ENROLLED
Senate Bill No. 2001
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
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[Passed June 12, 2003; in effect from passage.]
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AN ACT to amend and reenact section four, article eight, chapter
twelve of the code of West Virginia, one thousand nine hundred
thirty-one, as amended, relating to providing for executive
appointment of members of the pension bond review committee.
Be it enacted by the Legislature of West Virginia:
That section four, article eight, chapter twelve of the code
of West Virginia, one thousand nine hundred thirty-one, as amended,
be amended and reenacted to read as follows:
ARTICLE 8. PENSION LIABILITY REDEMPTION.
§12-8-4. Issuance of bonds; determination of unfunded actuarial
accrued liability.
(a) Notwithstanding any other provision of this code and
pursuant to section four, article ten of the constitution of West
Virginia, the governor shall have the power, as provided by this
article, to issue the bonds authorized in this section at a time or times as provided by a resolution adopted by the Legislature to
redeem a previous liability of the state by funding all or a
portion of the unfunded actuarial accrued liability, such bonds to
be payable from and secured by moneys deposited in the pension
liability redemption fund. Any bonds issued pursuant to this
article, other than refunding bonds, shall be issued no later than
five years after the date of adoption of the resolution of the
Legislature authorizing the issuance of the bonds referred to in
this section.
(b) The aggregate principal amount of bonds issued pursuant to
the provisions of this article is limited to no more than the
lesser of the following: (1) The principal amount necessary, after
deduction of costs, underwriter's discount and original issue
discount, if any, to fund not in excess of one hundred percent of
the unfunded actuarial accrued liability of the death, disability
and retirement fund of the division of public safety established in
article two, chapter fifteen of this code, one hundred percent of
the unfunded actuarial accrued liability of the judges' retirement
system established in article nine, chapter fifty-one of this code,
and ninety-five percent of the unfunded actuarial accrued liability
of the teachers retirement system established in article seven-a,
chapter eighteen of this code, as certified by the consolidated
public retirement board to the department of administration
pursuant to subsection (e) of this section; or (2) three billion nine hundred million dollars; but in no event shall the aggregate
principal amount of bonds issued exceed the principal amount
necessary, after deduction of costs, underwriter's discount and
original issue discount, if any, to fund not in excess of the total
unfunded actuarial accrued liability, as certified by the
consolidated public retirement board to the department of
administration pursuant to subsection (e) of this section.
(c) The costs of issuance, excluding fees for bond insurance,
credit enhancements and liquidity facilities, plus underwriter's
discount and any other costs associated with the issuance shall not
exceed, in the aggregate, the sum of one percent of the aggregate
principal amount of bonds issued. All such costs shall be subject
to the review and approval of a majority of the members of a review
committee. The review committee shall consist of the state
treasurer and four persons having skill and experience in bond
issuance, appointed by the governor.
(d) The limitation on the aggregate principal amount of bonds
provided in this section shall not preclude the issuance of bonds
from time to time or in one or more series.
(e) No later than ten days after receipt of a request from the
department of administration, the consolidated public retirement
board shall provide the department of administration with a
certified statement of the amount of each pension system's unfunded
actuarial accrued liability calculated in an actuarial valuation report that establishes the amount of the unfunded actuarial
accrued liability as of a date specified by the department of
administration, based upon each pension system's most recent
actuarial valuation.
(f) No later than fifteen days after receipt of a request from
the governor, the department of administration shall provide the
governor with a certification of the maximum aggregate principal
amount of bonds that may be issued at that time pursuant to
subsection (b) of this section.
(g) Prior to any request of the governor that the Legislature
prepare and consider a resolution authorizing the issuance of
bonds, the bonds shall be authorized by a majority of the members
of the review committee described in subsection (c) of this
section.
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