SB 166 — WV Public Employees Retirement Act

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee FISCALSubstitute for Senate Bill 166 NOTEBY BySENATORS SenatorsCAPUTO, Caputo,NELSON,ANDBARRETT Nelson,[Originating andin Barrettthe [IntroducedCommittee Januaryon 13,Pensions; 2023;

referredreported on January 26, 2023] CS for SB 166 A BILL to amend and reenact §5-10-48 of the CommitteeCode onof Pensions;West Virginia, 1931, as amended, relating to reemployment after retirement by public employees;

and then to the Committee on Finance] Intr SB 166 2023R1476 A BILL to amend and reenact §5-10-48 of the Code of West Virginia, 1931, as amended, relating to reemployment after retirement by public employees;

(a) The Legislature finds that a compelling state interest exists in maintaining an actuarially sound retirement system and that this interest necessitates that certain limitations be placed upon an individual’sindividual's ability to retire from the system and to then later return to state employment as an employee with a participating public employer while contemporaneously drawing an annuity from the system.

The Legislature further finds and declares that reemploying these persons on a limited per diem basis after they have retired is not only in the best interests of this statestate, but has no adverse effect whatsoever upon the actuarial soundness of this particular retirement system.

(1) "Regularly employed on a full-time basis" means employment of an individual by a participating public employer, in a position other than as an elected or appointed public official, which normally requires 12 months per year service and at IntrCS for SB 166 2023R1476 least 1,040 hours of service per year in that position;

(3) "former employee of the Legislature" means any person who has retired from employment with the Legislature and who has at least 10 years’years' contributing service with the Legislature;

If his or her reemployment is for a period less than one year, he or she may request in writing that the employee and employer retirement contributions submitted during reemployment be credited to the participating public employer pursuant to §5-10-44 of this code, and his or her previous annuity shall be reinstated effective the first day of the month following termination of reemployment and the board’sboard's receipt of written notice thereof.

A retirant may accept legislative per diem, temporary full-time, or temporary part- time employment from a participating employer without suspending his or her retirement annuity so long as he or she does not receive annual compensation in excess of $20,000 $30,000.more than $25,000:

Provided, That the Legislature shall review the amount of annual compensation which a retirant may receive from legislative per diem, temporary full-time, or temporary part-time employment from a participating employer without suspending his or her retirement annuity on or before July 1, 2028.

– CS for SB 166 (1) Notwithstanding the provisions of subsection (c) of this section, a retired judge or justice who is recalled and assigned to temporary service as a senior judge or justice by the West Virginia Supreme Court of Appeals may receive per diem compensation pursuant to the requirements of §51-9-10 of this code while continuing to receive his or her annuity.

Intr SB 166 2023R1476 (2) Notwithstanding the provisions of subsection (c) of this section, a retired magistrate who is recalled and assigned to temporary service as a senior magistrate by the West Virginia Supreme Court of Appeals may receive per diem compensation pursuant to the requirements of §50-1-6a of this code while continuing to receive his or her annuity.

Provided Provided, That a former employee of the Legislature may not be reemployed by the Legislature on a per diem basis until at least 60 days after the employee has retired:

Provided, however, That the limitation on compensation provided by subsection (c) of this section does not apply to the reemployed former CS for SB 166 employee:

(f) A member who is participating in the system simultaneously as both a regular, full-time employee of a participating public employer and as an elected or appointed member of the legislative body of the state or any political subdivision may, upon meeting the age and service Intr SB 166 2023R1476 requirements of this article, elect to retire from his or her regular full-time state employment and may commence to receive an annuity from the system without terminating his or her position as a member of the legislative body of the state or political subdivision:

Provided, That the member if he or she is eligible to retire under the provisions of §5-10-20 or §5-10-21§5- 10-21 of this code:

Provided, however, That the member he or she must elects elect to stop actively contributing to the system while receiving the in-in-service service distributions.

NOTE:

The purpose of this bill is to increase the maximum compensation that may be earned by certain retired public employees who accept legislative per diem, temporary full- time, or temporary part-time employment from a participating employer without suspending his or her retirement annuity from $20,000 to $30,000 annually.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.