SB 331 — Relating to retirement and pension benefits of certain members of PERS and Teachers Retirement system

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Red = new code to be enacted WEST virginia legislature regular session Committee Substitute for Committee Substitute for Senate Bill 331 By Senators Karnes, Boso, Cline, Drennan, Gaunch, Mann, Rucker, Swope, Sypolt, and Blair [Originating in the Committee on Finance;Pensions;

Reported on FebruaryJanuary 22,25, 2018]     A BILL to amend and reenact §5-10-2 and §5-10-52 of the Code of West Virginia, 1931, as amended;

and to amend said code by adding thereto a new section, designated §18-7A-17c, all relating to retirement and pension benefits of certain members of the West Virginia Public Employees Retirement System and the West Virginia Teachers Retirement System who serve in the Legislature;Legislature or in other part-time positions;

and providing that persons who first become members of the retirement system after JuneDecember 30,1, 2018, through election, reelection, or appointment to the Legislature, or certain other positions, shall havereceive theirone finalfourth averageof salarya calculatedyear basedof onservice totalcredit yearsfor each full year of service;service in the Legislature or other part-time position.

and providing that members of the Legislature shall receive one day of credited service for each day paid.

GENERAL POWERS AND AUTHORITY OF THE GOVERNOR, SECRETARY OF STATE,STATE AND ATTORNEY GENERAL;

  §5-10-2.

(7) “Board of trustees”Trustees” or “board” means the Board of Trustees of the West Virginia Consolidated Public Retirement System;

In the event a member’smember's remuneration is not all paid in money, his or her participating public employer shall fix the value of the portion of the remuneration which is not paid in money:

(10) “Credited service” means the sum of a member’smember's prior service credit, military service credit, workers’workers' compensation service credit and contributing service credit standing to his or her credit as provided in this article;

(11) “Employee” means any person who serves regularly as an officer or employee, full-full time, on a salary basis, whose tenure is not restricted as to temporary or provisional appointment, in the service of, and whose compensation is payable, in whole or in part, by any political subdivision, or an officer or employee whose compensation is calculated on a daily basis and paid monthly or on completion of assignment, including technicians and other personnel employed by the West Virginia National Guard whose compensation, in whole or in part, is paid by the federal government:

(12) “Employer error” means an omission, misrepresentation,misrepresentation or violation of relevant provisions of the West Virginia Code or of the West Virginia Code of State Regulations or the relevant provisions of both the West Virginia Code and of the West Virginia Code of State Regulations by the participating public employer that has resulted in an underpayment or overpayment of contributions required.

Provided, however, That the provisions of §5-10-22h of this code are not applicable to the amendments made to this subdivision during the 2011 regular session of the Legislature:Legislature;

(A) The average of the highest annual compensation received by a member, including a member of the Legislature who participates in the retirement system in the year 1971 or thereafter, during any period of three consecutive years of credited service contained within the member’s 15fifteen years of credited service immediately preceding the date his or her employment with a participating public employer last terminated:

Provided, however, That for a member of the Legislature who made his or her first contribution to the member’smember’s’ deposit fund after June 30, 2018, final average salary is computed as provided in §5-10-52 of this code;

and in determining the annual compensation, under either §5-10-2(13)(A)paragraph (A) or §5-10-2(13)(B)(B) of this code,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 (the total of all compensation paid under §4-2A-2, §4-2A-3, §4-2A-4,§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 one times his or her actual legislative compensation and other compensation, shall be used:

or (ii) final average salary determined in accordance with §5-10-2(13)(A)paragraph (A) or §5-10-2(13)(B)(B) of this code,subdivision, whichever computation produces the higher final average salary, and in determining the annual compensation under §5-10-2(13)(B)(ii)subparagraph (ii) of this code,paragraph, the legislative compensation of the former member shall be computed on the basis of $1,500 multiplied by eight, and the legislative compensation of the member shall be computed on the basis set forth in the provisions of this subdivision immediately preceding this paragraph section or on the basis of $1,500 multiplied by eight, whichever computation as to the member produces the higher annual compensation;

(16) “Member” means any person who has accumulated contributions standing to his or her credit in the member’s’member’s' deposit fund;

(19) “Political subdivision” means the State of West Virginia, a county, city,city or town in the state;

 (A)(A) The calendar year in which the member attains age 70seventy and one-half years of age;

or (B) Thethe calendar year in which a member who has attained the age 70 seventy and one-half years of age and who ceases providing service covered under this system to a participating employer;

(24) “Retirement” means a member’smember's withdrawal from the employ of a participating public employer and the commencement of an annuity by the retirement system;

(a) The provisions of this article specifying that a legislatorLegislator may be a member of the retirement system and at the same time also a member of another state or political subdivision retirement program and may receive credit in the retirement system from two or more public employments simultaneously and authorizing automatic increases in the annuities of retired legislators based upon increases in compensation paid to members of the Legislature shall not be applicable to any member of the Legislature who first becomes a member of the retirement system as a member of the Legislature during the year 1971 one thousand nine hundred seventy-one, or any year thereafter, nor shall such provisions be applicable to the computation of service, credited service or benefits for any period of service as a member of the Legislature for the year 1971one thousand nine hundred seventy-one, or any year thereafter.

(b) Notwithstanding §5-10-2(13)§5-10-14 of this codecode, and 162 CSR 5-5 of the rules governing the Public Employees Retirement System, “final average salary” means the average of the totalannual rate of compensation received by a member from January 1 through December 31 during his or her total years of credited service for any member meeting the following criteria:

Other provisions in this code notwithstanding, a person whowho, servesafter election, reelection, or appointment, begins after June 30, a term as a member of the LegislatureLegislature, and makeswho hisis or herbecomes firsta contributionmember toof the member’sPublic depositEmployees fundRetirement afterSystem, June 30, shall receive one day of credited service credit for each day paidof forattendance ain regular, special, extraordinary, interim, or extended session or for any day the member may be called to official duty by the leadership of the member’s respective chamber:chamber, or for any day the member is entitled to collect per diem:

Provided, That no more than one day of credit service credit may be earned for any calendar day.

The board shall credit a member of the Legislature under the provisions of this section one month of credited service for each calendar month in which he or she is paid for 10 or more days.      CHAPTER 18.

Other provisions in this code notwithstanding, a person whowho, servesafter aselection, areelection, memberor ofappointment, thebegins Legislatureafter andJune makes30, his2018 ora herterm firstas contributiona tomember of the member’sLegislature, deposit fund after June 30, 2018, and who is or becomes a member of the Teachers Retirement System, shall receive one day of credited service credit for each day paidof forattendance in regular, special, extraordinary, interim, or extended session, or for any day the member may be called to official duty by the leadership of the member’s respective chamber:chamber, or for any day the member is entitled to collect per diem:

Provided, That no more than one day of credited service credit may be earned for any calendar day.