SB 455 Text

Senate Bill No. 455
(By Senators Dittmar, Ross, Helmick, Boley and Whitlow)
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[Introduced February 20, 1995; referred to the Committee
on Pensions; and then to the Committee on Finance.]
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A BILL to amend article ten, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section twenty-two-f, relating to the public employees retirement act; and providing supplemental benefits for retirees and future retirees under specified conditions.

Be it enacted by the Legislature of West Virginia:
That article ten, chapter five of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section twenty-two-f, to read as follows:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-22f. Supplemental benefits for retirees and future
retirees effective July 1, 1995; calculation of benefits and conditions of payment.

(a) A supplement to retirement benefits provided shall be paid prospectively to all eligible retirees who have been retired three years or more prior to the first day of July, one thousand nine hundred ninety-five, which supplement shall become effective on the first day of July, one thousand nine hundred ninety-five. Any such supplement shall be paid in pro rata monthly installments.
(b) A supplement to retirement benefits provided shall be paid prospectively to all other retirees, present and future, who are in the public employees retirement system on or after the first day of July, one thousand nine hundred ninety-five, upon the third annual anniversary following each annuitant's effective date of retirement. Such supplemental payments shall begin in the month which follows the annuitant's third annual anniversary following retirement. Provided, That the Legislature, upon a finding made by the consolidated public retirement board by the thirty-first day of December in any year that the unfunded accrued liability of the public employees retirement system, measured on market value, exceeds twenty percent of the fund's total value, may modify the supplemental benefits herein granted, which modification may take the form of postponing, for a temporary period, the right of retirees reaching their third anniversary to receive their supplements, by both postponing and/or imposing a pro rata reduction in supplements currently received under this section, and when absolutely necessary to preserve the actuarial soundness of the fund, by suspending and canceling the future payment of all supplements provided under this section which are to be received. In any succeeding year, following postponement, pro rata reduction or cancellation, in which the consolidated public retirement board makes a finding that the unfunded accrued liability of the public employees retirement system, measured on market value, is at or below twenty percent of the fund's total value, the supplements shall be restored or commenced, prospectively, for all those eligible at that time.
(c) The total amount of the supplement to be paid to qualified annuitants under subsections (a) and (b) of this section shall be an amount equal to twelve and one-half percent of their gross annual retirement benefits at retirement: Provided, That the supplement shall only be calculated and paid on twelve and one-half percent of the first twelve thousand dollars of gross annual benefits at retirement: Provided, however, That annuitants who have received supplements granted under the provisions of section twenty-two-e of this article may elect to receive the supplemental benefit provided in this section in lieu of, but not in addition to, any incentives provided under the provisions of section twenty-two-e of this article.
(d) Each survivor beneficiary shall receive as that survivor beneficiary's supplement under this section an amount equal to that pro rata share of that survivor beneficiary's preliminary supplement, as defined above, as such survivor beneficiary's benefit, without regard to any supplements, constitutes a pro rata share of the original benefit of the original retiree: Provided, That for any person who becomes a survivor beneficiary, after the first day of July, one thousand nine hundred ninety-five, the benefit provided under this section shall be recomputed under the provisions of this subsection.
(e) Each disabled retiree shall receive as that disabled retiree's supplement under this section that pro rata share of that disabled retiree's preliminary supplement, as defined above, as such disabled retiree's current benefit, without regard to any supplements; constitutes as a pro rata share of that disabled retiree's original benefit: Provided, That any disabled retiree scheduled under the terms of the retirement system to have a benefit recomputed at some time subsequent to the effective date of the section will, at the time of that recomputation, also have the supplemental benefit recomputed under the terms of the preceding sentence.
(f) Any supplemental benefit computed under this section shall only be paid in lieu of, and not in addition to, the payment of any prior supplemental benefit amounts or incentives provided by law which are currently being paid: Provided, That any annuitant receiving a supplemental benefit greater than that provided in this section shall continue to receive the current supplemental benefits.
(g) The supplement provided in this section shall be recalculated on a pro rata basis of the preliminary supplement whenever the original annuity amount is adjusted due to the death or disability of an annuitant or any other event.

NOTE: The purpose of this bill is to provide a supplement to retirees who have not previously received supplemental benefits equal to those provided by this bill, and an equal supplement to all future retirees upon their third anniversary of retirement. The Legislature may, under conditions stated herein, postpone, reduce or cancel supplemental benefits provided by this bill.

This section is new; therefore, strike-throughs and underscoring have been omitted.

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