H. B. 4213
(By Delegates Fleischauer, Kominar, Beach,
Iaquinta, Barker, Longstreth, Marshall, Shook,
Manypenny, Manchin, Spencer)
[Introduced January 28, 2010; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §8-22-6 of the Code of West Virginia,
1931, as amended, relating to providing that municipal
employees may receive up to two years of retirement service
credit for military service prior to, or during, their
municipal employment.
Be it enacted by the Legislature of West Virginia:
That §8-22-6 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 22. RETIREMENT BENEFITS GENERALLY; POLICEMEN'S PENSION
AND RELIEF FUND; FIREMEN'S PENSION AND RELIEF FUND;
PENSION PLANS FOR EMPLOYEES OF WATERWORKS SYSTEM,
SEWERAGE SYSTEM OR COMBINED WATERWORKS AND SEWERAGE
SYSTEM.
§8-22-6. Contributions; prior, earned and total service credits;
service breaks.
Until June 30, 1967, each member shall pay into the fund six
percent of his
or her monthly salary up to $400 a month. After June 30, 1967, each member shall contribute six percent of his
or
her monthly salary without any such maximum limitation. Effective
January 1, 1987, a city may provide that contributions made by a
member shall be before tax, as permitted by section 414(h)(2) of
the Internal Revenue Code. Each member shall continue to make such
contributions until such time as such member retires or until he
or
she has contributed to the fund for a period of thirty-five years,
that is, has thirty-five years of "earned service credit."
For prior service, each participating employee, in the employ
of the city on the effective date of the fund, shall be credited,
as of such date, with a prior service credit equal to the period or
periods of service that the member has rendered to the city prior
to the effective date of the fund. Any employee who is in the
employ of the city on the effective date of the fund and who
becomes a member of the fund shall be entitled to prior service
credit even though such prior service was not continuous. Any
individual who is not in the employ of the city on the effective
date of the fund but who has been employed by the city in the past
shall be entitled to prior service credit if he
or she returns to
the service of the city within two years from the date of the
termination of his
or her service and becomes a member of the fund
within such two-year period.
Effective January 1, 1987, a city may provide that members who
have been honorably discharged from the military shall receive up
to two years
prior service credit for military service prior to,
or during, their employment with the city.
A member upon separation from the service shall be entitled to
withdraw his
or her contributions without interest in lieu of any
benefits to which he
or she may be entitled. A city may provide
that contributions are credited with interest at the rate of six
percent compounded annually from January 1, 1987. If such employee
returns to the service of the city within two years and becomes a
member of the fund, he
or she shall be considered as a new employee
and shall have forfeited all prior service credits unless he
or she
shall repay to the fund in cash at the time of reemployment the
amount of money which he
or she has withdrawn plus four percent
interest compounded annually on said amount during the time he
or
she was separated from the service, but effective January 1, 1987,
a city may require six percent interest. If, however, the break in
service of such member is more than two years, he
or she shall not
be entitled to any prior service credit nor shall he
or she be
entitled to redeposit withdrawals but he
or she shall reenter the
fund as a new member.
NOTE: The purpose of this bill is provide that municipal
employees may receive up to two years of retirement service credit
for military service prior to, or during, their municipal
employment.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added