Actuarial Fiscal Note

Date Requested:February 19, 2026
Time Requested:12:13 PM

4229	Introduced	SB977
Agency:	Consolidated Public Retirement Board
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:	Retirement

Retirement Systems Impacted by Legislation:

EMSRS 2615

FUND(S):

Other Fund

Sources of Revenue:

Local Governments Creates New Expense

Legislation creates:

EMSRS

Actuarial Note Summary

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

    SB 977 creates a new benefit in the Emergency Medical Services Retirement System (EMSRS) for duty-related partially disabled members.

    Currently, EMSRS provides the following disability related benefits:
    A member who becomes unable to perform any gainful employment is considered disabled upon the concurrence of a medical review.

    The EMSRS disability benefit provisions are currently separated into two groups:
    Duty-Related Total Disability, and Non-Duty Related Total Disability. At present, EMSRS disability provisions do not include Partial Disability benefits.

    The disability benefits under EMSRS for these two groups are:

    Duty-Related – Total Disability
    A monthly disability benefit equal to 90% of the last 12 months average compensation prior to disability, payable prior to age 65. At age 65, the benefit is recalculated under the Normal Retirement Benefit provisions, taking into account final average pay and service prior to disability plus half-time disability service credits while receiving disability benefits prior to age 65.

    Non-Duty-Related – Total Disability
    A monthly disability benefit equal to 66.67% of the last 12 months average compensation prior to disability, payable prior to age 60. At age 60, the benefit is recalculated under the Normal Retirement Benefit provisions, taking into account final average pay and service prior to disability plus half-time disability service credits while receiving disability benefits prior to age 60.

    SB 977 would add the following disability benefit:

    Duty-Related – Partial Disability
    A monthly disability benefit equal to 45.00% of the last 12 months average compensation prior to disability, payable prior to age 60. At age 60, the benefit is recalculated under the Normal Retirement Benefit provisions, taking into account final average pay and service prior to disability plus half-time disability service credits while receiving disability benefits prior to age 60.

    Note, we updated the disability rates and the probabilities for the types of disability to account for the new duty related partial disability benefit from SB 977. The result is a slight increase in the EMSRS present value of future benefits, which causes a shift from AAL to normal cost.

    The decrease in Unfunded Actuarially Accrued Liability (UAAL) of EMSRS, due to SB 977, is approximately $116,000. Amortizing this amount over 10 years on a level dollar basis, would decrease the EMSRS recommended annual contribution by about $16,000, or (0.02%) of EMSRS payroll for FY 2026.

    Moreover, SB 977 would increase the employer normal cost by approximately $182,000 or 0.21% of EMSRS payroll for FY 2026. Therefore, the EMSRS recommended annual contribution would increase by around $166,000 or 0.19% of EMSRS payroll for FY 2026.

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	($116,000.00)	$166,000.00	0.19 %
Normal Cost of System	N/A	$182,000.00	0.21 %
Past Service Liabilities	($116,000.00)	($16,000.00)	-0.02 %
Fiscal Year Past Service Amortization Period Ends	N/A	2035	N/A

Explanation of above Actuarial estimates:

    Note, we updated the disability rates and the probabilities for the types of disability to account for the new duty related partial disability benefit from SB 977. The result is a slight increase in the EMSRS present value of future benefits, which causes a shift from AAL to normal cost.

    The decrease in Unfunded Actuarially Accrued Liability (UAAL) of EMSRS, due to SB 977, is approximately $116,000. Amortizing this amount over 10 years on a level dollar basis, would decrease the EMSRS recommended annual contribution by about $16,000, or (0.02%) of EMSRS payroll for FY 2026.

    Moreover, SB 977 would increase the employer normal cost by approximately $182,000 or 0.21% of EMSRS payroll for FY 2026. Therefore, the EMSRS recommended annual contribution would increase by around $166,000 or 0.19%.

Analysis of Impact on Public Pension Policy:

Fiscal Note Summary

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

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	10,000	0
Personal Services	0	0	0
Current Expenses	0	10,000	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):

    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 creating the new partial duty-related disability benefit in EMSRS is a one-time cost of $10,000 to update the CPRB administrative systems.

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 report for EMSRS, expected to be published in April 2026.

    In particular, 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.

    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