SB 978 — Authorizing certain municipalities to become members of Municipal Police Officers and Firefighters Retirement System

WEST VIRGINIA LEGISLATURE REGULAR SESSION IntroducedCommittee Substitute for Senate Bill 978 ByBY SenatorSENATOTARR Barrett[Reported [Introduced February 17,23, 2026;2026, from the Committee on Pensions] CS for SB 978 A BILL to amend the Code of West Virginia, 1931, as amended, by adding a new section, designated §8-22A-33b, relating to authorizing municipalities that employ police or firefighters participating in the Public Employees Retirement System to elect to become participating employers in the Municipal Police Officers and Firefighters Retirement System;

referredproviding for election by police officers and firefighters currently participating in the Public Employees Retirement System to participate in the CommitteeMunicipal onPolice Pensions;Officers and Firefighters Retirement System;

andproviding thenfor totransfer the Committee on Finance] Intr SB 978 2026R4230 A BILL to amend the Code of Westassets Virginia,pertaining 1931, as amended, by adding a new a section, designated §8-22A-33b, relating to authorizingmunicipal municipalities that employ police orofficers and firefighters participatingcurrently in the Emergency Medical Services Retirement System to elect to become participating employers in the MunicipalPublic PoliceEmployees Officers and Firefighters Retirement System;

providing for election by police officers and firefighters currently participating in the Emergency Medical Services Retirement System to participate in the Municipal Police Officers and Firefighters Retirement System;

providing for transfer of assets pertaining to municipal police officers and firefighters currently participating in the Emergency Medical Services Retirement System;

andrequiring terminatingmakeup liabilitycontribution ofby thenew Emergencyparticipants; Medical Services Retirement System.

and terminating liability of the Public Employees Retirement System.

SpecialThird special authorization for municipal police or firefighters hired after July 1, participating2015. in the Emergency Medical Services Retirement System.

(a) Notwithstanding any provision of this code to the contrary, any municipality or municipal subdivision that employs individuals as members of paid police departments or paid fire departments and whose current police officers or firefighters are participating in the EmergencyPublic MedicalEmployees Services Retirement System may elect, as provided in same manner as provided in §8-§8-22A- 22A-28,28(a) of this code, to become a participating public employer in the plan and thereby include its police officers and firefighters in the membership of the plan subject to the restrictions provided in this section.

Police IntrCS for SB 978 2026R4230 officers or firefighters hired before July 1, 2015, will remain members of the Public Employees Retirement System.

(d) Once a municipality or municipal subdivision makes its election to become a participating public employer pursuant to this section, all police officers or firefighters hired by the municipality or municipal subdivision after the date of election shall be members of the plan: Provided,plan: That police officers or firefighters hired by the municipality or municipal subdivision on or after July 1, 2015, who are members of the Emergency Medical Services Retirement System, may choose to become a member of the plan by notifying the municipality or municipal subdivision on a form provided by the Consolidated Public Retirement Board: Provided, however, That he or she make this decision within 90 days of the municipality or municipal subdivision's decision to participate in the plan.

AProvided, municipalityThat or municipal subdivision making an election to become a participating public employer pursuant to this section that has hired any police officerofficers or firefighterfirefighters whohired isby a member of the Emergencymunicipality Medicalor Servicesmunicipal Retirementsubdivision System hired on or after July 1, 2015, shall notify each police officer or firefighter who isare amembers member of the EmergencyPublic MedicalEmployees Services Retirement SystemSystem, hiredmay onchoose orto afterbecome Julya 1,member 2015, of itsthe electionplan toby becomenotifying athe participatingmunicipality publicor employermunicipal withinsubdivision 30on daysa ofform makingprovided by the election.Consolidated Public Retirement Board:

ThisProvided, noticehowever, shallThat includehe instructionsor asshe tomake howthis adecision policewithin officer90 ordays firefighter who is a member of the Emergency Medical Services Retirement System may make notification to the municipality or municipal subdivisionsubdivision's of his or her decision to becomeparticipate a member in the plan.

TheA municipality or municipal subdivision shallmaking notifyan theelection Consolidatedto Publicbecome Retirementa Boardparticipating inpublic writingemployer ofpursuant anyto policethis officersection orthat firefighterhas whohired isany apolice memberofficer ofor thefirefighter Emergencyon Medicalor Services Retirement System hired after July 1, 2015, whoshall hasnotify decidedeach topolice becomeofficer aor memberfirefighter ofhired theon planor andafter terminateJuly his1, or2015, herof membershipits inelection theto Emergencybecome Medicala Servicesparticipating Retirementpublic Systememployer within 30 days of notificationmaking by the policeelection. officer or firefighter who is a member of the Emergency Medical Services Retirement System on forms Intr SB 978 2026R4230 provided by the Consolidated Public Retirement System.

(e)This Notwithstandingnotice anyshall otherinclude provisioninstructions ofas the code to thehow contrary,a any police officer or firefighter whomay ismake anotification memberto of the Emergencymunicipality Medicalor Servicesmunicipal Retirementsubdivision Systemof hiredhis by a participating public employer on or afterher Julydecision 1, 2015, who chooses pursuant to thisbecome section to be a member ofin the plan,plan. shall be a member of the plan upon acceptance by the Consolidated Public Retirement Board of the notification by the municipality required by this section.

(1) The Consolidatedmunicipality Publicor Retirementmunicipal Boardsubdivision shall transfernotify assets and service credit earned on or after July 1, 2015, from the EmergencyConsolidated MedicalPublic Services Retirement SystemBoard Trustin Fundwriting intoof theany Westpolice Virginiaofficer Municipalor Policefirefighter Officershired andafter FirefightersJuly Retirement1, Fund2015, for those police officers or firefighters who electhas decided to bebecome a member of the plan and wereterminate membershis or her membership in the EmergencyPublic MedicalEmployees Services Retirement System nowithin later30 than 60 days from receipt of notification by the municipalitypolice officer or municipalfirefighter subdivisionon offorms theprovided policeby officerthe orConsolidated firefighter'sPublic electionRetirement toSystem. become a member.

The(e) amountNotwithstanding any other provision of servicethe creditcode recognizedto the contrary, any police officer or firefighter hired by thea planparticipating forpublic theemployer transferringon employeesor shallafter July 1, 2015, who chooses pursuant to this section to be a member of the serviceplan, creditshall transferredbe anda recognizedmember of the plan upon acceptance by the EmergencyCS Medicalfor ServicesSB 978 Consolidated Public Retirement System.Board of the notification by the municipality required by this section.

(1) The Consolidated Public Retirement Board shall transfer assets and service credit earned on or after July 1, 2015, from the Public Employees Retirement System Trust Fund into the West Virginia Municipal Police Officers and Firefighters Retirement Fund for those police officers or firefighters who elect to be a member of the plan and were members in the Public Employees Retirement System no later than 60 days from receipt of notification by the municipality or municipal subdivision of the police officer or firefighter's election to become a member.

The amount of service credit recognized by the plan for the transferring employees shall be the service credit transferred and recognized by the Public Employees Retirement System.

(A) Compute the market value of Emergencythe MedicalPublic ServicesEmployees Retirement System assets Intr SB 978 2026R4230 using the actuarial valuation date;

(B) Compute the actuarial accrued liabilities for all EmergencyPublic MedicalEmployees Services Retirement System retirees, beneficiaries, disabled retirees, and terminated inactive members using the actuarial valuation date:

CS for SB 978 (C) Compute the market value of active member assets in the EmergencyPublic MedicalEmployees Services Retirement System as of the actuarial valuation date by reducing the assets value under paragraph (A) of this subdivision by the inactive liabilities under paragraph (B) of this subdivision;

(D) Compute the actuarial accrued liability for all active EmergencyPublic MedicalEmployees Services Retirement System members using the actuarial valuation date immediately preceding the computation date;

(E) Compute the funded percentage of the active members' actuarial accrued liabilities under the EmergencyPublic MedicalEmployees Services Retirement System as of the actuarial valuation date by dividing the active members' market value of assets under paragraph (C) of this subdivision by the active members' actuarial accrued liabilities under paragraph (D) of this subsection;

(F) Compute the actuarial accrued liabilities under the EmergencyPublic MedicalEmployees Services Retirement System as of the actuarial valuation date for active employees transferring to the plan;

(G) Determine the assets to be transferred from Emergencythe MedicalPublic ServicesEmployees Retirement System to the plan by multiplying the active members' funded percentage determined under paragraph (E) of this subdivision by the transferring active members' actuarial accrued liabilities under the EmergencyPublic MedicalEmployees Services Retirement System under paragraph (F) of this subdivision and adjusting the asset transfer amount by interest at seven and five-tenths percent for the period from the calculation date of July 1 through the first day of the month in which the asset transfer is to be completed.

(3) OnceAny anpolice employeeofficer transfersor fromfirefighter thewho Emergencyelects Medical Services Retirement System to thebecome plan,a themember Emergencyof Medical Services Retirement System shall bar any further liability and said transfer will constitute an agreement whereby the transferringplan employeemust foreveralso indemnifiespay Intr SB 978 2026R4230 and holds harmless the Emergency Medical Services Retirement System from providing him or her any form of retirement benefit whatsoever until that employee obtains other employment which would make him or her eligible to reenter the Emergencyplan Medicala Servicesfour Retirementpercent Systemcontribution with no creditlater whatsoeverthan forJune the30, amounts2029. transferred to the plan.

NOTE:The contribution shall be calculated as four percent of the member's total earnings for which assets are transferred, plus interest of seven and one-half percent accumulated from the date of the police officer's or firefighter's initial participation in the Public Employees Retirement System through the calculation date.

TheInstallment purposepayments ofmay thisbe billmade isover tono allowmore municipalitiesthan witha police24-month officersperiod orplus firefightersseven currentlyand participatingone-half inpercent theinterest Emergencyshall Medicalaccrue Serviceson Retirementthe Planoutstanding tobalance electdue tofrom become members of the Municipalcalculation Policedate Officersuntil andpaid Firefightersin Retirementfull. System.

Strike-throughsAny indicatepolice languageofficer thator wouldfirefighter bewho strickenelects fromto become a headingmember orof the presentplan lawbut CS for SB 978 fails to timely pay the required four percent contribution and underscoringinterest indicateswill newhave languageall thatyears wouldof beservice added.in the plan transferred to the Public Employees Retirement System no later than December 31, 2029.

The assets previously transferred to the plan shall be returned to the Public Employees Retirement System, in addition to the employee and employer contribution amounts that would have been paid had the member not elected to transfer, plus interest of seven and one-half percent per annum.

Any remaining excess employee contribution amount paid to the plan since the date of transfer shall remain in the plan until the employee terminates employment with the municipality.

(4) Once an employee transfers from the Public Employees Retirement System to the plan, the Public Employees Retirement System shall bar any further liability and said transfer will constitute an agreement whereby the transferring employee forever indemnifies and holds harmless the Public Employees Retirement System from providing him or her any form of retirement benefit whatsoever until that employee obtains other employment which would make him or her eligible to reenter the Public Employees Retirement System with no credit whatsoever for the amounts transferred to the plan.