WEST virginia Legislature
2017 regular session
House Bill 2182
By Delegate McGeehan
8, 2017; Referred
to the Committee on Pensions then Finance.]
A BILL to amend and reenact §11-21-12d of the Code of West Virginia, 1931, as amended, relating to continuing personal income tax adjustment to gross income of certain retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee.
Be it enacted by the Legislature of West Virginia:
That §11-21-12d of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 21. PERSONAL INCOME TAX.
§11-21-12d. Additional modification reducing federal adjusted gross income.
addition to amounts authorized to be subtracted from federal adjusted gross
income pursuant to subsection (c), section twelve of this article, any person
who retires under an employer-provided defined benefit pension plan that
terminates prior to or after the retirement of that person and the pension plan
is covered by a guarantor whose maximum benefit guarantee is less than the
maximum benefit to which the retiree was entitled had the plan not terminated
may subtract annually from his or her federal adjusted income a sum equal to
the difference in the amount of the maximum annual pension benefit the person
would have received for such tax year had the plan not terminated and the
maximum annual pension benefit actually received from the guarantor under a
benefit guarantee plan: Provided, That if the Tax Commissioner
determines that this adjustment reduces the revenues of the state by
$2 million or more in any one year, then the Tax Commissioner shall reduce
the percentage of the reduction to a level at which the commissioner believes
will reduce the cost of the adjustment to $2 million for the next year.
This tax adjustment is effective for taxable years beginning on and after
January 1, 2008: Provided, however, That for the taxable year 2007, the
shall be is effective and shall apply applies
retroactively: Provided further, That the tax adjustment shall
terminate terminates for the tax years on and after January 1, 2012:
Provided further, That the tax adjustment is effective for the
taxable years beginning on and after January 1, 2017, and terminates for tax
years after December 31, 2019. This modification is available regardless
of the type of return form filed.
NOTE: The purpose of this bill is to continue providing a personal income tax adjustment to the gross income of certain retirees receiving pensions from defined pension plans that terminated and are being paid a reduced maximum benefit guarantee.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.