only that fiscal year
from each member an additional amount of one percent of the actual
salary or compensation for each one cent that the municipality has
levied in excess of the eight cents which shall become a required
part of the pension and relief fund to which the member belongs.
The levies authorized under the provisions of this section, or
any part of them, may by the governing body be laid in addition to
all other municipal levies, and to that extent, beyond the limit of
levy imposed by the charter of
such the municipality; and
such the
levies shall supersede and if necessary exclude levies for other
purposes if
such priority or exclusion is necessary under
limitations upon taxes or tax levies imposed by law.
Such Public corporations are authorized to take by gift,
grant, devise or bequest, any money or real or personal property,
upon such terms as to the investment and expenditures
thereof as may be fixed by the grantor or determined by
said the
trustees.
In addition to all other sums provided for pensions in this
section, it shall be is the duty of every municipality in which any
such fund or funds have been or shall be are established to assess
and collect from each member of the paid police department or paid
fire department or both each month, the sum of six percent of the
actual salary or compensation of such the member; and the amount so
collected shall become a regular part of the policemen's pension
and relief fund, if collected from a policeman, and of the
firemen's pension and relief fund, if collected from a fireman.
(b) (1) After the thirtieth day of June, one thousand nine
hundred eighty-three: In order for a municipal policemen's or
firemen's pension and relief fund to receive the allocable portion
of moneys from the municipal pensions and protection fund
established in section fourteen-d, article three, chapter
thirty-three of this code, the governing body of the municipality
shall levy annually and in the manner provided by law for other
municipal levies, and include within the maximum levy or levies
permitted by law, and if necessary in excess of any charter
provision, a tax at such rate as will, after crediting: (A) The
amount of the contributions received during such the year from the
members of the respective paid police department or paid fire
department; and (B) the allocable portion of the municipal pensions
and protection fund established in section fourteen-d, article three, chapter thirty-three of this code provide funds equal to the
amount necessary to meet the minimum standards for actuarial
soundness as provided in section twenty of this article, said the
amount to be irrevocably contributed, accumulated and invested as
fund assets described in sections twenty-one and twenty-two of this
article. Such The municipality contributions shall be deposited as
such fund assets on at least a quarterly basis and any revenues
received from any source by a municipality which are specifically
collected for the purpose of allocation for deposit into such the
fund shall be so deposited within thirty days of receipt by the
municipality. Such heretofore Any surplus reserves accumulated
before the first day of July, one thousand nine hundred
eighty-three, shall be irrevocably contributed, aggregated and
invested as fund assets described in sections twenty-one and
twenty-two of this article. Any actuarial deficiency arising under
this section and section twenty of this article shall not be is not
the obligation of the State of West Virginia.
(2) The levies authorized under the provisions of this
section, or any part of them, may by the governing body be laid in
addition to all other municipal levies, and to that extent, beyond
the limit of levy imposed by the charter of such the municipality;
and such the levies shall supersede and if necessary exclude levies
for other purposes, where such the other purposes have not already
attained priority, and within the limitations upon taxes or tax levies imposed by the Constitution and laws.
(3) Such Public corporations are authorized to take by gift,
grant, devise or bequest, any money or real or personal property,
upon such terms as to the investment and expenditures thereof as
may be fixed by the grantor or determined by said trustees.
(4) In addition to all other sums provided for pensions in
this section, it shall be is the duty of every municipality in
which any such fund or funds have been or shall be are established
to assess and collect from each member of the paid police
department or paid fire department or both each month, the sum of
seven eight percent of the actual salary or compensation of such
the member; and the amount so collected shall become a regular part
of the policemen's pension and relief fund, if collected from a
policeman, and of the firemen's pension and relief fund, if
collected from a fireman. Such Member contributions shall be
deposited in such the pension and relief fund on at least a monthly
basis.
(5) For the fiscal year beginning on the first day of July,
one thousand nine hundred eighty-three and for each fiscal year
thereafter, the State Treasurer shall retain the allocable portion
of the municipal pensions and protection fund, established in
section fourteen-d, article three, chapter thirty-three of this
code, until such time as the treasurer of the municipality applies
for such the allocable portion and certifies in writing to the State Auditor that:
(A) The municipality has irrevocably contributed the amount
required under this section and section twenty of this article to
such the pension and relief fund for the fiscal year; and
(B) The board of trustees of such the pension and relief fund
has made a report to the governing body of the municipality on the
condition of its fund with respect to the fiscal year.
(6) When the aforementioned application and certification are
made the allocable portion of moneys from the municipal pensions
and protection fund shall be paid to the corresponding policemen's
or firemen's pension and relief fund.
(7) The State Auditor has the power and duty as he deems
necessary to may perform or review audits on such the pension and
relief funds or to employ an independent consulting actuary or
accountant to determine the compliance of the aforementioned
certification with the requirements of this section and section
twenty of this article. The expense of such the audit or
determination shall be paid from the portion of the municipal
pensions and protection fund allocable to municipal policemen's and
firemen's pension and relief funds. If such the allocable portion
of the municipal pensions and protection fund is not paid to such
the pension and relief fund within thirty-six months, such the
portion is forfeited by such the pension and relief fund and is
allocable to other eligible municipal policemen's and firemen's pension and relief funds in accordance with section fourteen-d,
article three, chapter thirty-three of this code.
CHAPTER 33. INSURANCE.
ARTICLE 3. LICENSING, FEES AND TAXATION OF INSURERS.
§33-3-14d. Additional fire and casualty insurance premium tax;
allocation of proceeds; effective date.
(a) For the purpose of providing additional revenue for
municipal policemen's and firemen's pension and relief funds and
the teachers retirement system reserve fund and for volunteer and
part volunteer fire companies and departments, there is hereby
levied and imposed an additional premium tax equal to one two
percent of taxable premiums for fire insurance and casualty
insurance policies. For purposes of this section, casualty
insurance does not include insurance on the life of a debtor
pursuant to or in connection with a specific loan or other credit
transaction or insurance on a debtor to provide indemnity for
payments becoming due on a specific loan or other credit
transaction while the debtor is disabled as defined in the policy.
All moneys collected from this additional tax shall be
received by the Commissioner and paid by him or her into a special
account in the State Treasury, designated the municipal pensions
and protection fund. The net proceeds of this tax after
appropriation thereof by the Legislature is distributed in
accordance with the provisions of this section.
(b) (1) Before the first day of August of each calendar year,
the treasurer of each municipality in which a municipal policemen's
or firemen's pension and relief fund has been established shall
report to the State Treasurer the average monthly number of members
who worked at least one hundred hours per month and the average
monthly number of retired members of municipal policemen's or
firemen's pension systems during the preceding fiscal year.
(2) Before the first day of September of each calendar year,
the State Treasurer shall allocate and authorize for distribution
the revenues in the municipal pensions and protection fund which
were collected during the preceding calendar year for the purposes
set forth in this section. Sixty-five percent of the revenues are
allocated to municipal policemen's and firemen's pension and relief
funds; twenty-five thirty percent of the revenues shall be
allocated to volunteer and part volunteer fire companies and
departments; and ten five percent of such allocated revenues are
allocated to the teachers retirement system reserve fund created by
section eighteen, article seven-a, chapter eighteen of this code:
Provided, That in any year the actuarial report required by section
twenty, article twenty-two, chapter eight of this code indicates no
actuarial deficiency in the municipal policemen's or firemen's
pension and relief fund, no revenues may be allocated from the
municipal pensions and protection fund to that fund. The revenues
from the municipal pensions and protection fund shall then be allocated to all other pension funds which have an actuarial
deficiency.
(3) The moneys, and the interest earned thereon, in the
municipal pensions and protection fund allocated to volunteer and
part volunteer fire companies and departments shall be allocated
and distributed quarterly to the volunteer fire companies and
departments. Before each distribution date, the State fire marshal
shall report to the State Treasurer the names and addresses of all
volunteer and part volunteer fire companies and departments within
the State which meet the eligibility requirements established in
section eight-a, article fifteen, chapter eight of this code.
(c) (1) Each municipal pension and relief fund shall have
allocated and authorized for distribution a pro rata share of the
revenues allocated to municipal policemen's and firemen's pension
and relief funds based upon the corresponding municipality's
average monthly number of members who worked at least one hundred
hours per month during the preceding fiscal year. On and after the
first day of July, one thousand nine hundred ninety-seven, from the
growth in any moneys collected pursuant to the tax imposed by this
section there shall be allocated and authorized for distribution to
each municipal pension and relief fund, a pro rata share of the
revenues allocated to municipal policemen's and firemen's pension
and relief funds based upon the corresponding municipalities
average number of members who worked at least one hundred hours per month and average monthly number of retired members. For the
purposes of this subsection, the growth in moneys collected from
the tax collected pursuant to this section is determined by
subtracting the amount of the tax collected during the fiscal year
ending the thirtieth day of June, one thousand nine hundred
ninety-six, from the tax collected during the fiscal year for which
the allocation is being made. All moneys received by municipal
pension and relief funds under this section may be expended only
for those purposes described in sections sixteen through
twenty-eight, inclusive, article twenty-two, chapter eight of this
code.
(2) Each volunteer fire company or department shall receive an
equal share of the revenues allocated for volunteer and part
volunteer fire companies and departments.
(3) In addition to the share allocated and distributed in
accordance with subdivision (1) of this subsection, each municipal
fire department composed of full-time paid members and volunteers
and part volunteer fire companies and departments shall receive a
share equal to the share distributed to volunteer fire companies
under subdivision (2) of this subsection reduced by an amount equal
to the share multiplied by the ratio of the number of full-time
paid fire department members who are also members of a municipal
firemen's pension system to the total number of members of the fire
department.
(d) The allocation and distribution of revenues provided for
in this section are subject to the provisions of section twenty,
article twenty-two, and sections eight-a and eight-b, article
fifteen, chapter eight of this code.
NOTE: The purpose of this bill is to make additional funds
available for the fire and police pension system and make
additional funds available for volunteer and part volunteer fire
departments by increasing the premium tax on insurance. It also
increases the amount of contribution members of municipal fire and
police departments make to their retirement systems.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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