Bill Summary – FastDemocracy

WEST VIRGINIA LEGISLATURE
       2024 REGULAR SESSION
                    Enrolled Senate Bill 439
    By Senators Nelson, Oliverio, Azinger, Barrett,
  Clements, Grady, Hamilton, Hunt, Phillips, Plymale,
   Queen, Chapman, Stuart, Woelfel, Takubo, and Deeds [Passed March 9, 2024, in effect from passage]
     Enr SB 439
  AN ACT to amend and reenact §16-5V-2, §16-5V-5, §16-5V-6, §16-5V-8, and §16-5V-14a of the
         Code of West Virginia, 1931, as amended; and to amend said code by adding thereto two
         new sections, designated §16-5V-6c and §16-5V-6d, all relating to the Emergency Medical
         Services Retirement System; defining terms; updating terms to comply with federal laws;
         authorizing certain 911 personnel to be members of the Emergency Medical Services
         Retirement System under certain circumstances; requiring costs of the vote to participate
         be borne by participating employers in relative proportion to members employed; providing
         for transfer of assets pertaining to 911 personnel; requiring certain computations to be
         made by the Consolidated Public Retirement Board; requiring administrative costs of the
        Consolidated Public Retirement Board for transfer of assets pertaining to 911 personnel be
        borne by participating employers in relative proportion to members transferred; terminating
        liability of the Public Employees Retirement System in certain circumstances; authorizing
        use of certain funds for purchase of service credit; and providing for purchase of service
        credit.
     Be it enacted by the Legislature of West Virginia:
     ARTICLE 5V. EMERGENCY MEDICAL SERVICES RETIREMENT SYSTEM ACT.
     §16-5V-2.                                                                              Definitions.
         As used in this article, unless a federal law or regulation or the context clearly requires a
  different meaning:
         (a) "Accrued benefit" means on behalf of any member two and six-tenths percent per year
  of the member’s final average salary for the first 20 years of credited service. Additionally, two
  percent per year for 21 through 25 years and one and one-half percent per year for each year over
  25 years will be credited with a maximum benefit of 67 percent. A member’s accrued benefit may
  not exceed the limits of Section 415 of the Internal Revenue Code and is subject to the provisions
  of §16-5V-12 of this code.
         (1) The board may, upon the recommendation of the board’s actuary, increase the
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 employees’ contribution rate to 10 and five-tenths percent should the funding of the plan not reach
 70 percent funded by July 1, 2012. The board shall decrease the contribution rate to eight and one-
 half percent once the plan funding reaches the 70 percent support objective as of any later
 actuarial valuation date.
         (2) Upon reaching the 75 percent actuarial funded level, as of an actuarial valuation date,
 the board shall increase the two and six-tenths percent to two and three-quarter percent for the
 first 20 years of credited service. The maximum benefit will also be increased from 67 percent to
 90 percent.
         (3) For 911 personnel with assets transferred pursuant to §16-5V-6d of this code who did
 not elect to pay back higher past contributions with interest, "accrued benefit" means, on behalf of
 the member, two percent per year of the member’s final average salary for all credited service that
 was credited as a result of transferred assets. Additionally, two and three-quarter percent for the
 first 20 years of new credited service earned from date of membership in this plan will be credited.
 Additionally, two percent per year for 21 through 25 years of new credited service earned from date
 of membership in this plan and one and one-half percent per year for each year over 25 years
 earned from date of membership in this plan will be credited. A maximum benefit of 90 percent of a
 member’s final average salary may be paid. A member’s accrued benefit may not exceed the limits
 of Section 415 of the Internal Revenue Code and is subject to the provisions of §16-5V-12 of this
 code.
         (4) For 911 personnel with assets transferred pursuant to §16-5V-6d of this code who did
 elect to pay back higher past contributions, with interest, for eligible 911 service credit, "accrued
 benefit" means on behalf of the member two percent per year of the member’s final average salary
 for all non-911 credited service that was credited as a result of transferred assets. Additionally, two
 and three-quarter percent for the first 20 years of 911 credited service will be credited. Additionally,
 two percent per year for 21 through 25 years of 911 credited service and one and one-half percent
 per year for each year over 25 years of 911 credited service will be credited. A maximum benefit of
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 90 percent of a member’s final average salary may be paid. A member’s accrued benefit may not
 exceed the limits of Section 415 of the Internal Revenue Code and is subject to the provisions of
 §16-5V-12 of this code.
         (b) "Accumulated contributions" means the sum of all retirement contributions deducted
 from the compensation of a member, or paid on his or her behalf as a result of covered
 employment, together with regular interest on the deducted amounts.
         (c) "Active military duty" means full-time active duty with any branch of the armed forces of
 the United States, including service with the National Guard or reserve military forces when the
 member has been called to active full-time duty and has received no compensation during the
 period of that duty from any board or employer other than the armed forces.
         (d) "Actuarial equivalent" means a benefit of equal value computed upon the basis of the
 mortality table and interest rates as set and adopted by the board in accordance with the
 provisions of this article.
         (e) "Annual compensation" means the wages paid to the member during covered
 employment within the meaning of Section 3401(a) of the Internal Revenue Code, but determined
 without regard to any rules that limit the remuneration included in wages based upon the nature or
 location of employment or services performed during the plan year plus amounts excluded under
 Section 414(h)(2) of the Internal Revenue Code and less reimbursements or other expense
 allowances, cash or noncash fringe benefits or both, deferred compensation and welfare benefits.
 Annual compensation for determining benefits during any determination period may not exceed
 the maximum compensation allowed as adjusted for cost of living in accordance with §5-10D-7 of
 this code and Section 401(a)(17) of the Internal Revenue Code.
         (f) "Annual leave service" means accrued annual leave.
         (g) "Annuity starting date" means the first day of the month for which an annuity is payable
 after submission of a retirement application. For purposes of this subsection, if retirement income
 payments commence after the normal retirement age, "retirement" means the first day of the
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 month following or coincident with the latter of the last day the member worked in covered
 employment or the member’s normal retirement age and after completing proper written
 application for retirement on an application supplied by the board.
        (h) "Board" means the Consolidated Public Retirement Board.
        (i) "Contributing service" or "contributory service" means service rendered by a member
 while employed by a participating public employer for which the member made contributions to the
 plan. Contributory service that was transferred in full from the Public Employees Retirement
 System will qualify as contributory service in this plan.
        (j) "County commission or political subdivision" has the meaning ascribed to it in this code.
        (k) "County firefighter" means an individual employed in full-time employment as a
 firefighter with a county commission.
        (l) "Covered employment" means: (1) Employment as a full-time emergency medical
 technician, emergency medical technician/paramedic, or emergency medical services/registered
 nurse, and the active performance of the duties required of emergency medical services officers;
 or (2) employment as a full-time employee of a county 911 public safety answering point; or (3)
 employment as a full-time county firefighter; or (4) the period of time during which active duties are
 not performed but disability benefits are received under this article; or (5) concurrent employment
 by an emergency medical services officer, 911 personnel, or county firefighter in a job or jobs in
 addition to his or her employment as an emergency medical services officer, 911 personnel, or
 county firefighter where the secondary employment requires the emergency medical services
 officer, 911 personnel, or county firefighter to be a member of another retirement system which is
 administered by the Consolidated Public Retirement Board pursuant to this code: Provided, That
 the emergency medical services officer, 911 personnel, or county firefighter contributes to the fund
 created in this article the amount specified as the member’s contribution in §16-5V-8 of this code.
        (m) "Credited service" means the sum of a member’s years of service, active military duty,
 disability service, service transferred from the Public Employees Retirement System, and accrued
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  annual and sick leave service.
             (n) "Dependent child" means either:
         (1) An unmarried person under age eighteen who is:
         (A) A natural child of the member;
         (B) A legally adopted child of the member;
         (C) A child who at the time of the member’s death was living with the member while the
  member was an adopting parent during any period of probation; or
         (D) A stepchild of the member residing in the member’s household at the time of the
  member’s death; or
         (2) Any unmarried child under age 23:
         (A) Who is enrolled as a full-time student in an accredited college or university;
         (B) Who was claimed as a dependent by the member for federal income tax purposes at
 the time of the member’s death; and
        (C) Whose relationship with the member is described in paragraph (A), (B), or (C),
 subdivision (1) of this subsection.
        (o) "Dependent parent" means the father or mother of the member who was claimed as a
 dependent by the member for federal income tax purposes at the time of the member’s death.
        (p) "Disability service" means service received by a member, expressed in whole years,
 fractions thereof or both, equal to one half of the whole years, fractions thereof, or both, during
 which time a member receives disability benefits under this article.
        (q) "Early retirement age" means age 45 or over and completion of 20 years of contributory
 service.
        (r) "Effective date" means January 1, 2008.
        (s) "Emergency medical services officer" means an individual employed by the state,
 county or other political subdivision as a medical professional who is qualified to respond to
 medical emergencies, aids the sick and injured and arranges or transports to medical facilities, as
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 defined by the West Virginia Office of Emergency Medical Services. This definition is construed to
 include employed ambulance providers and other services such as law enforcement, rescue, or
 fire department personnel who primarily perform these functions and are not provided any other
 credited service benefits or retirement plans. These persons may hold the rank of emergency
 medical technician/basic, emergency medical technician/paramedic, emergency medical
 services/registered nurse, or others as defined by the West Virginia Office of Emergency Medical
 Services and the Consolidated Public Retirement Board.
         (t) "Employer error" means an omission, misrepresentation, or deliberate act in violation of
 relevant provisions of the West Virginia Code, the West Virginia Code of State Rules, or the
 relevant provisions of both the West Virginia Code and of the West Virginia Code of State Rules by
 the participating public employer that has resulted in an underpayment or overpayment of
 contributions required.
         (u) "Final average salary" means the average of the highest annual compensation received
 for covered employment by the member during any five consecutive plan years within the
 member’s last 10 years of service while employed, prior to any disability payment. If the member
 did not have annual compensation for the five full plan years preceding the member’s attainment
 of normal retirement age and during that period the member received disability benefits under this
 article, then "final average salary" means the average of the monthly salary determined paid to the
 member during that period as determined under §16-5V-19 of this code multiplied by 12. Final
 average salary does not include any lump sum payment for unused, accrued leave of any kind or
 character.
         (v) "Full-time employment" means permanent employment of an employee by a
 participating public employer in a position which normally requires 12 months per year service and
 requires at least 1,040 hours per year service in that position.
         (w) "Fund" means the West Virginia Emergency Medical Services Retirement Fund
 created by this article.
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        (x) "Hour of service" means:
        (1) Each hour for which a member is paid or entitled to payment for covered employment
 during which time active duties are performed. These hours shall be credited to the member for the
 plan year in which the duties are performed; and
        (2) Each hour for which a member is paid or entitled to payment for covered employment
 during a plan year, but where no duties are performed due to vacation, holiday, illness, incapacity
 including disability, layoff, jury duty, military duty, leave of absence, or any combination thereof and
 without regard to whether the employment relationship has terminated. Hours under this
 subdivision shall be calculated and credited pursuant to West Virginia Division of Labor rules. A
 member will not be credited with any hours of service for any period of time he or she is receiving
 benefits under §16-5V-19 or §16-5V-20 of this code; and
        (3) Each hour for which back pay is either awarded or agreed to be paid by the employing
 county commission or political subdivision, irrespective of mitigation of damages. The same hours
 of service shall not be credited both under subdivision (1) or subdivision (2) of this subsection and
 under this subdivision. Hours under this paragraph shall be credited to the member for the plan
 year or years to which the award or agreement pertains, rather than the plan year in which the
 award, agreement, or payment is made.
        (y) "Medical examination" means an in-person or virtual examination of a member’s
 physical or mental health, or both, by a physician or physicians selected or approved by the board;
 or, at the discretion of the board, a medical record review of the member’s physical or mental
 health, or both, by a physician selected or approved by the board.
        (z) “Member" means either: (1) A person first hired as an emergency medical services
 officer by an employer which is a participating public employer of the Emergency Medical Services
 Retirement System after the effective date of this article, as defined in subsection (r) of this
 section; or (2) an emergency medical services officer of an employer which is a participating public
 employer of the Public Employees Retirement System first hired prior to the effective date and who
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 elects to become a member pursuant to this article; or (3) a person first hired by a county 911
 public safety answering center after the participating public employer elects to participate in the
 Emergency Medical Services Retirement System; or (4) a county firefighter hired on or after June
 10, 2022; or (5) a county firefighter of an employer which is a participating public employer of the
 Public Employees Retirement System first hired prior to June 10, 2022, and who elects to become
 a member pursuant to §16-5V-6a of this code; or (6) a person first hired by a county 911 public
 safety answering center prior to July 1, 2022, and who elects to become a member pursuant to
 §16-5V-6c of this code. A member shall remain a member until the benefits to which he or she is
 entitled under this article are paid or forfeited.
         (aa) "Monthly salary" means the W-2 reportable compensation received by a member
 during the month.
         (bb) "Normal form" means a monthly annuity which is one twelfth of the amount of the
 member’s accrued benefit which is payable for the member’s life. If the member dies before the
 sum of the payments he or she receives equals his or her accumulated contributions on the
 annuity starting date, the named beneficiary shall receive in one lump sum the difference between
 the accumulated contributions at the annuity starting date and the total of the retirement income
 payments made to the member.
         (cc) "Normal retirement age" means the fi