H. B. 4162
(By Delegates Martin, Michael, Jenkins,
Varner and Douglas)
[Introduced January 26, 2000; referred to the
Committee on Government Organization then Finance.]
A BILL to repeal section four, article ten-d, chapter five of the
code of West Virginia, one thousand nine hundred thirty-one,
as amended; and to amend said chapter by adding thereto a new
article, designated article four-a, relating to creating an
office of actuarial services to provide actuarial services to
the various agencies of the state; powers and duties; payment
for actuarial services and deposit in special account;
director of office designated state actuary; and additional
duties with respect to state retirement legislation.
Be it enacted by the Legislature of West Virginia:
That section four, article ten-d, chapter five of the code of
West Virginia, one thousand nine hundred thirty-one, as amended, be
repealed; and that said chapter be amended by adding thereto a new article, designated article four-a, to read as follows:
ARTICLE 4A. OFFICE OF ACTUARIAL SERVICES.
§5-4A-1. Office created within the office of the state auditor;
powers and duties; payment for services; special
account.
(a) There is created within the office of the state auditor an
office of actuarial services. The office of actuarial services
shall provide actuarial services, whenever required to do so, to
the public employees insurance agency, the bureau of medical
services of the department of health and human resources, the
bureau of employment programs, the consolidated public retirement
board, the board of risk and insurance management and the office of
the insurance commissioner and may provide actuarial services to
other agencies and instrumentalities of the state as may request
actuarial services in writing. Except as specifically permitted in
this article, it is unlawful from and after the time this section
becomes effective for any public officer or administrator of any
executive agency, or for any of the agencies above mentioned, to
expend any public funds of the state of West Virginia for the
purpose of paying any person, firm or corporation for the
performance of any actuarial services:
Provided, That nothing contained in this section impairs or affects any existing valid
contracts of employment for the performance of actuarial services
heretofore made which effectively bind the agency for a definite
term.
(b) The office of actuarial services may collect, and the
various agencies of the state receiving actuarial services shall
pay, the costs of providing the service, to include the
professional actuary's actual expenses in providing the service and
time actually expended in the performance of duties for the agency.
Payments received shall be paid into a special account in the state
treasury to be expended for purposes of the office:
Provided, That
for and after the fiscal year ending the thirtieth day of June, two
thousand, all expenditures shall be made in accordance with
appropriation by the Legislature. Amounts collected which are
found from time to time to exceed the funds needed for the purposes
of this article may be transferred to other accounts or funds and
redesignated for other purposes by appropriation of the
Legislature.
§5-4A-2. Director designated state actuary; staff; duties;
consent to outside actuarial contracts.
(a) The state auditor shall appoint the chief executive officer and director of the office of actuarial services. The
director shall be a professional actuary, and shall also be known
as the state actuary. The state actuary, and all professional
actuaries employed in the office of actuarial services are
classified-exempt employees of the state pursuant to section four,
article six, chapter twenty-nine of this code. The state actuary
may employ professional and support staff as may be necessary to
provide professional actuarial services to the various agencies of
the state. The office of actuarial services shall operate to meet
the needs of the various agencies of the state requiring actuarial
services, while assuring that the independent professional judgment
of the professional actuary providing that service is not
compromised.
(b) It is also the duty of the state actuary to render to the
president of the Senate or the speaker of the House of Delegates a
written opinion or analysis upon any issues submitted to the state
actuary by them or either of them whenever requested in writing so
to do.
(c) In the event the state actuary is of the opinion that the
office of actuarial services for a certain time period does not
have professional actuarial staff in specific areas of expertise to meet the actuarial needs of an agency, the state actuary shall so
advise the chief administrator of the agency by letter. The letter
is sufficient, for that period, to permit the agency to enter into
outside contracts and to expend public funds to pay for the
performance of actuarial services, notwithstanding the provisions
of section one of this article. In the event the chief
administrator of an agency is of the opinion the office of
actuarial services will not or has not adequately met the actuarial
needs of the agency, or that a transition period is desirable
during which actuarial duties are transferred over time from
outside actuaries to the office of actuarial services, the chief
administrator may request a letter from the state actuary
permitting the agency for a certain time period to enter into
outside contracts for specific services requiring that area of
expertise and expend public funds for actuarial services, and a
letter of consent may not be unreasonably withheld. In the event
the state actuary and the chief administrator of an agency disagree
on the issue, the state auditor shall decide the question, and the
state auditor may send or direct the state actuary to send a letter
of consent to the chief administrator of the agency. At the time
any dispute is referred to the state auditor, the state actuary shall, in writing, notify the joint committee on government and
finance of the disagreement on the issue. Payment for outside
contracts for actuarial services by any spending unit may not be
honored unless a letter of consent from the state actuary or the
auditor is first obtained.
(d) Notwithstanding the provisions of section one of this
article, a public officer or administrator of an executive agency,
or any of the agencies enumerated in section one of this article,
may enter into outside contracts and expend public funds for the
performance of actuarial services, for the limited purpose of
obtaining an independent review and second opinion as to an opinion
or analysis by the office of actuarial services. The office of
actuarial services shall cooperate with any independent
professional actuary conducting the review, and shall provide to
the independent professional actuary any materials or documents
reasonably requested and relied upon by the office of actuarial
services in arriving at its opinion or analysis upon an issue.
§5-4A-3. Additional duties with respect to state retirement
legislation.
(a) The office of actuarial services shall perform the
following duties with respect to state retirement legislation:
(1) Analyze each item of state retirement legislation as to
cost, actuarial soundness and adherence to sound pension policy;
(2) Prepare, in accordance with legislative priorities as may
be established by the president of the Senate, the speaker of the
House of Delegates, or the chairs of the joint standing committee
of the Legislature having general jurisdiction over issues relating
to pensions and retirement, an actuarial note to be attached to
each item of state retirement legislation, to be prepared, when
feasible, prior to its formal introduction. The actuarial note
shall briefly summarize the proposed legislation and set forth its
anticipated fiscal and actuarial impact on the affected state
retirement system or systems; and
(3) Provide other analyses of legislative proposals with
respect to state pensions and retirement as may be requested by the
president of the Senate, the speaker of the House of Delegates, or
the chairs of the joint standing committee of the Legislature
having general jurisdiction over issues relating to pensions and
retirement.
(b) Effective the first day of July, two thousand, the state
retirement actuary employed under previous enactment of section
four, article ten-d of this chapter and having duties with respect to state retirement legislation by virtue of that section, are
transferred to the office of actuarial services created in this
article, to perform actuarial services as may be required by the
consolidated public retirement board, and to assume duties related
to state retirement legislation pursuant to this section.
NOTE: The purpose of this bill is to create an office of
actuarial services to provide independent professional services to
the various agencies of the state.
This article is new; therefore, strike-throughs and
underscoring have been omitted.
Email
Webmaster | © 2024 West Virginia Legislature **
