Bill Text: WV SB270 | 2022 | Regular Session | Comm Sub
Bill Title: Relating to employment benefits for public safety personnel
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2022-01-27 - To Finance [SB270 Detail]
Download: West_Virginia-2022-SB270-Comm_Sub.html
WEST virginia legislature
2022 regular session
Committee Substitute
for
Senate Bill 270
By Senators Nelson, Hamilton, Maroney, Jeffries, Lindsay, Romano, and Rucker
[Originating in the Committee on Pensions; reported on January 27, 2022]
A BILL to amend and reenact §5-10-2 of the Code of West Virginia, 1931, as amended, and to amend said code by adding thereto four new sections, designated §5-10-25a, §5-10-25b, §5-10-25c, and §5-10-25d, all relating to updating definitions of the West Virginia Public Employees Retirement Act; providing benefits for law enforcement, public safety, and rescue personnel for total disability and death resulting from their covered employment; providing awards and benefits to surviving spouses of law enforcement, public safety, and rescue personnel when a member dies in performance of duty; providing for additional death benefits and scholarships; clarifying dependent children of law enforcement, public safety, and rescue personnel; and providing for burial benefits for law enforcement, public safety, and rescue personnel.
Be it enacted by the Legislature of West Virginia:
ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.
§5-10-2. Definitions.
Unless a different meaning is clearly indicated by the context, the following words and phrases as used in this article have the following meanings:
(1) “Accumulated contributions” means the sum of all
amounts deducted from the compensations of a member and credited to his or her
individual account in the members' deposit fund, together with regular interest
on the contributions;
(2) “Accumulated net benefit” means the aggregate amount
of all benefits paid to or on behalf of a retired member;
(3) “Actuarial equivalent” means a benefit of equal value
computed upon the basis of a mortality table and regular interest adopted by
the board of trustees from time to time: Provided, That when used in the
context of compliance with the federal maximum benefit requirements of Section
415 of the Internal Revenue Code, actuarial equivalent shall be computed using
the mortality tables and interest rates required to comply with those
requirements;
(4) “Annuity”
means an annual amount payable by the retirement system throughout the life of
a person. All annuities shall be paid in equal monthly installments, rounding
to the upper cent for any fraction of a cent;
(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;
(6)
“Beneficiary” means any person, except a retirant, who is entitled to, or will
be entitled to, an annuity or other benefit payable by the retirement system;
(7) “Board
of Trustees” or “board” means the Board of Trustees of the West Virginia Consolidated
Public Retirement System;
(8) [JJ1] “Compensation”
means the remuneration paid a member by a participating public employer for
personal services rendered by the member to the participating public employer.
In the event a member'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: Provided, That members hired in
a position for the first time on or after July 1, 2014, who receive nonmonetary
remuneration shall not have nonmonetary remuneration included in compensation
for retirement purposes and nonmonetary remuneration may not be used in
calculating a member’s final average salary. Any lump sum or other payments
paid to members that do not constitute regular salary or wage payments are not
considered compensation for the purpose of withholding contributions for the
system or for the purpose of calculating a member’s final average salary. These
payments include, but are not limited to, attendance or performance bonuses, one-time
flat fee or lump sum payments, payments paid as a result of excess budget, or
employee recognition payments. The board shall have final power to decide
whether the payments shall be considered compensation for purposes of this
article;
(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;
(10)
“Credited service” means the sum of a member's prior service credit, military
service credit, workers' compensation service credit and contributing service
credit standing to his or her credit as provided in this article;
“Dependent child” means either:
(A) An unmarried person under age 18 who is:
(i) A natural child of the member;
(ii) A legally adopted child of the member;
(iii) A child who at the time of the member’s death was living with the member while the member was an adopting parent during any period of probation; or
(iv) A stepchild of the member residing in the member’s household at the time of the member’s death; or
(B) Any unmarried child under age 23:
(i) Who is enrolled as a full-time student in an accredited college or university;
(ii) Who was claimed as a dependent by the member for federal income tax purposes at the time of the member’s death; and
(iii) Whose relationship with the member is described in subparagraph (i), (ii), or (iii), paragraph (A) of this subdivision.
“Dependent parent” means the father or mother of the member who was claimed as a dependent by the member for federal income tax purposes at the time of the member's death.
(11)
“Employee” means any person who serves regularly as an officer or employee,
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: Provided, That an employee of the
Legislature whose term of employment is otherwise classified as temporary and
who is employed to perform services required by the Legislature for its regular
sessions or during the interim between regular sessions and who has been or is
employed during regular sessions or during the interim between regular sessions
in seven or more consecutive calendar years, as certified by the clerk of the
house in which the employee served, is an employee, any provision to the
contrary in this article notwithstanding, and is entitled to credited service
in accordance with provisions of §5-10-14 of this code: Provided, however,
That members of the legislative body of any political subdivision and judges of
the state Court of Claims Legislative Claims Commission are
employees receiving one year of service credit for each one-year term served
and prorated service credit for any partial term served, anything contained in
this article to the contrary notwithstanding: Provided further, That
only a compensated board member of a participating public employer appointed to
a board of a nonlegislative body for the first time on or after July 1, 2014,
who normally is required to work twelve months per year and one thousand forty
hours of service per year is an employee. In any case of doubt as to who is an
employee within the meaning of this article, the board of trustees shall decide
the question;
(12)
“Employer error” means an omission, 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. A deliberate act contrary to the provisions of this section by a
participating public employer does not constitute employer error;
(13) “Final
average salary” means either of the following: Provided, That salaries
for determining benefits during any determination period may not exceed the
maximum compensation allowed as adjusted for cost of living in accordance with
section seven, article ten-d of this chapter and Section 401 (a) (17) of the
Internal Revenue Code: 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;
(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 fifteen years of credited service immediately preceding the date his or her employment with a participating public employer last terminated: 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 fifteen years of credited service immediately preceding the date his or her employment with a participating public employer last terminated; or
(B) If the member has less than five years of credited
service, the average of the annual rate of compensation received by the member
during his or her total years of credited service; 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 (the total of all compensation paid under
sections two, three, four and five, article two-a, chapter four of this code
pursuant to §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 one times his or her
actual legislative compensation and other compensation, shall be used: Provided,
That final average salary for any former member of the Legislature or for any
member of the Legislature in the year 1971 who, in either event, was a member
of the Legislature on November 30, 1968, or November 30, 1969, or November 30,
1970, or on November 30 in any one or more of those three years and who
participated in the retirement system as a member of the Legislature in any one
or more of those years means: (i) Either, notwithstanding the provisions of
this subdivision preceding this proviso, $1,500 multiplied by eight, plus the
highest other compensation the former member or member received in any one of
the three years from any other participating public employer including the
State of West Virginia; or (ii) final average salary determined in accordance
with paragraph (A) or (B) of this subdivision, whichever computation produces
the higher final average salary, and in determining the annual compensation
under subparagraph (ii) of this 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 or on the basis of $1,500 multiplied by eight, whichever computation
as to the member produces the higher annual compensation;
(14)
“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended,
codified at Title 26 of the United States Code;
(15)
“Limited credited service” means service by employees of the West Virginia
Educational Broadcasting Authority, in the employment of West Virginia
University, during a period when the employee made contributions to another
retirement system, as required by West Virginia University, and did not make
contributions to the Public Employees Retirement System: 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 section
twenty-two of this article;
(16)
“Member” means any person who has accumulated contributions standing to his or
her credit in the members' deposit fund;
(17)
“Participating public employer” means the State of West Virginia, any board,
commission, department, institution or spending unit and includes any agency
created by rule of the Supreme Court of Appeals of West Virginia having
full-time employees, which for the purposes of this article is considered a
department of state government; and any political subdivision in the state
which has elected to cover its employees, as defined in this article, under the
West Virginia Public Employees Retirement System;
(18) “Plan
year” means the same as referenced in section §5-10-42 of this code;
(19)
“Political subdivision” means the State of West Virginia, a county, city or
town in the state; a school corporation or corporate unit; any separate
corporation or instrumentality established by one or more counties, cities or
towns, as permitted by law; any corporation or instrumentality supported in
most part by counties, cities or towns; and any public corporation charged by
law with the performance of a governmental function and whose jurisdiction is
coextensive with one or more counties, cities or towns: Provided, That
any mental health agency participating in the Public Employees Retirement
System before July 1, 1997, is considered a political subdivision solely for
the purpose of permitting those employees who are members of the Public
Employees Retirement System to remain members and continue to participate in
the retirement system at their option after July 1, 1997: Provided, however,
That the Regional Community Policing Institute which participated in the Public
Employees Retirement System before July 1, 2000, is considered a political
subdivision solely for the purpose of permitting those employees who are
members of the Public Employees Retirement System to remain members and
continue to participate in the Public Employees Retirement System after July 1,
2000;
(20) “Prior
service” means service rendered prior to July 1, 1961, to the extent credited a
member as provided in this article;
(21)
“Regular interest” means the rate or rates of interest per annum, compounded
annually, as the board of trustees adopts from time to time;
(22)
“Required beginning date” means April 1 of the calendar year following the
later of: (A) The calendar year in which the member attains age seventy and
one-half years of age; or (B) the calendar year in which a member who has
attained the age seventy and one-half years of age and who ceases providing
service covered under this system to a participating employer;
(23)
“Retirant” means any member who commences an annuity payable by the retirement
system;
(24)
“Retirement” means a member's withdrawal from the employ of a participating
public employer and the commencement of an annuity by the retirement system;
(25)
“Retirement system” or “system” means the West Virginia Public Employees
Retirement System created and established by this article;
(26)
“Retroactive service” means: (1) Service between July 1, 1961, and the date an
employer decides to become a participating member of the Public Employees
Retirement System; (2) service prior to July 1, 1961, for which the employee is
not entitled to prior service at no cost in accordance with 162 CSR 5.13; and
(3) service of any member of a legislative body or employees of the State
Legislature whose term of employment is otherwise classified as temporary for
which the employee is eligible, but for which the employee did not elect to
participate at that time;
(27)
“Service” means personal service rendered to a participating public employer by
an employee of a participating public employer; and
(28) “State” means the State of West Virginia.
§5-10-25a. Disability retirement for law-enforcement, public safety and rescue personnel duty related.
(a) Notwithstanding any provision of §5-10-25 of this code to the contrary, any member who is employed as a law-enforcement officer, correctional officer, firefighter, or 911 personnel, and who after the effective date of this section and during covered employment:
(1) Has been or becomes totally disabled by injury, illness or disease; and
(2) The disability is a result of an occupational risk or hazard inherent in or peculiar to the services required of him or her; and
(3) In the opinion of the board, the member is by reason of the disability unable to perform adequately the duties required of his or her covered employment, shall receive 90 percent of his or her average full monthly compensation for the 12-month contributory period preceding the member's disability award, or the shorter period if the member has not worked 12 months.
(b) The disability benefit payments authorized by this section will begin the first day of the month following termination of employment and receipt of the disability retirement application by the Consolidated Public Retirement Board.
§5-10-25b. Awards and benefits to surviving spouse of law-enforcement, public safety and rescue personnel when a member dies in performance of duty.
(a) The surviving spouse of any member who, after the effective date of this article while in covered employment, has died or dies by reason of injury, illness or disease resulting from an occupational risk or hazard inherent in or peculiar to the service required of members, while the member was or is engaged in the performance of his or her duties as a law-enforcement officer, correctional officer, firefighter, or 911 personnel is entitled to receive and shall be paid from the fund benefits as determined in this section. To the surviving spouse annually, in equal monthly installments during his or her lifetime, an amount equal to the greater of:
(1) Two thirds of the annual compensation received in the preceding 12-month period by the deceased member; or
(2) If the member dies after his or her normal retirement age, the monthly amount which the spouse would have received had the member retired the day before his or her death, elected a 100 percent joint and survivor annuity with the spouse as the joint annuitant, and then died.
(b) Benefits for a surviving spouse received under this section are in lieu of receipt of any other benefits under this article for the spouse or any other person or under the provisions of any other state retirement system based on the member's covered employment.
§5-10-25c. Additional death benefits and scholarships; dependent children of law enforcement, public safety and rescue personnel.
(a) In addition to the spouse death benefits in §5-10-25b of this code, the surviving spouse of a member who was employed as a law-enforcement officer, correctional officer, firefighter, or 911 personnel, is entitled to receive and there shall be paid to the spouse $100 monthly for each dependent child.
(b) If the surviving spouse dies while receiving death benefits provided in §5-10-25b of this code or if there is no surviving spouse, the fund shall pay monthly to each dependent child a sum equal to 100 percent of the spouse’s entitlement under this article divided by the number of dependent children. If there is neither a surviving spouse nor a dependent child, the fund shall pay in equal monthly installments to the dependent parents of the deceased member during their joint lifetimes a sum equal to the amount which a surviving spouse, without children, would have received: Provided, That when there is only one dependent parent surviving, that parent is entitled to receive during his or her lifetime one-half the amount which both parents, if living, would have been entitled to receive: Provided, however, That if there is no surviving spouse, dependent child or dependent parent of the deceased member, the accumulated contributions shall be paid to a named beneficiary or beneficiaries: Provided further, That if there is no surviving spouse, dependent child or dependent parent of the deceased member, or any named beneficiary or beneficiaries, then the accumulated contributions shall be paid to the estate of the deceased member.
(c) Any person qualifying as a dependent child under this section, in addition to any other benefits due under this or other sections of this article, is entitled to receive a scholarship to be applied to the career development education of that person. This sum, up to but not exceeding $7,500 per year, shall be paid from the fund to any higher education institution in this state, career-technical education provider in this state or other entity in this state approved by the board, to offset the expenses of tuition, room and board, books, fees or other costs incurred in a course of study at any of these institutions so long as the recipient makes application to the board on an approved form and under rules provided by the board and maintains scholastic eligibility as defined by the institution or the board. The board may propose legislative rules for promulgation in accordance with §29A-3-1 et seq. of this code which define age requirements, physical and mental requirements, scholastic eligibility, disbursement methods, institutional qualifications and other requirements as necessary and not inconsistent with this section. Scholarship benefits awarded pursuant to this subsection are not subject to division or payable to an alternate payee by any Qualified Domestic Relations Order.
§5-10-25d. Burial benefit law-enforcement and public safety and rescue personnel.
Any member who was employed as a law-enforcement officer, correctional officer, firefighter, or 911 personnel and who dies as a result of any service-related illness or injury after the effective date of this section is entitled to a lump sum burial benefit of $5,000. If the member was married, the burial benefit shall be paid to the member's spouse. If the member was not married, the burial benefit shall be paid to the member's estate for the purposes of paying burial expenses, settling the member's final affairs, or both. Burial benefits awarded pursuant to this section are not subject to division or payable to an alternate payee by any Qualified Domestic Relations Order.
