ENROLLED
Senate Bill No. 262
(By Senators Plymale, Helmick, Jackson, Manchin,
Walker, Boley and Kimble)
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[Passed March 7, 1995; in effect ninety days from passage.]
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AN ACT to amend and reenact section four, article ten-c, chapter
five of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, relating to the tax-deferral of
federal and state income tax of all employee contributions
into the West Virginia public employees retirement system.
Be it enacted by the Legislature of West Virginia:
That section four, article ten-c, chapter five of the code of
West Virginia, one thousand nine hundred thirty-one, as amended, be
amended and reenacted to read as follows:
ARTICLE 10C. GOVERNMENT EMPLOYEES RETIREMENT PLANS.
§5-10C-4. Pick-up of members' contributions by participating
public employers.
(a) The state of West Virginia for its public employees and
county board of education for its teachers shall pick-up and pay
the contributions which such employees are required by law to make
to the retirement system in which they are a member for all
compensation earned by its member employees after the thirtieth day of June, one thousand nine hundred eighty-six. Any political
subdivision that is a participating public employer in the West
Virginia public employees retirement system shall pick-up and pay
the contributions which such employees are required by law to make
to the retirement system in which they are members for all
compensation earned by its member employees after the first day of
January, one thousand nine hundred ninety-five. Any election made
by a political subdivision to pick-up and pay employee
contributions prior to the first day of January, one thousand nine
hundred ninety-five, shall remain in effect and not be altered or
amended by the amendments made to this section during the regular
legislative session, one thousand nine hundred ninety-five.
(b) When the participating public employer picks up and pays
the contributions of its member employees, the contributions shall
be treated as employer contributions in determining the tax
treatment thereof under article twenty-one, chapter eleven of this
code, and the federal Internal Revenue Code of 1986, as amended,
and the contributions shall not be included in the gross income of
the employee in determining his or her tax treatment under said
article, and the federal Internal Revenue Code of 1986, as amended,
until they are distributed or made available to the employee or his
or her beneficiary. The participating public employer shall pay
these employee contributions from the same source of funds used in
paying compensation to the employee, by effecting an equal cash
reduction in the gross salary of the employee, or by an off-set
against future salary increases, or by a combination of reduction in gross salary and off-set against future salary increases.
(c) When employee contributions are picked up and paid by the
participating public employer, they shall be treated by the board
of trustees in the same manner and to the same extent as employee
contributions made prior to the date on which employee
contributions are picked up by the participating public employer.
(d) The amount of employee contributions picked up by the
participating public employer shall be paid to the retirement
system in such manner and form, and in such frequency, as the board
of trustees may require and shall be accompanied by such supporting
data as the board of trustees shall from time to time prescribe.
When paid to the retirement system, each of said amounts shall be
credited to the deposit fund account of the member for whom the
contribution was picked up and paid by the participating public
employer.
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