FISCAL NOTE
Date Requested: February 16, 2026
Time Requested: 04:18 PM |
| Agency: |
Public Employees Insurance Agency (PEIA) |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4040 |
Amendment |
HB5569 |
|
|---|
| CBD Subject: |
Insurance |
|---|
|
FUND(S):
PEIA Basic Insurance
Sources of Revenue:
Special Fund
Legislation creates:
Creates New Expense
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to reinstate the discount on Public Employees Insurance for retired firefighters hired after 2010. This will expand the number of employees or retirees currently eligible to participate in the West Virginia Other Post Employment Benefit Plan (OPEB) and receive subsidized healthcare insurance. This bill will re-open the previously closed WV OPEB plan for a certain class of employees. PEIA has attempted to identify the number of firefighters this bill would impact. Based on discussions with retirement firefighter retirement systems, there are 1,300 active participants. System estimates indicate there are 450 (34%) post 2010 hired firefighters in these systems. Assuming a current retired firefighter population that would now be eligible for subsidized retiree healthcare of 405 and an assumed enrollment of 75% resulting in 304 new subsidized retirees, PEIA would see an increased cost of $1.1 Million.
However, more importantly, adding new entrants to the plan will also change the State’s OPEB liability. Adding 304 new retirees to the OPEB plan based on the current actuarial accrued liability (AAL) per retiree would increase the current actuarial accrued liability $16 million. Opening the current OPEB Plan to new entrants, jeopardizing the comparably low OPEB liability, also compromises the current use of a 7.40% Single Discount Rate in the OPEB valuation. Lowering the Single Discount Rate by 1% would result in a $282 million increase in the OPEB Liability. A higher OPEB liability due to the State’s re-opening of the WVOPEB plan could result in skepticism, heightened scrutiny by credit rating agencies and a lower scoring on the State’s credit rating, increasing financing costs for the State.
Per the most recent valuation, the OPEB liability $2.2 billion, which is a significant improvement when compared to the $7 billion OPEB Liability as of June 30, 2009.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
1,100,000 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
1,100,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
Based on discussions with retirement firefighter retirement systems, there are 1,300 active participants. System estimates indicate there are 450 (34%) post 2010 hired firefighters in these systems. Assuming a current retired firefighter population that would now be eligible for subsidized retiree healthcare of 405 and an assumed enrollment of 75% resulting in 304 new subsidized retirees, PEIA would see an increased cost of $1.1 Million.
Memorandum
However, more importantly, adding new entrants to the plan will also change the State’s OPEB liability. Adding 304 new retirees to the OPEB plan based on the current actuarial accrued liability (AAL) per retiree would increase the current actuarial accrued liability $16 million. Opening the current OPEB Plan to new entrants, jeopardizing the comparably low OPEB liability, also compromises the current use of a 7.40% Single Discount Rate in the OPEB valuation. Lowering the Single Discount Rate by 1% would result in a $282 million increase in the OPEB Liability. A higher OPEB liability due to the State’s re-opening of the WVOPEB plan could result in skepticism, heightened scrutiny by credit rating agencies and a lower scoring on the State’s credit rating, increasing financing costs for the State.
Per the most recent valuation, the OPEB liability $2.2 billion, which is a significant improvement when compared to the $7 billion OPEB Liability as of June 30, 2009.
Person submitting Fiscal Note: Jason Haught
Email Address: jason.a.haught@wv.gov