Actuarial Fiscal Note

Date Requested:February 19, 2026
Time Requested:01:29 PM

4232	Introduced	SB997
Agency:	Consolidated Public Retirement Board
CBD Number:	Version:	Bill Number:	Resolution Number:
CBD Subject:	Retirement

Retirement Systems Impacted by Legislation:

PERS 2501

FUND(S):

Special Fund

Sources of Revenue:

Creates New Expense

Legislation creates:

PERS

Actuarial Note Summary

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

    The purpose of this bill is to allow any staff member in PERS employed by Hopemont Hospital, Jackie Withrow Hospital, John Manchin Sr. Health Care Center, or Lakin State Hospital, who is over age 55 on October 21, 2025, but otherwise not eligible for a normal retirement in PERS, to begin retirement on October 21, 2025 in PERS as if they were eligible for a normal retirement in PERS.

    Also, the bill states that for purposes of coverage in retirement by the PEIA agency, the individuals described in this bill shall be considered to have retired from a participating public employer upon receiving their retirement benefit annuity.

    It is our understanding that this bill impacts less than 20 PERS members. If the number of impacted PERS members increases, then the analysis of SB 997 may change.

    Due to the limited number of PERS members impacted by the bill, SB 997 is not expected to materially change the unfunded actuarial accrued liability (UAAL) or the annual contribution requirement for PERS.

    As of July 1, 2025, the estimated total annual retirement benefits for this group are approximately $195,000 per year. The benefit calculation assumes the member retires on July 1, 2025, based on pay and service as of that date.

    For this group, the estimated total normal retirement benefits paid until first eligibility under PERS is around $570,000. Note that this amount is not discounted, and we assume the participants will survive until first eligibility under PERS.

    We used the PERS census data as of July 1, 2025, to determine the benefit amounts above. Moreover, we assume no additional pay or service accrues after July 1, 2025, for benefit calculation purposes. However, we assume that eligible service continues for the members after July 1, 2025, provided they continue to work for the hospital.

    This actuarial/fiscal note does not consider the impact on other post-employment benefits (OPEB).

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	$0.00	$0.00	0.00 %
Normal Cost of System	N/A	$0.00	0.00 %
Past Service Liabilities	$0.00	$0.00	0.00 %
Fiscal Year Past Service Amortization Period Ends	N/A	2035	N/A

Explanation of above Actuarial estimates:

Analysis of Impact on Public Pension Policy:

    Due to the limited number of PERS members impacted by the bill, SB 997 is not expected to materially change the unfunded actuarial accrued liability (UAAL) or the annual contribution requirement for PERS.

    As of July 1, 2025, the estimated total annual retirement benefits for this group are approximately $195,000 per year. The benefit calculation assumes the member retires on July 1, 2025, based on pay and service as of that date.

    For this group, the estimated total normal retirement benefits paid until first eligibility under PERS is around $570,000. Note that this amount is not discounted, and we assume the participants will survive until first eligibility under PERS.

    We used the PERS census data as of July 1, 2025, to determine the benefit amounts above. Moreover, we assume no additional pay or service accrues after July 1, 2025, for benefit calculation purposes. However, we assume that eligible service continues for the members after July 1, 2025, provided they continue to work for the hospital.

    This actuarial/fiscal note does not consider the impact on other post-employment benefits (OPEB).

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	195,000	195,000
Personal Services	0	0	0
Current Expenses	0	195,000	195,000
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 report for PERS, 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. An analysis of the potential range of such future differences is beyond the scope of the request addressed here.

    Regarding Actuarial Standards of Practice 51, the risk assessment for PERS is not expected to materially change because of SB 997.

    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