Bill Summary – FastDemocracy

WEST VIRGINIA LEGISLATURE
REGULAR SESSION
                Introduced House Bill 4006
               By Delegate Kelley [Introduced February 13, 2024; Referred to the Committee on Pensions and Retirement then Finance]
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  A BILL to amend and reenact §20-18-2, §20-18-8, §20-18-20, §20-18-25 and §20-18-26 of the
          Code of West Virginia, 1931, as amended, all relating to Natural Resource Police Officer
          Retirement; modifying the accrued benefit of members of the West Virginia Natural
          Resources Police Officer Retirement System who retire on or after January 1, 2027;
          permitting the employer contribution to be set by the board; providing or additional funding
          under the West Virginia Natural Police Officer Retirement System; clarifying payment upon
          death of member with less than 10 years of contributing service; and clarifying surviving
          spouse benefits when the member dies from duty related or non-duty related cause.
     Be it enacted by the Legislature of West Virginia:
     ARTICLE 18. WEST VIRGINIA DIVISION OF NATURAL RESOURCES POLICE
             OFFICER RETIREMENT SYSTEM.
     §20-18-2.                                                                               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 one-quarter percent of the
  member’s final average salary multiplied by the member’s years of credited service: Provided,
  That members who retire after July 1, 2025, shall have an accrued benefit of two and one-half
  percent of the member’s final average salary multiplied by the member’s years of credited service:
  Provided, however, That members who retire on or after January 1, 2027, shall have an accrued
  benefit of two and three-fourths percent of the member’s final average salary multiplied by the
  member’s years of credited service. 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 §20-18-13 of this
 code.
         (b) "Accumulated contributions" means the sum of all amounts deducted from the annual
 compensation of a member or paid on his or her behalf pursuant to §5-10C-1 et seq. of this code,
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 either pursuant to §20-18-8(a) or §5-10-29 of this code as a result of covered employment together
 with regular interest on the deducted amounts.
        (c) "Active member" means a member who is active and contributing to the plan.
        (d) "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.
        (e) "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 retirement board in accordance with
 the provisions of this article: 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.
        (f) "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.
        (g) "Annual leave service" means accrued annual leave.
        (h) "Annuity starting date" means the first day of the first calendar month following receipt
 of the retirement application by the board or the required beginning date, if earlier: Provided, That
 the member has ceased covered employment and reached normal retirement age.
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        (i) "Beneficiary" means a natural person who is entitled to, or will be entitled to, an annuity
 or other benefit payable by the plan.
        (j) "Board" means the Consolidated Public Retirement Board created pursuant to §5-10D-1
 et seq. of this code.
        (k) "Covered employment" means either: (1) Employment as a Natural Resources Police
 Officer and the active performance of the duties required of a Natural Resources Police Officer; (2)
 the period of time which active duties are not performed but disability benefits are received under
 §20-18-21 or §20-18-22 of this code; or (3) concurrent employment by a Natural Resources Police
 Officer in a job or jobs in addition to his or her employment as a Natural Resources Police Officer
 where the secondary employment requires the Natural Resources Police Officer to be a member
 of another retirement system which is administered by the Consolidated Public Retirement Board
 pursuant to §5-10D-1 et seq. of this code: Provided, That the Natural Resources Police Officer
 contributes to the fund created in §20-18-7 of this code the amount specified as the Natural
 Resource Police Officer’s contribution in §20-18-8 of this code.
        (l) "Credited service" means the sum of a member’s years of service, active military duty,
 disability service, eligible annual and sick leave service.
        (m) "Dependent child" means either:
        (1) An unmarried person under age 18 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;
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         (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 subparagraph (A), (B), or (C),
 paragraph (1) of this subdivision.
         (n) "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.
         (o) "Director" means Director of the Division of Natural Resources.
         (p) "Disability service" means service credit 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 §20-18-21 or §20-18-22 of this
 code.
         (q) "Division of Natural Resources" or "division" means the West Virginia Division of
 Natural Resources.
         (r) "Effective date" means January 2, 2021.
         (s) "Employer error" means an omission, misrepresentation, or deliberate act in violation of
 relevant provisions of the West Virginia Code or of 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.
         (t) "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. 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 §20-18-21 or §20-18-22 of this code then "final average
 salary" means the average of the monthly salary determined paid to the member during that period
 determined as if the disability first commenced after the effective date of this article with monthly
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  compensation equal to that average monthly compensation which the member was receiving in
  the plan year prior to the initial disability multiplied by 12.
          (u) "Fund" means the West Virginia Natural Resources Police Officer Retirement Fund
  created pursuant to §20-18-7 of this code.
          (v) "Hour of service" means:
          (1) Each hour for which a member is paid;
          (2) Each hour for which a member is paid 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 paragraph shall be calculated and credited pursuant to West
 Virginia Division of Labor rules. A member will may not be credited with any hours of service for
 any period of time he or she is receiving benefits under §20-18-21 or §20-18-22 of this code; and
         (3) Each hour for which back pay is either awarded or agreed to be paid by the Division of
 Natural Resources, irrespective of mitigation of damages. The same hours of service may not be
 credited both under this subdivision and subdivision (1) or (2) of this subsection. 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.
         (w) "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.
         (x) "Member" means a person first hired as a Natural Resources Police Officer, as defined
 in subsection (z) of this section, on or after January 2, 2021, or a Natural Resources Police Officer
 first hired prior to the effective date and who elects to become a member pursuant to §20-18-6 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 or until cessation of membership pursuant to §20-18-6 of this code.
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        (y) "Monthly salary" means the portion of a member’s gross annual compensation which is
 paid to him or her per month.
        (z) "Natural Resources Police Officer" means any person regularly employed in the service
 of the division as a law-enforcement officer on or after the effective date of this article, and who is
 eligible to participate in the fund. The term shall not include Emergency Natural Resources Police
 Officers as defined in §20-7-1(c) of this code, Special Natural Resources Police Officers as
 defined in §20-7-1(d) of this code, Forestry Special Natural Resources Police Officers as defined
 in §20-7-1(e) of this code, or Federal Law Enforcement Officer as defined in §20-7-1b of this code.
        (aa) "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 or beneficiaries 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.
        (bb) "Normal retirement age" means the first to occur of the following: (1) Attainment of age
 55 years and the completion of 15 or more years of service; (2) while still in covered employment,
 attainment of at least age 55 years, and when the sum of current age plus years of service equals
 or exceeds 70 years; or (3) attainment of at least age 62 years, and completion of 10 years of
 service: Provided, That any member shall in qualifying for retirement pursuant to this article have
 10 or more years of service, all of which years shall be actual, contributory ones.
        (cc) "Partially disabled" means a member’s inability to engage in the duties of a Natural
 Resources Police Officer by reason of any medically determinable physical or mental impairment
 that can be expected to result in death or that has lasted or can be expected to last for a
 continuous period of not less than 12 months. A member may be determined partially disabled for
 the purposes of this article and maintain the ability to engage in other gainful employment which
 exists within the state but which ability would not enable him or her to earn an amount at least
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 equal to two thirds of the average annual compensation earned by all active members of this plan
 during the plan year ending as of the most recent June 30, as of which plan data has been
 assembled and used for the actuarial valuation of the plan.
         (dd) "Plan" means the West Virginia Natural Resources Police Officers Retirement System
 established by this article.
         (ee) "Plan year" means the 12-month period commencing on July 1 of any designated year
 and ending the following June 30.
         (ff) "Public Employees Retirement System" means the West Virginia Public Employees
 Retirement System created by §5-10-1 et seq. of this code.
         (gg) "Qualified public safety employee" means any employee of the division who provides
 police protection, fire-fighting services, or emergency medical services for any area within the
 jurisdiction of the state or political subdivision, or such other meaning given to the term by Section
 72(t)(10)(B) of the Internal Revenue Code or by Treasury Regulation §1.401(a)-1(b)(2)(v) as they
 may be amended from time to time.
         (hh) "Regular interest" means the rate or rates of interest per annum, compounded
 annually, as the board adopts in accordance with the provisions of this article.
         (ii) "Required beginning date" means April 1 of the calendar year following the later of: (i)
 The calendar year in which the member attains age 72; or (ii) the calendar year in which the
 member retires or otherwise separates from covered employment.
         (jj) "Retirant" means any member who commences an annuity payable by the retirement
 system.
         (kk) "Retire" or "retirement" means a member’s termination from the employ of a
 participating public employer and the commencement of an annuity by the plan.
         (ll) "Retirement income payments" means the annual retirement income payments payable
 under the plan.
         (mm) "Substantial gainful employment" or "gainful employment" means employment in
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 which an individual may earn up to an amount that is determined by the United States Social
 Security Administration as substantial gainful activity and still receive total disability benefits.
         (nn) "Surviving spouse" means the person to whom the member was legally married at the
 time of the member’s death and who survived the member.
         (oo) "Totally disabled" means a member’s inability to engage in substantial gainful activity
 by reason of any medically determined physical or mental impairment that can be expected to
 result in death or that has lasted or can be expected to last for a continuous period of not less than
 12 months. For purposes of this subdivision:
         (1) A member is totally disabled only if his or her physical or mental impairment or
 impairments are so severe that he or she is not only unable to perform his or her previous work as
 a Natural Resources Police Officer but also cannot, considering his or her age, education, and
 work experience, engage in any other kind of substantial gainful employment which exists in the
 state regardless of whether: (A) The work exists in the immediate area in which the member lives;
 (B) a specific job vacancy exists; or (C) the member would be hired if he or she applied for work.
         (2) "Physical or mental impairment" is an impairment that results from an anatomical,
 physiological, or psychological abnormality that is demonstrated by medically accepted clinical
 and laboratory diagnostic techniques. A member’s receipt of Social Securi