FISCAL
NOTE
WEST virginia Legislature
2017 regular session
By
[
to the Committee on Pensions and Retirement then Finance.
A BILL to amend and
reenact §5-16-13 of the Code of West Virginia, 1931, as amended, relating to
restoring the ability of new hires to use accrued annual and sick leave for
retirement service credit.
Be it enacted by the
Legislature of West Virginia:
That §5-16-13 of the
Code of West Virginia, 1931, as amended, be amended and reenacted to read as
follows:
ARTICLE 16. WEST
VIRGINIA PUBLIC EMPLOYEES INSURANCE ACT.
§5-16-13. Payment of
costs by employer and employee; spouse and dependent coverage; involuntary
employee termination coverage; conversion of annual leave and sick leave
authorized for health or retirement benefits; authorization for retiree
participation; continuation of health insurance for surviving dependents of
deceased employees; requirement of new health plan, limiting employer
contribution.
(a) Cost-sharing. --
The director shall provide under any contract or contracts entered into under
the provisions of this article that the costs of any group hospital and
surgical insurance, group major medical insurance, group prescription drug
insurance, group life and accidental death insurance benefit plan or plans
shall be paid by the employer and employee.
(b) Spouse and dependent
coverage. -- Each employee is entitled to have his or her spouse and
dependents included in any group hospital and surgical insurance, group major
medical insurance or group prescription drug insurance coverage to which the
employee is entitled to participate: Provided, That the spouse and
dependent coverage is limited to excess or secondary coverage for each spouse
and dependent who has primary coverage from any other source. For purposes of
this section, the term "primary coverage" means individual or group
hospital and surgical insurance coverage or individual or group major medical
insurance coverage or group prescription drug coverage in which the spouse or
dependent is the named insured or certificate holder. For the purposes of this
section, "dependent" includes an eligible employee's
unmarried child or stepchild under the age of twenty-five if that child or
stepchild meets the definition of a "qualifying child" or a
"qualifying relative" in Section 152 of the Internal Revenue Code.
The director may require proof regarding spouse and dependent primary coverage
and shall adopt rules governing the nature, discontinuance and resumption of
any employee's coverage for his or her spouse and dependents.
(c) Continuation after
termination. -- If an employee participating in the plan is terminated from
employment involuntarily or in reduction of work force, the employee's
insurance coverage provided under this article shall continue for a period of
three months at no additional cost to the employee and the employer shall
continue to contribute the employer's share of plan premiums for the coverage. An employee
discharged for misconduct shall not be eligible for extended benefits under
this section. Coverage may be extended up to the maximum period of three
months, while administrative remedies contesting the charge of misconduct are
pursued. If the discharge for misconduct be upheld, the full cost of the
extended coverage shall be reimbursed by the employee. If the employee is again
employed or recalled to active employment within twelve months of his or her
prior termination, he or she shall not be considered a new enrollee and may not
be required to again contribute his or her share of the premium cost, if he or
she had already fully contributed such share during the prior period of employment.
(d) Conversion of
accrued annual and sick leave for extended insurance coverage upon retirement
for employees who elected to participate in the plan before July, 1988. --
Except as otherwise provided in subsection (g) of this section, when an employee
participating in the plan, who elected to participate in the plan before July
1, 1988, is compelled or required by law to retire before reaching the age of
sixty-five, or when a participating employee voluntarily retires as provided by
law, that employee's accrued annual leave and sick leave, if any, shall be
credited toward an extension of the insurance coverage provided by this
article, according to the following formulae: The insurance coverage for a
retired employee shall continue one additional month for every two days of
annual leave or sick leave, or both, which the employee had accrued as of the
effective date of his or her retirement. For a retired employee, his or her
spouse and dependents, the insurance coverage shall continue one additional
month for every three days of annual leave or sick leave, or both, which the
employee had accrued as of the effective date of his or her retirement.
(e) Conversion of
accrued annual and sick leave for extended insurance coverage upon retirement
for employees who elected to participate in the plan after June, 1988. --
Notwithstanding subsection (d) of this section, and except as otherwise
provided in subsections (g) and (l) of this section, when an employee
participating in the plan who elected to participate in the plan on and after
July 1, 1988, is compelled or required by law to retire before reaching the age
of sixty-five, or when the participating employee voluntarily retires as
provided by law, that employee's annual leave or sick leave, if any, shall be
credited toward one half of the premium cost of the insurance provided by this
article, for periods and scope of coverage determined according to the
following formulae: (1) One additional month of single retiree coverage for
every two days of annual leave or sick leave, or both, which the employee had
accrued as of the effective date of his or her retirement; or (2) one
additional month of coverage for a retiree, his or her spouse and dependents
for every three days of annual leave or sick leave, or both, which the employee
had accrued as of the effective date of his or her retirement. The remaining
premium cost shall be borne by the retired employee if he or she elects the
coverage. For purposes of this subsection, an employee who has been a participant
under spouse or dependent coverage and who reenters the plan within twelve
months after termination of his or her prior coverage shall be considered to
have elected to participate in the plan as of the date of commencement of the
prior coverage. For purposes of this subsection, an employee shall not be
considered a new employee after returning from extended authorized leave on or
after July 1, 1988.
(f) Increased retirement
benefits for retired employees with accrued annual and sick leave. -- In
the alternative to the extension of insurance coverage through premium payment
provided in subsections (d) and (e) of this section, the accrued annual leave
and sick leave of an employee participating in the plan may be applied, on the
basis of two days'
retirement service credit for each one day of accrued annual and sick leave,
toward an increase in the employee's retirement benefits with those days
constituting additional credited service in computation of the benefits under
any state retirement system. Provided, That for a person who
first becomes a member of the Teachers Retirement System as provided in article
seven-a, chapter eighteen of this code on or after July 1, 2015, accrued annual
and sick leave of an employee participating in the plan may not be applied for
retirement service credit However, the additional credited service shall
not be used in meeting initial eligibility for retirement criteria, but only as
additional service credited in excess thereof.
(g) Conversion of
accrued annual and sick leave for extended insurance coverage upon retirement
for certain higher education employees. – Except as otherwise provided in subsection (l) of
this section, when an employee, who is a higher education full-time faculty
member employed on an annual contract basis other than for twelve months, is
compelled or required by law to retire before reaching the age of sixty-five,
or when such a participating employee voluntarily retires as provided by law,
that employee's insurance coverage, as provided by this article, shall be
extended according to the following formulae: The insurance coverage for a
retired higher education full-time faculty member, formerly employed on an
annual contract basis other than for twelve months, shall continue beyond the
effective date of his or her retirement one additional year for each three and
one-third years of teaching service, as determined by uniform guidelines
established by the University of West Virginia Board of Trustees and the board
of directors of the state college system, for individual coverage, or one
additional year for each five years of teaching service for family coverage.
(h) Any employee who
retired prior to April 21, 1972, and who also otherwise meets the conditions of
the "retired employee" definition in section two of this article,
shall be eligible for insurance coverage under the same terms and provisions of
this article. The retired employee's premium contribution for any such coverage
shall be established by the finance board.
(i) Retiree
participation. -- All retirees under the provisions of this article,
including those defined in section two of this article; those retiring prior to
April 21, 1972; and those hereafter retiring are eligible to obtain health
insurance coverage. The retired employee's premium contribution for the
coverage shall be established by the finance board.
(j) Surviving spouse and
dependent participation. -- A surviving spouse and dependents of a deceased
employee, who was either an active or retired employee participating in the
plan just prior to his or her death, are entitled to be included in any
comprehensive group health insurance coverage provided under this article to
which the deceased employee was entitled, and the spouse and dependents shall
bear the premium cost of the insurance coverage. The finance board shall
establish the premium cost of the coverage.
(k) Elected officials.
-- In construing the provisions of this section or any other provisions of this
code, the Legislature declares that it is not now nor has it ever been the Legislature's
intent that elected public officials be provided any sick leave, annual leave
or personal leave, and the enactment of this section is based upon the fact and
assumption that no statutory or inherent authority exists extending sick leave,
annual leave or personal leave to elected public officials and the very nature
of those positions preclude the arising or accumulation of any leave, so as to
be thereafter usable as premium paying credits for which the officials may
claim extended insurance benefits.
(l) Participation of
certain former employees. -- An employee, eligible for coverage under the
provisions of this article who has twenty years of service with any agency or
entity participating in the public employees insurance program or who has been
covered by the public employees insurance program for twenty years may, upon
leaving employment with a participating agency or entity, continue to be
covered by the program if the employee pays one hundred five percent of the
cost of retiree coverage: Provided, That the employee shall elect to
continue coverage under this subsection within two years of the date the
employment with a participating agency or entity is terminated.
(m) Prohibition on
conversion of accrued annual and sick leave for extended coverage upon
retirement for new employees who elect to participate in the plan after June,
2001. –- Any
employee hired on or after July 1, 2001, who elects to participate in the plan
may not apply accrued annual or sick leave toward the cost of premiums for
extended insurance coverage upon his or her retirement. This prohibition does
not apply to the conversion of accrued annual or sick leave for increased
retirement benefits, as authorized by this section: Provided, That any
person who has participated in the plan prior to July 1, 2001, is not a new
employee for purposes of this subsection if he or she becomes reemployed with
an employer participating in the plan within two years following his or her
separation from employment and he or she elects to participate in the plan upon
his or her reemployment.
(n) Prohibition on
conversion of accrued years of teaching service for extended coverage upon
retirement for new employees who elect to participate in the plan July, 2009.
-- Any employee hired on or after July 1, 2009, who elects to participate in
the plan may not apply accrued years of teaching service toward the cost of
premiums for extended insurance coverage upon his or her retirement.
NOTE: The purpose of this bill is
to restore the ability of new hires to use accrued annual and sick leave for
retirement service credit.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.