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 member’s 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. Provided, That members Members hired in a
position for the first time on or after July 1, 2014, who receive nonmonetary
remuneration shall not have nonmonetary remuneration included in compensation
for retirement purposes and nonmonetary remuneration may not be used in
calculating a member’s final average salary. Any lump sum or other payments
paid to members that do not constitute regular salary or wage payments are not
considered compensation for the purpose of withholding contributions for the
system or for the purpose of calculating a member’s final average salary. These
payments include, but are not limited to, attendance or performance bonuses,
one-time flat fee or lump sum payments, payments paid as a result of excess
budget, or employee recognition payments. The board shall have final power to
decide whether the payments shall be considered compensation for purposes of
this article;
(9) “Contributing service” means service rendered by a
member within this state and for which the member made contributions to a
public retirement system account of this state, to the extent credited him or
her as provided by this article;
(10) “Credited service” means the sum of a member’s
prior service credit, military service credit, workers’ compensation service
credit, and contributing service credit standing to his or her credit as
provided in this article;
(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 An employee of the Legislature whose term of employment is
otherwise classified as temporary and who is employed to perform services
required by the Legislature for its regular sessions or during the interim
between regular sessions and who has been or is employed during regular
sessions or during the interim between regular sessions in seven or more
consecutive calendar years, as certified by the clerk of the house in which the
employee served, is an employee, any provision to the contrary in this article
notwithstanding, and is entitled to credited service in accordance with
provisions of §5-10-14 of this code. Provided, however, That
members Members of the legislative body of any political subdivision
and judges of the state Court of Claims commissioners of the West
Virginia Legislative Claims Commission are employees receiving one year of
service credit for each one-year term served and prorated service credit for
any partial term served, anything contained in this article to the contrary
notwithstanding. Provided further, That only Only a
compensated board member of a participating public employer appointed to a
board of a nonlegislative body for the first time on or after July 1, 2014, who
normally is required to work 12 months per year and 1,040 hours of service per
year is an employee. In any case of doubt as to who is an employee within the
meaning of this article, the board of trustees shall decide the question;
(12) “Employer error” means an omission,
misrepresentation, or violation of relevant provisions of this code or of the
West Virginia Code of State Regulations Rules or the relevant
provisions of both this code and of the West Virginia Code of State Regulations
Rules 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 §5-10D-7 of this code and Section
401(a)(17) of the Internal Revenue Code: Provided, however, That the
provisions of §5-10-22h of this code are not applicable to the amendments made
to this subdivision during the 2011 regular session of the Legislature:
(A) The average of the highest annual compensation
received by a member, including a member of the Legislature who participates in
the retirement system in the year 1971 or thereafter, during any period of
three consecutive years of credited service contained within the member’s 15
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 15
years of credited service immediately preceding the date his or her employment
with a participating public employer last terminated. For a member of the
Legislature who made his or her first contribution to the member’s deposit fund
after June 30, 2020, final average salary is computed as provided in §5-10-52
of this code; 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 §5-10-2(13)(A) or §5-10-2(13)(B) of this
code, 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 §4-2A-2, §4-2A-3, §4-2A-4, and §4-2A-5 of this code), in the year 1971,
or in any year thereafter, plus any other compensation he or she receives in
any year from any other participating public employer including the State of
West Virginia, without any multiple in excess of one times his or her actual
legislative compensation and other compensation, shall be used. Provided,
That final 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 section 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 While limited credited
service can be used for the formula set forth in §5-10-21(e) of this code, it may
not be used to increase benefits calculated under §5-10-22 of this code;
(16) “Member” means any person who has accumulated
contributions standing to his or her credit in the member’s 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
§5-10-42 of this code;
(19) “Political subdivision” means the State of West
Virginia, a county, city, or town in the state; a school corporation or
corporate unit; any separate corporation or instrumentality established by one
or more counties, cities, or towns, as permitted by law; any corporation or
instrumentality supported in most part by counties, cities, or towns; and any
public corporation charged by law with the performance of a governmental
function and whose jurisdiction is coextensive with one or more counties, cities,
or towns. Provided, That any 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 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
70 1/2 years of age; or
(B) The calendar year in which a member who has
attained the age 70 1/2 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) (A)
Service between July 1, 1961, and the date an employer decides to become a
participating member of the Public Employees Retirement System; (2) (B)
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) (C)
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.
WEST virginia legislature