Chapter 5. General Powers And Authority Of The Governor, Secretary Of State And Attorney General; Board Of Public Works; Miscellaneous Agencies, Commissions, Offices, Programs, Etc


Published: 2015

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
WEST VIRGINIA CODE











‹ Back



 |   Print







WVC 5-

CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR, SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS, OFFICES, PROGRAMS, ETC.

WVC -10-

ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.







WVC 5-10-1

§5-10-1. Short title.

The short title by which this article may be referred to is

"West Virginia Public Employees Retirement Act."







WVC 5 - 10 - 2

§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) "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. 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;

     (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 section fourteen of this article: Provided,

however, That members of the legislative body of any political

subdivision and judges of the state Court of Claims 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. 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 section twenty-two-h of this article 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), 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 subsection (e), section twenty-one of this article, 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 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

forty-two of this article;

     (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.







WVC 5-10-3

§5-10-3. Retirement system created and established; body

corporate.

The West Virginia public employees retirement system is hereby

created and established to provide for the orderly retirements of

employees, of the state and the other participating public

employers, who become superannuated because of age or total and

permanent disability, and to provide certain survivor benefits.

The retirement system shall constitute a body corporate. All

business of the system shall be transacted in the name of West

Virginia public employees retirement system.







WVC 5 - 10 - 3 A

§5-10-3a. Article to be liberally construed; supplements federal

social security; federal qualification requirements.

(a) The provisions of this article shall be liberally

construed so as to provide a general retirement system for the

employees of the state herein made eligible for such retirement:

Provided, That nothing in this article shall be construed as

permitting any governmental unit, its officers or employees to

substitute the retirement plan herein authorized for federal social

security now in force in West Virginia.

(b) The purpose of this article is to provide a state pension

plan which supplements the federal social security pension plan now

in force and heretofore authorized by law for members of this

retirement system.

(c) The retirement system is intended to meet the federal

qualification requirements of Section 401(a) and related sections

of the Internal Revenue Code as applicable to governmental plans.

Notwithstanding any other provision of state law, the board shall

administer the retirement system to fulfill this intent for the

exclusive benefit of the members and their beneficiaries. Any

provision of this article referencing or relating to such federal

tax qualification requirements shall be effective as of the date

required by federal law. The board may promulgate rules and amend

or repeal conflicting rules in accordance with the authority

granted to it pursuant to section one, article ten-d of this

chapter to assure compliance with this section.







WVC 5-10-4

§5-10-4. Effective date of system.

The effective date of the West Virginia public employees

retirement system shall be July one, one thousand nine hundred

sixty-one: Provided, however, That for any participating public

employer which cannot make its contribution as provided by this

article from its one thousand nine hundred sixty-one-one thousand

nine hundred sixty-two current funds, the effective date as to such

participating public employer shall be July one, one thousand nine

hundred sixty-two.







WVC 5-10-5

§5-10-5. Board of trustees created; powers and duties generally;

composition.

The board of trustees of the West Virginia public employees

retirement system is hereby continued. The administration and

management of the retirement system, the responsibility for making

effective the provisions of this article, and the authority to make

all rules and regulations therefor are hereby vested in the said

board of trustees through the thirtieth day of June, one thousand

nine hundred ninety-one, and thereafter in the consolidated public

retirement board created by article ten-d of this chapter and

except as otherwise specifically provided in this article. The

board shall consist of five trustees, as follows:

(a) The auditor of the state, by virtue of his office;

(b) The treasurer of the state, by virtue of his office;

(c) The commissioner of finance and administration, by virtue

of his office;

(d) A resident of the state, who is not a member, retirant or

beneficiary of the retirement system, to be appointed by the

governor, by and with the advice and consent of the Senate;

(e) One member of the retirement system, who is an employee of

a participating public employer other than the state of West

Virginia, to be appointed by the governor, by and with the advice

and consent of the Senate.







WVC 5-10-6

§5-10-6. Trustees' terms of office.

The first terms of office for the trustees provided for in

subdivisions (d) and (e) of section five of this article shall

expire June thirty, one thousand nine hundred sixty-five, June

thirty, one thousand nine hundred sixty-four and June thirty, one

thousand nine hundred sixty-three, respectively, as the governor

shall designate at the time of the appointments. Thereafter, the

terms of office for the said trustees shall be five years. Each

trustee shall serve as trustee until his successor is appointed and

has qualified. In order to make the preliminary arrangements for

the operation of the retirement system as of its effective date,

the governor shall make the appointments provided for in section

five hereof as soon as practicable after the passage of this

article.







WVC 5-10-7

§5-10-7. Vacancies on board.

In the event any trustee, provided for in subdivisions (d) and

(e) of section five of this article leaves the employ of a

participating public employer, or fails to attend three consecutive

meetings of the board of trustees, unless in each case excused for

cause by the remaining trustees attending such meeting or meetings,

he shall be considered to have resigned from the board and the

board shall, by resolution, declare his office of trustee vacated.

If a vacancy occurs in the office of such trustee, the governor

shall, within thirty days from and after the date of the vacancy,

fill the vacancy, by appointment, for the unexpired term.







WVC 5-10-8

§5-10-8. Trustees' compensation and expenses.

The trustees shall serve as trustees without compensation for

their service as such: Provided, That each trustee shall be

reimbursed, upon approval of the board of trustees, for any

necessary expenses incurred by him in carrying out his duties of

trustee. No trustee shall suffer any loss of salary or wages on

account of his service as trustee.







WVC 5-10-9

§5-10-9. Chairman and vice chairman; executive secretary;

employees; treasurer; legal advisor; actuary.

(a) The board of trustees shall elect from its own number a

chairman and a vice chairman.

(b) The board of trustees shall appoint an executive secretary

of the retirement system. The executive secretary shall be the

chief administrative officer of the system; and he shall not be a

member of the board. He shall perform such duties as are required

of him in this article and as the board shall from time to time

delegate to him. The compensation of the executive secretary shall

be fixed by the board subject to the approval of the governor. He

shall, with the approval of the board of trustees, employ such

administrative, technical, and clerical employees as shall be

required in the proper operation of the system.

(c) The state treasurer shall be treasurer of the retirement

system and the custodian of its funds. All bonds and other

investments purchased according to the provisions of this article

shall forthwith be deposited with the state treasurer. It shall be

his duty to collect the principal thereof and the interest and

dividends thereon as the same become due and payable, and when so

collected deposit same to the credit of the retirement system. All

disbursements from the funds of the system shall be made by the

state treasurer only upon written certification duly authorized by

a continuing or specific resolution adopted by the board of

trustees. He shall furnish the board with a statement of the

retirement system securities in his safekeeping as the board shall

from time to time request.

(d) The attorney general shall be the legal advisor to the

board of trustees.

(e) The board of trustees shall appoint an actuary who shall

be the technical advisor to the board regarding the operation of

the retirement system on an actuarial basis.







WVC 5-10-10

§5-10-10. Board meetings; quorum; vote; proceedings.

The board of trustees shall hold a meeting at least once each

three months, and shall designate the time and place thereof.

Three trustees shall constitute a quorum at any meeting of the

board. Each trustee shall be entitled to one vote on each question

before the board and at least three concurring votes shall be

required for a decision by the board at any of its meetings. The

board shall adopt its own rules of procedure and shall keep a

record of its proceedings. All meetings of the board shall be

public.







WVC 5-10-11

§5-10-11. Reports required of board.

The board of trustees shall submit to the governor for

transmittal to the Legislature, on or before the first day of

December in each year, a report showing the fiscal affairs and

transactions of the retirement system for the preceding fiscal

year. The said report shall contain, but shall not be limited to,

a financial balance sheet, a statement of income and disbursements,

an actuarial balance sheet prepared by means of the last actuarial

valuation of the system, a detailed statement of investments

acquired and disposed of during the said fiscal year, and such

other data as shall be deemed necessary for a proper understanding

of the condition of the system. The board shall annually furnish

the members and the participating public employers with a summary

of the results of the operations of the system.







WVC 5-10-12

§5-10-12. Officer and employee bonds.

The state treasurer shall give a separate and additional bond

in such amount as shall from time to time be fixed by the board of

trustees. The said bond shall be approved by the attorney general

and shall be conditioned for the faithful performance of his duties

as custodian of the moneys, securities and other investments of the

retirement system. The executive secretary, and the employees of

the system designated by the board, shall furnish bonds in such

form, and in such amounts, as the board shall from time to time

determine. The costs of such bonds shall be paid from the expense

fund and such bonds shall be filed in the same office as are the

bonds of state officers.







WVC 5 - 10 - 13

§5-10-13. Actuarial investigations and valuations; specification

of actuarial assumptions.

(a) The board of trustees shall keep, or cause to be kept,

such data as shall be necessary for the preparation of mortality,

service and retirement tables and for the compilation of such other

data as shall be required for an actuarial valuation of the assets

and liabilities of the retirement system.

(b) Beginning in one thousand nine hundred sixty-six, and in

each five-year period thereafter, the actuary shall make actuarial

investigations into the experiences of the members, retirants and

beneficiaries of the retirement system. Based upon such

investigations, the board of trustees shall adopt for the system

rates of mortality, withdrawal from service, superannuation

retirement and disability retirement and salary scales for final

average salary.

(c) Beginning in one thousand nine hundred sixty-two, and at

least once in each three-year period thereafter, the actuary shall

make an actuarial valuation of the assets and liabilities of the

retirement system: Provided, That until the first actuarial

investigations are made, the valuations shall be based upon

decrement assumptions which are, in the opinion of the actuary,

applicable to the members, retirants and beneficiaries of the

system.

(d) Beginning in one thousand nine hundred sixty-two, the

actuary shall annually compute the annuity reserve liabilities for annuities being paid retirants and beneficiaries.

(e) The board shall specify and adopt all actuarial

assumptions for the system at its first meeting of every calendar

year or as soon thereafter as may be practicable, which assumptions

shall become part of the terms of the system.







WVC 5 - 10 - 14

§5-10-14. Service credit; retroactive provisions.

     (a) The board of trustees shall credit each member with the

prior service and contributing service to which he or she is

entitled based upon rules adopted by the board of trustees and

based upon the following:

     (1) In no event may less than ten days of service rendered by

a member in any calendar month be credited as a month of service:

Provided, That for employees of the state Legislature whose term of

employment is otherwise classified as temporary and who are

employed to perform services required by the Legislature for its

regular sessions or during the interim between regular sessions and

who have been or are so employed during regular sessions or during

the interim between regular sessions in seven consecutive calendar

years, service credit of one month shall be awarded for each ten

days employed in the interim between regular sessions, which

interim days shall be cumulatively calculated so that any ten days,

regardless of calendar month or year, shall be calculated toward

any award of one month of service credit;

     (2) Except for hourly employees, and those persons who first

become members of the retirement system on or after July 1, 2015,

ten or more months of service credit earned in any calendar year

shall be credited as a year of service: Provided, That no more

than one year of service may be credited to any member for all

service rendered by him or her in any calendar year and no days may

be carried over by a member from one calendar year to another calendar year where the member has received a full-year credit for

that year; and

     (3) Service may be credited to a member who was employed by a

political subdivision if his or her employment occurred within a

period of thirty years immediately preceding the date the political

subdivision became a participating public employer.

     (b) The board of trustees shall grant service credit to

employees of boards of health, the Clerk of the House of Delegates

and the Clerk of the State Senate or to any former and present

member of the State Teachers Retirement System who have been

contributing members for more than three years, for service

previously credited by the State Teachers Retirement System and

shall require the transfer of the member's contributions to the

system and shall also require a deposit, with interest, of any

withdrawals of contributions any time prior to the member's

retirement. Repayment of withdrawals shall be as directed by the

board of trustees.

     (c) Court reporters who are acting in an official capacity,

although paid by funds other than the county commission or State

Auditor, may receive prior service credit for time served in that

capacity.

     (d) Active members who previously worked in Comprehensive

Employment and Training Act (CETA) may receive service credit for

time served in that capacity: Provided, That in order to receive

service credit under the provisions of this subsection the following conditions must be met: (1) The member must have moved

from temporary employment with the participating employer to

permanent full-time employment with the participating employer

within one hundred twenty days following the termination of the

member's CETA employment; (2) the board must receive evidence that

establishes to a reasonable degree of certainty as determined by

the board that the member previously worked in CETA; and (3) the

member shall pay to the board an amount equal to the employer and

employee contribution plus interest at the amount set by the board

for the amount of service credit sought pursuant to this

subsection: Provided, however, That the maximum service credit

that may be obtained under the provisions of this subsection is two

years: Provided further, That a member must apply and pay for the

service credit allowed under this subsection and provide all

necessary documentation by March 31, 2003: And provided further,

That the board shall exercise due diligence to notify affected

employees of the provisions of this subsection.

     (e) (1) Employees of the state Legislature whose terms of

employment are otherwise classified as temporary and who are

employed to perform services required by the Legislature for its

regular sessions or during the interim time between regular

sessions shall receive service credit for the time served in that

capacity in accordance with the following: For purposes of this

section, the term "regular session" means day one through day sixty

of a sixty-day legislative session or day one through day thirty of a thirty-day legislative session. Employees of the state

Legislature whose term of employment is otherwise classified as

temporary and who are employed to perform services required by the

Legislature for its regular sessions or during the interim time

between regular sessions and who have been or are employed during

regular sessions or during the interim time between regular

sessions in seven consecutive calendar years, as certified by the

clerk of the house in which the employee served, shall receive

service credit of six months for all regular sessions served, as

certified by the clerk of the house in which the employee served,

or shall receive service credit of three months for each regular

thirty-day session served prior to 1971: Provided, That employees

of the state Legislature whose term of employment is otherwise

classified as temporary and who are employed to perform services

required by the Legislature for its regular sessions and who have

been or are employed during the regular sessions in thirteen

consecutive calendar years as either temporary employees or

full-time employees or a combination thereof, as certified by the

clerk of the house in which the employee served, shall receive a

service credit of twelve months for each regular session served, as

certified by the clerk of the house in which the employee served:

Provided, however, That the amendments made to this subsection

during the 2002 regular session of the Legislature only apply to

employees of the Legislature who are employed by the Legislature as

either temporary employees or full-time employees as of January 1, 2002, or who become employed by the Legislature as temporary or

full-time employees for the first time after January 1, 2002.

Employees of the State Legislature whose terms of employment are

otherwise classified as temporary and who are employed to perform

services required by the Legislature during the interim time

between regular sessions shall receive service credit of one month

for each ten days served during the interim between regular

sessions, which interim days shall be cumulatively calculated so

that any ten days, regardless of calendar month or year, shall be

calculated toward any award of one month of service credit:

Provided further, That no more than one year of service may be

credited to any temporary legislative employee for all service

rendered by that employee in any calendar year and no days may be

carried over by a temporary legislative employee from one calendar

year to another calendar year where the member has received a full

year credit for that year. Service credit awarded for legislative

employment pursuant to this section shall be used for the purpose

of calculating that member's retirement annuity, pursuant to

section twenty-two of this article, and determining eligibility as

it relates to credited service, notwithstanding any other provision

of this section. Certification of employment for a complete

legislative session and for interim days shall be determined by the

clerk of the house in which the employee served, based upon

employment records. Service of fifty-five days of a regular

session constitutes an absolute presumption of service for a complete legislative session and service of twenty-seven days of a

thirty-day regular session occurring prior to 1971 constitutes an

absolute presumption of service for a complete legislative session.

Once a legislative employee has been employed during regular

sessions for seven consecutive years or has become a full-time

employee of the Legislature, that employee shall receive the

service credit provided in this section for all regular and interim

sessions and interim days worked by that employee, as certified by

the clerk of the house in which the employee served, regardless of

when the session or interim legislative employment occurred: And

provided further, That regular session legislative employment for

seven consecutive years may be served in either or both houses of

the Legislature.

     (2) For purposes of this section, employees of the Joint

Committee on Government and Finance are entitled to the same

benefits as employees of the House of Delegates or the Senate:

Provided, That for joint committee employees whose terms of

employment are otherwise classified as temporary, employment in

preparation for regular sessions, certified by the legislative

manager as required by the Legislature for its regular sessions,

shall be considered the same as employment during regular sessions

to meet service credit requirements for sessions served.

     (f) Any employee may purchase retroactive service credit for

periods of employment in which contributions were not deducted from

the employee's pay. In the purchase of service credit for employment prior to 1989 in any department, including the

Legislature, which operated from the General Revenue Fund and which

was not expressly excluded from budget appropriations in which

blanket appropriations were made for the state's share of public

employees' retirement coverage in the years prior to 1989, the

employee shall pay the employee's share. Other employees shall pay

the state's share and the employee's share to purchase retroactive

service credit. Where an employee purchases service credit for

employment which occurred after 1988, that employee shall pay for

the employee's share and the employer shall pay its share for the

purchase of retroactive service credit: Provided, That no

legislative employee and no current or former member of the

Legislature may be required to pay any interest or penalty upon the

purchase of retroactive service credit in accordance with the

provisions of this section where the employee was not eligible to

become a member during the years for which he or she is purchasing

retroactive credit or had the employee attempted to contribute to

the system during the years for which he or she is purchasing

retroactive service credit and such contributions would have been

refused by the board: Provided, however, That a legislative

employee purchasing retroactive credit under this section does so

within twenty-four months of becoming a member of the system or no

later than December 31, 2008, whichever occurs last: Provided

further, That once a legislative employee becomes a member of the

retirement system, he or she may purchase retroactive service credit for any time he or she was employed by the Legislature and

did not receive service credit. Any service credit purchased shall

be credited as six months for each sixty-day session worked, three

months for each thirty-day session worked or twelve months for each

sixty-day session for legislative employees who have been employed

during regular sessions in thirteen consecutive calendar years, as

certified by the clerk of the house in which the employee served,

and credit for interim employment as provided in this subsection:

And provided further, That this legislative service credit shall

also be used for months of service in order to meet the sixty-month

requirement for the payments of a temporary legislative employee

member's retirement annuity: And provided further, That no

legislative employee may be required to pay for any service credit

beyond the actual time he or she worked regardless of the service

credit which is credited to him or her pursuant to this section:

And provided further, That any legislative employee may request a

recalculation of his or her credited service to comply with the

provisions of this section at any time.

     (g) (1) Notwithstanding any provision to the contrary, the

seven consecutive calendar years requirement and the thirteen

consecutive calendar years requirement and the service credit

requirements set forth in this section shall be applied

retroactively to all periods of legislative employment prior to the

passage of this section, including any periods of legislative

employment occurring before the seven consecutive and thirteen consecutive calendar years referenced in this section: Provided,

That the employee has not retired prior to the effective date of

the amendments made to this section in the 2002 regular session of

the Legislature.

     (2) The requirement of seven consecutive years and the

requirement of thirteen consecutive years apply retroactively to

all legislative employment prior to the effective date of the 2006

amendments to this section.

     (h) The board of trustees shall grant service credit to any

former or present member of the State Police Death, Disability and

Retirement Fund who has been a contributing member of this system

for more than three years for service previously credited by the

State Police Death, Disability and Retirement Fund if the member

transfers all of his or her contributions to the State Police

Death, Disability and Retirement Fund to the system created in this

article, including repayment of any amounts withdrawn any time from

the State Police Death, Disability and Retirement Fund by the

member seeking the transfer allowed in this subsection: Provided,

That there shall be added by the member to the amounts transferred

or repaid under this subsection an amount which shall be sufficient

to equal the contributions he or she would have made had the member

been under the Public Employees Retirement System during the period

of his or her membership in the State Police Death, Disability and

Retirement Fund, excluding contributions on lump sum payment for

annual leave, plus interest at a rate determined by the board.

     (i) The provisions of section twenty-two-h of this article are

not applicable to the amendments made to this section during the

2006 regular session.







WVC 5 - 10 - 15

§5-10-15. Military service credit; qualified military service.

     (a) (1) The Legislature recognizes the men and women of this

state who have served in the armed forces of the United States

during times of war, conflict and danger. It is the intent of this

subsection to confer military service credit upon persons who are

eligible at any time for public employees retirement benefits for

any time served in active duty in the armed forces of the United

States, regardless of whether the person was a public employee at

the time of entering the military service.

     (2) In addition to any benefit provided by federal law, any

member of the retirement system who has previously served in or

enters the active service of the armed forces of the United States,

including active duty in the National Guard performed pursuant to

Title 10 or Title 32 of the United States Code, shall receive

credited service for the time spent in the armed forces of the

United States, not to exceed five years, if the member:

     (A) Has been honorably discharged from the armed forces; and

     (B) Substantiates by appropriate documentation or evidence his

or her active military service.

     If a member of the retirement system enters the active service

of the armed forces of the United States, the member's

contributions to the retirement system are suspended during the

period of the active service and until the member's return to the

employ of a participating public employer, and any credit balance

remaining in the member's deposit fund shall accumulate regular interest: Provided, That notwithstanding any provision in this

article to the contrary, if an employee of a participating

political subdivision serving on active duty in the military has

accumulated credited service prior to the last entry into military

service, in an amount that, added to the time in active military

service while an employee equals nine or more years, and the member

is unable to resume employment with a participating employer upon

completion of duty due to death during or as a result of active

service, all time spent in active military service, up to and

including a total of five years, is considered to be credited

service and death benefits are vested in the member: Provided,

however, That the active service during the time the member is an

employee must be as a result of an order or call to duty, and not

as a result of volunteering for assignment or volunteering to

extend the time in service beyond the time required by order or

call.

     (b) Subsection (a) of this section does not apply to any

member who first becomes an employee of a participating public

employer on or after July 1, 2015. This subsection does not apply

to any member who first became an employee of a participating

public employer before July 1, 2015.

     (1) A member who first becomes an employee of a participating

public employer on or after July 1, 2015, may purchase up to sixty

months of military service credit for time served in active

military duty prior to first becoming an employee of a participating public employer if all of the following conditions

are met:

     (A) The member has completed at least twelve consecutive

months of contributory service upon first becoming an employee of

a participating public employer;

     (B) The active military duty occurs prior to the date on which

the member first becomes an employee of a participating public

employer; and

     (C) The employee pays to the retirement system the actuarial

reserve purchase amount within forty-eight months after the date on

which employer and employee contributions are first received by the

retirement system for the member and while he or she continues to

be in the employ of a participating public employer and

contributing to the retirement system: Provided, That any employee

who ceases employment with a participating public employer before

completing the required actuarial reserve purchase amount in full

shall not be eligible to purchase the military service.

     (2) Notwithstanding paragraph (A), subdivision (1) of this

subsection, a member who first becomes an employee of a

participating public employer on or after July 1, 2015, but who

does not remain employed and contributing to the retirement system

for at least twelve consecutive months after his or her initial

employment, shall be considered to have met the requirement of

paragraph (A), subdivision (1) of this subsection the first time he

or she becomes an employee of a participating public employer and completes at least twelve consecutive months of contributing

service. Such a member shall be considered to have met the

requirement of paragraph (C), subdivision (1) of this subsection if

he or she pays to the retirement system the actuarial reserve

purchase amount within forty-eight months after the date on which

employer and employee contributions are first received by the

retirement system for the member the first time he or she becomes

an employee of a participating public employer and completes at

least twelve consecutive months of contributing service, and while

he or she continues to be in the employ of a participating public

employer and contributing to the retirement system.

     (3) Notwithstanding paragraph (A), subdivision (1) of this

subsection, a member who first becomes an employee of a

participating public employer on or after July 1, 2015, as an

elected official, shall be considered to have met the requirement

of paragraph (A), subdivision (1) of this subsection after

remaining employed for the first twelve consecutive months of his

or her term and first becoming an employee, regardless of whether

a salary is paid to the employee for each such month. An elected

official who does not elect to begin participating in the

retirement system upon first becoming an employee of a

participating public employer as an elected official is not

eligible to purchase military service credit pursuant to

subdivision (1) of this subsection.

     (4) A member who first becomes an employee of a participating public employer on or after July 1, 2015, may purchase military

service credit for active military duty performed on or after the

date he or she first becomes an employee of a participating public

employer only if all of the following conditions are met:

Provided, That the maximum military service credit such member may

purchase shall take into account any military service credit

purchased for active military duty pursuant to subdivision (1) of

this subsection in addition to any military service credit

purchased pursuant to this subdivision:

     (A) The member was an employee of a participating public

employer, terminated employment and experienced a break in

contributing service in the retirement system of one or more

months, performed active military service while not an employee of

the participating public employer and not contributing to the

retirement system, then again becomes an employee of a

participating public employer and completes at least twelve

consecutive months of contributory service;

     (B) The member does not qualify for military service credit

for such active military duty pursuant to subsection (d) of this

section; and

     (C) The member pays to the retirement system the actuarial

reserve lump sum purchase amount within forty-eight months after

the date on which employer and employee contributions are first

received by the retirement system for the member after he or she

again becomes an employee of a participating public employer immediately following the period of active military duty and break

in service and completes at least twelve consecutive months of

contributory service and while he or she continues to be in the

employ of a participating public employer and contributing to the

retirement system.

     (5) Notwithstanding paragraph (A), subdivision (4) of this

subsection, a member who otherwise meets the requirements of said

paragraph, but who does not remain employed and contributing to the

retirement system for at least twelve consecutive months when he or

she first becomes an employee of a participating public employer

after the period of active military duty and break in service,

shall be considered to have met the requirement of paragraph (A),

subdivision (4) of this subsection the first time he or she again

becomes an employee of a participating public employer and

completes at least twelve consecutive months of contributing

service. Such a member shall be considered to have met the

requirement of paragraph (C), subdivision (4) of this subsection if

he or she pays to the retirement system the actuarial reserve lump

sum purchase amount within forty-eight months after the date on

which employer and employee contributions are first received by the

retirement system for the member for the first time he or she again

becomes an employee of a participating public employer and

completes at least twelve consecutive months of contributing

service, and while he or she continues to be in the employ of a

participating public employer and contributing to the retirement system.

     (6) Notwithstanding paragraph (A), subdivision (4) of this

subsection, a member who becomes an employee of a participating

public employer after such a period of active military duty and

break in service as an elected official shall be considered to have

met the requirement of paragraph (A), subdivision (4) of this

subsection after remaining employed for the first twelve

consecutive months of his or her term after again becoming an

employee, regardless of whether a salary is paid to the employee

for each such month. Such an individual must elect to begin

participating in the retirement system immediately upon again

becoming an employee of a participating public employer after the

period of active military duty and break in service.

     (7) For purposes of this subsection, the following definitions

apply:

     (A) "Active military duty" means full-time active duty in the

armed forces of the United States for a period of thirty or more

consecutive calendar days. Active military duty does not include

inactive duty of any kind.

     (B) "Actuarial reserve purchase amount" means the purchase

annuity rate multiplied by the purchase accrued benefit, calculated

as of the calculation month, plus annual interest accruing at seven

and one-half percent from the calculation month through the

purchase month, compounded monthly: Provided, That if the employee

elects to pay the full purchase amount on an installment or partial payment basis, the actuarial reserve purchase amount will include

the lump sum payment plus additional interest accruing at seven and

one-half percent until the purchase amount is paid in full.

     (C) "Armed forces of the United States" means the Army, Navy,

Air Force, Marine Corps and Coast Guard, the reserve components

thereof, and the National Guard of the United States or the

National Guard of a state or territory when members of the same are

on full-time active duty pursuant to Title 10 or Title 32 of the

United States Code.

     (D) "Calculation month" means the month immediately following

the month in which the member completes the twelve consecutive

months of contributory service with a participating public employer

required by this subsection, as applicable.

     (E) "Purchase accrued benefit" means two percent times the

purchase military service times the purchase average monthly

salary.

     (F) "Purchase age" means the age of the employee in years and

completed months as of the first day of the calculation month.

     (G) "Purchase annuity rate" means the actuarial lump sum

annuity factor calculated as of the calculation month based on the

following actuarial assumptions: Interest rate of seven and

one-half percent; mortality of the 1971 group annuity mortality

table, fifty percent blended male and female rates, applied on a

unisex basis to all members; if purchase age is under age sixty-

two, a deferred annuity factor with payments commencing at age sixty-two; and if purchase age is sixty-two or over, an immediate

annuity factor with payments starting at the purchase age.

     (H) "Purchase average monthly salary" means the average

monthly salary of the member during the months two through twelve

of the twelve consecutive month period required by this subsection

of this section, as applicable.

     (I) "Purchase military service" means the amount of military

service being purchased by the employee in months up to the sixty-

month maximum, calculated in accordance with subdivision (9) of

this subsection.

     (J) "Purchase month" means the month in which the employee

deposits the actuarial reserve lump sum purchase amount in full

payment of the service credit being purchased or makes the final

payment of the actuarial reserve purchase amount into the plan

trust fund in full payment of the service credit being purchased.

     (8) A member may purchase military service credit for a period

of active military duty pursuant to this subsection only if the

member received an honorable discharge for such period. Anything

other than an honorable discharge, including, but not limited to,

a general or under honorable conditions discharge, an entry-level

separation discharge, an other than honorable conditions discharge

or a dishonorable discharge, shall disqualify the member from

receiving military service credit for the period of service.

     (9) To calculate the amount of military service credit a

member may purchase, the board shall add the total number of days in each period of a member's active military duty eligible to be

purchased, divide the total by thirty, and round up or down to the

nearest integer (fractions of 0.5 shall be rounded up), in order to

yield the total number of months of military service credit a

member may purchase, subject to the sixty-month maximum. A member

may purchase all or part of the maximum amount of military service

credit he or she is eligible for in one-month increments.

     (10) To receive credit, a member must submit a request to

purchase military service credit to the board, on such form or in

such other manner as shall be required by the board, within the

twelve consecutive month period required by this subsection, as

applicable. The board shall then calculate the actuarial reserve

lump sum purchase amount, which amount must be paid by the member

within the 48-month period required by this subsection, as

applicable. A member purchasing military service credit pursuant

to this subsection must do so in a single, lump sum payment:

Provided, That the board may accept partial, installment or other

similar payments if the employee executes a contract with the board

specifying the amount of military service to be purchased and the

payments required: Provided, however, That any failure to pay the

contract amount in accordance with this section shall be treated as

an overpayment or excess contribution subject to section forty-four

of this article and no military service shall be credited.

     (11) The board shall require a member requesting military

service credit to provide official documentation establishing that the requirements set forth in this subsection have been met.

     (12) Military service credit purchased pursuant to this

subsection may not be considered contributing service credit or

contributory service for purposes of this article.

     (13) If a member who has purchased military service credit

pursuant to this subsection is eligible for and requests a

withdrawal of accumulated contributions pursuant to the provisions

of this article, he or she shall also receive a refund of the

actuarial reserve purchase amount he or she paid to the retirement

system to purchase military service credit, together with regular

interest on such amount.

     (c) No period of military service may be used to obtain credit

in more than one retirement system administered by the board and

once used in any system, a period of military service may not be

used again in any other system.

     (d) Notwithstanding the preceding provisions of this section,

contributions, benefits and service credit with respect to

qualified military service shall be provided in accordance with

Section 414(u) of the Internal Revenue Code and the federal

Uniformed Services Employment and Reemployment Rights Act (USERRA),

and regulations promulgated thereunder, as the same may be amended

from time to time. For purposes of this section, "qualified

military service" has the same meaning as in Section 414(u) of the

Internal Revenue Code.

     (e) In any case of doubt as to the period of service to be credited a member under the provisions of this section, the board

has final power to determine the period. Notwithstanding the

provisions of section three-a of this article, the provisions of

this section are not subject to liberal construction. The board is

authorized to determine all questions and make all decisions

relating to this section and, pursuant to the authority granted to

the board in section one, article ten-d of this chapter, may

propose rules to administer this section for legislative approval

in accordance with the provisions of article three, chapter

twenty-nine-a of this code.







WVC 5 - 10 - 15 A

§5-10-15a. Retirement credited service through member's use, as

option, of accrued annual or sick leave days.

     (a) Any member accruing annual leave or sick leave days may,

after June 27, 1988, elect to use the days at the time of

retirement to acquire additional credited service in this

retirement system. Except as provided in subsection (b) of this

section, the accrued days shall be applied on the basis of two

workdays credit granted for each one day of such accrued annual or

sick leave days, with each month of retirement service credit to

equal twenty workdays and with any remainder of ten workdays or

more to constitute a full month of additional credit and any

remainder of less than ten workdays to be dropped and not used,

notwithstanding any provisions of the code to the contrary,

including section twelve, article sixteen of this chapter. Such

credited service shall be allowed and not deemed to controvert the

requirement of no more than twelve months credited service in any

year's period.

     (b) For those persons who first become members of the

retirement system on or after July 1, 2015, accrued annual or sick

days may not be applied to acquire additional credited service.







WVC 5 - 10 - 15 B

§5-10-15b. Credit for public employment in another state.

(a) Any member of the retirement system who has previously

been employed in public employment in any other state of the United

States is entitled to receive credited service for the time of

public employment in that state, not to exceed five years, if the

member substantiates by appropriate documentation or evidence his

or her public employment in another state and makes contributions

as required: Provided, That the member is not entitled to receive

the credited service if the employee is vested or entitled to be

vested in a retirement system of the state in which the employment

credit was earned and the member is entitled to service credit in

that retirement system for the employment period for which the

applicant seeks credited service in West Virginia: Provided,

however, That the service credit from the other state may not be

used to meet West Virginia's eligibility requirements for

retirement or vesting.

Members entitled to out-of-state service credit under the

provisions of this section shall make additional contribution to

the retirement system equal to the actuarial equivalent of the

amount which would have been contributed, together with earnings

thereon, by the member and the employer, had the member been

covered during the period of the retroactive service credit.

(b) In any case of doubt as to the period of service to be

credited a member under the provisions of this section, the Board

of Trustees has the final power to determine this period.







WVC 5-10-16

§5-10-16. When and how political subdivision becomes participating

public employer.

The state of West Virginia shall become a participating public

employer effective July one, one thousand nine hundred sixty-one.

Any other political subdivision may by a three-fifths vote of its

governing body, or by a majority vote of its electors, elect to

become a participating public employer and thereby include its

employees in the membership of the retirement system. It shall be

the duty of the clerk or secretary of each such political

subdivision electing to become a participating public employer to

certify the determination of the political subdivision to the board

of trustees within ten days from and after the vote of the

governing body or the canvass of votes upon such action.







WVC 5 - 10 - 17

§5-10-17. Retirement system membership.

     The membership of the retirement system consists of the

following persons:

     (a) All employees, as defined in section two of this article,

who are in the employ of a political subdivision the day preceding

the date it becomes a participating public employer and who

continue in the employ of the participating public employer on and

after that date shall become members of the retirement system; and

all persons who become employees of a participating public employer

on or after that date shall thereupon become members of the system;

except as provided in subdivisions (b), (c) and (d) of this

section.

     (b) The membership of the Public Employees Retirement System

shall not include any person who is an active contributing member

of, or who has been retired by, any of the state Teachers

retirement systems, the Judges Retirement System, any Retirement

System of the West Virginia State Police, the Deputy Sheriff

Retirement System or any municipal retirement system for either, or

both, police or firefighter; and the Bureau of Employment Programs,

by the Commissioner of the Bureau, may elect whether its employees

will accept coverage under this article or be covered under the

authorization of a separate enactment: Provided, That the

exclusions of membership do not apply to any member of the State

Legislature, the Clerk of the House of Delegates, the Clerk of the



State Senate or to any member of the legislative body of any political subdivision provided he or she once becomes a

contributing member of the retirement system: Provided, however,

That any retired member of the State Police Death, Disability and

Retirement Fund, the West Virginia State Police Retirement System,

the Deputy Sheriff Retirement System and any retired member of any

municipal retirement system for either, or both, police or

firefighter may on and after the effective date of this section

become a member of the retirement system as provided in this

article, without receiving credit for prior service as a municipal

police officer or firefighter or as a member of the State Police

Death, Disability and Retirement Fund, the West Virginia State

Police Retirement System or the Deputy Sheriff Retirement System:

Provided further, That any retired member of the State Police

Death, Disability and Retirement Fund, the West Virginia State

Police Retirement System, the Deputy Sheriff Retirement System and

any retired member of any municipal retirement system for either,

or both, police or firefighters, who begins participation in the

retirement system established in this article on or after

July1,2005, may not receive a combined retirement benefit in excess

of one hundred five percent of the member's highest annual salary

earned while either a member of the retirement system established

in this article or while a member of the other retirement system or

systems from which he or she previously retired when adding the

retirement benefit from the retirement system created in this

article to the retirement benefit received by that member from the other retirement system or systems set forth herein from which he

or she previously retired: And provided further, That the

membership of the retirement system does not include any person who

becomes employed by the Prestera Center for Mental Health Services,

Valley Comprehensive Mental Health Center, Westbrook Health

Services or Eastern Panhandle Mental Health Center on or after

July1,1997, And provided further, That membership of the retirement

system does not include any person who becomes a member of the

federal Railroad Retirement Act on or after July1, 2000.

     (c) Any member of the State Legislature, the Clerk of the

House of Delegates, the Clerk of the State Senate and any employee

of the State Legislature whose 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 sessions in seven

consecutive calendar years, as certified by the Clerk of the House

in which the employee served, or any member of the legislative body

of any other political subdivision shall become a member of the

retirement system provided he or she notifies the retirement system

in writing of his or her intention to be a member of the system and

files a membership enrollment form as prescribed by the Board of

Trustees, and each person, upon filing his or her written notice to

participate in the retirement system, shall by that act authorize

the Clerk of the House of Delegates or the Clerk of the State Senate or such person or legislative agency as the legislative body

of any other political subdivision shall designate to deduct the

member's contribution, as provided in subsection (b), section

twenty-nine of this article, and after the deductions have been

made from the member's compensation, the deductions shall be

forwarded to the retirement system.

     (d) Any employee, as defined in section two of this article,

who has concurrent employment in an additional job or jobs which

would require the employee to be a member of the West Virginia

Deputy Sheriff Retirement System, the West Virginia Municipal

Police Officers and Firefighters Retirement System or the West

Virginia Emergency Medical Services Retirement System shall abide

by the concurrent employment statutory provisions of said

retirement system and shall participate in only one retirement

system administered by the board.

     (e) If question arises regarding the membership status of any

employee, the Board of Trustees has the final power to decide the

question.

     (f) Any individual who is a leased employee is not eligible to

participate in the system. For the purposes of this article, the

term "leased employee" means any individual who performs services

as an independent contractor or pursuant to an agreement with an

employee leasing organization or other similar organization. If a

question arises regarding the status of an individual as a leased

employee, the board has final authority to decide the question.







WVC 5 - 10 - 18

§5-10-18. Termination of membership; reentry.

     (a) When a member of the retirement system retires, withdraws

his or her accumulated contributions, or dies, he or she ceases to

be a member. When a member leaves the employ of a participating

public employer for any reason other than retirement or death, and

withdraws his or her accumulated contributions from the system, he

or she ceases to be a member and forfeits service credited to him

or her at that time. If he or she becomes reemployed by a

participating public employer he or she shall be reinstated as a

member of the retirement system and his or her credited service

last forfeited by him or her shall be restored to his or her

credit: Provided, That he or she must be reemployed for a period of

one year or longer to have the service restored: Provided, however,

That he or she returns to the members' deposit fund the amount, if

any, he or she withdrew from the fund, together with reinstatement

interest as set forth in the Board's Rule, Refund, Reinstatement,

Retroactive Service, Loan And Employer Error Interest Factors, 162

C. S. R. 7, on the withdrawn amount from the date of withdrawal to

the date of repayment, and that the repayment begins within two

years of the return to employment and that the full amount is

repaid within five years of the return to employment. Any failure

to repay the full amount in accordance with this section shall be

treated as an overpayment or excess contribution subject to section

forty-four of this article.

     (b) The Prestera Center for Mental Health Services, Valley Comprehensive Mental Health Center, Westbrook Health Services and

Eastern Panhandle Mental Health Center, and their successors in

interest, shall provide for their employees a pension plan in lieu

of the Public Employees Retirement System during the existence of

the named mental health centers and their successors in interest.

     (c) The administrative bodies of the Prestera Center for

Mental Health Services, Valley Comprehensive Mental Health Center,

Westbrook Health Services and Eastern Panhandle Mental Health

Center shall, on or before May 1, 1997, give written notice to each

employee who is a member of the Public Employees Retirement System

of the option to withdraw from or remain in the system. The notice

shall include a copy of this section and a statement explaining the

member's options regarding membership. The notice shall include a

statement in plain language giving a full explanation and actuarial

projection figures in support of the explanation regarding the

individual member's current account balance, vested and nonvested,

and his or her projected return upon remaining in the Public

Employees Retirement System until retirement, disability or death,

in comparison with the projected return upon withdrawing from the

Public Employees Retirement System and joining a private pension

plan provided by the Community Mental Health Center and remaining

in the private pension plan until retirement, disability or death.

The administrative bodies shall keep in their respective records a

permanent record of each employee's signature confirming receipt of

the notice.

     (d) Effective March 1, 2003, and ending December 31, 2004, any

member may purchase credited service previously forfeited by him or

her and the credited service shall be restored to his or her

credit: Provided, That he or she returns to the members' deposit

fund the amount, if any, he or she withdrew from the fund, together

with interest on the withdrawn amount from the date of withdrawal

to the date of repayment at a rate to be determined by the board.

The repayment under this section may be made by lump sum or repaid

over a period of time not to exceed sixty months. Where the member

elects to repay the required amount other than by lump sum, the

member is required to pay interest at the rate determined by the

board until all sums are fully repaid.

     (e) Effective July 1,2005, and ending December 31, 2006, any

emergency services personnel may purchase service credit for the

time period beginning January 1, 1990, and ending December 31,

1995: Provided, That the person was employed as an emergency

service person in this state for that time period: Provided,

however, That any person obtaining service credit under this

subsection is required to pay the employee's share and the

employer's share upon his or her actual salary for the years in

question plus interest at the assumed actuarial rate of return for

the plan year being repurchased.

     (f) Jobs for West Virginia's graduates and their successors in

interest shall provide a pension plan in lieu of the Public

Employees Retirement System for employees hired on or after July 1, 2005.

     (g) Wetzel County Hospital and their successors in interest

shall provide a pension plan in lieu of the Public Employees

Retirement System for employees hired on or after July 1, 2005.







WVC 5-10-19

§5-10-19. Employers to file information as to employees' service.

Each participating public employer shall file with the board

of trustees, in such form as the board shall from time to time

prescribe, a detailed statement of all service rendered to

participating public employers by each of its employees and by any

retirant who retired under section twenty-two-c of this article and

who is working for the employer on a contract basis, as defined in

section twenty-two-c of this article, and such other information as

the board shall require in the operation of the retirement system.







WVC 5 - 10 - 20

§5-10-20. Voluntary retirement.

     (a) Except as provided in subsection (b) of this section, any

member who has attained or attains age sixty years and has five or

more years of credited service in force, at least one year of which

he or she was a contributing member of the retirement system, may

retire upon his or her written application filed with the board of

trustees setting forth at what time, not less than thirty days nor

more than ninety days subsequent to the execution and filing

thereof the member desires to be retired: Provided, That on and

after June 1, 1986, any person who becomes a new member of this

retirement system shall, in qualifying for retirement hereunder,

have five or more years of service, all of which years shall be

actual, contributory ones. Upon retirement, the member shall

receive an annuity provided for in section twenty-two of this

article.

     (b) Any person who first becomes a member of the retirement

system on or after July 1, 2015, may retire upon written

application as provided in subsection (a) of this section upon

attaining the age of sixty-two with ten or more years of service,

all of which must be actual, contributing years.







WVC 5 - 10 - 21

§5-10-21. Deferred retirement and early retirement.

     (a) Except as provided in section twenty-one-a of this

article, any member who first becomes a member of the retirement

system before July 1, 2015, and who has five or more years of

credited service in force, of which at least three years are

contributing service, and who leaves the employ of a participating

public employer prior to his or her attaining age sixty years for

any reason except his or her disability retirement or death, is

entitled to an annuity computed according to section twenty-two of

this article, as that section was in force as of the date of his or

her separation from the employ of a participating public employer:

Provided, That he or she does not withdraw his or her accumulated

contributions from the members' deposit fund: Provided, however,

That on and after July 1, 2002, any person who becomes a new member

of this retirement system shall, in qualifying for retirement under

this section, have five or more years of service, all of which

years shall be actual, contributory ones. His or her annuity shall

begin the first day of the calendar month next following the month

in which his or her application for same is filed with the board of

trustees on or after his or her attaining age sixty-two years.

     (b) Any member who qualifies for deferred retirement benefits

in accordance with subsection (a) of this section and has ten or

more years of credited service in force and who has attained age

fifty-five as of the date of his or her separation, may, prior to

the effective date of his or her retirement, but not thereafter, elect to receive the actuarial equivalent of his or her deferred

retirement annuity as a reduced annuity commencing on the first day

of any calendar month between his or her date of separation and his

or her attainment of age sixty-two years and payable throughout his

or her life.

     (c) Any member who qualifies for deferred retirement benefits

in accordance with subsection (a) of this section and has twenty or

more years of credited service in force may elect to receive the

actuarial equivalent of his or her deferred retirement annuity as

a reduced annuity commencing on the first day of any calendar month

between his or her fifty-fifth birthday and his or her attainment

of age sixty-two years and payable throughout his or her life.

     (d) Notwithstanding any of the other provisions of this

section or of this article, except sections twenty-seven-a and

twenty-seven-b of this article, and pursuant to rules promulgated

by the board, and except for a person who first becomes a member of

the retirement system on or after July 1, 2015, any member who has

thirty or more years of credited service in force, at least three

of which are contributing service, and who elects to take early

retirement, which for the purposes of this subsection means

retirement prior to age sixty, whether an active employee or a

separated employee at the time of application, is entitled to the

full computation of annuity according to section twenty-two of this

article, as that section was in force as of the date of retirement

application, but with the reduced actuarial equivalent of the annuity the member would have received if his or her benefit had

commenced at age sixty when he or she would have been entitled to

full computation of benefit without any reduction.

     (e) Notwithstanding any of the other provisions of this

section or of this article, except sections twenty-seven-a and

twenty-seven-b of this article, and except for a person who first

becomes a member of the retirement system on or after July 1, 2015,

any member of the retirement system may retire with full pension

rights, without reduction of benefits, if he or she is at least

fifty-five years of age and the sum of his or her age plus years of

contributing service and limited credited service, as defined in

section two of this article, equals or exceeds eighty: Provided,

That on and after July 1, 2011, any person who becomes a new member

of this retirement system shall, in qualifying for retirement under

this subsection, have five or more years of service, all of which

years shall be actual, contributory ones. The member's annuity

shall begin the first day of the calendar month immediately

following the calendar month in which his or her application for

the annuity is filed with the board.







WVC 5 - 10 - 21 A

§5-10-21a. Deferred retirement and early retirement for new

members as of July 1, 2015.

     (a) Any person who first becomes a member of the retirement

system on or after July 1, 2015, who has ten or more years of

contributing service and who leaves the employ of a participating

public employer prior to attaining age sixty-two years for any

reason except his or her disability or death, is entitled to an

annuity computed according to section twenty-two of this article,

as that section was in force as of the date of his or her

separation from the employ of a participating public employer:

Provided, That he or she does not withdraw his or her accumulated

contributions from the members' deposit fund: Provided, however,

That his or her annuity shall begin the first day of the calendar

month next following the month in which his or her application for

same is filed with the board of trustees on or after his or her

attaining age sixty-four years.

     (b) Any member who qualifies for deferred retirement benefits

in accordance with subsection (a) of this section and has twenty or

more years of contributing service in force is entitled to an

annuity computed as in subsection (a) of this section: Provided,

That his or her annuity shall begin the first day of the calendar

month next following the month in which his or her application for

same is filed with the board of trustees on or after his or her

attaining age sixty-three.

     (c) Notwithstanding any of the other provisions of this section or of this article, except sections twenty-seven-a and

twenty-seven-b of this article, and pursuant to rules promulgated

by the board, any member who first becomes a member of the

retirement system on or after July 1, 2015, has ten or more years

of contributing service in force, is currently employed by a

participating public employer and who elects to take early

retirement, which for the purposes of this subsection means

retirement following attainment of age sixty but prior to attaining

age sixty-two, is entitled to the full computation of annuity

according to section twenty-two of this article but with the

reduced actuarial equivalent of the annuity the member would have

received if his or her benefit had commenced at age sixty-two when

he or she would have been entitled to full computation of benefit

without any reduction: Provided, That his or her annuity shall

begin the first day of the calendar month next following the month

in which his or her application for same is filed with the board of

trustees on or after his or her attaining age sixty.

     (d) Any member who first becomes a member of the retirement

system on or after July 1, 2015, and has twenty or more years of

contributing service in force, is currently employed by a

participating public employer and who elects to take early

retirement, which for the purposes of this subsection means

retirement following attainment of age fifty-seven but prior to

attaining age sixty-two, is entitled to the full computation of

annuity according to section twenty-two of this article but with the reduced actuarial equivalent of the annuity the member would

have received if his or her benefit had commenced at age sixty-two

when he or she would have been entitled to full computation of

benefit without any reduction: Provided, That his or her annuity

shall begin the first day of the calendar month next following the

month in which his or her application for same is filed with the

board of trustees on or after his or her attaining age fifty-seven.

     (e) Any member who first becomes a member of the retirement

system on or after July 1, 2015, and has thirty or more years of

contributing service in force, and who elects to take early

retirement, which for the purposes of this subsection means

retirement following attainment of age fifty-five but prior to

attaining age sixty-two, is entitled to the full computation of

annuity according to section twenty-two of this article but with

the reduced actuarial equivalent of the annuity the member would

have received if his or her benefit had commenced at age sixty-two

when he or she would have been entitled to full computation of

benefit without any reduction: Provided, That his or her annuity

shall begin the first day of the calendar month next following the

month in which his or her application for same is filed with the

board of trustees on or after his or her attaining age fifty-five.







WVC 5 - 10 - 22

§5-10-22. Retirement annuity.

(a) Upon a member's retirement, as provided in this article,

he or she shall receive a straight life annuity equal to one and

five-tenths percent of his or her final average salary multiplied

by the number of years, and fraction of a year, of his or her

credited service in force at the time of his or her retirement,

subject to reduction if necessary to comply with the maximum

benefit provisions of Section 415 of the Internal Revenue Code and

section twenty-seven-a of this article: Provided, That the final

average salary used in this calculation does not include any lump

sum payment for unused, accrued leave of any kind or character.

The credited service used for this calculation may not include any

period of limited credited service: Provided, however, That after

March 1, 1970, all members retired and all members retiring shall

receive a straight life annuity equal to two percent of his or her

final average salary multiplied by the number of years, and

fraction of a year, of his or her credited service, exclusive of

limited credited service in force at the time of his or her

retirement, subject to reduction if necessary to comply with the

maximum benefit provisions of Section 415 of the Internal Revenue

Code and section twenty-seven-a of this article. In either event,

upon his or her retirement he or she has the right to elect an

option provided in section twenty-four of this article. All

annuity payments shall commence effective the first day of the

month following the month in which a member retires or a member dies leaving a beneficiary entitled to benefits and shall continue

to the end of the month in which the retirant or beneficiary dies,

and the annuity payments may not be prorated for any portion of a

month in which a member retires or retirant or beneficiary dies.

Any member receiving an annuity based in part upon limited credited

service is not eligible for the supplements provided in sections

twenty-two-a through twenty-two-d, inclusive, of this article.

(b) The annuity of any member of the Legislature who

participates in the retirement system as a member of the

Legislature and who retires under this article or of any former

member of the Legislature who has retired under this article

(including any former member of the Legislature who has retired

under this article and whose annuity was readjusted as of March 1,

1970, under the former provisions of this section) shall be

increased from time to time during the period of his or her

retirement when and if the legislative compensation paid under

section two, article two-a, chapter four of this code, to a member

of the Legislature shall be increased to the point where a higher

annuity would be payable to the retirant if he or she were retiring

as of the effective date of the latest increase in legislative

compensation, but on the basis of his or her years of credited

service to the date of his or her actual retirement.



WVC 5-10-22a

§5-10-22a. Supplemental benefits for certain annuitants.

As an additional supplement to other retirement allowances

provided, each annuitant who on July 1, 1974, is receiving a

retirement annuity less than four thousand two hundred dollars

annually, and whose retirement allowance became effective during

the respective dates indicated in this section shall receive, upon

application, an increased amount, payable monthly, which is the

product of his present retirement allowance multiplied by the

percentage increase applicable, according to the effective date of

retirement and according to the plan of retirement, as provided by

the schedule below.

Effective Date ofPercentage of

RetirementRetirement Allowance Increase

July 1, 1961 through June 30, 1962 .........................24.00

July 1, 1962 through June 30, 1963 .........................22.00

July 1, 1963 through June 30, 1964 .........................20.00

July 1, 1964 through June 30, 1965 .........................18.00

July 1, 1965 through June 30, 1966 .........................16.00

July 1, 1966 through June 30, 1967 .........................14.00

July 1, 1967 through June 30, 1968 .........................12.00

July 1, 1968 through June 30, 1969 .........................10.00

July 1, 1969 through June 30, 1970 ..........................8.00

July 1, 1970 through June 30, 1971 ..........................6.00

July 1, 1971 through June 30, 1972 ..........................4.00

July 1, 1972 through June 30, 1973 ..........................2.00

Any additional benefit conferred herein shall not be

retroactive to the time of retirement but shall become effective

the first day of July, one thousand nine hundred seventy-four.

In no event, however, when the amount of an annuity is

affected by this section, shall the total of the additional benefit

herein provided and other retirement allowances provided elsewhere

in this article exceed the sum of four thousand two hundred dollars

annually.







WVC 5-10-22b

§5-10-22b. Supplemental benefits for certain annuitants.

Any annuitant who is receiving a retirement annuity of less

than seven thousand five hundred dollars annually shall receive,

upon application, a supplemental benefit, prospectively, under this

section from the public employees retirement fund: Provided, That

the effective date of retirement for such annuitant was prior to

the first day of July, one thousand nine hundred seventy-nine, and

he had ten years or more of credited service at the time of such

retirement. For the purposes of this section, "effective date of

retirement" means the last day of actual employment, or the last

day carried on the payroll of the employer, whichever is later,

together with a meeting fully of all eligibility requirements for

retirement prior to the aforesaid effective date. Any annuitant

retired pursuant to the disability provisions of this article shall

be considered to have had ten years or more credited service at the

time of such retirement.

Each such annuitant shall receive as his supplemental benefit

an increased annual amount which is the product of the sum of

eighteen dollars multiplied by his years of credited service:

Provided, That the total annuity of any annuitant affected by the

provisions of this section, together with any of the other

provisions of this article, shall not exceed seven thousand five

hundred dollars annually.

Any annuitant receiving the supplemental benefit provided for

herein for the annuity payment period just prior to the first day of July, one thousand nine hundred eighty-five, or any annuitant

made newly eligible for receipt of such supplemental benefit on

such date, shall receive a nineteen percent increase in the amount

of such supplemental benefit prior received or newly calculated,

effective on and after the first day of July, one thousand nine

hundred eighty-five, and irrespective of the maximum total annuity

proviso and limitation of seven thousand five hundred dollars

annually. In any fiscal year in which pay increases are granted by

the Legislature to active public employees, there may also be given

an increase in retirement benefits for retired public employees, if

funding is available for this purpose.

For the purpose of calculating the supplemental benefit

provided in this section, fractional parts of a service credit year

are to be disregarded unless in excess of one half of a credited

service year, in which event the same shall constitute a full year

of service credit.

For the purpose of computation for determination of

eligibility and for the amount of any supplemental benefit

hereunder, separate computation shall be made of a retirant's own

benefit and that which may be receivable as beneficiary of another,

under the provisions of this article, with each such benefit being

eligible for the supplemental benefit herein provided.







WVC 5 - 10 - 22 C

§5-10-22c. Temporary early retirement incentives program;

legislative declaration and finding of compelling

state interest and public purpose; specifying

eligible and ineligible members for incentives

program; options, conditions, and exceptions;

certain positions abolished; special rule of

eighty; effective, termination, and notice dates.

The Legislature hereby finds and declares that a compelling

state interest exists in providing a temporary early retirement

incentives program for encouraging the early, voluntary retirement

of those public employees who were current, active contributing

members of this retirement system on the first day of April, one

thousand nine hundred eighty-eight, in the reduction of the number

of such employees and in reduction of governmental costs therefor;

that such program constitutes a public purpose; and that the

special classifications and differentiations provided in respect of

such program are reasonable and equitable ones for the

accomplishment of such purpose and program as enacted in Enrolled

Committee Substitute for H. B. No. 4672, regular session, one

thousand nine hundred eighty-eight, and as clarified and

supplemented herein, retroactive to such beginning date, aforesaid.

The Legislature further finds that maintaining an actuarially sound

retirement fund is a necessity and that the reemployment of persons

who retire under this section in any manner, including reemployment

on a contract basis, is contrary to the intent of the early retirement program and severely threatens the fiscal integrity of

the retirement fund.

(a) For the purposes of this section: (1) "Contract" means

any personal service agreement, not involving the sale of

commodities, that cannot be performed within sixty days or that

exceeds two thousand five hundred dollars in any twelve-month

period. The term "contract" does not include any agreement

obtained by a retirant through a bidding process and which is for

the furnishing of any commodity to a government agency and that

term does not include any person who retired under this section who

works as a contract employee for the Legislature when such

employment commences after the thirty-first day of December, one

thousand nine hundred ninety-nine: Provided, That such employment

may not exceed one hundred ten days; (2) "governmental entity"

means the state of West Virginia; a constitutional branch or office

of the state government, or any subdivision thereof; a county, city

or town in the state; a county board of education; a separate

corporation or instrumentality established pursuant to a state

statute; any other entity currently permitted to participate in any

state public retirement system or the public employees insurance

agency; or any officer or official of any entity listed above who

is acting in his or her official capacity; (3) "part-time elected

or appointed office" means any elected or appointed office that

pays annual compensation of less than two thousand five hundred

dollars or requires less than sixty days of service in any twelve-month period; (4) "substitute teacher" means a teacher,

public school librarian, registered professional nurse employed by

the county board of education or any other person employed for

counseling or instructional purposes in a public school in this

state who is temporarily fulfilling the duties of an existing real

person employed in a specific position who is temporarily absent

from that specified position.

(b) Beginning on the first day of April, one thousand nine

hundred eighty-eight, and continuing through the thirty-first day

of December, one thousand nine hundred eighty-eight (or as extended

by eligibility qualification requirement, as hereinafter

specified), eligible members, being those active, contributing

members actually and currently employed on such beginning date,

retiring pursuant to this section, and from any state, county or

municipal position, covered under the two divisions of this

retirement system (the state division and the public employer,

nonstate division) including those so employed on said beginning

date and leaving the system during the incentive period and who are

eligible for taking deferred retirement (but not disability

retirees) may elect to participate in this incentive program and

may elect any one of the three following incentive options:

(1) Retirement incentive option one:

For the purpose of computing the member's annuity, the normal

final average salary shall be computed and one-eighth thereof shall

be added thereto in arriving at the true final average salary for use in actual computation of retirement benefit.

(2) Retirement incentive option two:

A member may elect a lump sum payment, in addition to his or

her regular retirement annuity, equal to ten percent of his or her

final average salary not to exceed five thousand dollars, and in

the case of a deferred retirement electing this option, such lump

sum payment shall be receivable and deferred to the time of receipt

of such deferred retirement annuity.

(3) Retirement incentive option three:

A person shall be credited with an additional two years of

contributing service and an additional two years of age. The years

credited under this option shall in no way add to a member's final

average salary factor of computation.

Active, contributing members who desire to retire under this

section but who are unable to retire by the thirty-first day of

December, one thousand nine hundred eighty-eight, and make use of

the incentive retirement program because an element of eligibility

for retirement, such as age or other element, will not be met until

a date after the thirty-first day of December, one thousand nine

hundred eighty-eight, and before the first day of July, one

thousand nine hundred eighty-nine, shall be permitted to postpone

actual retirement until the date of fulfilling such element of

eligibility and shall retire on such date, before the temporary

retirement incentive program ends on the thirtieth day of June, one

thousand nine hundred eighty-nine, with proper credit to be granted for such extended period: Provided, That they shall have made

application for retirement, including choice of their respective

option, and given notice to their respective employer by the

thirty-first day of December, one thousand nine hundred

eighty-eight, although postponing actual retirement, as aforesaid.

(c) Any member participating in this retirement incentive

program is not eligible to accept further employment or accept,

directly or indirectly, work on a contract basis from any

governmental entity: Provided, That nothing in this section shall

affect any contract entered into prior to the effective date of

this section: Provided, however, That the executive director may

approve, upon written request and for good cause shown, an

exception allowing a retirant to perform work on a contract basis.

The executive director shall report all approved exceptions to the

board of trustees: Provided further, That a person may retire

under this section and thereafter serve in an elective office: And

provided further, That he or she shall not receive an incentive

option under this section during the term of service in said

office, but shall receive his or her annuity calculated on regular

basis, as if originally taken not under this section but on such

regular basis. At the end of such term and cessation of service

in such office during which the member shall rejoin and reenter the

retirement system and pay contributions therefor, such regular

annuity shall be recalculated and an increased annuity due to such

additional employment shall be granted and computed on regular basis and in similar manner as under section forty-eight of this

article. In respect of an appointive office, as distinguished

from an elective office, any person retiring under this section and

thereafter serving in such appointive office shall not receive an

incentive option under this section during the term of service in

said office, but the same shall be suspended during such period:

And provided further, That at the end of such term and cessation of

service in such appointive office the incentive option provided for

under this section shall be resumed: And provided further, That

any person elected or appointed to office by the state or any of

its political subdivisions who waives whatever salary, wage or per

diem compensation he or she may be entitled to by virtue of service

in such office and who does not receive any income therefrom except

such reimbursement of out-of-pocket costs and expenses as may be

permitted by the statutes governing such office shall continue to

receive an incentive option under this section. Such service shall

not be counted as contributed or credited service for purposes of

computing retirement benefits.

If such elected or appointed office is a part-time elected or

appointed office, a person electing retirement under this section

may serve in such elected or appointed office without a loss of the

benefits provided under this section.

Prior to the initiation or renewal of any contract entered

into pursuant to the provisions of this section or the acceptance

of any elective or appointive office by a person who has elected to retire under the early retirement provisions of this article, such

person shall complete a disclosure and waiver statement executed

under oath and acknowledged by a notary public. The board shall

promulgate rules, pursuant to chapter twenty-nine-a, of this code

regarding the form and contents of the disclosure and waiver

statement. The disclosure and waiver statement shall be forwarded

to the appropriate state public retirement system administrator who

shall take action to ensure that the early retirement incentive

benefits are reduced in accordance with the provisions of this

section. The administrator shall then certify such action in

writing to the appropriate governmental entity.

In any event, an eligible member may retire under this section

and thereafter continue to receive his or her incentive annuity and

be employed as a substitute teacher or as adjunct faculty.

Any such incentive retirants, under this section, may not

thereafter receive such annuity and enter or reenter any

governmental retirement system established or authorized to be

established by the state, notwithstanding any provision of the code

to the contrary, unless required by constitutional provision or as

hereby specifically permitted to those retiring and thereafter

serving in elective office, as aforesaid.

The additional annuity allowed for temporary early retirement

under these options, in respect of state division retirants of this

system, is intended to be paid from the retirement incentive

account hereby created as a special account in the state treasury and from the funds therein established with moneys required to be

transferred by heads of spending units from the unused portion of

salary and fringe benefits in their budgets accruing in respect of

such positions vacated and subsequently canceled under this

temporary early retirement program. Salary and fringe benefit

moneys actually saved in a particular fiscal year shall constitute

the fund source for payment of such additional annuity, the funds

of the retirement system to be used for payment of the base annuity

under the early retirement incentive program: Provided, That such

additional annuity shall be paid from the unused portion of both

salary and fringe benefits and with any remainder of any fringe

benefit moneys, as such, to remain with the spending unit and any

remainder of salary, as such, to be directed as additional funding

to the teachers retirement system and as a part of the assets

thereof. No such additional annuity shall be disallowed even

though initial receipts may not be sufficient, with funds of the

system to be applied for such purpose, as for the base annuity.

With respect to public employer division retirants (nonstate

division retirants of the system), such incentive annuity shall be

paid from the nonstate division funds of the system.

(d) The executive secretary of the retirement system shall

provide forms for applicants. Such forms shall include a detailed

description of the incentive plan options.

The executive secretary of the retirement system shall file a

report to the Legislature no later than the fifteenth day of February, one thousand nine hundred eighty-nine, and quarterly

thereafter, detailing the number of retirees who have elected to

accept early retirement incentive options, the dollar cost to date

by option selected, and the projected annual cost through the year

two thousand.

(e) Within every spending unit, department, board,

corporation, commission, or any other agency or entity wherein two

or multiples of two members elect to retire either under the

temporary early retirement incentives set forth above, or under

regular, voluntary retirement, and countable on an agency-wide or

entity-wide basis, no more than one of such vacated positions may

be filled, with the second position being abolished upon the

effective day of the member's retirement. The vacant position

abolishment requirement shall not apply to elective positions or

appointed public officers whose positions are established by state

constitutional or statutory provision. The retirant's employing

entity shall decide as to which of the vacated positions made

available through special early retirement or through regular,

voluntary retirement are to be abolished and the head of such

spending unit shall immediately notify the state auditor, the

legislative auditor, and the commissioner of the department of

finance and administration of the decisions and shall then apply

and/or transfer the remaining salary and fringe benefits as

aforesaid: Provided, That this vacant position abolishment

provision shall not apply to any county or municipal position except those under the authority of a county board of education,

nor to any position or positions, whether designated by spending

unit, department, agency, commission, entity or otherwise, which

the governor in respect of the executive branch, or the chief

justice of the supreme court of appeals in respect of the judicial

branch, or the president of the Senate or speaker of the House of

Delegates, in respect of the legislative branch, may exempt or

amend, under such abolishment provision, upon his or her respective

recommendation that such exemption or amendment is necessary to

provide for continuity of governmental operation or to preserve the

health, welfare or safety of the people of West Virginia, and with

the prior concurrence of the joint committee on government and

finance in such recommendation, after the chairmen thereof shall

cause such committee to meet.

(f) Special rule of eighty. -- Any active, contributing member

of the retirement system as of the first day of April, one thousand

nine hundred eighty-eight, who selects one of the incentive options

in this section, may retire under the special early retirement

provisions with full pension rights, without reduction of benefits

if the sum of such member's age plus years of contributing service

equals or exceeds eighty: Provided, That such person has at least

twenty years of contributing service; up to two years of which may

be military service, or prior service, or any combination thereof

not exceeding an aggregate of two years.

(g) Termination of temporary retirement incentives program. -- The right to elect, choose, select or use any of the options,

special rule of eighty, or other benefits set forth in this section

shall terminate on the thirtieth day of June, one thousand nine

hundred eighty-nine.

(h) The board shall promulgate rules and regulations in

accordance with the provisions of article three, chapter

twenty-nine of this code regarding the calculation of the amount of

incentive option that may be forfeited pursuant to the provisions

of subsection (b) of this section.







WVC 5-10-22d

§5-10-22d. Supplemental benefits for certain annuitants.

Beginning on the first day of January, one thousand nine

hundred ninety-one, as an additional supplement to other retirement

allowances provided, any annuitant who is receiving a retirement

annuity on the effective date of this section shall receive a

supplemental benefit, prospectively, if the effective date of

retirement for such annuitant was prior to the first day of

January, one thousand nine hundred eighty-one. Each such annuitant

shall receive as his or her supplemental benefit an increased

annual amount which is the product of the sum of six dollars

multiplied by his or her years of credited service. Nothing in

this or any other section of this code shall be construed to

require any appropriation of state general revenue funds for the

payment of any benefit provided for in this section.







WVC 5-10-22e

§5-10-22e. Supplemental benefits for retirees effective July 1,

1994; calculation of benefits and conditions of

payment.

(a) A supplement to retirement benefits provided shall be paid

prospectively to all eligible annuitants who have been retired

prior to the thirty-first day of December, one thousand nine

hundred ninety-two, which supplement shall become effective on the

first day of July, one thousand nine hundred ninety-four. The

calculation of such supplement for each annuitant shall be based

upon the number of full increments as set forth in subsections (b)

through (k) of this section that the annuitant has maintained his

or her retired status since the original date of the commencement

of his or her retirement, and shall equal the sum of the applicable

percentages credited for such increments as set forth in the

applicable subsections of this section. Any such supplement shall

be paid in pro rata monthly installments.

(b) The total amount of the supplement due to qualified

annuitants who retired during the period commencing on the first

day of April, one thousand nine hundred eighty-eight, and ending on

the thirty-first day of December, one thousand nine hundred

ninety-two, shall be three percent of their retirement benefit

including any supplemental benefits provided on or before the first

day of July, one thousand nine hundred seventy-four: Provided,

That annuitants who retired during the period set forth in this

subsection shall be required to elect between receiving the supplemental benefit provided in this section or any incentives

provided in section twenty-two-c of this article or any other

supplements provided in this article: Provided, however, That the

consolidated public retirement board shall provide written

notification to members eligible for the benefit provided in this

subsection of the availability and terms of the benefit provided in

this subsection and members electing to select this benefit in lieu

of any other incentive the member has or is receiving shall submit

an application for the benefit on the form prescribed by the board.

(c) The total amount of the supplement due to qualified

annuitants who retired during the period commencing on the first

day of July, one thousand nine hundred eighty-five, and ending on

the thirty-first day of March, one thousand nine hundred

eighty-eight, shall be five percent of their retirement benefit

including any supplemental benefits provided on or before the first

day of July, one thousand nine hundred seventy-four, plus the

amount of the percentage supplement provided in subsection (b) of

this section.

(d) The total amount of the supplement due to qualified

annuitants who retired during the period commencing on the first

day of July, one thousand nine hundred eighty-two, and ending on

the thirtieth day of June, one thousand nine hundred eighty-five,

shall be five percent of their retirement benefit including any

supplemental benefits provided on or before the first day of July,

one thousand nine hundred seventy-four, plus the amount of the percentage supplements provided in subsections (b) and (c) of this

section.

(e) The total amount of the supplement due to qualified

annuitants who retired during the period commencing on the first

day of July, one thousand nine hundred seventy-nine, and ending on

the thirtieth day of June, one thousand nine hundred eighty-two,

shall be sixteen percent of their retirement benefit including any

supplemental benefits provided on or before the first day of July,

one thousand nine hundred seventy-four, plus the amount of the

percentage supplements provided in subsections (b), (c) and (d) of

this section.

(f) The total amount of the supplement due to qualified

annuitants who retired during the period commencing on the first

day of July, one thousand nine hundred seventy-six, and ending on

the thirtieth day of June, one thousand nine hundred seventy-nine,

shall be sixteen percent of their retirement benefit including any

supplemental benefits provided on or before the first day of July,

one thousand nine hundred seventy-four, plus the amount of the

percentage supplements provided in subsections (b), (c), (d) and

(e) of this section.

(g) The total amount of the supplement due to qualified

annuitants who retired during the period commencing on the first

day of July, one thousand nine hundred seventy-three, and ending on

the thirtieth day of June, one thousand nine hundred seventy-six,

shall be sixteen percent of their retirement benefit including any supplemental benefits provided on or before the first day of July,

one thousand nine hundred seventy-four, plus the amount of the

percentage supplements provided in subsections (b), (c), (d), (e)

and (f) of this section.

(h) The total amount of the supplement due to qualified

annuitants who retired during the period commencing on the first

day of July, one thousand nine hundred seventy, and ending on the

thirtieth day of June, one thousand nine hundred seventy-three,

shall be twenty-four percent of their retirement benefit including

any supplemental benefits provided on or before the first day of

July, one thousand nine hundred seventy-four, plus the amount of

the percentage supplements provided in subsections (b), (c), (d),

(e), (f) and (g) of this section.

(i) The total amount of the supplement due to qualified

annuitants who retired during the period commencing on the first

day of July, one thousand nine hundred sixty-seven, and ending on

the thirtieth day of June, one thousand nine hundred seventy, shall

be twenty-four percent of their retirement benefit including any

supplemental benefits provided on or before the first day of July,

one thousand nine hundred seventy-four, plus the amount of the

percentage supplements provided in subsections (b), (c), (d), (e),

(f), (g) and (h) of this section.

(j) The total amount of the supplement due to qualified

annuitants who retired during the period commencing on the first

day of July, one thousand nine hundred sixty-four, and ending on the thirtieth day of June, one thousand nine hundred sixty-seven,

shall be twenty-four percent of their retirement benefit including

any supplemental benefits provided on or before the first day of

July, one thousand nine hundred seventy-four, plus the amount of

the percentage supplements provided in subsections (b), (c), (d),

(e), (f), (g), (h) and (i) of this section.

(k) The total amount of the supplement due to qualified

annuitants who retired during the period commencing on the first

day of July, one thousand nine hundred sixty-one, and ending on the

thirtieth day of June, one thousand nine hundred sixty-four, shall

be twenty-four percent of their retirement benefit including any

supplemental benefits provided on or before the first day of July,

one thousand nine hundred seventy-four, plus the amount of the

percentage supplements provided in subsections (b), (c), (d), (e),

(f), (g), (h), (i) and (j) of this section.

(l) For each annuitant, a preliminary supplement shall be

computed on the basis of the original annual benefit including any

supplemental benefits provided on or before the first day of July,

one thousand nine hundred seventy-four, received by the original

retiree as provided by subsections (b) through (k) of this section,

inclusive. This preliminary supplement shall be calculated only on

amounts up to, but not exceeding, the first five thousand four

hundred dollars of the original annual retirement benefit paid

including any supplement provided on or before the first day of

July, one thousand nine hundred seventy-four.

(m) Each annuitant shall receive as that annuitant's

supplement under this section an amount equal to the preliminary

supplement or a supplement as calculated in subsections (n) and (o)

of this section as appropriate.

(n) Each survivor beneficiary shall receive as that survivor

beneficiary's supplement under this section an amount equal to that

pro rata share of that survivor beneficiary's preliminary

supplement, as defined above, as such survivor beneficiary's

benefit, without regard to any supplements, constitutes as a pro

rata share of the original benefit of the original retiree:

Provided, That for any person who becomes a survivor beneficiary,

after the first day of July, one thousand nine hundred ninety-four,

the benefit provided under this section shall be recomputed under

the provisions of this subsection.

(o) Each disabled retiree shall receive as that disabled

retiree's supplement under this section that pro rata share of that

disabled retiree's preliminary supplement, as defined above, as

such disabled retiree's current benefit, without regard to any

supplements, constitutes as a pro rata share of that disabled

retiree's original benefit: Provided, That any disabled retiree

scheduled under the terms of the retirement system to have a

benefit recomputed at some time subsequent to the effective date of

this section will, at the time of that recomputation, also have the

supplemental benefit recomputed under the terms of the preceding

sentence.

(p) Any supplemental benefit computed under this section shall

only be paid in lieu of, and not in addition to, the payment of any

prior supplemental benefit amounts or incentives provided by law

after the first day of July, one thousand nine hundred

seventy-four, which are currently being paid: Provided, That any

annuitant receiving a supplemental benefit greater than that

provided in this section shall continue to receive the current

supplemental benefits.

(q) The supplement provided in this section shall be

recalculated on a pro rata basis of the preliminary supplement

whenever the original annuity amount is adjusted due to the death

or disability of an annuitant or any other event.







WVC 5 - 10 - 22 F

§5-10-22f. Minimum benefit for certain retirants; legislative

declaration; state interest and public purpose.

The Legislature hereby finds and declares that an important

state interest exists in providing a minimum retirement annuity for

certain retirants (or their beneficiaries) who are credited with

twenty or more years of credited service; that such program

constitutes a public purpose; and that the exclusions of credited

service while an elected public official or while a temporary

legislative employee are reasonable and equitable exclusions for

purposes of determining eligibility for such minimum benefits. For

purposes of this section:

(1) "Elected public official" means any member of the

Legislature or any member of the legislative body of any political

subdivision; and

(2) "Temporary legislative employee" means any employee of the

Clerk of the House of Delegates, the Clerk of the Senate, the

Legislature or a committee thereof whose employment is classified

as temporary and who is employed to perform services required by

the Clerk of the House of Delegates, the Clerk of the Senate, the

Legislature or a committee thereof, as the case may be, for regular

sessions, extraordinary sessions and/or interim meetings of the

Legislature.

If the retirement annuity of a retirant (or, if applicable,

his or her beneficiary) with at least twenty years of credited

service as of the effective date of this section is less than $500 per month (including any supplemental benefits or incentives

provided by this article), then the monthly retirement benefit for

any such retired member (or if applicable, his or her beneficiary)

shall be increased to $500 per month: Provided, That any year of

credited service while an elected public official or a temporary

legislative employee shall not be taken into account for purposes

of this section.

The payment of any minimum benefit under this section shall be

in lieu of, and not in addition to, the payments of any retirement

benefit or supplemental benefit or incentives otherwise provided by

law: Provided, That the minimum benefit provided herein shall be

subject to any limitations thereon under Section 415 of the

Internal Revenue Code of 1986, as amended, and section

twenty-seven-a of this article.

Any minimum benefit conferred herein shall not be retroactive

to the time of retirement and shall apply only to members who have

retired prior to the effective date of this section, or, if

applicable, to beneficiaries receiving benefits under the

retirement system prior to the effective date.



WVC 5 - 10 - 22 G

§5-10-22g. One-time supplement for certain annuitants effective

July 1, 2001.

(a) A one-time supplement to retirement benefits shall be

provided to retirees of this system who have: (i) Reached the

specified age threshold; and (ii) have been in retirement status

for the specified number of years, as follows:

(1) For retirees who, as of the first day of July, two

thousand one, are at least sixty-five years of age and who have

been an annuitant for at least five consecutive years, this

one-time supplement shall equal five percent of his or her annuity

benefit as of the effective date of this section;

(2) For retirees who, as of the first day of July, two

thousand one, are at least seventy years of age and who have been

an annuitant for at least five consecutive years, this one-time

supplement shall equal ten percent of his or her annuity benefit as

of the effective date of this section; and

(3) For any person who, as of the first day of July, two

thousand one, is at least sixty-five years of age and who retired

under the early retirement incentive provided in section

twenty-two-c of this article, this one-time supplement shall equal

three percent of his or her annuity benefit as of the effective

date of this section and subdivisions (1) and (2) of this

subsection do not apply.

(b) The one-time supplement provided for in this section

applies only to members who have retired prior to or as of the effective date of this section or, if applicable, to beneficiaries

receiving benefits under the retirement system prior to or as of

the effective date of this section: Provided, That the supplement

provided herein is subject to any applicable limitations thereon

under Section 415 of the Internal Revenue Code of 1986, as amended.







WVC 5 - 10 - 22 H

§5-10-22h. Limitations on benefit increases.

(a) The state shall not increase any existing benefits or

create any new benefits for any retirees or beneficiaries currently

receiving monthly benefit payments from the system, other than an

increase in benefits or new benefits effected by operation of law

in effect on the effective date of this article, in an amount that

would exceed more than one percent of the accrued actuarial

liability of the system as of the last day of the preceding fiscal

year as determined in the annual actuarial valuation for the plan

completed for the Consolidated Public Retirement Board as of the

first day of the following fiscal year as of the date the

improvement is adopted by the Legislature.

(b) If any increase of existing benefits or creation of new

benefits for any retirees or beneficiaries currently receiving

monthly benefit payments under the system, other than an increase

in benefits or new benefits effected by operation of law in effect

on the effective date of this article, causes any additional

unfunded actuarial accrued liability in the system as calculated in

the annual actuarial valuation for the plan during any fiscal year,

the additional unfunded actuarial accrued liability of that pension

system shall be fully amortized over no more than the six

consecutive fiscal years following the date the increase in

benefits or new benefits become effective as certified by the

Consolidated Public Retirement Board. The Consolidated Public

Retirement Board shall include the six year amortization in the determination of the adequacy of the employer contribution

percentage for the system.

(c) The state will not increase any existing benefits or

create any new benefits for active members due to retirement, death

or disability of the system unless the actuarial accrued liability

of the plan is at least eighty-five percent funded as of the last

day of the prior fiscal year as determined in the actuarial

valuation for the plan completed for the Consolidated Public

Retirement Board as of the first day of the following fiscal year

as of the date the improvement is adopted by the Legislature. Any

additional unfunded actuarial accrued liability due to any

improvement in active members benefits shall be fully amortized

over not more than ten years following the date the increase in

benefits or new benefits become effective as certified by the

Consolidated Public Retirement Board. The Consolidated Public

Retirement Board shall include the ten year amortization in the

determination of the adequacy of the employer contribution

percentage for the system.







WVC 5 - 10 - 22 I

§5-10-22i. One-time supplement for certain annuitants effective

July 1, 2006.

(a) A one-time supplement to retirement benefits of three

percent, as determined by appropriation of the Legislature, shall

be provided to all retirees that are age seventy or older and have

been annuitants for at least five consecutive years as of the first

day of July, two thousand six, and beneficiaries of deceased

members who would have been at least seventy years of age or older

and have been annuitants for at least five consecutive years as of

the first day of July, two thousand six.

(b) The one-time supplement provided in this section applies

only to members who have retired at least five years prior to the

first day of July, two thousand six, or, if applicable, to

beneficiaries of deceased members who have been receiving benefits

under the retirement system at least five years prior to the first

day of July, two thousand six: Provided, That the supplement

provided herein is subject to any applicable limitations thereon

under Section 415 of the Internal Revenue Code of 1986, as amended.







WVC 5 - 10 - 23

§5-10-23. Terminal payment following retirement.

(a) This section provides for the payment of the balance in

a retired member's account in the event that all claims to benefits

payable to, or on behalf of, a member expire before his or her

member account has been fully exhausted. The expiration of the

rights to benefits would be on the occasion of either the death of

the retired member drawing benefits under a straight life annuity,

or the death of a survivor annuitant drawing benefits under any

optional form of benefit selected by the retired member, whichever

occurs later.

(b) In the event that all claims to benefits payable to, or on

behalf of, a retired member expire, and the accumulated

contributions exceed the accumulated net benefit payments paid to

or on behalf of the retired member, the balance in the retired

member's account shall be paid to the person or persons as the

retired member has nominated by written designation duly executed

and filed with the board of trustees. If there is no designated

person or persons surviving the retired member following the

expiration of claims, the excess of the accumulated contributions

over the accumulated net benefit, if any, shall be paid to the

retired member's estate.







WVC 5 - 10 - 24

§5-10-24. Annuity options.

     (a) Prior to the effective date of his or her retirement, but

not thereafter except upon the death of a spouse, a member may

elect to receive his or her annuity as a straight life annuity

payable throughout his or her life, or he or she may elect to

receive the actuarial equivalent, at the time, of his or her

straight life annuity in a reduced annuity payable throughout his

or her life, and nominate a beneficiary, in accordance with option

A or B set forth below:

     Option A -- Joint and survivor annuity. -- 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'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; or

     Option B -- Modified joint and survivor annuity. -- 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'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.

     (b) Upon the death of a spouse, a retirant may elect any of

the retirement options offered by the provisions of this section in an amount adjusted on a fair basis to be of equal actuarial value

as the annuity prospectively in effect relative to the retirant at

the time the new option is elected.

     (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

be of equal actuarial value of the annuity prospectively in effect

relative to the retirant at the time the option is elected:

Provided, That the retirant furnishes to the board satisfactory

proof of entry of a final decree of divorce or annulment:

Provided, however, That the retirant certifies under penalty of

perjury that no qualified domestic relations order, final decree of

divorce, or other court order that would restrict the election is

in effect: Provided further, That no cause of action against the

board may then arise or be maintained on the basis of having

permitted the retirant to name a new spouse as annuitant for any of

the survivorship retirement benefit options.

     (d) Upon remarriage, a retirant may name the new spouse as an

annuitant for any of the retirement benefit options offered by the

provisions of this section: Provided, That the retirant shall

furnish to the board proof of marriage: Provided, however, That

the retirant certifies under penalty of perjury that no qualified

domestic relations order, final decree of divorce or other court

order that would restrict the designation is in effect: Provided

further, That no cause of action against the board may then arise or be maintained on the basis of having permitted the retirant to

name a new spouse as annuitant for any of the survivorship

retirement benefit options. The value of the new survivorship

annuity shall be the actuarial equivalent of the retirant's benefit

prospectively in effect at the time the new annuity is elected.







WVC 5 - 10 - 25

§5-10-25. Disability retirement.

     (a) Upon the application of a member of the retirement system,

or his or her present or past employing authority, any member who

is in the employ of a participating public employer or was in the

employ of a participating public employer on a date which is twelve

months or less from the date upon which the member became

incapacitated, who has ten or more years of credited service of

which three years is contributing service, and who becomes totally

and permanently incapacitated for employment, by reason of a

personal injury or disease, may be retired by the board if after a

medical examination of the member made by or under the direction of

a medical committee consisting of two physicians, one of whom shall

be named by the board, and one by the member, the medical committee

reports, in writing, to the board that the member is physically or

mentally totally incapacitated for employment, that the incapacity

will probably be permanent, and that the member should be retired.

In the event the two above-mentioned examining physicians do not

agree in their findings, then the board may, at its discretion,

appoint a third physician to examine the member and, based upon the

third physician's report in writing, the board may retire the

member. A member who was not in the employ of a participating

public employer on a date which is twelve months or less from the

date upon which the member became incapacitated may receive

disability retirement under the provisions of this subsection if,

in the opinion of the medical committee, the incapacity occurred during the time that the member was employed by a participating

public employer and the incapacity otherwise qualifies the member

for retirement under this subsection.

     (b) A member with less than ten years of credited service

shall have the service requirement provided in subsection (a) above

(including the requirement of three years contributing service)

waived in the event: (1) The board finds his or her total and

permanent disability to be the natural and proximate result of a

personal injury or disease arising out of and in the course of his

or her actual performance of duty in the employ of a participating

public employer; and (2) he or she is receiving or has received

workers' compensation benefits on account of the physical or

mental disability.

     (c) For any member retiring and any member retired, as of

March 1, 1970, he or she shall receive a straight life annuity

computed according to section twenty-two hereof and he or she shall

have the right to elect an option provided in section twenty-four

hereof: Provided, That his or her straight life annuity payable to

his or her attainment of age sixty-five years may not be less than

fifty percent of his or her final average salary; and his or her

straight life annuity payable from and after his or her attainment

of age sixty-five years may not be less than twenty percent of his

or her final average salary: Provided, however, That his or her

annuity shall be subject to section twenty-six hereof.







WVC 5 - 10 - 26

§5-10-26. Reexamination of disability retirants; reemployment;

adjustment of annuity for earnings.

(a) At least once each year during the first five years

following the retirement of a member on account of disability, as

provided in section twenty-five of this article, and at least once

in each three-year period thereafter, the Board may require a

disability retirant, who has not attained age sixty years, to

undergo a medical examination to be made by or under the direction

of a physician designated by the board, or to submit a statement

signed by the disability retirant's physician certifying continued

disability, or both, and a copy of the disability retirants's

annual statement of earnings. If the retirant refuses to submit to

the medical examination or provide the certification or statement

in any period, his or her disability annuity may be discontinued by

the Board until the retirant complies. If the refusal continues

for one year, all the retirant's rights in and to the annuity may

be revoked by the board. If, upon medical examination of a

disability retirant, the physician reports to the board that the

retirant is physically able and capable of resuming employment with

a participating public employer, the retirant shall be returned to

the employ of the participating public employer from whose

employment he or she retired and his or her disability annuity

shall terminate: Provided, That the Board concurs in the

physician's report.

(b) A disability retirant who is returned to the employ of a participating public employer shall again become a member of the

retirement system and the retirant's credited service in force at

the time of his or her retirement shall be restored.

(c) If a review of the disability retirant's annual statement

of earnings or other financial information as required by the Board

determines that the disability retirant's earned income for the

preceding year exceeds the substantial gainful activity amount as

defined by the United States Social Security Administration, the

disability retirant's annuity shall be terminated by the Board,

upon recommendation of the Board's disability review committee, on

the first day of the month following the Board's action. Any

person who wishes to reapply for disability retirement and whose

disability retirement annuity has been terminated by the Board may

do so within ninety days of the effective date of termination by

requesting an examination at the applicant's expense by an

appropriate medical professional chosen by the Board.







WVC 5 - 10 - 27

§5-10-27. Preretirement death annuities.

     (a) (1) Except as otherwise provided in this section, in the

event any member who has ten or more years of credited service or

any former member with ten or more years of credited service and

who is entitled to a deferred annuity, pursuant to section twenty-

one of this article, may at any time prior to the effective date of

his or her retirement, by written declaration duly executed and

filed with the board of trustees, in the same manner as if he or

she were then retiring from the employ of a participating public

employer, elect option A provided in section twenty-four of this

article and nominate a beneficiary whom the board finds to have had

an insurable interest in the life of the member. Prior to the

effective date of his or her retirement, a member may revoke his or

her election of option A and nomination of beneficiary and he or

she may again prior to his or her retirement elect option A and

nominate a beneficiary as provided in this subsection. Upon the

death of a member who has an option A election in force, his or her

beneficiary, if living, shall immediately receive an annuity

computed in the same manner in all respects as if the same member

had retired the day preceding the date of his or her death,

notwithstanding that he or she might not have attained age sixty

years, and elected the said option A. If at the time of his or her

retirement a member has an option A election in force, his or her

election of option A and nomination of beneficiary shall thereafter continue in force. As an alternative to annuity option A, a member

or former member may elect to have the preretirement death benefit

paid as a return of accumulated contributions in a lump sum amount

to any beneficiary or beneficiaries he or she chooses.

     (2) In the event any member or former member, who first became

a member of the Public Employees Retirement System after the

effective date of amendments made to this section during the 2006

regular legislative session and who has ten or more years of

credited service and who is entitled to a deferred annuity,

pursuant to section twenty-one of this article: Dies without

leaving a surviving spouse; but leaves surviving him or her a child

who is financially dependent on the member by virtue of a permanent

mental or physical disability upon evidence satisfactory to the

board; and has named the disabled child as sole beneficiary, the

disabled child shall immediately receive an annuity computed in the

same manner in all respects as if the member had: (A) Retired the

day preceding the date of his or her death, notwithstanding that he

or she might not have attained age sixty or sixty-two years, as the

case may be; (B) elected option A provided in section twenty-four

of this article; and (C) nominated his or her disabled child as

beneficiary. A member or former member with ten or more years of

credited service, who does not leave surviving him or her a spouse

or a disabled child, may elect to have the preretirement death

benefit paid as a return of accumulated contributions in a lump sum amount to any beneficiary or beneficiaries he or she chooses.

     (b)(1) In the event any member who has ten or more years of

credited service, or any former member with ten or more years of

credited service and who is entitled to a deferred annuity,

pursuant to section twenty-one of this article: Dies; and leaves a

surviving spouse, the surviving spouse shall immediately receive an

annuity computed in the same manner in all respects as if the

member had: (A) Retired the day preceding the date of his or her

death, notwithstanding that he or she might not have attained age

sixty or sixty-two years, as the case may be; (B) elected option A

provided in section twenty-four of this article; and (C) nominated

his or her surviving spouse as beneficiary. However, the surviving

spouse shall have the right to waive the annuity provided in this

section: Provided, That he or she executes a valid and notarized

waiver on a form provided by the board and that the member or

former member attests to the waiver. If the waiver is presented to

and accepted by the board, the member or former member, may

nominate a beneficiary who has an insurable interest in the

member's or former member's life. As an alternative to annuity

option A, the member or former member may elect to have the

preretirement death benefit paid as a return of accumulated

contributions in a lump sum amount to any beneficiary or

beneficiaries he or she chooses in the event a waiver, as provided

in this section, has been presented to and accepted by the board.

     (2) Whenever any member or former member who first became a

member of the retirement system after the effective date of the

amendments to this section made during the 2006 regular legislative

session and who has ten or more years of credited service and who

is entitled to a deferred annuity, pursuant to section twenty-one

of this article, dies and leaves a surviving spouse, the surviving

spouse shall immediately receive an annuity computed in the same

manner in all respects as if the member had: (A) Retired the day

preceding the date of his or her death, notwithstanding that he or

she might not have attained age sixty or sixty-two years, as the

case may be; (B) elected option A provided in section twenty-four

of this article; and (C) nominated his or her surviving spouse as

beneficiary. However, the surviving spouse shall have the right to

waive the annuity provided in this section: Provided, That he or

she executes a valid and notarized waiver on a form provided by the

board and that the member or former member attests to the waiver.

If the waiver is presented to and accepted by the board, the member

or former member may: (1) Elect to have the preretirement death

benefit paid in a lump sum amount, rather than annuity option A

provided in section twenty-four of this article, as a return of

accumulated contributions to any beneficiary or beneficiaries he or

she chooses; or (2) may name his or her surviving child, who is

financially dependent on the member by virtue of a permanent mental

or physical disability, as his or her sole beneficiary to receive an annuity computed in the same manner in all respects as if the

member had: (A) Retired the day preceding the date of his or her

death, notwithstanding that he or she might not have attained the

age of sixty or sixty-two as the case may be; (B) elected option A

provided in section twenty-four of this article; and (C) nominated

his or her disabled child as beneficiary.

     (c) In the event any member who has ten or more years of

credited service or any former member with ten or more years of

credited service and who is entitled to a deferred annuity,

pursuant to section twenty-one of this article: (1) Dies without

leaving surviving him or her a spouse; but (2) leaves surviving him

or her an infant child or children; and (3) does not have a

beneficiary nominated as provided in subsection (a) of this

section, the infant child or children are entitled to an annuity to

be calculated as follows: The annuity reserve shall be calculated

as though the member had retired as of the date of his or her

decease and elected a straight life annuity and the amount of the

annuity reserve shall be paid in equal monthly installments to the

member's infant child or children until the child or children

attain age twenty-one or sooner marry or become emancipated;

however, in no event shall any child or children receive more than

$250 per month each. The annuity payments shall be computed as of

the date of the death of the member and the amount of the annuity

shall remain constant during the period of payment. The annual amount of the annuities payable by this section shall not exceed

sixty percent of the deceased member's final average salary.

     (d) In the event any member or former member does not have ten

or more years of credited service, no preretirement death annuity

may be authorized, owed or awarded under this section, except as

provided in subdivision (4), subsection (a), section fifteen of

this article as amended during the 2005 regular session of the

Legislature.

     (e) Any person qualified as a surviving dependent child under

this section, who is the surviving dependent child of a law-

enforcement officer who loses his or her life in the performance of

duty, 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 those institutions so long as the recipient makes

application to the board on an approved form and under rules as

provided by the board and maintains scholastic eligibility as

defined by the institution or the board. The board may by

appropriate rules 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.







WVC 5 - 10 - 27 A

§5-10-27a. Federal law maximum benefit limitations.

Notwithstanding any other provision of this article or state

law, the board shall administer the retirement system in compliance

with the limitations of Section 415 of the Internal Revenue Code

and regulations promulgated thereunder to the extent applicable to

governmental plans (hereafter sometimes referred to as the "415

limitation(s)" or "415 dollar limitation(s)"), so that the annual

benefit payable under this system to a member shall not exceed

those limitations. Any annual benefit payable under this system

shall be reduced or limited if necessary to an amount which does

not exceed those limitations. The extent to which any annuity or

other annual benefit payable under this retirement system shall be

reduced, as compared to the extent to which an annuity,

contributions or other benefits under any other defined benefit

plans or defined contribution plans required to be taken into

consideration under Section 415 of the Internal Revenue Code shall

be reduced, shall be proportional on a percentage basis to the

reductions made in such other plans administered by the board and

required to be so taken into consideration under Section 415,

unless a disproportionate reduction is determined by the board to

maximize the aggregate benefits payable to the member. If the

reduction is under this retirement system, the board shall advise

affected members of any additional limitation on the annuities or

other annual benefit required by this section. For purposes of the

415 limitations, the "limitation year" shall be the calendar year. The 415 limitations are incorporated herein by reference, except to

the extent the following provisions may modify the default

provisions thereunder:

(a) The annual adjustment to the 415 dollar limitations made by

Section 415(d) of the Internal Revenue Code and the regulations

thereunder shall apply for each limitation year. The annual

adjustments to the dollar limitations under Section 415(d) of the

Internal Revenue Code which become effective: (i) After a

retirant's severance from employment with the employer; or (ii)

after the annuity starting date in the case of a retirant who has

already commenced receiving benefits, will apply with respect to a

retirant's annual benefit in any limitation year. A retirant's

annual benefit payable in any limitation year from this retirement

system shall in no event be greater than the limit applicable at

the annuity starting date, as increased in subsequent years

pursuant to Section 415(d) of the Internal Revenue Code and the

regulations thereunder.

(b) For purposes of this section, the "annual benefit" means a

benefit that is payable annually in the form of a straight life

annuity. Except as provided below, where a benefit is payable in

a form other than a straight life annuity, the benefit shall be

adjusted to an actuarially equivalent straight life annuity that

begins at the same time as such other form of benefit, using

factors prescribed in the 415 limitation regulations, before

applying the 415 limitations. No actuarial adjustment to the benefit shall be made for: (1) Survivor benefits payable to a

surviving spouse under a qualified joint and survivor annuity to

the extent such benefits would not be payable if the member's

benefit were paid in another form; (2) benefits that are not

directly related to retirement benefits (such as a qualified

disability benefit, preretirement incidental death benefits, and

post-retirement medical benefits); or (3) the inclusion in the form

of benefit of an automatic benefit increase feature, provided the

form of benefit is not subject to Section 417(e)(3) of the Internal

Revenue Code and would otherwise satisfy the limitations of this

article, and the plan provides that the amount payable under the

form of benefit in any limitation year shall not exceed the limits

of this article applicable at the annuity starting date, as

increased in subsequent years pursuant to Section 415(d) of the

Internal Revenue Code. For this purpose an automatic benefit

increase feature is included in a form of benefit if the form of

benefit provides for automatic, periodic increases to the benefits

paid in that form.

(c) Adjustment for benefit forms not subject to Section

417(e)(3). -- The straight life annuity that is actuarially

equivalent to the member's form of benefit shall be determined

under this subsection if the form of the member's benefit is

either: (1) A nondecreasing annuity (other than a straight life

annuity) payable for a period of not less than the life of the

member (or, in the case of a qualified preretirement survivor annuity, the life of the surviving spouse); or (2) an annuity that

decreases during the life of the member merely because of: (i) The

death of the survivor annuitant (but only if the reduction is not

below fifty percent of the benefit payable before the death of the

survivor annuitant); or (ii) the cessation or reduction of Social

Security supplements or qualified disability payments (as defined

in Section 411(a)(9) of the Internal Revenue Code). The

actuarially equivalent straight life annuity is equal to the

greater of: (I) The annual amount of the straight life annuity (if

any) payable to the member under the plan commencing at the same

annuity starting date as the member's form of benefit; and (II) the

annual amount of the straight life annuity commencing at the same

annuity starting date that has the same actuarial present value as

the member's form of benefit, computed using a five percent

interest rate assumption and the applicable mortality table defined

in Treasury Regulation §1.417(e)-1(d)(2) (Revenue Ruling 2001-62 or

any subsequent Revenue Ruling modifying the applicable provisions

of Revenue Ruling 2001-62) for that annuity starting date.

(d) Adjustment for benefit forms subject to Section 417(e)(3).

-- The straight life annuity that is actuarially equivalent to the

member's form of benefit shall be determined under this subsection

if the form of the member's benefit is other than a benefit form

described in subsection (c) of this section. In this case, the

actuarially equivalent straight life annuity shall be determined as

follows: The actuarially equivalent straight life annuity is equal to the greatest of: (1) The annual amount of the straight life

annuity commencing at the same annuity starting date that has the

same actuarial present value as the member's form of benefit,

computed using the interest rate specified in this retirement

system and the mortality table (or other tabular factor) specified

in this retirement system for adjusting benefits in the same form;

(2) the annual amount of the straight life annuity commencing at

the same annuity starting date that has the same actuarial present

value as the member's form of benefit, computed using a five and a

half percent interest rate assumption and the applicable mortality

table defined in Treasury Regulation §1.417(e)-1(d)(2) (Revenue

Ruling 2001-62 or any subsequent Revenue Ruling modifying the

applicable provisions of Revenue Ruling 2001-62) for that annuity

starting date; and (3) the annual amount of the straight life

annuity commencing at the same annuity starting date that has the

same actuarial present value as the member's form of benefit,

computed using the applicable interest rate defined in Treasury

Regulation §1.417(e)-1(d)(3) and the applicable mortality table

defined in Treasury Regulation §1.417(e)-1(d)(2) (the mortality

table specified in Revenue Ruling 2001-62 or any subsequent Revenue

Ruling modifying the applicable provisions of Revenue Ruling

2001-62), divided by 1.05.

(e) Benefits payable prior to age sixty-two. --

(1) Except as provided in subdivisions (2) and (3) of this

subsection, if the member's retirement benefits become payable before age sixty-two, the 415 dollar limitation prescribed by this

section shall be reduced in accordance with regulations issued by

the Secretary of the Treasury pursuant to the provisions of Section

415(b) of the Internal Revenue Code, so that the limitation (as so

reduced) equals an annual straight life benefit (when the

retirement income benefit begins) which is equivalent to an annual

benefit in the amount of the applicable dollar limitation of

Section 415(b)(1)(A) of the Internal Revenue Code (as adjusted

pursuant to Section 415(d) of the Internal Revenue Code) beginning

at age sixty-two.

(2) The limitation reduction provided in subdivision (1) of

this subsection shall not apply if the member commencing retirement

benefits before age sixty-two is a qualified participant. A

qualified participant for this purpose is a participant in a

defined benefit plan maintained by a state, or any political

subdivision of a state, with respect to whom the service taken into

account in determining the amount of the benefit under the defined

benefit plan includes at least fifteen years of service: (i) As a

full-time employee of any police or fire department organized and

operated by the state or political subdivision maintaining the

defined benefit plan to provide police protection, fire-fighting

services or emergency medical services for any area within the

jurisdiction of such state or political subdivision; or (ii) as a

member of the armed forces of the United States.

(3) The limitation reduction provided in subdivision (1) of this subsection shall not be applicable to preretirement disability

benefits or preretirement death benefits.

(4) For purposes of adjusting the 415 dollar limitation for

benefit commencement before age sixty-two or after age sixty-five

(if the plan provides for such adjustment), no adjustment is made

to reflect the probability of a member's death: (i) After the

annuity starting date and before age sixty-two; or (ii) after age

sixty-five and before the annuity starting date.

(f) Adjustment when member has less than ten years of

participation. -- In the case of a member who has less than ten

years of participation in the retirement system (within the meaning

of Treasury Regulation §1.415(b)-1(g)(1)(ii)), the 415 dollar

limitation (as adjusted pursuant to Section 415(d) of the Internal

Revenue Code and subsection (e) of this section) shall be reduced

by multiplying the otherwise applicable limitation by a fraction,

the numerator of which is the number of years of participation in

the plan (or one, if greater), and the denominator of which is ten.

This adjustment shall not be applicable to preretirement disability

benefits or preretirement death benefits.

(g) The application of the provisions of this section shall

not cause the maximum annual benefit provided to a member to be

less than the member's accrued benefit as of December 31, 2008,

(the end of the limitation year that is immediately prior to the

effective date of the final regulations for this retirement system

as defined in Treasury Regulation §1.415(a)-1(g)(2)), under provisions of the retirement system that were both adopted and in

effect before April 5, 2007, provided that such provisions

satisfied the applicable requirements of statutory provisions,

regulations, and other published guidance relating to Section 415

of the Internal Revenue Code in effect as of the end of December

31, 2008, as described in Treasury Regulation §1.415(a)-1(g)(4).

If additional benefits are accrued for a member under this

retirement system after January 1, 2009, then the sum of the

benefits described under the first sentence of this subsection and

benefits accrued for a member after January 1, 2009, must satisfy

the requirements of Section 415, taking into account all applicable

requirements of the final 415 Treasury Regulations.



WVC 5 - 10 - 27 B

§5-10-27b. Federal law minimum required distributions.

The requirements of this section apply to any distribution of

a member's or beneficiary's interest and take precedence over any

inconsistent provisions of this code. This provision applies to

plan years beginning after December 31, 1986. Notwithstanding

anything in this code to the contrary, the payment of benefits

under this article shall be determined and made in accordance with

Section 401(a)(9) of the Internal Revenue Code and the federal

regulations promulgated thereunder. For this purpose, the

following provisions apply:

(a) The payment of benefits under the retirement system to any

member shall be distributed to him or her not later than the

required beginning date, or be distributed to him or her commencing

not later than the required beginning date, in accordance with

regulations prescribed under Section 401(a)(9) of the Internal

Revenue Code, over the life of the member or over the lives of the

member and his or her beneficiary or over a period not extending

beyond the life expectancy of the member and his or her

beneficiary. Benefit payments under this section shall not be

delayed pending, or contingent upon, receipt of an application for

retirement from the member.

(b) If a member dies after distribution to him or her has

commenced pursuant to this section but before his or her entire

interest in the retirement system has been distributed, then the

remaining portion of that interest shall be distributed at least as rapidly as under the method of distribution being used at the date

of his or her death.

(c) If a member dies before distribution to him or her has

commenced, then his or her entire interest in the retirement system

will be distributed by December 31 of the calendar year containing

the fifth anniversary of the member's death, except as follows:

(1) If a member's interest is payable to a beneficiary,

distributions may be made over the life of that beneficiary or over

a period certain not greater than the life expectancy of that

beneficiary, commencing on or before December 31 of the calendar

year immediately following the calendar year in which the member

died; or

(2) If the member's beneficiary is the surviving spouse, the

date distributions are required to begin shall be no later than the

later of:

(A) December 31 of the calendar year in which the member would

have attained age seventy and one-half; or

(B) The earlier of: (i) December 31 of the calendar year

following the calendar year in which the member died; or (ii)

December 31 of the calendar year following the calendar year in

which the spouse died.



WVC 5 - 10 - 27 C

§5-10-27c. Direct rollovers.

(a) Except where otherwise stated, this section applies to

distributions made on or after January 1, 1993. Notwithstanding

any provision of this article to the contrary that would otherwise

limit a distributee's election under this system, a distributee may

elect, at the time and in the manner prescribed by the board, to

have any portion of an eligible rollover distribution paid directly

to an eligible retirement plan specified by the distributee in a

direct rollover. For purposes of this section, the following

definitions apply:

(1) "Eligible rollover distribution" means any distribution of

all or any portion of the balance to the credit of the distributee,

except that an eligible rollover distribution does not include any

of the following: (i) Any distribution that is one of a series of

substantially equal periodic payments not less frequently than

annually made for the life or life expectancy of the distributee or

the joint lives or the joint life expectancies of the distributee

and the distributee's designated beneficiary, or for a specified

period of ten years or more; (ii) any distribution to the extent

the distribution is required under Section 401(a)(9) of the

Internal Revenue Code; (iii) the portion of any distribution that

is not includable in gross income determined without regard to the

exclusion for net unrealized appreciation with respect to employer

securities; and (iv) any hardship distribution described in Section

401(k)(2)(B)(i)(iv) of the Internal Revenue Code. For distributions after December 31, 2001, a portion of a distribution

shall not fail to be an eligible rollover distribution merely

because the portion consists of after-tax employee contributions

which are not includable in gross income. However, this portion

may be paid only to an individual retirement account or annuity

described in Section 408(a) or (b) of the Internal Revenue Code, or

(for taxable years beginning before January 1, 2007) to a qualified

trust which is part of a defined contribution plan described in

Section 401(a) or (for taxable years beginning after December 31,

2006) to a qualified trust or to an annuity contract described in

Section 403(a) or (b) of the Internal Revenue Code that agrees to

separately account for amounts transferred (including interest or

earnings thereon), including separately accounting for the portion

of the distribution which is includable in gross income and the

portion of the distribution which is not so includable, or (for

taxable years beginning after December 31, 2007) to a Roth IRA

described in Section 408A of the Internal Revenue Code.

(2) "Eligible retirement plan" means an individual retirement

account described in Section 408(a) of the Internal Revenue Code,

an individual retirement annuity described in Section 408(b) of the

Internal Revenue Code, an annuity plan described in Section 403(a)

of the Internal Revenue Code or a qualified plan described in

Section 401(a) of the Internal Revenue Code that accepts the

distributee's eligible rollover distribution: Provided, That in

the case of an eligible rollover distribution prior to January 1, 2002, to the surviving spouse, an eligible retirement plan is

limited to an individual retirement account or individual

retirement annuity. For distributions after December 1, 2001, an

eligible retirement plan also means an annuity contract described

in Section 403(b) of the Internal Revenue Code and an eligible plan

under Section 457(b) of the Internal Revenue Code which is

maintained by a state, political subdivision of a state, or any

agency or instrumentality of a state or political subdivision of a

state and which agrees to separately account for amounts

transferred into the plan from this system. For distributions

after December 31, 2007, an eligible retirement plan also means a

Roth IRA described in Section 408A of the Internal Revenue Code:

Provided, That in the case of an eligible rollover distribution

after December 31, 2007, to a designated beneficiary (other than a

surviving spouse) as such term is defined in Section 402(c)(11) of

the Internal Revenue Code, an eligible retirement plan is limited

to an individual retirement account or individual retirement

annuity which meets the conditions of Section 402(c)(11) of the

Internal Revenue Code.

(3) "Distributee" means an employee or former employee. In

addition, the employee's or former employee's surviving spouse and

the employee's or former employee's spouse or former spouse who is

the alternate payee under a qualified domestic relations order, as

defined in Section 414(p) of the Internal Revenue Code with respect

to governmental plans, are distributees with regard to the interest of the spouse or former spouse. For distributions after December

31, 2007, "distributee" also includes a designated beneficiary

(other than a surviving spouse) as such term is defined in Section

402(c)(11) of the Internal Revenue Code.

(4) "Direct rollover" means a payment by the retirement system

to an eligible retirement plan.

(b) Nothing in this section may be construed as permitting

rollovers into this system or any other system administered by the

retirement board.



WVC 5 - 10 - 27 D

§5-10-27d. Rollovers and transfers to purchase service credit or

repay withdrawn contributions.

(a) This section applies to rollovers and transfers as

specified in this section made on or after January 1, 2002.

Notwithstanding any provision of this article to the contrary that

would otherwise prohibit or limit rollovers and plan transfers to

this system, the retirement system shall accept the following

rollovers and plan transfers on behalf of a member solely for the

purpose of purchasing permissive service credit, in whole or in

part, as otherwise provided in this article or for the repayment of

withdrawn or refunded contributions, in whole or in part, with

respect to a previous forfeiture of service credit as otherwise

provided in this article: (i) One or more rollovers within the

meaning of Section 408(d)(3) of the Internal Revenue Code from an

individual retirement account described in Section 408(a) of the

Internal Revenue Code or from an individual retirement annuity

described in Section 408(b) of the Internal Revenue Code; (ii) one

or more rollovers described in Section 402(c) of the Internal

Revenue Code from a retirement plan that is qualified under Section

401(a) of the Internal Revenue Code or from a plan described in

Section 403(b) of the Internal Revenue Code; (iii) one or more

rollovers described in Section 457(e)(16) of the Internal Revenue

Code from a governmental plan described in Section 457 of the

Internal Revenue Code; or (iv) direct trustee-to-trustee transfers

or rollovers from a plan that is qualified under Section 401(a) of the Internal Revenue Code, from a plan described in Section 403(b)

of the Internal Revenue Code or from a governmental plan described

in Section 457 of the Internal Revenue Code: Provided, That any

rollovers or transfers pursuant to this section shall be accepted

by the system only if made in cash or other asset permitted by the

board and only in accordance with policies, practices and

procedures established by the board from time to time. For

purposes of this article, the following definitions and limitations

apply:

(1) "Permissive service credit" means service credit which is

permitted to be purchased under the terms of the retirement system

by voluntary contributions in an amount which does not exceed the

amount necessary to fund the benefit attributable to the period of

service for which the service credit is being purchased, all as

defined in Section 415(n)(3)(A) of the Internal Revenue Code:

Provided, That no more than five years of "nonqualified service

credit", as defined in Section 415(n)(3)(C) of the Internal Revenue

Code, may be included in the permissive service credit allowed to

be purchased (other than by means of a rollover or plan transfer),

and no nonqualified service credit may be included in any such

purchase (other than by means of a rollover or plan transfer)

before the member has at least five years of participation in the

retirement system.

(2) "Repayment of withdrawn or refunded contributions" means

the payment into the retirement system of the funds required pursuant to this article for the reinstatement of service credit

previously forfeited on account of any refund or withdrawal of

contributions permitted in this article, as set forth in Section

415(k)(3) of the Internal Revenue Code.

(3) Any contribution (other than by means of a rollover or

plan transfer) to purchase permissive service credit under any

provision of this article must satisfy the special limitation rules

described in Section 415(n) of the Internal Revenue Code and shall

be automatically reduced, limited or required to be paid over

multiple years if necessary to ensure such compliance. To the

extent any such purchased permissive service credit is qualified

military service within the meaning of Section 414(u) of the

Internal Revenue Code, the limitations of Section 415 of the

Internal Revenue Code shall be applied to such purchase as

described in Section 414(u)(1)(B) of the Internal Revenue Code.

(4) For purposes of Section 415(b) of the Internal Revenue

Code, the annual benefit attributable to any rollover contribution

accepted pursuant to this section shall be determined in accordance

with Treasury Regulation §1.415(b)-1(b)(2)(v), and the excess, if

any, of the annuity payments attributable to any rollover

contribution provided under the retirement system over the annual

benefit so determined shall be taken into account when applying the

accrued benefit limitations of Section 415(b) of the Internal

Revenue Code and section twenty-seven-a of this article.

(b) Nothing in this section shall be construed as permitting rollovers or transfers into this system or any other system

administered by the retirement board other than as specified in

this section and no rollover or transfer shall be accepted into the

system in an amount greater than the amount required for the

purchase of permissive service credit or repayment of withdrawn or

refunded contributions.

(c) Nothing in this section shall be construed as permitting

the purchase of service credit or repayment of withdrawn or

refunded contributions except as otherwise permitted in this

article.



WVC 5 - 10 - 28

§5-10-28. Unified accounting; funds.

     For financing and accounting purposes, the West Virginia

Public Employees Retirement System shall consist of only one

division, including, in combination, the participating state

employees and participating public employees who are not state

employees. Unified accounting of the retirement system

transactions shall be maintained for all the assets of the system.

The retirement system funds shall be: (1) The members deposit

fund; (2) the employers accumulation fund; (3) the retirement

reserve fund; (4) the income fund; and (5) the expense fund. All

references in this code to the members deposit fund, the employers

accumulation fund, the retirement reserve fund, the income fund and

the expense fund mean the Public Employees Retirement Fund.

Nothing contained in this section or any prior provision of law

shall be interpreted to mean that any assets of the system,

regardless of their origin or date of receipt, are to be in any

manner segregated or insulated for the purposes of either paying

benefits due or determining or establishing accounting or actuarial

methodologies or functions utilized by the retirement system. The

amendments to this section adopted during the third extraordinary

session of the 1990 legislative session shall not be construed to

limit the powers of the board relating to contributions to or

benefits of the Public Employees Retirement System and any and all

powers residing in the board previously administering the Public

Employees Retirement System shall be preserved.







WVC 5 - 10 - 29

§5-10-29. Members' deposit fund; members' contributions;

forfeitures.

     (a) The members' deposit fund is hereby created. It shall be

the fund in which shall be accumulated, at regular interest, the

contributions deducted from the compensation of members, and from

which refunds of accumulated contributions shall be paid and

transfers made as provided in this section.

     (b) The contributions of a member to the retirement system

(including any member of the Legislature, except as otherwise

provided in subsection (g) of this section) shall be a sum of not

less than three and five-tenths percent of his or her annual

compensation but not more than four and five-tenths percent of his

or her annual compensation, as determined by the board of trustees:

Provided, That for persons who first become members of the

retirement system on or after July 1, 2015, the contributions to

the system shall be six percent of his or her annual compensation

beginning July 1, 2015. The said contributions shall be made

notwithstanding that the minimum salary or wages provided by law

for any member shall be thereby changed. Each member shall be

deemed to consent and agree to the deductions made and provided for

herein. Payment of a member's compensation less said deductions

shall be a full and complete discharge and acquittance of all

claims and demands whatsoever for services rendered by him or her

to a participating public employer, except as to benefits provided

by this article.

     (c) The officer or officers responsible for making up the

payrolls for payroll units of the state government and for each of

the other participating public employers shall cause the

contributions, provided in subsection (b) of this section, to be

deducted from the compensations of each member in the employ of the

participating public employer, on each and every payroll, for each

and every payroll period, from the date the member enters the

retirement system to the date his or her membership terminates.

When deducted, each of said amounts shall be paid by the

participating public employer to the retirement system; said

payments to be made in such manner and form, and in such frequency,

and shall be accompanied by such supporting data, as the board of

trustees shall from time to time prescribe. When paid to the

retirement system, each of said amounts shall be credited to the

members' deposit fund account of the member from whose

compensations said contributions were deducted.

     (d) In addition to the contributions deducted from the

compensations of a member, as heretofore provided, a member shall

deposit in the members' deposit fund, by a single contribution or

by an increased rate of contribution as approved by the board of

trustees, the amounts he or she may have withdrawn therefrom and

not repaid thereto, together with regular interest from the date of

withdrawal to the date of repayment. In no case shall a member be

given credit for service rendered prior to the date he or she

withdrew his or her contributions or accumulated contributions, as the case may be, until he or she returns to the members' deposit

fund all amounts due the said fund by him or her.

     (e) Upon the retirement of a member, or if a survivor annuity

becomes payable on account of his or her death, in either event his

or her accumulated contributions standing to his or her credit in

the members' deposit fund shall be transferred to the retirement

reserve fund.

     (f) In the event an employee's membership in the retirement

system terminates and no annuity becomes or will become payable on

his or her account, any accumulated contributions standing to his

or her credit in the members' deposit fund, unclaimed by the said

employee, or his or her legal representative, within three years

from and after the date his or her membership terminated, shall be

transferred to the income fund.

     (g) Any member of the Legislature who is a member of the

retirement system and with respect to whom the term "final average

salary" includes a multiple of eight, pursuant to the provisions of

subdivision (13), section two of this article, shall contribute to

the retirement system on the basis of his or her legislative

compensation the sum of $540 each year he or she participates in

the retirement system as a member of the Legislature.

     (h) Notwithstanding any other provisions of this article,

forfeitures under the system shall not be applied to increase the

benefits any member would otherwise receive under the system.







WVC 5-10-30

§5-10-30. Refund of accumulated contributions.

(a) In the event a member leaves the employ of a participating

public employer prior to the date he becomes entitled to retire

with an annuity payable by the retirement system he shall be paid,

upon his written application filed with the board of trustees, his

accumulated contributions standing to his credit in the members

deposit fund, if his separation from the employ of a participating

public employer occurs subsequent to a period of two years from and

after the date he last became a member of the system. If his said

separation from the employ of a participating public employer

occurs within a period of two years from and after the date he last

became a member of the system, he shall be paid his accumulated

contributions standing to his credit in the members deposit fund

less the total interest credited to his individual account therein;

and the said total interest credit shall be transferred to the

income fund.

(b) In the event a member dies and does not leave a

beneficiary entitled to an annuity payable by the retirement

system, his accumulated contributions standing to his credit in the

members deposit fund at the time of his death shall be paid to such

person or persons as he shall have nominated by written designation

duly executed and filed with the board of trustees. If there be no

such designated person or persons surviving the said member, his

said accumulated contributions shall be paid to his estate.

(c) Refunds of a member's contributions or accumulated contributions, as the case may be, may be made in equal

installments according to such rules and regulations as the board

of trustees may from time to time adopt.

(d) In the event a member dies and a refund of his

contributions is due to be made to an infant child or children by

reason of being the person or persons nominated by written

designation duly executed and filed with the retirement system, and

the amount of said refund is less than one thousand dollars, then,

and in said event, the board of trustees may make said refund, upon

written application, to the closest relative or natural guardian

for the use of said infant child or children. The board of

trustees may, at its discretion, require that said relative or

natural guardian post bond with the retirement system to insure

that said money will be used for the benefit of said infant child

or children. In any event, before said refund is made to said

relative or natural guardian of the said infant or infants, said

relative or natural guardian shall give the retirement system an

indemnifying release of said sums so paid over.







WVC 5 - 10 - 31

§5-10-31. Employers Accumulation Fund; employers contributions.

     (a) The Employers Accumulation Fund is hereby continued. It

is the fund in which shall be accumulated the contributions made by

the participating public employers to the retirement system, and

from which transfers shall be made as provided in this section.

     (b) Based upon the provisions of section thirteen of this

article, the participating public employers' contributions to the

retirement system, as determined by the Consolidated Public

Retirement Board, shall be a percent of the members' total annual

compensation related to benefits under this retirement system. In

determining the amount, the board shall give consideration to

setting the amount at a sum equal to an amount which, if paid

annually by the participating public employers, will be sufficient

to provide for the total normal cost of the benefits expected to

become payable to all members and to amortize any unfunded

liability found by application of the actuarial funding method

chosen for that purpose by the Consolidated Public Retirement

Board, over a period of years determined actuarially appropriate.







WVC 5-10-31a

§5-10-31a. Retroactive contributions to the retirement system for

retroactive service credit granted; one year period

for application.

Those public employers who are participating in the West

Virginia public employees retirement system and elected to

participate after the first day of July, one thousand nine hundred

sixty-one, and those employers who are eligible but who have not

elected to participate, may elect to cover their employees

retroactive for the period of their prior employment by such

employer to the first day of July, one thousand nine hundred

sixty-one, under the following terms and rules and regulations to

be promulgated by the board of trustees of the retirement system:

(a) The participating employer, in order to provide the

benefits set forth herein, shall pay an additional contribution to

the retirement system as shall be the actuarial equivalent of the

amount which would have been contributed, together with earnings

thereon, by the employer had the employee who is to receive

retroactive credit been covered during the period of the

retroactive service credit. This contribution may be made by the

employer either in one lump sum or, at the election of the

employer, by level term payments over a period not in excess of

fifteen years or by both lump sum payments and level term payments,

as determined by the employer and the board of trustees under rules

and regulations promulgated by the board;

(b) The additional service credit shall be applicable to employees working for the participating employer on the effective

date of the change of date of participation;

(c) There shall be no increase in benefits and annuities paid

to former members of the system who were retired prior to the

effective date of this section;

(d) Employees entitled to such retroactive service credit

under the provisions of this section shall make such additional

contribution to the retirement system equal to the actuarial

equivalent of the amount which would have been contributed,

together with earnings thereon, by the employee had the employee

been covered during the period of the retroactive service credit;

(e) Each employer and employee shall be required to pay into

the retirement system in the manner hereinafter provided the amount

necessary for the additional service credit provided by this

section, based upon an actuarial study of each employer that elects

to participate in the retirement system under this section and as

determined by the board of trustees;

(f) The actuarial basis for determining the additional

contributions shall be that currently in effect for the valuation

of the retirement system on the effective date of the employer's

election;

(g) Any new participating employer and any participating

employer which is currently a participant and who began

participating after the first day of July, one thousand nine

hundred sixty-one, who desires additional service credit must elect to provide such service credit within one year following the

effective date of this section;

(h) Any participating employer requesting additional service

credit as provided by this section shall provide such employee data

as may be requested from the board of trustees of the retirement

system for the determination of the employer's contributions;

(i) The consulting actuary's fees for computing the additional

contribution rates under this section shall be paid directly by the

participating employer to the consulting actuary selected by the

board of trustees of the retirement system; and

(j) For the purpose of reopening the effectiveness of the

provisions of this section for a period of one year following the

effective date of the amendment to this section, and for the

purpose of granting, retroactively service credit to current

employees of employers participating in the public employees

retirement system during such period, this section is hereby

renewed and reestablished; but any such credited service granted

hereunder shall be on the actuarially sound basis for determining

required additional contributions, of both employer and employee,

required in light of benefits that would be computed in respect of

such later point in time and such subsequent final average salary

amount.







WVC 5-10-32

§5-10-32. Appropriations for state contributions to retirement

system; contributions for members paid from special

funds or by other employers.

(a) At least thirty days prior to each regular session of the

Legislature, the board of trustees shall certify to the governor

the contributions, determined according to section thirty-one

hereof, to be made by the state to the retirement system for the

next following fiscal year; the said contributions to be based upon

the state's total payroll for the preceding twelve calendar months.

The amounts so ascertained shall be included in the appropriation

bill to be submitted to the Legislature. In the event the state's

contributions for the fiscal year are less than they would have

been based upon the state's actual payroll for the fiscal year, the

amount of the insufficiency shall be included in the appropriation

bill for the next following fiscal year. The said contributions

shall be paid to the retirement system quarterly and when paid

shall be credited to the employers accumulation fund.

(b) In the case of any member whose compensation is paid out

of moneys derived in whole or in part out of any special fund, or

from any source other than the state, then contributions on behalf

of such member in any year shall be paid out of such special fund

or by such other source in proportion to that part of the member's

compensation derived therefrom for that year. The governing body of

each participating public employer is hereby authorized to make

such contributions from funds of the participating public employer as shall be necessary to pay its proportionate share of

contributions on account of each state employee whose compensation

is paid by such participating public employer.







WVC 5-10-33

§5-10-33. Contributions by other participating public employers;

withholding state money to satisfy delinquencies.

(a) The board of trustees shall annually certify to each

participating public employer, other than the state, the employer

contribution rate, determined in section thirty-one hereof, for the

public employer division. Each participating public employer shall

pay to the state treasurer, for credit to the retirement system,

the contributions equal to the said contribution rate applied to

each and every payroll of the participating public employer. The

said payments shall be made in such manner and form, and in such

frequency, and shall be accompanied by such supporting data, as the

board shall from time to time prescribe. When paid, the said

contributions shall be credited to the employers accumulation fund.

(b) If any participating public employer, other than the

state, fails to make any payment due the retirement system for a

period of sixty days after the payment is due, the participating

public employer shall become delinquent, and such delinquency shall

be certified to the state auditor by the board of trustees. If any

participating public employer becomes delinquent, as provided

herein, the state auditor is authorized and directed to withhold

any money due such participating public employer by the state until

such delinquency, together with regular interest thereon, from the

date due, is satisfied. Such money so withheld by the state

auditor shall be paid to the retirement system.







WVC 5-10-34

§5-10-34. Transfers to retirement reserve fund.

Upon the retirement of a member, or if an annuity becomes

payable on account of the death of a member, the difference between

the annuity reserve and the member's accumulated contributions

standing to his credit in the members deposit fund at the time of

his retirement or death, as the case may be, shall be transferred

to the retirement reserve fund.







WVC 5-10-35

§5-10-35. Retirement reserve fund created; transfers from fund on

re-employment.

The retirement reserve fund is hereby created. It shall be

the fund from which shall be paid all annuities payable as provided

in this article. If a disability retirant returns to the employ of

a participating public employer, his annuity reserve at that time

shall be transferred from the retirement reserve fund to the

members deposit fund and the employers accumulation fund in the

same proportions as the annuity reserve was originally transferred

to the retirement reserve fund. The amount so transferred to the

members deposit fund shall be credited to his individual account

therein.







WVC 5-10-36

§5-10-36. Income fund.

The income fund is hereby created. It shall be the fund to

which shall be credited all interest, dividends and other income

from investments of the retirement system, all transfers from the

members deposit fund by reason of lack of claimant or forfeiture of

interest credits, and all other moneys received by the retirement

system, the disposition of which is not specifically provided for

in this article. The board of trustees may accept gifts and

bequests and same shall be credited to the income fund. There

shall be paid or transferred from the income fund all amounts

required to credit regular interest to the members deposit fund,

employers accumulation fund, and the retirement reserve fund, as

provided in this article. Whenever the board determines that the

balance in the income fund is more than sufficient to cover the

current charges to the fund, the board may, by resolution, provide

for contingency reserves, or for the transfer of such excess, or

portions thereof, to cover the needs of the other funds of the

retirement system.







WVC 5-10-37

§5-10-37.

Repealed.

Acts, 1994 Reg. Sess., Ch. 133.







WVC 5-10-38

§5-10-38. Investment of moneys; bonds of state departments and

institutions to be offered first to board of public

works.

All moneys of the retirement system not currently required for

the payment of annuities or other benefits shall be invested by the

board of public works in any securities or investments in which the

sinking funds of the state may be legally invested, or in any

securities or investments in which the deposits in savings banks

and participation deposits in banks and trust companies may be

legally invested, as provided by the general laws. The board of

public works shall have full power to hold, purchase, sell, assign,

transfer or dispose of any of the securities or investments in

which any of the moneys of the retirement system have been

invested, as well as the proceeds of such investments. It shall be

the duty of every state department or institution issuing any bonds

to offer same in writing to the board of public works prior to

advertising them for sale. The said board, within fifteen days

from and after receipt of such offer, may accept or reject such

offer in whole or in part. Available cash on deposit shall not

exceed ten percent of the total assets of the system.







WVC 5-10-39

§5-10-39. No trustee, etc., shall gain from investments of system.

Except as otherwise provided in this article, no trustee, no

member of the board of public works, and no employee of the board

of trustees shall have any interest, direct or indirect, in the

gains or profits arising from any investment or reinvestment of

retirement system moneys. No trustee, no member of the board of

public works, and no employee of the board of trustees shall,

directly or indirectly, for himself or as an agent or partner of

others, in any manner use the same, except to make current and

necessary payments as are authorized by the board of trustees. No

trustee, no member of the board of public works, and no employee of

the board of trustees shall become an endorser or surety or become

in any manner an obligor for moneys loaned or borrowed by the

retirement system. Nothing contained herein shall be construed to

impair the rights of any member of the retirement system to

benefits provided by the system.







WVC 5-10-40

§5-10-40. Restricted use of retirement system moneys.

The moneys, investments and all other assets of the retirement

system shall be used for the sole purpose of meeting the

disbursements for annuities and other payments authorized by this

article, and shall be used for no other purpose whatsoever.







WVC 5 - 10 - 41

§5-10-41. Allowance of regular interest on balances in funds.

The board of trustees shall, at the end of each calendar year,

allow and credit regular interest on the balance at the beginning

of that calendar year in each member's individual account in the

members deposit fund and on the mean balances in the employers

accumulation fund and the retirement reserve fund. The interest so

allowed and credited shall be charged to the income fund.







WVC 5 - 10 - 42

§5-10-42. Fiscal or plan year of retirement system.

The fiscal or plan year of the retirement system shall

coincide with the fiscal year of the state.







WVC 5-10-43

§5-10-43. Pro rata reduction of annuities.

Any provision in this article to the contrary notwithstanding,

if at the end of any fiscal year the total of the annuities paid

from the retirement reserve fund during the said fiscal year is

more than ten percent of the sum of the balances in the employers

accumulation fund and the retirement reserve fund at the end of the

said fiscal year, the said annuities payable in the next ensuing

fiscal year shall be reduced, pro rata, so that the sum of the

annuities so reduced shall not exceed ten percent of the sum of the

said balances in the employers accumulation fund and the retirement

reserve fund. The said pro rata reduction shall be applied to all

annuities payable in the said ensuing fiscal year.







WVC 5 - 10 - 44

§5-10-44. Correction of errors; underpayments; overpayments.

     (a) General rule: Upon learning of any errors, the board shall

correct errors in the retirement system in a timely manner whether

an individual, entity or board was at fault for the error with the

intent of placing the affected individual, entity and retirement

board in the position each would have been in had the error not

occurred.

     (b) Underpayments to the retirement system: Any error

resulting in an underpayment to the retirement system may be

corrected by the member or retirant remitting the required employee

contribution or underpayment and the participating public employer

remitting the required employer contribution or underpayment.

Interest shall accumulate in accordance with the legislative rule

162 CSR 7 concerning retirement board refund, reinstatement,

retroactive service, loan and correction of error interest factors

and any accumulating interest owed on the employee and employer

contributions or underpayments resulting from an employer error

shall be the responsibility of the participating public employer.

The participating public employer may remit total payment and the

employee reimburse the participating public employer through

payroll deduction over a period equivalent to the time period

during which the employer error occurred. If the correction of an

error involving an underpayment to the retirement system will

result in the retirement system paying a retirant an additional

amount, this additional payment shall be made only after the board receives full payment of all required employee and employer

contributions or underpayments, including interest.

     (c) Overpayments to the retirement system by an employer: When

mistaken or excess employer contributions or other employer

overpayments have been made to the retirement system, the board

shall credit the employer with an amount equal to the overpayment,

to be offset against the employer's future liability for employer

contributions to the system. If the employer has no future

liability for employer contributions to the retirement system, the

board shall refund the erroneous contributions directly to the

employer. Earnings or interest shall not be returned, offset or

credited to the employer under any of the means used by the board

for returning employer overpayments to the retirement system.

     (d) Overpayments to the retirement system by an employee: When

mistaken or excess employee contributions or overpayments have been

made to the retirement system, the board shall have sole authority

for determining the means of return, offset or credit to or for the

benefit of the individual making the mistaken or excess employee

contribution of the amounts, and may use any means authorized or

permitted under the provisions of section 401(a), et seq. of the

Internal Revenue Code and guidance issued thereunder applicable to

governmental plans. Alternatively, in its full and complete

discretion, the board may require the participating public employer

employing the individual to pay the individual the amounts as

wages, with the board crediting the participating public employer with a corresponding amount to offset against its future

contributions to the plan. If the employer has no future liability

for employer contributions to the retirement system, the board

shall refund said amount directly to the employer: Provided, That

the wages paid to the individual shall not be considered

compensation for any purposes of this article. Earnings or

interest shall not be returned, offset or credited under any of the

means used by the board for returning employee overpayments .

     (e) Overpayments from the retirement system: If any error

results in any member, retirant, beneficiary, entity or other

individual receiving from the system more than he would have been

entitled to receive had the error not occurred, the board shall

correct the error in a timely manner. If correction of the error

occurs after annuity payments to a retirant or beneficiary have

commenced, the board shall prospectively adjust the payment of the

benefit to the correct amount. In addition, the member, retirant,

beneficiary, entity or other person who received the overpayment

from the retirement system shall repay the amount of any

overpayment to the retirement system in any manner permitted by the

board. Interest shall not accumulate on any corrective payment

made to the retirement system pursuant to this subsection.

     (f) Underpayments from the retirement system: If any error

results in any member, retirant, beneficiary, entity or other

individual receiving from the retirement system less than he would

have been entitled to receive had the error not occurred, the board shall correct the error in a timely manner. If correction of the

error occurs after annuity payments to a retirant or beneficiary

have commenced, the board shall prospectively adjust the payment of

the benefit to the correct amount. In addition, the board shall

pay the amount of such underpayment to the member, retirant,

beneficiary or other individual in a lump sum. Interest shall not

be paid on any corrective payment made by the retirement system

pursuant to this subsection.

     (g) Eligibility errors: If the board finds that an

individual, employer, or both individual and employer currently or

formerly participating in the retirement system is not eligible to

participate, the board shall notify the individual and his or her

employer of the determination and terminate participation in the

retirement system. Any erroneous payments to the retirement system

shall be returned to the employer and individual in accordance with

the methods described in subsections (c) and (d) of this section

and any erroneous payments from the retirement system to such

individual shall be returned to the retirement system in accordance

with the methods described in subsection (e) of this section. Any

erroneous service credited to the individual shall be removed. If

the board determines that an individual or employer, or both, has

not been participating in the retirement system, but was eligible

to and required to be participating in the retirement system, the

board shall as soon as practicable notify the individual and his or

her employer of the determination and the individual and his or her employer shall prospectively commence participation in the

retirement system as soon as practicable. Service credit for

service prior to the date on which the individual prospectively

commences participation in the retirement system shall be granted

only if the board receives the required employer and employee

contributions for such service, in accordance with subsection (b)

of this section, including interest.







WVC 5-10-45

§5-10-45. Fraud; penalty.

Any person who shall knowingly make any false statement or

shall falsify or permit to be falsified any record or records of

the retirement system in any attempt to defraud the system shall be

guilty of a misdemeanor, and, upon conviction thereof, shall be

punished accordingly.







WVC 5 - 10 - 46

§5-10-46. Right to benefits not subject to execution, etc.;

assignments prohibited; deductions for group

insurance; setoffs for fraud; exception for certain

domestic relations orders.

The right of a person to any benefit provided for in this

article shall not be subject to execution, attachment, garnishment,

the operation of bankruptcy or insolvency laws, or other process

whatsoever, nor shall any assignment thereof be enforceable in any

court except that the benefits or contributions under this system

shall be subject to "qualified domestic relations orders" as that

term is defined in Section 414(p) of the Internal Revenue Code as

applicable to governmental plans: Provided, That should a member

be covered by a group insurance or prepayment plan participated in

by a participating public employer, and should he or she be

permitted to, and elect to, continue such coverage as a retirant,

he or she may authorize the board of trustees to have deducted from

his or her annuity the payments required of him or her to continue

coverage under such group insurance or prepayment plan: Provided,

however, That a participating public employer shall have the right

of setoff for any claim arising from embezzlement by, or fraud of,

a member, retirant or beneficiary.







WVC 5-10-47

§5-10-47. Benefits exempt from taxes.

The annuities and other benefits provided by this article, and

the assets of the retirement system, are hereby exempt from state,

county and municipal taxes.







WVC 5 - 10 - 48

§5-10-48. Reemployment after retirement; options for holder of

elected public office.

     (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'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 hereby further finds and

declares that the interests of the public are served when persons

having retired from public employment are permitted, within certain

limitations, to render post-retirement employment in positions of

public service, either in elected or appointed capacities. The

Legislature further finds and declares that it has the need for

qualified employees and that in many cases an employee of the

Legislature will retire and be available to return to work for the

Legislature as a per diem employee. The Legislature further finds

and declares that in many instances these employees have

particularly valuable expertise which the Legislature cannot find

elsewhere. 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 state, but

has no adverse effect whatsoever upon the actuarial soundness of

this particular retirement system.

     (b) For the purposes of this section: (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

twelve months per year service and at least one thousand forty

hours of service per year in that position; (2) "temporary

full-time employment" or "temporary part-time employment" means

employment of an individual on a temporary or provisional basis by

a participating public employer, other than as an elected or

appointed public official, in a position which does not otherwise

render the individual as regularly employed; (3) "former employee

of the Legislature" means any person who has retired from

employment with the Legislature and who has at least ten years'

contributing service with the Legislature; and (4) "reemployed by

the Legislature" means a former employee of the Legislature who has

been reemployed on a per diem basis not to exceed one hundred

seventy-five days per calendar year.

     (c) In the event a retirant becomes regularly employed on a

full-time basis by a participating public employer, payment of his

or her annuity shall be suspended during the period of his or her

reemployment and he or she shall become a contributing member to

the retirement system. If his or her reemployment is for a period

of one year or longer, his or her annuity shall be recalculated and

he or she shall be granted an increased annuity due to the additional employment, the annuity to be computed according to

section twenty-two of this article. 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 section forty-four of this article, and his or

her previous annuity shall be reinstated effective the first day of

the month following termination of reemployment and the board'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.

     (d) In the event a member retires and is then subsequently

elected to a public office or is subsequently appointed to hold an

elected public office, or is a former employee of the Legislature

who has been reemployed by the Legislature, he or she has the

option, notwithstanding subsection (c) of this section, to either:

     (1) Continue to receive payment of his or her annuity while

holding public office or during any reemployment of a former

employee of the Legislature on a per diem basis, in addition to the

salary he or she may be entitled to as an office holder or as a per

diem reemployed former employee of the Legislature; or

     (2) Suspend the payment of his or her annuity and become a contributing member of the retirement system as provided in

subsection (c) of this section. Notwithstanding the provisions of

this subsection, a member who is participating in the system as an

elected public official may not retire from his or her elected

position and commence to receive an annuity from the system and

then be elected or reappointed to the same position unless and

until a continuous twelve-month period has passed since his or her

retirement from the position: Provided, That a former employee of

the Legislature may not be reemployed by the Legislature on a per

diem basis until at least sixty 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 employee: Provided further, That in no event may

reemployment by the Legislature of a per diem employee exceed one

hundred seventy-five days per calendar year.

     (e) 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 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 retired member shall not, during the term of his or her retirement and continued service as

a member of the legislative body of a political subdivision, be

eligible to continue his or her participation as a contributing

member of the system and shall not continue to accrue any

additional service credit or benefits in the system related to the

continued service.

     (f) Notwithstanding the provisions of section twenty-seven-b

of this article, any publicly elected member of the legislative

body of any political subdivision or of the State Legislature, the

Clerk of the House of Delegates and the Clerk of the Senate may

elect to commence receiving in-service retirement distributions

from this system upon attaining the age of seventy and one-half

years: Provided, That the member is eligible to retire under the

provisions of section twenty or twenty-one of this article:

Provided, however, That the member elects to stop actively

contributing to the system while receiving the in-service

distributions.

     (g) The provisions of section twenty-two-h of this article are

not applicable to the amendments made to this section during the

2006 Regular Session.







WVC 5-10-49

§5-10-49. Removal from office.

Any member of the retirement system who has been removed from

office or his office shall have been vacated for official

misconduct, incompetence, neglect of duty, gross immorality,

malfeasance, or misfeasance shall immediately have his membership

in the retirement system terminated permanently by the board of

trustees and shall never become eligible for an annuity; however,

any such member so terminated by virtue of this section shall be

entitled to a refund of his contributions with regular interest as

provided in section thirty hereof.







WVC 5-10-50

§5-10-50. Severability.

If any part of this article is declared unconstitutional by a

court of competent jurisdiction, such decision shall not affect the

validity of the remaining provisions of this article, or the

article in its entirety.







WVC 5-10-51

§5-10-51. Withdrawal.

The police department and/or fire department of any

municipality of this state, which municipality is a participating

employer as defined in section two (5)) hereof, may withdraw its

firemen and/or policemen from the West Virginia public employees

retirement system provided the following conditions are met:

(1) City council, by appropriate ordinance, permits all of its

policemen of its police department and/or all of its firemen of its

fire department to withdraw from the system.

(2) Each member of its police department and/or fire

department so withdrawing from the retirement system must execute

a release of all claims against the West Virginia public employees

retirement system.

(3) Before any such withdrawal shall be effective, the

consulting actuary to the retirement system shall compute all past,

present and future liabilities and the municipality shall pay the

retirement system for all such liabilities before any withdrawal

shall be effective; after an effective withdrawal, pursuant to the

terms hereof, if additional liabilities of a municipality are

discovered, the board of trustees shall certify such sums due the

retirement system and the municipality shall thereafter forthwith

pay said sum due the system.

(4) Compliance with rules and regulations as the board of

trustees may from time to time promulgate supplementing the above

conditions.







WVC 5-10-52

§5-10-52. Specific provisions relating to certain members of the

Legislature and certain service by members of the

Legislature.

The provisions of this article specifying that a legislator

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 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 one

thousand nine hundred seventy-one, or any year thereafter.







WVC 5-10-53

§5-10-53. Joint study of state retirement systems; report to Joint

Committee on Government and Finance by specified date

of study conclusions.

In light of the determination to repeal the public employees

retirement system II (PERS II) before its proposed date of initial

operation, a study shall be undertaken through the cooperative

efforts of the board of the public employees retirement system, the

board of the teachers retirement system and the legislative

commission on pensions and retirement toward determining the best

method by which to address the fiscal problems of the teachers

retirement system together with any combining of retirement systems

of the state that might be indicated, with report to be made to the

joint committee on government and finance of the Legislature by the

thirtieth day of June, one thousand nine hundred eighty-nine.







WVC 5-10-54

§5-10-54. Termination of benefits; procedure.

Whenever the board determines that (1) any person has

knowingly made any false statement or falsified or permitted to be

falsified any record or records of the retirement system in an

attempt to defraud the system, or (2) any person who resumes

employment with a governmental entity or accepts, directly or

indirectly, work on a contract basis from a governmental entity,

except as provided for under this article, the board shall

terminate any benefit that person has received, is receiving and is

entitled to receive under the early retirement provisions of this

article. Further, if any person taking early retirement under this

article desires to revoke his or her early retirement incentive, he

or she shall be allowed to do so if he or she is entitled to

regular retirement pursuant to this article: Provided, That such

revocation shall be retroactive to the date of last employment and

any incentive annuity, under any incentive option, already received

by the retiree be repaid to the retirement system. Any person who

revokes his or her early retirement incentive shall be thereafter

carried upon the records of the retirement system as a regular

retiree and shall not be entitled to any enhanced benefit by reason

of the early retirement options contained in this article:

Provided, however, That any person who chose to retire under the

early retirement provisions of this article who would not have been

and is not eligible for regular retirement but for the early

retirement incentive options must reapply for admission to a retirement system and repay all pension benefits plus regular

interest which would have been earned by the fund in the period

during which the annuity payments were paid to him or her since the

date his or her employment ceased.

Any termination of benefits may be appealed pursuant to the

state administrative procedures act in chapter twenty-nine-a of

this code. The board shall promulgate rules and regulations

regarding the procedure for termination of benefits and the

repayment of any benefit in accordance with the provisions of

article three, chapter twenty-nine-a of this code.







WVC 5 - 10 - 55

§5-10-55. Benefits not to be forfeited if system terminates.

If the retirement system is terminated or contributions are

completely discontinued, the rights of all members to benefits

accrued or contributions made to the date of such termination or

discontinuance, to the extent then funded, are not forfeited.







WVC 5 - 10 - 22 K

§5-10-22k. One-time bonus payment for certain annuitants effective

July 1, 2011.

     (a) As an additional bonus payment to other retirement

allowances provided, a one-time bonus payment to retirement

benefits shall be paid to retirants of the system as provided in

subsection (b) of this section. The one-time bonus payment shall

equal $1,200 and shall be paid on July 27, 2011.

     (b) The one-time bonus payment provided by this section

applies to any retirant with at least twenty years of credited

service who currently receives an annual retirement annuity of not

more than $7,200. This bonus payment is subject to any applicable

limitations under section 415 of the Internal Revenue Code of 1986,

as amended.

     (c) The one-time bonus payment provided by this section shall

be payable pro rata to any beneficiaries of a qualifying retirant

who currently receive an annuity or other benefit payable by the

system.





Note: WV Code updated with legislation passed through the 2015 Regular Session

The WV Code Online is an unofficial copy of the annotated WV Code, provided as a convenience. It has NOT been edited for publication, and is not in any way official or authoritative.