The West Virginia House approved legislation Thursday that would clear the way for about 19,000 participants in the states Teachers Defined Contribution System to move their assets to the West Virginia Teachers Retirement System.
The legislation would provide $78 million from the state to help subsidize the transfer to the DB plan. It also would require at least 75% of the DC participants to approve the transfer.
Anne Werum Lambert, executive director of the states Consolidated Public Retirement Board, Charleston, said Gov. Joe Manchin and state legislators have been working on a way to encourage migration to the DB plan since the state Supreme Court last month blocked a long-pending effort to merge the plans. Ms. Lambert said the move was being encouraged because many DC participants dont have enough in their accounts for retirement.
The $908 million Teachers Defined Contribution Plan, which has been closed to new employees since July 1, 2005, and the $3.6 billion Teachers Retirement Plan, both Charleston, were originally scheduled to merge July 1, 2006.