Senate pensions panel advances bill allowing contracted agency lawyers to buy PERS service credit

The Senate Pensions Committee voted to report Senate Bill 872 to the full West Virginia Senate with a recommendation that it pass, and under its double-reference rules the bill will first go to the Finance Committee. The motion passed on a voice vote after an amendment was added to clarify who qualifies.

The bill would add a section to the retroactive provisions of the West Virginia Public Employees Retirement Act to allow certain contracted general counsel for executive agencies who were previously disallowed from participating in the Public Employees Retirement System (PERS) to buy back years of service. Counsel told the committee that affected individuals would be required to pay missed employee contributions for the years in question and that agencies would pay the employer portion.

"They would have to make up their 4.5% per year," Counsel said, describing the employee contribution that would be owed for missed service.

Committee members pressed for limits and clarifications. A junior senator from the fifteenth, who introduced a conceptual amendment, said he would offer the change "hoping that the amendment passes" and that he might still vote against the bill, saying he wanted "protections for the state in place." The amendment the committee adopted requires that the provision apply only to contractors who work at least 1,040 hours per year, aligning eligibility with the state’s full-time threshold discussed in committee.

Members also raised policy concerns about whether extending PERS eligibility to contracted attorneys would create a pathway for other nonstate employees to gain access to state retirement benefits. One senator asked whether the change would make such positions more attractive and affect hiring and retention; another asked if similar exceptions already exist. Counsel and committee members said they were not aware of widespread precedent and described the circumstance as limited.

Committee discussion included an estimate of how many people might be affected. Counsel said she knew of "somewhere between 3" and that it "could be a couple dozen," adding that roughly 60 agencies exist and not all employ contracted counsel under these arrangements. The committee did not record a precise count; the transcript discussion described the affected number as likely under 25.

On process and cost, committee members asked where the employer portion would come from. Counsel said the employer share, as the bill is written, would come from the hiring agency’s budget.

After debate and the 1,040-hour amendment, Vice Chair moved that "Senate Bill 872, as amended, be reported to the full Senate with recommendation that it do pass, but under the original double committee reference, first be referred to the committee on Finance." The motion carried on a voice vote; the committee did not record numerical tallies in the transcript.

The bill will be referred to the Senate Finance Committee under the Senate’s double-reference procedure and then returned to the full Senate for consideration.