ENGROSSED
H. B. 4596
(By Delegate Campbell)
[Introduced February 24, 2004; referred to the
Committee on Pensions and Retirement then Finance.]
A BILL to amend and reenact §8-22-20a of the code of West Virginia,
1931, as amended, relating to municipal policemen and firemen
pension and relief funds; and providing that where the state
actuary has examined a municipal pension and relief fund for
a particular year that fund may opt to use that actuarial
valuation in place of any other actuarial valuation mandated
by state law.
Be it enacted by the Legislature of West Virginia:
That §8-22-20a 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.
§8-22-20a. Hiring of actuary; preparation of actuarial valuations.
(a)(1) The Legislature finds that it is in the best interests
of the state and its municipalities to have accurate data regarding the various municipal police and firemen's pension and relief
funds. The Legislature finds that data received from the funds is
not always reliable due to inconsistent methods of reporting. The
Legislature also finds that the municipalities need to know if the
data they are basing their decisions on regarding pensions for
their police and firemen is accurate and that they can depend on
it.
(2) The Legislature finds that the state treasurer should
contract with an actuary as a consultant for the municipal police
and firemen's pension and relief funds and that among other duties
the actuary should determine if there is consistent reporting from
the various funds. The Legislature further finds that the state
treasurer should share the results of the actuary's annual
valuation with the appropriate municipality.
(b) Notwithstanding any other provision of this code to the
contrary, beginning the first day of July, two thousand two, the
state treasurer shall select by competitive bid and contract with
a single qualified actuary. The actuary shall serve as a
consultant to the treasurer with regard to the operation of the
municipal police and firemen's pension and relief funds and shall
report annually to the treasurer with regard to all funds existing
in this state by virtue of this article. The treasurer may pay for
costs associated with the actuary's work out of the fund
established pursuant to section fourteen-d, article three, chapter
thirty-three of this code. The treasurer shall, upon the request
of any board of trustees of a municipal police or firemen's pension and relief fund, furnish a current copy of the actuary report to
that board.
(c) With respect to each municipal police or firemen's pension
and relief fund, the actuary shall complete an annual valuation in
accordance with actuarial standards of practice promulgated by the
actuarial standards board of the American academy of actuaries.
The report of the valuation shall include: (1) A summary of the
benefit provisions evaluated; (2) a summary of the census data and
financial information used in the valuation; (3) a description of
the actuarial assumptions, actuarial costs method and asset
valuation method used in the valuation, including a statement of
the assumed rate of payroll growth and assumed rate of growth or
decline in the number of the fund members' contribution to the
pension fund; (4) a summary of findings that includes a statement
of the actuarially accrued pension liabilities and unfunded
actuarial accrued pension liabilities; (5) a schedule showing the
effect of any changes in the benefit provisions, actuarial
assumptions or cost methods since the last annual actuarial
valuation; (6) a statement of whether contributions to the pension
fund are in accordance with the provisions of this chapter and
whether they are expected to be sufficient; and (7) any other
matters determined by the treasurer to be necessary or appropriate.
The treasurer shall forward a copy of the annual valuation to the
municipality for which it was completed.
(d)(1) The hiring of an actuary under the provisions of this
section shall not be construed to make the municipal police and firemen's pension and relief funds the responsibility or obligation
of the state of West Virginia.
(2) Any actuarial deficiency identified by the actuary under
this section or this article is not an obligation of the state of
West Virginia.
(e) Beginning after the thirty-first day of December, two
thousand three, a municipal policemen's pension and relief fund or
a municipal firemen's pension and relief fund may elect to use the
actuarial examination of its fund which is provided for in this
section in lieu and instead of any actuarial examination required
by this article: Provided, That if any additional actuarial
information is required by a fund beyond that which is mandated in
this section, the fund must pay the actuary any additional fees
involved: Provided, however, That where a municipal policemen's or
municipal firemen's board of trustees has informed the treasurer
that their plan desires to use the state actuary report as
specified herein, the treasurer shall provide the board of trustees
with a copy of the report of the single qualified actuary as soon
as the report is available to the treasurer.
Email
Webmaster | © 2025 West Virginia Legislature **
