This bill aims to amend the West Virginia Code regarding the Public Employees Retirement System and the State Teachers Retirement System by introducing a graduated increase in retirement benefits over a three-year period. Specifically, it establishes that beginning on July 1, 2025, the retirement annuity for retirees (or their beneficiaries) will be increased by 2.5% on July 1, 2025, followed by a 1.5% increase on July 1, 2026, and a 1% increase on July 1, 2027. This increase is applicable to retirees who are at least 70 years old and have a minimum of 25 years of service as of July 1, 2023, with specific provisions for beneficiaries of retirees who opted for a joint and survivor annuity.

Additionally, the bill maintains existing provisions that ensure that if a retiree's monthly annuity is below $1,000 or a beneficiary's is below $500, their benefits will be raised to these minimum amounts, effective by December 31, 2023. It also clarifies that years of service as an elected public official or temporary legislative employee, as well as certain capped salaries for employees of higher education institutions, will not be counted towards the total service for these minimum benefits. The bill emphasizes that these minimum benefits are not retroactive and will only apply to those who have retired before the effective date of the new provisions.

Statutes affected:
Introduced Version: 5-10-22n, 18-7A-26y