Sunday, March 16th - 11:45 p.m. For a PDF of this document click here
TDC Legislation Passes in Special Session
During a special legislative session on Sunday, March 16th, the legislation to allow TDC participants to transfer to the older (TRS) plan was passed. This legislation passed due in large part to your efforts. Your calls, emails and postcards to the governor and Senate made all the difference.
A “thank you” also goes to the House of Delegates and to House Speaker Rick Thompson for their hard work on this issue. This bill would not have been possible without the Speaker’s leadership. Also working hard on the bill's passage were House members Joe Delong, Mike Caputo, Harry Keith White and Sharon Spencer. Senate Pension Chair Dr. Dan Foster also worked hard in support of TDC participants.
The details of the bill are as follows:
• If 65% or less than 74.99% of the TDC participants choose to transfer to the TRS system, then those transferring will take with them 75% of their service credit. The remaining 25% of your service credit can be purchased at the actuarial reserve value.
• If 75% or more of the TDC participants choose to transfer to the TRS system, then 75% of your service credit will transfer. You may buy back the remaining 25% of your service credit at 1.5% of your salary over the time you have been in the TDC plan plus 4% interest.
• If either of the above thresholds is met, those people who indicated they would move to TRS will be transferred to that system on 7/1/08. Those who indicated their desire to remain in the TDC will be allowed to do so. If the 65% threshold is not met then no one will be allowed to transfer.
• TDC participants who transfer to TRS are not required to purchase the additional service credit. TDC participants who choose to transfer to TRS will have one year (until 7/1/09) to make the decision to buy back the service credit.
• The retirement board will make loans available for those choosing to buy back their service credit.
• Participants who transfer into TRS and meet the TRS retirement eligibility requirements can retire by 9/1/08 if they declare their intent to retire by 7/1/08.
• An individualized information packet will be sent to all TDC participants by the CPRB during the month of April. The packet will contain pension assumptions showing what would likely occur if you stayed in the TDC plan, transferred into TRS at 75% or transferred into TRS and purchased your service credit. The packet would also contain the amount of money it would cost you to purchase the credit at the actuarial reserve value or at the 1.5% + 4% interest rate. The packet will also contain a selection document for you to indicate your choice to remain in the TDC or transfer to TRS.
• TDC participants can make their selection at their work site on May 5th by completing the transfer document and returning it to their supervisor for submission to the CPRB. TDC participants will also be allowed to mail their transfer document in at any time before May 12.
• Between May 6 and May 9, the work site supervisor shall make reasonable efforts to contact verbally and in writing all actively contributing members that have not submitted their written selection document. The supervisor will send the documents to the CPRB by certified mail no later than May 13.
• An independent accounting firm will tabulate the selection documents and verify the results no later than June 5, 2008.
This is the best compromise that could be achieved. The Speaker of the House, Rick Thompson, was able to substantially move the governor from his original position; but ultimately this was a take it or leave it proposition. Your efforts kept the bill on track, softened some of the provisions the governor and Senate wanted and initiated passage of the bill.
WVEA worked diligently throughout the session to ensure relief for those people trapped in a failed retirement system. With your efforts, we have been successful in providing the vehicle for those desiring to move to the defined benefit system. Now we must turn our efforts to a program of education to make sure everyone understands the impact of their decision to remain in the TDC or transfer into TRS.
WVEA will be working in counties and schools across the state to help people in understanding the bill, discuss the options and assist in the education of TDC members.
For additional information, contact the Organizational Development Specialist assigned to your area.
TDC legislation - HB 101
TDC/TRS Myth vs Fact
TDC timelines
Contact your local WVEA staff person to arrange a presentation for your school
WVEA Retirement Podcast (coming soon)