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Wood County Teachers Retirement Association begins vote to dissolve fund

By Michael Erb 4 min read

PARKERSBURG -- The Wood County Teachers Retirement Association held a public forum Thursday night to talk about dissolving the private retirement fund.

The act would require an almost impossible task: To have 90 percent of the association's more than 1,600 active and retired members vote to dissolve the association.

About 60 people attended Thursday's information session, with the majority being retired teachers from Wood County Schools. Association board member Justin Hartshorn said faculty senates at all schools will meet this morning for active members to vote on dissolving the fund.

Ballots also will be sent to all retired members. All ballots will be returned and counted Dec. 20.

Association board members said the $2.5 million retirement fund cannot sustain itself, and after an actuarial audit determined the fund would exhaust itself within six to eight years. If the fund is dissolved within the next six to eight months, the association would be able to return all active member contributions and any contributions by retirees who have not drawn more than what they paid in to the fund.

"We have an opportunity to give people back what they've put in," Hartshorn said.

Retirees receive about $70 a month over a 10-month period, or about $840 a year. Officials said it takes about four active members paying $20 a month to support one retiree. The fund was created in 1938 and was kept in a regular checking account, receiving little to no interest. The money was invested in 2016, but receives only between 5-6 percent interest.

"If the funds had been managed properly, we'd probably be getting more than $840 a year," Hartshorn said."

The association is a separate entity from Wood County Schools and the Wood County Board of Education. Many of those in attendance Thursday expressed concerns over the rush to dissolve the fund and what it would mean for retirees who depend on the extra income. Many also said they use the association retirement payment to cover the cost of dental insurance.

Some active association members, however, said they would not want to pay into a program in which they will see no benefit.

Hartshorn said an active member who has contributed $2,600 would not receive anything by the time they were able to draw retirement. Those who retired five years ago have already drawn their $2,600 contribution and another $1,600. Those who retired prior to 2013 when rates were changed would have contributed $2,000 and already drawn more than $5,000. Over the next five years, those same retirees would draw an additional $4,200.

Hartshorn said it was difficult to find legal advice as there are only two such private retirement systems for teachers in West Virginia, and fewer than a dozen more nationwide. The board was told to hold the vote to dissolve the fund before taking any other action.

"Everyone should have a voice. Everyone should have input," he said.

Hartshorn said if the vote to dissolve fails, the association board will next look at creating a change in the bylaws which will allow everyone's initial contribution to be returned. That vote will only require 60 percent of membership to approve.

However, if the association is dissolved, Hartshorn said checks could be cut to members as early as January. If it is a change to the bylaws, it won't take effect until the end of the fiscal year and checks would be sent in July.

Hartshorn said if both votes would fail "it would have to go to the court system.

"When I sit on the board and I know that we're continuing to collect funds that we will never be able to give back to the employees, that's terrible judgment," he said.

Contact Michael Erb at merb@newsandsentinel.com.

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