Senate Bill No. 262
(By Senators Plymale, Helmick, Jackson, Manchin,
Walker, Boley and Kimble)
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[Originating in the Committee on Pensions ;
reported February 3, 1995.]
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A BILL 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 other political
subdivision that is a participating public employer in the West
Virginia public employees retirement system may, by a majority vote
of its governing body, elect to pick-up and pay the contributions
of their employees required by section twenty-nine, article ten of
this chapter, for all compensation earned by its member employees
after the thirtieth day of June, one thousand nine hundred eighty-
six, or such later date specified by the governing body. It shall
be the duty of the clerk or secretary of each such political
subdivision electing to pick-up and pay the employee contributions
of its members to certify the determination of the political
subdivision to the board of trustees within ten days from and after
the vote of the governing body. Once the governing body elects to
pick-up the contributions of its member employees, it may not
change its election:
Provided, That 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.
(b) If the participating public employer does not pick-up the
contributions of its member employees, the employer shall continue
to deduct from the compensation paid to the member employee.
(c) If the participating public employer picks up and pays the
contributions of its member employees, such 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 1954, as amended, and such
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 1954, 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.
(d) If 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.
(e) 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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