HB 2415 Text

H. B. 2415

(By Mr. Speaker, Mr. Kiss, and Delegates Jenkins, Heck,
Ashley, Varner, Pettit and Staton)
[Introduced January 14, 1998; referred to the
Committee on Pensions and Retirement then Finance.]

A BILL to amend and reenact section one, article ten-d, chapter
five of the code of West Virginia, one thousand nine hundred thirty-one; and to amend chapter seven of said code by adding thereto a new article, designated article fourteen-d, all relating to retirement, death and disability benefits for deputy sheriffs; creating a deputy sheriff's retirement system; authorizing the transfer of fair asset share of the public employees retirement system attributable to transferring deputy sheriffs to the deputy sheriff's retirement system; and providing for entitlement to benefits.
Be it enacted by the Legislature of West Virginia:
That section one, article ten-d, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that chapter seven of said code be amended by adding thereto a new article, designated article fourteen-d, all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,
SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD
OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS,
OFFICES, PROGRAMS, ETC.

ARTICLE 10D. CONSOLIDATED PUBLIC RETIREMENT BOARD.

§5-10D-1. Consolidated public retirement board created; transition; members; vacancies.
(a) There is hereby created a consolidated public retirement board to administer all public retirement plans in this state. It shall administer the public employees retirement system established in article ten of this chapter; the teachers retirement system established in article seven-a, chapter eighteen of this code; the teachers' defined contribution retirement system created by article seven-b, chapter eighteen of this code; the death, disability and retirement fund of the department of public safety created by article two, chapter fifteen of this code; the death, disability and retirement fund for deputy sheriffs created by article fourteen-d, chapter seven of this code; and the judges' retirement system created under article nine, chapter fifty-one of this code.
(b) The consolidated public retirement board shall begin administration of the systems listed in subsection (a) of this section on the first day of July, one thousand nine hundred ninety-one: Provided, That the board shall begin administration of: (1) The teachers' defined contribution retirement system established in article seven-b, chapter eighteen of this code on the first day of January, one thousand nine hundred ninety-one; and (2) the death, disability and retirement fund for deputy sheriffs established in article fourteen-d, chapter seven of this code on the first day of July, one thousand nine hundred ninety- seven. Prior to that date the existing entities which administer the system shall cooperate with the board in the orderly transition of all duties, responsibilities, records and other materials in their possession.
(c) The membership of the consolidated public retirement board consists of:
(1) The governor or his or her designee;
(2) The state treasurer or his or her designee;
(3) The state auditor or his or her designee;
(4) The secretary of the department of administration or his or her designee;
(5) Four residents of the state, who are not members, retirants or beneficiaries of any of the public retirement systems, to be appointed by the governor, with the advice and consent of the Senate; and
(6) A member, annuitant or retirant of the public employees retirement system who is or was a state employee; a member, annuitant or retirant of the public employees retirement system who is not or was not a state employee; a member, annuitant or retirant of the teachers retirement system; a member, annuitant or retirant of the department of public safety death, disability and retirement fund; a member, annuitant or retirant of the deputy sheriff's death, disability and retirement fund; and a member, annuitant or retirant of the teachers' defined contribution retirement system, all to be appointed by the governor, with the advice and consent of the Senate.
(d) The appointed members of the board shall serve five-year terms. Of the members initially appointed, three shall be appointed for two-year terms; three shall be appointed for three- year terms; and three shall be appointed for five-year terms. Thereafter, all members shall serve full five-year terms. A member appointed pursuant to subdivision (5), subsection (c) of this section ceases to be a member of the board if he or she ceases to be a member of the represented system. If a vacancy occurs in the appointed membership, the governor, within sixty days, shall fill the vacancy by appointment for the unexpired term. No more than five appointees shall be of the same political party.
(e) The consolidated public retirement board shall have all the powers, duties, responsibilities and liabilities of the public employees retirement system established pursuant to article ten, of this chapter; the teachers retirement system established pursuant to article seven-a, chapter eighteen of this code; the teachers' defined contribution system established pursuant to article seven-b, chapter eighteen of this code; the death, disability and retirement fund of the department of public safety created pursuant to article two, chapter fifteen of this code; the death, disability and retirement fund for deputy sheriffs created pursuant to article fourteen-d, chapter seven of this code; and the judges' retirement system created pursuant to article nine, chapter fifty-one of this code and their appropriate governing boards. The consolidated public retirement board may propose for promulgation all rules necessary to effectuate its powers, duties and responsibilities pursuant to article three, chapter twenty-nine-a of this code: Provided, That the board may adopt any or all of the rules, previously promulgated, of a retirement system which it administers.
(f) Effective on the first day of July, one thousand nine hundred ninety-six, the consolidated public retirement board shall, within two business days of receipt, transfer all funds received by the consolidated public retirement board for the benefit of the retirement systems within the consolidated pension plan as defined in section three-c, article six-b, chapter forty- four of this code, including, but not limited to, all employer and employee contributions, to the West Virginia trust fund: Provided, That the employer and employee contributions of the teachers' defined contribution system, established in section three, article seven-b, chapter eighteen of this code, and voluntary deferred compensation funds invested by the West Virginia consolidated public retirement board pursuant to section five, article ten-b of this chapter, ~~shall~~ may not be transferred to the West Virginia trust fund.
(g) The consolidated public retirement board shall be a trustee for all public retirement plans, except with regard to the investment of funds: Provided, That the consolidated public retirement board shall be a trustee with regard to the investments of the teachers' defined contribution system, and voluntary deferred compensation funds invested pursuant to section five, article ten-b of this chapter.
CHAPTER 7. COUNTY COMMISSIONS AND OFFICERS.

ARTICLE 14D. DEPUTY SHERIFF RETIREMENT ACT.

§7-14D-1. Short title.

This article is known and may be cited as the "West Virginia Deputy Sheriff Retirement System Act".

§7-14D-2. Definitions.

As used in this article, unless the context clearly requires a different meaning:
(a) "Accrued benefit" means on behalf of any member two and one-half percent of the member's final average salary multiplied by the member's years of credited service. A member's accrued benefit may not exceed the limits of section 415 of the Internal Revenue Code which provisions are incorporated by reference.
(b) "Accumulated contributions" means the sum of all amounts deducted from the compensation of a member, or paid on his or her behalf pursuant to article ten-c, chapter five of this code, either pursuant to section seven of this article or section twenty-nine, article ten, chapter five, of this code as a result of covered employment together with regular interest thereon.
(c) "Active military duty" means full-time active duty with any branch of the armed forces of the United States, including service with the national guard or reserve military forces when the member has been called to active full-time duty and has received no compensation during the period of such duty from any person other than the armed forces.
(d) "Actuarial equivalent" means a benefit of equal value computed upon the basis of the mortality table and interest rates as the consolidated public retirement board may adopt from time to time.
(e) "Annual compensation" means the wages paid to the member during covered employment within the meaning of section 3401(a) of the Internal Revenue Code but determined without regard to any rules that limit the remuneration included in wages based upon the nature or location of employment or services performed during the plan year plus amounts excluded under section 414(h)(2) of the Internal Revenue Code and less reimbursements or other expense allowances, cash or noncash fringe benefits or both, deferred compensation and welfare benefits. Annual compensation for determining benefits during any determination period may not exceed one hundred fifty thousand dollars as adjusted for cost of living in accordance with section 401(a)(17)(B) of the Internal Revenue Code.
(f) "Annual leave service" as follows: A member at the cessation of his or her covered employment may elect to convert unused sick or annual leave, or both, to additional service for purposes of calculating their accrued benefit. Each unused day shall be treated as 1/130 of a year and shall be expressed as annual leave service in whole years or fractions thereof, or both.
(g) "Annuity starting date" means the first day of the first period for which an amount is received as an annuity by reason of retirement.
(h) "Base salary" means a member's cash compensation exclusive of overtime from covered employment during the last twelve months of employment. Until a member has worked twelve months, annualized base salary is used as base salary.
(i) "County commission" has the meaning ascribed to it in section one, article one, chapter seven of this code.
(j) "Covered employment" means either: (1) Employment as a deputy sheriff and the active performance of the duties required thereof; or (2) the period of time which active duties are not performed but disability benefits are received under section thirteen or fourteen of this article.
(k) "CPRB" means the consolidated public retirement board created pursuant to article ten-d, chapter five of this code.
(l) "Credited service" means the sum of a member's years of service, military service, disability service and annual leave service.
(m) "Deputy sheriff" means an individual employed as a county law-enforcement deputy sheriff in this state and as defined by section two, article fourteen, chapter seven of this code.
(n) "Dependent child" means:
(1) An unmarried person under age eighteen who is either:
(A) A natural child of the member;
(B) A legally adopted child of the member;
(C) A child who at the time of the member's death was living with the member while the member was an adopting parent during any period of probation; or
(D) A stepchild of the member residing in the member's household at the time of the member's death.
(2) Any unmarried child under age twenty-three: (A) Who is enrolled as a full-time student in an accredited college or university; (B) who was claimed as a dependent by the member for federal income tax purposes at the time of member's death; and (C) whose relationship with the member is described in paragraph (1), subparagraph (A), (B) or (C) of this subsection.
(o) "Dependent parent" means the father or mother of the member who was claimed as a dependent by the member for federal income tax purposes at the time of the member's death.
(p) "Disability service" means service received by a member, expressed in whole years, fractions thereof or both, equal to one half of the whole years, fractions thereof, or both, during which time a member receives disability benefits under section thirteen or fourteen of this article.
(q) "Early retirement age" means age forty or over and completion of twenty years of service.
(r) "Effective date" means the first day of July, one thousand nine hundred ninety-seven.
(s) "Final average salary" means the average of the highest annual compensation received for covered employment by the member during any three consecutive plan years within the member's last ten years of service. If the member did not have annual compensation for the three full plan years preceding the member's attainment of normal retirement age and during that period the member received disability benefits under section thirteen or fourteen of this article then "final average salary" means the average of the monthly salary deemed paid to the member during that period as determined under section seventeen of this article multiplied by twelve.
(t) "Fund" means the West Virginia deputy sheriff retirement fund created pursuant to section six of this article.
(u) "Hour of service" means:
(1) Each hour for which a member is paid or entitled to payment for covered employment during which time active duties are performed. These hours will be credited to the member for the plan year in which the duties are performed; and
(2) Each hour for which a member is paid or entitled to payment for covered employment during a plan year but where no duties are performed due to vacation, holiday, illness, incapacity including disability, layoff, jury duty, military duty, leave of absence, or any combination thereof, and without regard to whether the employment relationship has terminated. Hours under this paragraph will be calculated and credited pursuant to section 2530.200b-2 of the federal department of labor regulations which are incorporated herein by reference. A member will not be credited with any hours of service for any period of time he or she is receiving benefits under section thirteen or fourteen of this article; and
(3) Each hour for which back pay is either awarded or agreed to be paid by the employing county commission, irrespective of mitigation of damages. The same hours of service will not be credited both under paragraph (1) or (2) of this subsection, and under this paragraph. Hours under this paragraph will be credited to the member for the plan year or years to which the award or agreement pertains, rather than the plan year in which the award, agreement or payment is made.
(v) "Member" means a deputy sheriff first hired as such after the effective date of this article, as defined in subsection (r) of this section, or a deputy sheriff first hired prior to the effective date and who elects to become a member pursuant to section five of this article. A member shall remain a member until the benefits to which he or she is entitled under this article are paid or forfeited.
(w)"Monthly salary" means the portion of a member's annual compensation which is paid to him or her per month.
(x)"Normal form" means a monthly annuity which is one twelfth of the amount of the member's accrued benefit which is payable for the member's life. If the member dies before the sum of the payments he or she receives equals his or her accumulated contributions on the annuity starting date, the named beneficiary shall receive in one lump sum the difference between the accumulated contributions at the annuity starting date and the total of the retirement income payments made to the member.
(y) "Normal retirement age" means the first to occur of the following:
(1) Attainment of age fifty years and the completion of twenty or more years of service;
(2) While still in covered employment, attainment of at least age fifty years, and when the sum of current age plus years of service equals or exceeds seventy years;
(3) While still in covered employment, attainment of at least age sixty years, and completion of five years of service; and
(4) Attainment of age sixty-two years and completion of five or more years of service.
(z) "Partially disabled" means a member's inability to engage in the duties of deputy sheriff by reason of any medically determinable physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than twelve months. A member may be deemed partially disabled for the purposes of this article and maintain the ability to engage in other gainful employment which exists within the state but which ability would not enable him or her to earn an amount at least equal to two thirds of the annual compensation earned by all active members of this plan during the plan year ending as of the most recent thirtieth day of June, as of which plan data has been assembled and used for the actuarial valuation of the plan.
(aa) "PERS" means the West Virginia public employee's retirement system created by article ten, chapter five of this code.
(bb) "Plan" means the West Virginia deputy sheriff death, disability and retirement plan established by this article.
(cc) "Plan year" means the twelve month period commencing on the first day of July and ending the following thirtieth day of June of any designated year.
(dd) "Regular interest" means such rate or rates of interest per annum, compounded annually, as CPRB shall from time to time adopt.
(ee) "Retirement income payments" means the annual retirement income payments payable under the plan.
(ff) "Spouse" means the person to whom the member is legally married on the annuity starting date.
(gg) "Surviving spouse" means the person to whom the member was legally married at the time of the member's death and who survived the member.
(hh) "Totally disabled" means a member's inability to engage in substantial gainful activity by reason of any medically determined physical or mental impairment that can be expected to result in death or that has lasted or can be expected to last for a continuous period of not less than twelve months.
For purposes of this subsection:
(1) A member is totally disabled only if his or her physical or mental impairment or impairments is of such severity that he or she is not only unable to perform his or her previous work as a deputy sheriff but also cannot, considering his or her age, education and work experience, engage in any other kind of substantial gainful employment which exists in the state regardless of whether: (A) Such work exists in the immediate area in which the member lives; (B) whether a specific job vacancy exists; or (C) whether the member would be hired if he or she applied for work.
(2) "Physical or mental impairment" is an impairment that results from an anatomical, physiological, or psychological abnormality that is demonstrated by medically accepted clinical and laboratory diagnostic techniques.
A member's receipt of social security disability benefits creates a rebuttable presumption that the member is totally disabled for purposes of this plan. Substantial gainful employment rebuts the presumption of total disability.
(ii) "Year of service". A member shall, except in his or her first and last years of covered employment, be credited with year of service credit based upon the hours of service performed as covered employment and credited to the member during the plan year based upon the following schedule:
Hours of ServiceYear of Service Credited
Less than 5000
500 to 999 1/3
1,000 to 1,4992/3
1,500 or more1
During a member's first and last years of covered employment, the member shall be credited with one twelfth of a year of service for each month during the plan year in which the member is credited with an hour of service. A member is not entitled to credit for years of service for any time period during which he or she received disability payments under section thirteen or fourteen of this article. Except as specifically excluded, years of service include covered employment prior to the effective date.
Years of service which are credited to a member prior to his or her receipt of accumulated contributions upon termination of employment pursuant to section twelve of this article or section thirty, article ten, chapter five of this code, shall be disregarded for all purposes under this plan unless the member repays the accumulated contributions with interest pursuant to section twelve of this article or had prior to the effective date made the repayment pursuant to section eighteen, article ten, chapter five of this code.

§7-14D-3. Creation and administration of West Virginia deputy sheriff retirement system.

There is hereby created the West Virginia deputy sheriff retirement system. The purpose of this system is to provide for the orderly retirement of deputy sheriffs who become superannuated because of age or permanent disability and to provide certain survivor death benefits. The retirement system constitutes a body corporate. All business of the system shall be transacted in the name of the West Virginia deputy sheriff retirement system.

§7-14D-4. Article to be liberally construed; supplements federal social security.

The provisions of this article shall be liberally construed so as to provide a general retirement system for deputy sheriffs eligible to retire under the provisions of this plan. Nothing in this article may be construed to permit a county to substitute this plan for federal social security now in force in West Virginia.
CPRB shall administer the plan in accordance with its terms and may construe the terms and determine all questions arising in connection with the administration, interpretation and application of the plan. CPRB may sue and be sued, contract and be contracted with and conduct all the business of the system in the name of the plan. CPRB may propose rules for legislative approval in accordance with the provisions of article three, chapter twenty-nine-a of this code, that it deems necessary to carry out the provisions of the plan. CPRB may employ such persons as it deems necessary or desirable to administer the plan. The primary responsibility of CPRB is to administer the plan for the exclusive benefit of the members and their beneficiaries subject to the specific provisions of the plan. This plan and the moneys held in trust hereunder constitute a qualified trust under section 401 of the Internal Revenue Code and shall be administered and construed as such.

§7-14D-5. Members.

Any deputy sheriff first employed by a county in covered employment after the effective date of this article shall be a member of this retirement system and plan and may not qualify for membership in any other retirement system administered by the CPRB, so long as he or she remains employed in covered employment.
Any deputy sheriff employed in covered employment on the effective date of this article shall within six months of the effective date notify in writing both the county commission in the county in which he or she is employed and the CPRB of his or her desire to become a member. Any deputy sheriff who so elects shall cease to be a member or have any credit for employment in any other retirement system administered by the CPRB and shall continue to be ineligible so long as the deputy sheriff remains employed in covered employment. Any deputy sheriff who does not affirmatively elect to become a member of the plan shall continue to be eligible for such other retirement system as is from time to time offered to other county employees but shall be forever ineligible for this plan regardless of any subsequent termination of employment and rehire.
Any deputy sheriff who was employed as a deputy sheriff prior to the effective date, but not employed as such on the effective date, shall become a member upon rehire as a deputy sheriff after the effective date. For purposes of this subsection, the member's years of service and credited service prior to the effective date will not be counted for any purposes under this plan unless: (1) The deputy sheriff has not received the return of his or her accumulated contributions pursuant to section thirty, article ten, chapter ten of this code; or (2) the accumulated contributions returned to the member have been repaid pursuant to section twelve of this article. If the conditions of (1) or (2) of this subsection are met, all years of the deputy sheriff's covered employment shall be counted as years of service. In connection with each deputy sheriff receiving credit for prior employment provided in this subsection, a transfer from PERS to this plan shall be made pursuant to the procedures described in section eight of this article.
Once made the election is irrevocable. All deputy sheriffs first employed after the effective date and deputy sheriffs electing to become members as described in this section shall be members as a condition of employment and shall make the contributions required by section seven of this article.

§7-14D-6. Creation of fund; investments.

There is hereby created the "West Virginia deputy sheriff retirement fund" for the benefit of the members of the retirement system created pursuant to this article and the dependents of any deceased or retired member of the system.
All moneys paid into and accumulated in the fund, except such amounts as are designated by CPRB for payment of benefits as provided in this article, shall be held in trust and invested by the state board of investments as provided by law.

§7-14D-7. Members' contributions; employer contributions.

There shall be deducted from the monthly salary of each member and paid into the fund eight and one-half percent of the amount of his or her monthly salary. An additional twelve percent of the monthly salary of each member shall be paid to the fund by the county commission of the county in which the member is employed in covered employment. Upon a determination by CPRB that the benefits provided by this article can be adequately provided by lesser contribution, CPRB shall reduce the required member and employer contributions proportionally.

§7-14D-8. Transfer from PERS.

In connection with those deputy sheriffs who were participating in PERS and who have elected to join the plan, the board of trustees of PERS shall within ninety days of the effective date, transfer assets from the PERS trust fund into the trust fund to be established for the plan. The amount of assets to be transferred shall be computed as of the first day of July, one thousand nine hundred ninety-six, using the actuarial valuation assumptions in effect for the first day of July, one thousand nine hundred ninety-six, actuarial valuation of PERS, and updated with seven and one-half percent annual interest to the date of the actual asset transfer. Market value of the assets in PERS shall be determined as of the end of the month preceding the actual transfer. The computation of asset share to be transferred will be determined by CPRB as follows:
(a) Compute the market value of the PERS assets;
(b) Compute the accrued liability for all PERS retirees, beneficiaries, disabled retirees and terminated inactive members;
(c) Reduce the market value of PERS assets by the accrued liability determined in subsection (b) of this section.
(d) Compute the entry age method accrued liability for all active PERS members.
(e) Compute the share of accrued liability as determined pursuant to subsection (d) of this section, that is attributable to those deputy sheriffs in PERS who have elected to transfer to the plan.
(f) Compute the percentage of active's accrued liability computed to the deputy sheriffs by dividing subsection (e) by subsection (d) of this section.
(g) Determine the asset share to be transferred from PERS to the plan by multiplying subsection (c) times subsection(f) of this section.

§7-14D-9. Retirement; commencement of benefits.

A member may retire and commence to receive retirement income payments upon attaining early or normal retirement age by filing with the CPRB his or her voluntary petition in writing for retirement: Provided, That retirement income payments shall commence no later than the first day of April following the member's seventy and one-half year birthday or the cessation of covered employment, whichever later occurs. Upon receipt of the petition, CPRB shall promptly provide the member with an explanation of his or her optional forms of retirement benefits and upon receipt of properly executed forms from the member, CPRB shall process member's request for and commence payments as soon as administratively feasible.

§7-14D-10. Retirement benefits.

(a) Normal retirement. -- A member who ceases covered employment, has attained normal retirement age, and whose annuity starting date is within forty-five days of the later of the two, shall receive retirement income payments equal to his or her accrued benefit in the normal form or retirement income payments in an optional form as provided under section eleven of this article which is the actuarial equivalent of his or her accrued benefit in the normal form.
(b) Early retirement. -- A member who ceases covered employment and has attained early retirement age while in covered employment may elect to receive retirement income payments commencing prior to his or her normal retirement age which is the actuarial equivalent of the member's accrued benefit which would have been payable at the member's normal retirement age based upon his or her final average salary and years of credited service determined at the cessation of his or her covered employment. Payments will be in the normal form or in an optional form as allowed in section eleven of this article which is the actuarial equivalent of the normal form as reduced for early commencement.
(c) Late retirement. -- A member whose annuity starting date is more than forty-five days after the later of his or her attainment of normal retirement age or the cessation of his or her covered employment shall receive retirement income payments equal to the accrued benefit in the normal form which is the actuarial equivalent of the benefit to which he or she would be entitled had the retirement income payments commenced within forty-five days of the later of his or her attainment of normal retirement age or cessation of covered employment.
Retirement benefits shall be paid monthly in an amount equal to one twelfth of the retirement income payments elected and at such times as established by CPRB. Notwithstanding any other provision of the plan, a member who is married on the annuity starting date will receive his or her retirement income payments in the form of a sixty-six and two-thirds percent joint and survivor annuity with his or her spouse unless prior to the annuity starting date the spouse waives the form of benefit.

§7-14D-11. Annuity options.

Prior to the annuity starting date, but not thereafter, a member may elect to receive retirement income payments in the normal form, or the actuarial equivalent of the normal form from the following options:
(a) Option A - Joint and Survivor Annuity. A life annuity payable during the joint lifetime of the member and his or her beneficiary who is a natural person with an insurable interest in the member's life. If the retiring member is married, the spouse must sign a waiver of benefit rights if the beneficiary is to be other than the spouse. Upon the death of either annuitant, the pension continues as a life annuity to the survivor in an amount equal to the amounts selected from the following: Fifty percent, sixty-six and two-thirds percent, seventy-five percent or one hundred percent of the amount paid while both were living.
(b) Option B - Contingent Joint and Survivor Annuity. A life annuity payable during the joint lifetime of the member and his or her beneficiary who must be a natural person with an insurable interest in the member. If the retiring member is married, the spouse must sign a waiver of benefit rights if the beneficiary is to be other than the spouse. Upon the death of the member, the pension continues as a life annuity to the beneficiary in an amount (as selected) equal to fifty percent, sixty-six and two-thirds percent, seventy-five percent or one hundred percent of the amount paid while both were living. If the beneficiary dies first, the monthly amount is not reduced.
(c) Option C - Ten Years Certain and Life Annuity. A life annuity payable during the member's lifetime but for a minimum of ten years in any event. If the member dies before ten years of annuity payments, the remaining payments will be made to a designated beneficiary, if any, or otherwise to the member's estate.
(d) Option D - Level Income Annuity. A life annuity payable monthly in an increased amount "A" from the time of retirement until the member is social security retirement age, and then a lesser amount "B" payable for the member's lifetime thereafter, with these amounts computed actuarially to satisfy the following two conditions:
(1) Actuarial equivalence (the annuities must be of equal expected value). The actuarial present value at the date of retirement of the member's annuity if taken in the normal form must equal the actuarial present value of the term life annuity in amount "A" plus the actual present value of the deferred life annuity in amount "B".
(2) Level income. The amount "A" equals the amount "B" plus the amount of the member's estimated monthly social security primary insurance amount (PIA) that would commence at the date amount "B" becomes payable. For this calculation, the PIA is estimated when the member applies for retirement, using social security law then in effect, using assumptions established by CPRB.
(e) Option E - Level Income Joint and Survivor Annuity. An annuity structured under the same methodology as in subsection (d) of this section, with the term annuity amount "A" payable until the member's social security retirement age and the amount "B" payable as a fifty percent, sixty-six and two-thirds percent, seventy-five percent or one hundred percent joint and survivor annuity upon the member's attaining social security retirement age. If the retiring member is married, the spouse must sign a waiver of benefit rights if the beneficiary is to be other than the spouse.
(f) Option F - Increasing Annuity. A life annuity payable in any of the forms described in this section, and subject to the corresponding conditions, with the amount of monthly payment increasing at one and one-half percent, two percent or two and one-half percent annually (compounded) throughout the life of the annuity. Annuities taken in this form will be adjusted each first day of April following the member's annuity starting date with a prorated increase given on the first day of April to retirees who have not yet been retired a full year on that date.
In the case of a member who has elected either Option B or E, as described in subsections (b) and (e) of this section, respectively, and whose beneficiary dies prior to the member's death, the member may name an alternative beneficiary. If an alternative beneficiary is named within eighteen months following the death of the prior beneficiary, the benefit will be adjusted actuarially to be the actuarial equivalent of the member's normal form of benefit. If the election is not made until eighteen months after the death of the prior beneficiary, the amount will be reduced so that it is only ninety percent of the actuarial equivalent of the member's normal form of benefit.

§7-14D-12. Refunds to certain members upon discharge or resignation; deferred retirement.

(a) Any member who terminates covered employment and is not eligible to receive disability benefits under this article may by written request filed with CPRB be entitled to receive from the fund the member's accumulated contributions. Except as set forth in subsection (b) of this section, upon such withdrawal the member shall forfeit his or her accrued benefit and cease to be a member.
(b) Any member withdrawing accumulated contributions from either this plan or PERS who may thereafter be reemployed in covered employment will not receive any credited service for such prior employment unless following his or her reenlistment, the member redeposits in the fund the amount of the accumulated contributions, together with interest thereon at the rate of seven and one-half percent per annum from the date of withdrawal to the date of redeposit, in which case he or she shall receive the same credit on account of his or her former service as if no refund had been made. The repayment must be made within sixty months of the deputy sheriff's reemployment in a lump sum or if later, within sixty months of the effective date.
(c) Every member who completes sixty months of covered employment is eligible, upon cessation of covered employment, to either withdraw his or her accumulated contributions in accordance with subsection (a) of this section, or to choose not to withdraw his or her accumulated contribution and to receive retirement income payments upon attaining early or normal retirement age.

§7-14D-13. Awards and benefits for disability -- Duty related.

Any member who after the effective date and during covered employment: (A) Has been or becomes either totally or partially disabled by injury, illness or disease; (B) the disability is a result of an occupational risk or hazard inherent in or peculiar to the services required of members; (C) the disability was incurred while performing law enforcement functions during either scheduled work hours or at any other time; and (D) in the opinion of the CPRB, the member is by reason of the disability unable to perform adequately the duties required of a deputy sheriff, is entitled to receive and will be paid from the fund in monthly installments during the lifetime of the member, or if sooner until the member attains normal retirement age or until the disability sooner terminates, either subsection (a) or (b) of this section.
(a) If the member is totally disabled, ninety percent of the member's average monthly compensation, as adjusted pursuant to section seventeen of this article, for the twelve month period preceding the member's disability, or the shorter period if the member has not worked twelve months.
(b) If the member is partially disabled, forty-five percent of the member's average monthly compensation, as adjusted pursuant to section seventeen of this article, for the twelve-month period preceding the member's disability, or the shorter period if the member has not worked twelve months.
If the member remains disabled until attaining normal retirement age, the member shall then receive the retirement benefit provided for in sections ten and eleven of this article.

§7-14D-14. Same -- Due to other causes.

Any member who after the effective date and during covered employment: (A) Has been or becomes totally or partially disabled from any cause other than those set forth in section thirteen of this article and not due to vicious habits, intemperance or willful misconduct on his or her part; and (B) in the opinion of CPRB, he or she is by reason of the disability unable to perform adequately the duties required of a deputy sheriff, is entitled to receive and will be paid from the fund in monthly installments during the lifetime of the member, or if sooner until the member attains normal retirement age or until the disability sooner terminates, either (a) or (b) of this section.
(a) If the member is totally disabled, eighty percent of his or her average monthly compensation, as adjusted pursuant to section seventeen of this article, for the twelve-month period preceding the disability, or the shorter period, if the member has not worked twelve months.
(b) If the member is partially disabled, forty percent of his or her average monthly compensation, as adjusted pursuant to section seventeen of this article, for the twelve-month period preceding the disability, or the shorter period, if the member has not worked twelve months.
If the member remains disabled until attaining normal retirement age, the member shall then receive the retirement benefit provided for in sections ten and eleven of this article.

§7-14D-15. Same -- Physical examinations; termination of disability.

CPRB may require any member who has applied for or is receiving disability benefits under this article to submit to a physical examination, mental examination or both, by a physician or physicians selected or approved by CPRB and may cause all costs incident to the examination to be paid from the fund. The costs may include hospital, laboratory, X ray, medical and physicians' fees. A report of the findings of any such physician shall be submitted in writing to the CPRB for its consideration. If, from the report, independent information, or from the report and any hearing thereon, the CPRB is of the opinion and finds that: (i) The member has become reemployed as a law-enforcement officer; (ii) two physicians who have examined the member have found that considering the opportunities for law enforcement in West Virginia, the member could be so employed; or (iii) such other facts exist to demonstrate that the member is no longer totally disabled or partially disabled as the case may be, then the disability benefits shall cease. If the member was totally disabled and is found to have recovered, the CPRB shall determine whether the member continues to be partially disabled. If the CPRB finds that the member is no longer totally disabled but is partially disabled, then the member shall continue to receive partial disability benefits in accordance with this article. Benefits shall cease once the member has been found to be no longer either totally or partially disabled.

§7-14D-16. Prior disability.

Any deputy sheriff who became totally disabled prior to the effective date shall be a member and shall be entitled to disability, death and retirement benefits under this article in lieu of any other disability, death or retirement benefits provided by the state or his or her county of employment. The amounts of the benefits shall be determined as if the disability first commenced after the effective date with monthly compensation equal to that average monthly compensation which the member was receiving in the plan year prior to the initial disability as adjusted pursuant to section seventeen of this article.

§7-14D-17. Disability -- Benefit adjustment factor.

For each member who is receiving disability payments under this article, the CPRB shall adjust the monthly compensation upon which the disability payments are based on each annual determination date by the lesser of two percent or the percentage increase in the urban consumer price index between: (i) The month that precedes the month of determination date by two months; and (ii) the month one year previous to that month (or else the month containing the month of disablement, if less than one year has passed as of the determination date). The annual determination date shall be established by the CPRB. The annual redetermination of monthly compensation will affect disability benefits paid to the member during the twelve months beginning with the first month that follows the determination date by at least one month, or if shorter, when the disability payments terminate.
§7-14D-18. Awards and benefits to surviving spouse -- When member dies in performance of duty, etc.
The surviving spouse of any member who, after the effective date while in covered employment, has died or dies, by reason of injury, illness or disease resulting from an occupational risk or hazard inherent in or peculiar to the service required of members, while the member was or is engaged in the performance of his or her duties as a deputy sheriff, or the survivor spouse of a member who dies from any cause while receiving benefits pursuant to section thirteen of this article, is entitled to receive and shall be paid from the fund benefits as follows: To the surviving spouse annually, in equal monthly installments during his or her lifetime an amount equal to the greater of: (i) Two thirds of the base salary received in the preceding twelve-month period by the deceased member; or (ii) if the member dies after his or her early or normal retirement age, the monthly amount which the spouse would have received had the member retired the day before his or her death, elected a one hundred percent joint and survivor annuity with the spouse as the joint annuitant, and then died. Where the member is receiving disability benefits under section thirteen of this article at the time of his or her death, the most recent monthly compensation determined under section seventeen of this article shall be substituted for base salary in (i) of this section.
Benefits for a surviving spouse received under this section, section twenty and section twenty-one of this article shall be in lieu of receipt of any other benefits under this article for the spouse or any other person or under the provisions of any other state retirement system based upon the member's covered employment.

§7-14D-19. Same -- When member dies from nonservice-connected causes.

In any case where a member, while in covered employment after the effective date, has died or dies from any cause other than those specified in section eighteen of this article and not due to vicious habits, intemperance or willful misconduct on his or her part, the fund shall pay annually in equal monthly installments to the surviving spouse during his or her lifetime, a sum equal to the greater of: (i) One half of the base salary received in the preceding twelve-month employment period by the deceased member; or (ii) if the member dies after his or her early or normal retirement age, the monthly amount which the spouse would have received had the member retired the day before his or her death, elected a one hundred percent joint and survivor annuity with the spouse as the joint annuitant, and then died. Where the member is receiving disability benefits under section fourteen of this article at the time of his or her death, the most recent monthly compensation determined under section seventeen of this article shall be substituted for base salary in (i) of this section.
Benefits for a surviving spouse received under this section, section twenty and section twenty-one of this article shall be in lieu of receipt of any other benefits under this article for the spouse or any other person or under the provisions of any other state retirement system based upon the member's covered employment.
§7-14D-20. Additional death benefits and scholarships -- Dependent children.
In addition to the spousal death benefits in sections eighteen and nineteen of this article, the surviving spouse shall be entitled to receive and there shall be paid to the spouse one hundred dollars monthly for each dependent child.
If the surviving spouse dies or if there is no surviving spouse, the fund shall pay monthly to each dependent child a sum equal to one fourth of the surviving spouse's entitlement under either section eighteen or nineteen of this article. If there is neither a surviving spouse nor a dependent child, the fund shall pay in equal monthly installments to the dependent parents of the deceased member during their joint lifetimes a sum equal to the amount which a surviving spouse, without children, would have received: Provided, That when there is only one dependent parent surviving, that parent is entitled to receive during his or her lifetime one-half the amount which both parents, if living, would have been entitled to receive.
Any person qualifying as a dependent child under this, in addition to any other benefits due under this or other sections of this article, is entitled to receive a scholarship to be applied to the career development education of that person. This sum, up to but not exceeding ten thousand dollars per year, shall be paid from the fund to any university or college in this state or to any trade or vocational school or other entity in this state approved by the CPRB, to offset the expenses of tuition, room and board, books, fees or other costs incurred in a course of study at any of these institutions so long as the recipient makes application to the CPRB on an approved form and under such rules as the CPRB may provide, and maintains scholastic eligibility as defined by the institution or the CPRB. The CPRB may by appropriate rules define age requirements, physical and mental requirements, scholastic eligibility, disbursement methods, institutional qualifications and other requirements as necessary and not inconsistent with this section.

§17-14D-21. Burial benefit.

Any member who dies while in covered employment after the effective date is entitled to a lump sum burial benefit of ten thousand dollars. If the member is married, the burial benefit will be paid to the member's spouse. If the member is not married, the burial benefit will be paid to the member's estate for the purposes of paying burial expenses, settling the member's final affairs, or both. Any unspent balance will be distributed as a part of the member's estate. If the member is not entitled to a death benefit under sections nineteen and twenty of this article, then if greater, the amount payable to the member's estate shall be his or her accumulated contributions.

§7-14D-22. Double death benefits prohibited.

A surviving spouse is not entitled to receive simultaneous death benefits under this article as a result of the death of two or more members to whom the spouse was married. Any spouse who becomes eligible for a subsequent death benefit under this article while receiving a death benefit under this article shall receive the higher benefit, but not both.

§7-14D-23. Loans to members.

A member who is not yet receiving disability or retirement income benefits from the plan may borrow from the plan an amount up to one half of his or her accumulated contributions, but not less than five hundred dollars nor more than eight thousand dollars. No loan may be made from the plan if CPRB determines that such loans constitute more than fifteen percent of the amortized cost value of the assets of the plan as of the last day of the preceding plan year. CPRB may discontinue such loans any time it determines that cash flow problems might develop as a result of the loans. Each loan shall be repaid through monthly installments over periods of six through sixty months and carry interest on the unpaid balance and an annual effective interest rate that is two hundred basis points higher than the most recent rate of interest used by CPRB for determining actuarial contributions levels. Monthly loan payments shall be calculated to be as nearly equal as possible with all but the final payment being an equal amount. An eligible member may make additional loan payments or pay off the entire loan balance at any time without incurring any interest penalty. At the member's option, the monthly loan payment may include a level premium sufficient to provide declining term insurance with the plan as beneficiary to repay the loan in full upon the member's death. If a member declines such insurance and dies before the loan is repaid, the unpaid balance of the loan will be deducted from the lump sum insurance benefit payable under section twenty-one of this article.
A member with an unpaid loan balance who wishes to retire may have the loan repaid in full by accepting retirement income payments reduced by deducting from the actuarial reserve for the accrued benefit the amount of the unpaid balance and then converting the remaining of the reserve to a monthly pension payable in the form of the annuity desired by the member.

§7-14D-24. Service as sheriff.

Any member who after the effective date is elected sheriff of a county in West Virginia may elect to continue as a member in this plan by paying the amounts required by section seven of this article. Upon such election, service as a sheriff shall be treated as covered employment and the sheriff is not entitled to any credit for such service under any other retirement system of the state.

§7-14D-25. Exemption from taxation, garnishment and other process.

The moneys in the fund and the right of a member, spouse or other beneficiary to benefits under this article, to the return of contributions, or to any retirement, death or disability payments under the provisions of this article, are hereby exempt from any state or municipal tax; are not subject to execution, garnishment, attachment or any other process whatsoever; and are unassignable except as is provided in this article.

§7-14D-26. Fraud; penalties; and repayment.

Any person who knowingly makes any false statement or who falsifies or permits to be falsified any record of the retirement system in any attempt to defraud that system is guilty of a misdemeanor and, upon conviction, shall be punished by a fine not to exceed one thousand dollars, by confinement in the county or regional jail not to exceed one year, or by both a fine and confinement. Any increased benefit received by any person as a result of the above shall be returned to the fund upon demand by the CPRB.

§7-14D-27. Credit toward retirement for member's prior military service; credit toward retirement when member has joined armed forces in time of armed conflict.

(a) Any member who has previously served on active military duty is entitled to receive additional years of service for the purpose of determining his or her years of credited service for a period equal to the active military duty not to exceed five years, subject to the following:
(1) That he or she has been honorably discharged from the armed forces;
(2) That he or she substantiates by appropriate documentation or evidence his or her period of active military duty; and
(3) That he or she is receiving no benefits from any other retirement system for his or her active military duty.
(b) In addition, any member who while in covered employment was commissioned, enlisted or inducted into the armed forces of the United States or, being a member of the reserve officers' corps, was called to active duty in the armed forces between the first day of September, one thousand nine hundred forty, and the close of hostilities in World War II, or between the twenty- seventh day of June, one thousand nine hundred fifty, and the close of the armed conflict in Korea on the twenty-seventh day of July, one thousand nine hundred fifty-three, between the first day of August, one thousand nine hundred sixty-four and the close of the armed conflict in Vietnam, or during any other period of armed conflict by the United States whether sanctioned by a declaration of war by the Congress or by executive or other order of the president, is entitled to and shall receive credited service, for a period equal to the full time that he or she has or, pursuant to that commission, enlistment, induction or call, shall have served with the armed forces subject to the following:
(1) That he or she has been honorably discharged from the armed forces;
(2) That within ninety days after honorable discharge from the armed forces, he or she presented himself or herself to the county commission and offered to resume service as a deputy sheriff; and
(3) That he or she has made no voluntary act, whether by reenlistment, waiver of discharge, acceptance of commission or otherwise, to extend or participate in extension of the period of service with the armed forces beyond the period of service for which he or she was originally commissioned, enlisted, inducted or called.
(c) The total amount of service allowable under subsections (a) and (b) of this section may not exceed five years.

NOTE: The purpose of this bill is to create the Deputy Sheriff's Retirement System.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

Article fourteen-d is new; therefore, strike-throughs and underscoring have been omitted.

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