Actuarial Fiscal Note

Date Requested:February 10, 2026
Time Requested:04:58 PM

3618	Introduced	SB774
Agency:	Consolidated Public Retirement Board
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:	State Personnel

Retirement Systems Impacted by Legislation:

PERS 2501 and EMSRS 2615

FUND(S):

Other Fund

Sources of Revenue:

Local Governments Creates New Expense

Legislation creates:

PERS and EMSRS

Actuarial Note Summary

Impact this measure will have on the liabilities and contributions associated with the retirement system(s).

    SB 774 would allow EMS Officers to transfer from PERS to EMSRS. As of July 1, 2025, there are approximately 58 PERS EMS Officers and SB 774 would give these members the option to transfer all their PERS service to EMSRS.

    The estimated administrative costs associated with the EMS Officers transferring to EMSRS is a one-time cost of $50,000 to update CPRB administrative systems and provide the make-up contribution quote to EMS Officers that transfer to EMSRS. These administrative costs would be paid by the Consolidated Public Retirement Board.

    The benefit formula in EMSRS for the transferring EMS Officers depends on their PERS non-EMS Officer service and if they provide a make-up contribution to EMSRS.

    Specifically, for EMS Officers that transfer service from PERS to EMSRS and do not elect to provide a make-up contribution to EMSRS, "Accrued Benefit" means, on behalf of the transferring member, two percent per year of the member's final average salary for all credited service that was credited because of transferred assets. Additionally, two and three-quarter percent for the first 20 years of new credited service earned from date of membership in EMSRS will be credited. Additionally, two percent per year for 21 through 25 years of new credited service earned from date of membership in this plan and one and one-half percent per year for each year over 25 years earned from date of membership in this plan will be credited with a maximum benefit of 90 percent of final average salary.

    For EMS Officers that transfer service from PERS to EMSRS and elect to provide a make-up contribution to EMSRS, "Accrued Benefit" means, on behalf of the member two percent per year of the member's final average salary for all non-EMS Officer credited service that was credited as a result of transferred assets. Additionally, two and three-quarter percent for the first 20 years of EMS Officer credited service will be credited. Additionally, two percent per year for 21 through 25 years of EMS Officer credited service and one and one-half percent per year for each year over 25 years of EMS Officer credited service will be credited. A maximum benefit of 90 percent of a member’s final average salary may be paid.

    If a PERS EMS Officer elects to transfer their PERS service to EMSRS, the assets that would transfer from PERS to EMSRS is outlined in §16-5V-6g (f). Basically, the assets transferred to EMSRS would be equal to the PERS actuarial accrued liability of the transferring EMS Officers, multiplied by the active funded position of PERS, calculated as of July 1, 2026, using the PERS data, assumptions and plan provisions from the July 1, 2026, PERS funding valuation, and this amount is adjusted by applying interest at 7.25% per year from July 1, 2026 to the asset transfer date. For each EMS Officer transferring from PERS to EMSRS, the CPRB shall transfer the assets from PERS to EMSRS no later than March 31, 2027.

    The make-up contribution to EMSRS is defined in §16-5V-6g (h) as follows:

    (1) Compute the contributions made by each EMS Officer for eligible EMS Officer years under the Public Employees’ Retirement System (PERS)

    (2) Compute the contributions that would have been required under the
     Emergency Medical Services Retirement System (EMSRS) for eligible
     EMS Officer years.

    (3) Compute the difference with interest, at 7.25% per year, that each EMS
     Officer would have been required to pay had he or she originally
     participated in EMSRS for eligible EMS Officer years.


    The Consolidated Public Retirement Board (CPRB) shall provide a quote of the make-up contribution outlined above, to each EMS Officer who has timely elected to transfer from PERS to EMSRS. The quote shall be provided to the member within 60 days of the board’s receipt of the written request and the employer’s verification of EMS service.

    This actuarial/fiscal note determines the actuarial cost to EMSRS from this bill under one scenario, where we assume all 58 eligible EMS Officers transfer from PERS to EMSRS and they do not elect to provide a make-up contribution to EMSRS.

    The actuarial cost to EMSRS from the bill was calculated by the CPRB actuarial staff and reviewed by the CPRB Actuary.

    For this scenario the list of PERS EMS Officers eligible to transfer from PERS to EMSRS was provided by the following West Virginia counties: Braxton, Doddridge, Hampshire, Marshall, and Ohio. As of July 1, 2025, the number of active PERS EMS Officers included in the analysis is 58 and we assume all 58 EMS Officers will elect to transfer from PERS to EMSRS.

    To calculate the actuarial cost under this scenario, the data, assumptions, and plan provisions from the July 1, 2025, funding valuations for PERS and EMSRS were used, except, the EMSRS data was augmented by the 58 PERS EMS Officers assumed to transfer from PERS to EMSRS on July 1, 2025, and the EMSRS “Accrued Benefit” for the transferring EMS Officers is outlined in the bill.

    We present the actuarial analysis under this scenario, however, there are many possible scenarios with an actuarial cost different from the results determined under the scenario displayed.

    The actuarial cost to EMSRS from the bill depends on:

    • the future experience of EMSRS, which going forward could be different from the current active members in EMSRS,
    • the number of PERS EMS Officers that elect to transfer from PERS to EMSRS,
    • the non-EMS PERS service of the transferring EMS Officers,
    • the date the assets transfer to EMSRS,
    • and the number of transferring EMS Officers that provide a make-up contribution to EMSRS.

    Scenario Without a Make-up Contribution

    We assume all 58 PERS EMS Officers would elect to transfer all their service from PERS to EMSRS and will not provide a make-up contribution to EMSRS. Furthermore, we assume that all PERS service transferred to EMSRS by the EMS Officers is EMS service, and therefore, the non-EMS PERS service is assumed to be 0 for each EMS Officers transferring from PERS to EMSRS.

    Based on the transfer calculation outlined in §16-5V-6g (f), as of July 1, 2025, the estimated assets that would transfer from PERS to EMSRS is $3.278 million. The actual assets that would transfer according to §16-5V-6g (f) from PERS to EMSRS depend on the PERS market value of assets, the PERS active and inactive actuarial accrued liability, and the PERS actuarial accrued liability for the transferring EMS Officers, all determined as of July 1, 2026.

    It is important to note that the estimated asset transfer amount is based on PERS liabilities, calculated as of July 1, 2025, using the data, assumptions, and plan provisions from the July 1, 2025, funding valuation for PERS. Moreover, the PERS market value of assets, as of July 1, 2025, is provided by the West Virginia Investment Management Board (WVIMB).

    The actual assets transferred in the future from PERS to EMSRS may be different from the estimated asset transfer amount shown above because the actual assets transferred will be determined as of July 1, 2026, with interest at 7.25% per year applied from July 1, 2026, to the asset transfer date.

    Measured as of July 1, 2025, the estimated PERS actuarial accrued liability for the 58 PERS EMS Officers is $2.774 million. Therefore, as of July 1, 2025, the SB 774 would increase the PERS Unfunded Actuarial Accrued Liability, based on market value of assets, by about $504,000 ($3.278 million – $2.774 million). The impact from SB 774 on the PERS employer Normal Cost and the PERS Unfunded Actuarial Accrued Liability is immaterial.

    Measured as of July 1, 2025, the estimated EMSRS actuarial accrued liability for the 58 PERS EMS Officers is $3.794 million. This liability was calculated as of July 1, 2025, using the data, assumptions, and plan provisions from the July 1, 2025, funding valuation for EMSRS, except the transferring EMS Officers were included in the EMSRS data and their “Accrued Benefit” is outlined above. We assume all past service for the transferring EMS Officers is EMS service, however, since a make-up contribution is not provided by the transferring EMS Officers, the past service benefit multiplier is 2.0% for each year of PERS past service. The results will change if the liabilities are calculated at a different date in the future.

    Measured as of July 1, 2025, the estimated EMSRS market value of assets would increase by $3.278 million (transferred assets from §16-5V-6g (f)) if all 58 PERS EMS Officers transfer their PERS service to EMSRS. The increase in EMSRS assets will change if the transfer date is different from the assumed transfer date, July 1, 2025.

    Therefore, as of July 1, 2025, the unfunded actuarial accrued liability for EMSRS would increase by approximately $516,000 ($3.794 million – $3.278 million) if 58 PERS EMS Officers transfer from PERS to EMSRS.

    Amortizing this amount over 10 years on a level dollar basis would increase the annual EMSRS amortization of the unfunded actuarial accrued liability by about $72,000 or 0.08% of EMSRS payroll.

    Moreover, SB 774 would increase the EMSRS employer normal cost by about $182,000 per year, and as a percentage of payroll increases by 0.20% of EMSRS payroll given the payroll for new members.

    Therefore, the total EMSRS annual required employer contribution would increase by approximately $254,000 or 0.28% of EMSRS payroll if 58 PERS EMS Officers transfer from PERS to EMSRS.

Fiscal Detail of Actuarial Impact

Impact on current benefit costs, prior service benefit costs and ongoing contribution requirements following full implementation.

Impact On	Following Full Implementation
Impact On	Increase in Unfunded Actuarial Accrued Liability	Initial Impact on Annual Contribution Requirement of System(s)	Contribution Increase as a Percentage of Annual Payroll
Total Annual Costs	$516,000.00	$254,000.00	0.28 %
Normal Cost of System	N/A	$182,000.00	0.20 %
Past Service Liabilities	$516,000.00	$72,000.00	0.08 %
Fiscal Year Past Service Amortization Period Ends	N/A	2035	N/A

Explanation of above Actuarial estimates:

    As of July 1, 2025, the unfunded actuarial accrued liability for EMSRS would increase by approximately $516,000 ($3.794 million – $3.278 million) if 58 PERS EMS Officers transfer from PERS to EMSRS.

    Amortizing this amount over 10 years on a level dollar basis would increase the annual EMSRS amortization of the unfunded actuarial accrued liability by about $72,000 or 0.08% of EMSRS payroll.

    Moreover, SB 774 would increase the EMSRS employer normal cost by about $182,000 per year, and as a percentage of payroll increases by 0.20% of EMSRS payroll given the payroll for new members.

    Therefore, the total EMSRS annual required employer contribution would increase by approximately $254,000 or 0.28% of EMSRS payroll if 58 PERS EMS Officers transfer from PERS to EMSRS.

Analysis of Impact on Public Pension Policy:

    As of July 1, 2025, there are 1,624 active members in EMSRS. In the future the experience of the group of 58 PERS EMS Officers, assumed to transfer to EMSRS, may be different from the existing EMSRS active group experience and may lead to plan gains or losses in the future for the EMSRS plan. If there are losses going forward, the EMSRS employer contribution rate may increase in the future.

    Note that many of the EMS Officers that would elect to transfer from PERS to EMSRS may not elect to provide a make-up contribution to EMSRS because,

    • It is possible that transferring EMS Officers may receive a larger retirement benefit if they do not provide a make-up contribution to EMSRS compared to the retirement benefit they would receive if they elected to provide a make-up contribution. For example, a PERS EMS Officer that transfers 5 years of PERS EMS service to EMSRS and works an additional 21 years in EMSRS, then at retirement the EMS Officer would receive a larger retirement benefit if they did not provide a make-up contribution when they transferred to EMSRS.

    To see this, if the EMS Officer provides a make-up contribution when they join EMSRS, their retirement benefit after 26 years of EMS service would be 66.5% of final average salary. However, if the EMS Officer did not elect to provide a make-up contribution when they join EMSRS, their retirement benefit after 26 years of service (5 years at the PERS benefit multiplier and 21 years at the EMSRS multiplier schedule) would be 67.0% of final average salary. There are other examples where the retirement benefit is larger if the EMS Officer elects not to provide the make-up contribution when they join EMSRS, however, these examples typically involve a participant that transfers from PERS to EMSRS and works many future years with EMSRS.

    Note, future actuarial measurements may differ significantly from the current measurements shown in this actuarial/fiscal note due to plan experience differing from that anticipated by the economic and demographic assumptions, changes expected as part of the natural operation of the methodology used for these measurements, and changes in plan provisions, applicable law, and regulations.

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The impact from SB 774 on the PERS employer Normal Cost and the PERS Unfunded Actuarial Accrued Liability is immaterial.

    EMSRS consists of local municipalities and does not cover any state employees. For fiscal 2026, funding for EMSRS is through member contributions of 8.50% of payroll and employer contributions of 9.50% of payroll.

    EMSRS does not impact the costs or revenues of state government. However, the estimated administrative costs associated with the EMS Officers transferring to EMSRS is a one-time cost of $50,000 to update CPRB administrative systems and provide the make-up contribution quote to EMS Officers that transfer to EMSRS. These administrative costs would be paid by the Consolidated Public Retirement Board.

Fiscal Note Detail

Effect of Proposal	Fiscal Year
Effect of Proposal	2026 Increase/Decrease (use"-")	2027 Increase/Decrease (use"-")	Fiscal Year (Upon Full Implementation)
1. Estmated Total Cost	0	50,000	0
Personal Services	0	0	0
Current Expenses	0	50,000	0
Repairs and Alterations	0	0	0
Assets	0	0	0
Other	0	0	0
2. Estimated Total Revenues	0	0	0

Explanation of above Fiscal Note estimates (include possible long-range effect):

Memorandum

    This Actuarial/Fiscal Note is being submitted by the Consolidated Public Retirement Board. It has been reviewed by the CPRB Actuary. Both the Board and the CPRB Actuary are available upon request for questions.

    For the appropriate actuarial disclosures, see the July 1, 2025, funding valuation reports for PERS and EMSRS, expected to be published in April 2026.

    In particular, future actuarial measurements may differ significantly from current measurements due to System experience differing from that anticipated by the economic and demographic assumptions, changes expected as part of the natural operation of the methodology used for these measurements, and changes in system provisions or applicable law or regulations.

    Regarding Actuarial Standards of Practice 51, the risk assessment for EMSRS may be affected by allowing PERS EMS Officers to transfer to EMSRS to the extent the experience of this transferring group may be different from the current active population of EMSRS, which could lead to gains or losses in the future for the EMSRS plan. If losses occur going forward the current EMSRS employer contribution rate of 9.5% of pay may increase.

    Kenneth Woodson Jr., the CPRB Board Actuary, is a Fellow of the Society of Actuaries and a Member of the American Academy of Actuaries. He meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinions contained in this Actuarial/Fiscal Note.

Person submitting Fiscal Note: Kenneth M. Woodson Jr.
Email Address: kenneth.m.woodson@wv.gov