FISCAL NOTE
Date Requested: February 19, 2026
Time Requested: 01:35 PM |
| Agency: |
Municipal Pensions Oversight Board |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 4282 |
Introduced |
SB1013 |
|
|---|
| CBD Subject: |
Municipalities; Retirement |
|---|
|
FUND(S):
Special Revenue
Sources of Revenue:
Special Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The MPOB expects that the firm contracted by the MPOB for actuarial services would need to re-tool existing processes to determine the effect of the changes on the actuarial valuation of each of the 53 plans for which the MPOB provides oversight. This increased cost would only appear in the year after implementation of the change while the actuary implemented their revised actuarial assumptions and rebuilt the retirement calculators.
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 |
140,000 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
140,000 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The MPOB expects that the firm contracted by the MPOB for actuarial services would need to re-tool existing processes to determine the effect of the changes on the actuarial valuation of each of the 53 plans for which the MPOB provides oversight. Additionally, the actuarially certified retirement calculators used by the 53 municipal plans would need to be rebuilt. These increased costs would only appear in the year after implementation of the change while the actuary implemented their revised actuarial assumptions and rebuilt the retirement calculators.
Memorandum
The proposed conversion of accumulated leave hours to service time for retirees of the Municipal Policemen’s and Municipal Firemen’s Pension and Relief Funds would have a minimal direct fiscal impact on the Municipal Pension Oversight Board (MPOB). Estimated costs range from $60,000 to $100,000, primarily driven by a one-time actuarial re-tooling of valuation processes for the 53 overseen plans, an additional cost of approximately $40,000 would be incurred to rebuild retirement calculators currently used by the pension plans.. Beyond these initial fees, the MPOB would face an increased administrative burden, requiring the annual collection and actuarial analysis of leave-hour data for all active members. The specific fiscal impact on individual municipal plans remains unknowable, as the MPOB lacks the data necessary to project the degree to which future retirees might utilize this benefit.
Beyond fiscal concerns, the proposal represents a significant departure from current law and judicial precedent. Under W. Va. Code §8-22-25, pension calculations are strictly based on full years of service; this was recently affirmed by the Circuit Court of Raleigh County in Beckley Fire Department Pension Board v. MPOB, which ruled that fractional years of service are not permitted. Integrating leave hours could create substantial legal ambiguity regarding legislative intent and necessitate a fundamental redesign of calculation methods. Such a shift would require extensive re-education for both members and boards of trustees. Finally, the current bill does not explicitly prohibit retrospective application, a scenario that has not been fiscally vetted and could pose further financial risks.
Person submitting Fiscal Note: Matthew D Pauley, CFO
Email Address: matthew.d.pauley@wv.gov