SB 2004 — Allowing retirants in PERS to designate irrevocable special needs trust as beneficiary

WEST VIRGINIA LEGISLATURE SECOND EXTRAORDINARY SESSION IntroducedENROLLED Senate Bill 2004 BBY YSENATORSSENATORS BLAIR(MR.

RESIDENT)ANDBRESIDEN) ALDWINANDBALDWIN (BYREQUEST(BY REQUEST OF THEEXECUTIVE)THE [IntroducedXECUTIV) [Passed April 25, 2022] Intr SB 2004 202225003S 202225004H A BILL to amend and reenact §5-10-2 of the Code of West Virginia, 1931, as amended, as contained in Chapter 256, Acts of the Legislature, Regular Session, 2022;

in effect 90 days from passage (July 24, 2022)] Enr SB 2004 AN ACT to amend and reenact §5-10-2 of the Code of West Virginia, 1931, as amended, as contained in Chapter 256, Acts of the Legislature, Regular Session, 2022;

IntrEnr SB 202225003S2004 202225004H (5) “Annuity reserve” means the present value of all payments to be made to a retirant or beneficiary of a retirant on account of any annuity, computed upon the basis of mortality and other tables of experience, and regular interest, adopted by the board of trustees from time to time;

IntrEnr SB 202225003S2004 202225004H (9) “Contributing service” means service rendered by a member within this state and for which the member made contributions to a public retirement system account of this state, to the extent credited him or her as provided by this article;

In any case of doubt as to IntrEnr SB 202225003S2004 202225004H who is an employee within the meaning of this article, the board of trustees shall decide the question;

Provided, That for persons who were first hired on or after July 1, 2015, any period of five consecutive years of contributing service contained within the member’s fifteen15 years of credited service immediately preceding the date his or her employment with a participating public employer last terminated;

and in determining the annual compensation, under either paragraph (A) or (B) of this subdivision, of a member of the Legislature who participates in the retirement system as a member of the Legislature in the year 1971, or in any year thereafter, his or her actual legislative compensation IntrEnr SB 202225003S2004 202225004H (the total of all compensation paid under §4-2A-2, §4-2A-3, §4-2A-4, and §4-2A-5 of this code), in the year 1971, or in any year thereafter, plus any other compensation he or she receives in any year from any other participating public employer including the State of West Virginia, without any multiple in excess of onetimes his or her actual legislative compensation and other compensation, shall be used:

IntrEnr SB 202225003S2004 202225004H Provided, That while limited credited service can be used for the formula set forth in §5-10-21(e) of this code, it may not be used to increase benefits calculated under §5-10-22 of this code;

IntrEnr SB 202225003S2004 202225004H (20) “Prior service” means service rendered prior to July 1, 1961, to the extent credited a member as provided in this article;

and (28) “Special needs trust” means a trust established pursuant to §44D-8B-13 of this code for an individual beneficiary with a disability and such special needs trust is or will become irrevocable by the time the retirant names the special needs trust as the beneficiary of retirant’s IntrEnr SB 202225003S2004 202225004H annuity benefits in place of the individual beneficiary and terminates upon the death of the individual beneficiary with no further annuity benefits being payable;

and (28) (29) “State” means the State of West Virginia.

— Upon the death of a retirant who elected option A, his or her reduced annuity shall be continued throughout the life of and paid to the beneficiary, having an insurable interest in the retirant'sretirant’s life, whom the retirant nominated by written designation duly executed and filed with the board of trustees prior to the effective date of his or her retirement;

— Upon the death of a retirant who elected option B, one half of his or her reduced annuity shall be continued throughout the life of and paid to the beneficiary, having an insurable interest in the retirant'sretirant’s life, whom the retirant nominated by written designation duly executed and filed with the board of trustees prior to the effective date of his or her retirement.

(c) Upon divorce, a retirant may elect to change any of the retirement benefit options offered by the provisions of this section to a life annuity in an amount adjusted on a fair basis to Intr SB 202225003S 202225004H be of equal actuarial value of the annuity prospectively in effect relative to the retirant at the time Enr SB 2004 the option is elected:

The value of the new survivorship annuity shall be the actuarial equivalent of the retirant'sretirant’s benefit prospectively in effect at the time the new annuity is elected.

NOTE:Enr SB 2004 The Joint Committee on Enrolled Bills hereby certifies that the foregoing bill is correctly enrolled.

The............................................................... purpose of this bill is to members of public employee retirement plans to create a special needs trust for a beneficiary with a disability.

Strike-throughsChairman, indicateSenate languageCommittee that............................................................... would be stricken from a heading or the present law and underscoring indicates new language that would be added.

Chairman, House Committee Originated in the Senate.

In effect 90 days from passage.

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Clerk of the Senate ...............................................................

Clerk of the House of Delegates ...............................................................

President of the Senate ...............................................................

Speaker of the House of Delegates __________ The within ...................................................

this the...........................................

Day of ..........................................................................................................., 2022.

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Governor 11