H. B. 2456
(By Delegate Caputo)
[Introduced January 23, 2007; referred to the
Committee on Government Organization then Finance.]
A BILL to amend and reenact §5-10-22 of the Code of West Virginia,
1931, as amended, relating to increasing the multiplier for
annuities of public employees and retirees; and removing the
increase in Legislators' annuities relative to an increase in
legislative compensation.
Be it enacted by the Legislature of West Virginia:
That §5-10-22 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.
§5-10-22. Retirement annuity.
(a) Upon a member's retirement, as provided in this article,
he or she shall receive a straight life annuity equal to one and
five-tenths percent of his or her final average salary multiplied
by the number of years, and fraction of a year, of his or her
credited service in force at the time of his or her retirement:
Provided, That the final average salary used in this calculation
does not include any lump sum payment for unused, accrued leave of any kind or character. The credited service used for this
calculation may not include any period of limited credited service:
Provided, however, That after March one, one thousand nine hundred
seventy, all members retired and all members retiring shall receive
a straight life annuity equal to two percent of his or her final
average salary multiplied by the number of years, and fraction of
a year, of his or her credited service, exclusive of limited
credited service in force at the time of his or her retirement.
After the first day of July, two thousand seven, all members
retired and retiring shall receive a straight life annuity equal to
two and one-half percent of his or her final average salary
multiplied by the number of years, and fraction of a year, of his
or her credited service in force at the time of his or her
retirement.
In either event, upon his or her retirement he or she
has the right to elect an option provided in section twenty-four of
this article. All annuity payments shall commence effective the
first day of the month following the month in which a member
retires or a member dies leaving a beneficiary entitled to benefits
and shall continue to the end of the month in which the retirant
retiree or beneficiary dies, and the annuity payments may not be
prorated for any portion of a month in which a member retires or
retirant retiree or beneficiary dies. Any member receiving an
annuity based in part upon limited credited service is not eligible
for the supplements provided in sections twenty-two-a through
twenty-two-d, inclusive, of this article.
(b) The annuity of any member of the Legislature who participates in the retirement system as a member of the
Legislature and who retires under this article or of any former
member of the Legislature who has retired under this article
(including any former member of the Legislature who has retired
under this article and whose annuity was readjusted as of the first
day of March, one thousand nine hundred seventy, under the former
provisions of this section) shall be increased from time to time
during the period of his or her retirement when and if the
legislative compensation paid under section two, article two-a,
chapter four of this code, to a member of the Legislature shall be
increased to the point where a higher annuity would be payable to
the retirant if he or she were retiring as of the effective date of
the latest increase in legislative compensation, but on the basis
of his or her years of credited service to the date of his or her
actual retirement.
NOTE: The purpose of this bill is to increase the multiplier
for a retirement annuity in the public employees retirement system
from 2 to 2.5.
This bill also deletes language which increases Legislators'
retirement annuities relevant to an increase in legislative
compensation. This provision was declared unconstitutional by the
Supreme Court of Appeals in Campbell v. Kelly, 157 W. Va. 453, 202
S.E. 2d 369 (1974).
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.