H. B. 2788
(By Delegates Rodighiero, Eldridge,
Ellis and Stephens)
[Introduced January 9, 2008; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §5-10-18 of the Code of West Virginia,
1931, as amended, relating to allowing public employees with
fifteen or more years' service who were subject to reduction
in force layoffs to pay back retirement benefits they cashed
out of the Public Employees Retirement System.
Be it enacted by the Legislature of West Virginia:
That §5-10-18 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.
§5-10-18. Termination of membership; reentry.
(a) When a member of the retirement system retires or dies, he
or she ceases to be a member. When a member leaves the employ of
a participating public employer for any other reason, he or she
ceases to be a member and forfeits service credited to him or her
at that time. If he or she becomes reemployed by a participating
public employer he or she shall be reinstated as a member of the
retirement system and his or her credited service last forfeited by
him or her shall be restored to his or her credit:
Provided, That he or she must be reemployed for a period of one year or longer to
have the service restored:
Provided, however, That he or she
returns to the members' deposit fund the amount, if any, he or she
withdrew from the fund, together with regular interest on the
withdrawn amount from the date of withdrawal to the date of
repayment, and that the repayment begins within two years of the
return to employment and that the full amount is repaid within five
years of the return to employment.
(b) The Prestera Center for Mental Health Services, Valley
Comprehensive Mental Health Center, Westbrook Health Services and
Eastern Panhandle Mental Health Center, and their successors in
interest, shall provide for their employees a pension plan in lieu
of the Public Employees Retirement System during the existence of
the named mental health centers and their successors in interest.
(c) The administrative bodies of the Prestera Center for
Mental Health Services, Valley Comprehensive Mental Health Center,
Westbrook Health Services and Eastern Panhandle Mental Health
Center shall, on or before the first day of May, one thousand nine
hundred ninety-seven, give written notice to each employee who is
a member of the Public Employees Retirement System of the option to
withdraw from or remain in the system. The notice shall include a
copy of this section and a statement explaining the member's
options regarding membership. The notice shall include a statement
in plain language giving a full explanation and actuarial
projection figures in support of the explanation regarding the
individual member's current account balance, vested and nonvested, and his or her projected return upon remaining in the Public
Employees Retirement System until retirement, disability or death,
in comparison with the projected return upon withdrawing from the
Public Employees Retirement System and joining a private pension
plan provided by the Community Mental Health Center and remaining
therein until retirement, disability or death. The administrative
bodies shall keep in their respective records a permanent record of
each employee's signature confirming receipt of the notice.
(d) Effective the first day of March, two thousand three, and
ending the thirty-first day of December, two thousand four, any
member may purchase credited service previously forfeited by him or
her and the credited service shall be restored to his or her
credit:
Provided, That he or she returns to the members' deposit
fund the amount, if any, he or she withdrew from the fund, together
with interest on the withdrawn amount from the date of withdrawal
to the date of repayment at a rate to be determined by the board.
The repayment under this section may be made by lump sum or repaid
over a period of time not to exceed sixty months. Where the member
elects to repay the required amount other than by lump sum, the
member is required to pay interest at the rate determined by the
board until all sums are fully repaid.
(e) Effective the first day of July, two thousand five, and
ending the thirty-first day of December, two thousand six, any
emergency services personnel may purchase service credit for the
time period beginning the first day of January, one thousand nine
hundred ninety, and ending the thirty-first day of December, one thousand nine hundred ninety-five:
Provided, That person was
employed as an emergency service person in this state for that time
period:
Provided, however, That
any person obtaining service
credit under this subsection is required to pay the employee's
share and the employer's share upon his or her actual salary for
the years in question plus interest at the assumed actuarial rate
of return for the plan year being repurchased.
(f) Jobs for West Virginia's graduates and their successors in
interest shall provide a pension plan in lieu of the Public
Employees Retirement System for employees hired on or after the
first day of July, two thousand five.
(g) Wetzel County Hospital and their successors in interest
shall provide a pension plan in lieu of the Public Employees
Retirement System for employees hired on or after the first day of
July, two thousand five.
(h) Effective the first day of July, two thousand seven, and
ending the thirty-first day of December, two thousand nine, any
person who was laid off from employment as the result of reduction
in force who at the time of such lay-off had fifteen or more years
of service as a member, may pay back any amounts previously
withdrawn in order to purchase credited service previously
forfeited by him or her and the credited service shall be restored
to his or her credit: Provided, That he or she returns to the
members' deposit fund the amount he or she withdrew from the fund,
together with interest on the withdrawn amount from the date of
withdrawal to the date of repayment at a rate to be determined by the board. The repayment under this section may be made by lump
sum or repaid over a period of time not to exceed sixty months.
Where the person elects to repay the required amount other than by
lump sum, the member is required to pay interest at the rate
determined by the board until all sums are fully repaid.
NOTE: The purpose of this bill is to allow public employees
with fifteen or more years' service who were subject to reduction
in force layoffs to pay back retirement benefits they cashed out of
the public employees retirement system.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.