West VirginiaSB 7122025 Regular SessionSenateWALLET

Relating to retirement provisions of systems managed by CPRB

Sponsored By: Mike Oliverio (Republican)

Signed by Governor

§5-10-2§5-10-19§5-10-27B§5-10-48§5-10C-4§5-10D-6A§7-14D-2§7-14D-9B§7-14D-24A§8-22A-2§8-22A-11§8-22A-34§15-2-45§15-2A-2§15-2A-6B§15-2A-6E§16-5V-2§16-5V-13§16-5V-35§18-7A-3§18-7A-13A§18-7A-28B§18-7B-2§18-7B-12A§20-18-2§20-18-14§20-18-30§51-9-1A§51-9-10§51-9-12B

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Bill Overview

Analyzed Economic Effects

29 provisions identified: 10 benefits, 5 costs, 14 mixed.

Emergency medical pensions rise with funding

The Emergency Medical Services Retirement System increases benefits once an actuarial valuation shows the plan has reached 75% funding. For the first 20 service years, the yearly pension rate rises from 2.6% to 2.75% of final average salary. The maximum pension also rises from 67% to 90% of final average salary.

Returning public retirees face pension repayment

Public retirees returning to participating employers must have a real break from work and provide required reports and proof. Municipal police and firefighter retirees need at least 60 consecutive days without employment by a participating employer. State Police retirees returning to agency work also need a 60-day break; neither group can have a prearranged return agreement. Municipal police and firefighter pensions stop during covered reemployment and are recalculated later. Failure to meet separation or required reporting rules voids retirement and requires repayment of gross pension payments tied to that retirement.

Returning retirees risk pension repayment

Public employee and deputy sheriff retirees need a genuine break of at least 60 consecutive days before returning to participating public work. Public employee retirees must end all participating-employer work, including temporary, part-time, per-diem, and leased work. There can be no prearranged agreement to return. Retired judges later employed by the Supreme Court also need a complete 60-day break with no arranged return. Violating separation or required reporting rules can void retirement and require repayment of all pension payments before taxes. The Supreme Court must provide the required written notices about reemployment.

Returning public workers pause pension payments

Regular full-time work for a participating public employer suspends a public employee retiree's pension and restarts contributions. That pension is recalculated after at least one year of reemployment; shorter service allows a request to credit contributions to the employer. The prior pension resumes after shorter service ends and required notice arrives. Deputy sheriff, emergency medical services, and natural resources police retirees also stop receiving pensions during covered work and contribute again. Their pensions are recalculated when that work ends. For qualifying early-retired deputies and emergency medical services workers, the calculation adds reemployment time to their original retirement age. No early-retirement reduction applies when that calculated age exceeds 60. Emergency medical services payments are prorated for the month work resumes; employers must provide required notices and verification.

Public safety retirees get premium tax help

Eligible retired public safety officers can use board-managed retirement money for qualified health insurance premiums with federal tax benefits. The limit is $3,000 per taxable year, or the applicable federal limit, across eligible board-managed plans. Officers must make a written election that follows federal rules; it continues for later tax years until revoked. Payments can go to the officer for the provider or directly to the West Virginia Public Employees Insurance Agency. This uses the retiree’s pension money, not an extra pension payment.

Emergency workers’ coverage and retirement ages

The emergency medical services plan covers specified emergency officers, county 911 workers, and county firefighters, including hires from June 10, 2022. Employers must participate; some earlier hires must elect membership. Normal retirement starts at 50 with 20 years of regular contributing service, or 62 with five years. Workers still in covered jobs also qualify at 50 when age plus service totals 70, or 60 with 10 years. The 20-year route excludes military duty, disability service, and accrued annual and sick leave.

Higher pensions for natural resources police

Natural Resources Police Officers Retirement System members retiring after July 1, 2025, receive a higher pension formula. The annual benefit equals 2.5% of final average salary for each credited service year, up from 2.25%. Federal and state benefit limits still apply.

Named judicial offices receive pension coverage

The Judges’ Retirement System covers family court, circuit court, and Intermediate Court of Appeals judges. Supreme Court of Appeals justices are also covered. Coverage applies to the judicial offices listed in the law.

Protective services retirees get temporary exception

The law authorizes qualified retirees to keep pensions during full-time or part-time child or adult protective services work. They must have been retired at least 60 days and meet the job's minimum qualifications. They do not resume retirement contributions. The job must fill an existing vacancy that stays posted until a qualified regular employee fills it. This authority expires July 1, 2025.

Retired deputies keep pensions during shortages

A retired deputy can keep a pension while returning to a sheriff with fewer than five deputies despite diligent recruiting. The retiree must have been retired 180 days, be certified or certifiable, and not have retired for disability. Work lasts up to five years or until five full-time deputies not hired under this exception are recruited, whichever comes first. The vacancy stays posted until a non-retiree fills it; the retiree makes no contributions, but the employer must contribute. The maximum-age restriction does not apply, and this authority sunsets July 1, 2026.

Retirees keep pensions during limited work

Retirees can keep their pensions during legislative per-diem or temporary full-time or part-time public work earning no more than $25,000 annually. Former Legislature employees with at least 10 years of contributing service have a separate exception without that pay limit. They must wait at least 60 days after retirement and work no more than 175 per-diem days per calendar year.

Teachers face limits on pensionable pay

Teachers’ pension salary uses the five highest fiscal-year salaries within the last 15 years of service credit. With fewer than 15 years, it uses average annual salary over the period contributions were made. Bonuses, early-retirement incentives, severance, fringe benefits, and lump-sum unused leave payments do not count. The federal annual compensation limit also applies and adjusts for cost of living.

911 pensions depend on contribution repayments

Transferred 911 service in the emergency medical services plan receives different pension treatment based on contribution repayments. Without repayment of higher past contributions plus interest, transferred service earns 2% of final average salary per credited year. New service receives the enhanced formula. Members who made those repayments receive the enhanced formula for their 911 service too. Federal and state benefit limits apply; the supplied provision does not specify the enhanced rate.

Emergency workers earn pensions by hours

Emergency medical services plan members earn one-third of a service year for 500–999 covered hours per plan year. They earn two-thirds for 1,000–1,499 hours and one full year for at least 1,500 hours. First and last years earn one-twelfth per qualifying month. Periods receiving disability payments earn no service credit. Service removed after a payout can be restored by repaying contributions plus interest, subject to the stated prior-repayment exception.

Emergency workers’ contributions track pension funding

The emergency medical services retirement board can raise employee contributions to 10.5% on its actuary's recommendation. This authority applies if the plan missed 70% funding by July 1, 2012. Once a later actuarial valuation shows 70% funding, the board must reduce contributions to 8.5%.

Legislative service allows pensions with limits

Members working full-time public jobs while serving on state or local legislative bodies can retire without ending legislative service. They must meet the pension system’s age and service requirements. Continued local legislative service earns no further service credit or benefits, and retirees cannot contribute during that service. Separately, specified elected lawmakers and West Virginia House and Senate clerks can start pension payments while serving at age 70½. They must qualify for retirement under the referenced retirement rules and stop actively contributing while receiving those payments.

New payment start dates for retirees

Required retirement payments start by April 1 after the later of the applicable age year or separation from covered work. The age is 72 for people who reached 72 before January 1, 2023. It is 73 for people reaching 72 after December 31, 2022, and 73 before January 1, 2033. It is 75 for people reaching 74 after December 31, 2032. Federal law controls these deadlines.

Public pensions follow federal payout deadlines

Covered public pensions must start required payments by April 1 after the later of the applicable age year or separation year. Plans cannot wait for a retirement application. The age is 72 for those reaching 72 before January 1, 2023. It is 73 for those reaching 72 after December 31, 2022, and 73 before January 1, 2033. It is 75 for those reaching 74 after December 31, 2032. When a member dies before payments begin, the general payout deadline is December 31 of the fifth-anniversary year. Qualifying beneficiaries can use survivor or life-expectancy payments, subject to federal deadlines and available benefit forms. Nonspouse survivor elections exceeding federal limits change to the highest offered option that meets those limits.

Public worker contributions get tax deferral

Specified public employers must pay required employee pension contributions through an employer payment arrangement. The money comes from salary reductions, offsets against future raises, or both—not necessarily extra employer pay. These contributions are excluded from federal taxable income until paid out. Employees cannot opt out or receive the money directly. The start date depends on the employer and retirement system.

Retired judges receive limited recall pay

Retired judges, justices, and magistrates recalled by the Supreme Court can keep pensions while receiving daily pay, after a genuine separation. Recalled senior Intermediate Court of Appeals judges, circuit judges, and justices receive up to $430 per day. Senior family court judges receive up to $325 per day. Annual daily pay plus pensions generally cannot exceed a sitting circuit judge's salary, or a family judge's salary for family judges. The law allows exceptions through its extraordinary-circumstances process and reimbursement of actual, necessary expenses.

Retirees can keep pensions in office

Retirees later elected to public office, or appointed to an elected office, can keep their pensions. They can instead suspend payments and resume retirement contributions. Members retiring from an elected position must wait 12 continuous months before election or reappointment to that same position.

Returning teachers keep some retirement benefits

Age- or service-retired teachers can keep their annuity during regular public-school work, but their prior-service allowance stops. It stops on the first day of the starting month and resumes on the first day of the month after work ends. Disability payments stop if the board finds the disability has ended; returning disability retirees contribute and can earn later service credit. A separate higher education work exception covers teachers retiring after the section's 2002 enactment and by December 31, 2002. They can keep benefits during full-time, part-time, or contract work, but cannot join another state retirement system.

School workers get defined retirement coverage

Specified full-time teaching and nonteaching employees qualify for teachers’ retirement coverage. Public charter school workers qualify for the pension or defined-contribution system only with the required school election or charter-contract determination. The pension system excludes certain employees hired on or after July 1, 1991, by named higher education bodies. Those bodies include the Higher Education Policy Commission, the community and technical college council, and governing boards.

More public agencies qualify for pensions

Agencies created by Supreme Court of Appeals rules qualify as participating public employers when they have full-time employees. Political subdivisions qualify when they elect to cover employees under the Public Employees Retirement System. These employer rules make retirement coverage available to qualifying workers.

Public retirees get warnings before reemployment

Covered employers must warn public retirees and the retirement board in writing before jobs that will harm retirement status or benefits. Covered jobs include permanent, temporary, per-day, leased-worker, and specified substitute work. Employers must also notify the board in writing when retirees accept covered jobs. In the deputy sheriff system, the board can require reports, forms, and proof of a real separation from work.

Emergency medical pensions exclude leave payouts

The Emergency Medical Services Retirement System excludes lump-sum payouts for all unused accrued leave from final average salary. These payouts cannot raise the salary base used to calculate a pension.

Teacher retirees need 60-day break from work

West Virginia teachers' retirement system retirees must end all employment with their employer and any other participating employer. This break must last at least 60 consecutive days from the effective retirement date to meet the system's separation rule. Part-time, substitute, temporary, and leased work all count as employment. Retirees also cannot have a prearranged agreement to return to work with a participating employer.

Payment deadlines for retirees and survivors

Teachers, judges, deputy sheriffs, State Police, natural resources police, municipal police, firefighters, and emergency medical services plans follow federal payment rules. Payments cannot wait past the required start date for a retirement application. When death comes before payments start, the general deadline is December 31 of the year containing the fifth anniversary of death. Qualifying survivor pensions, spouses, and beneficiary elections have separate deadlines. After payments start, remaining benefits must be paid at least as quickly as the existing schedule. A teacher's nonspouse survivor option that exceeds federal limits changes to the highest offered option that meets those limits. Federal rules override conflicting plan terms; several plans apply these requirements to plan years beginning after December 31, 1986.

Teachers’ inherited accounts face payment deadlines

The Teachers’ Defined Contribution Retirement System follows federal minimum-payment rules. For members dying on or after January 1, 2022, most named beneficiaries must receive the full vested account within 10 years. The deadline is December 31 of the 10th year after the death year. Separate rules cover spouses, qualifying minor children, disabled or chronically ill people, and people no more than 10 years younger.

Sponsors & Cosponsors

Sponsor

Mike Oliverio
Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 162 • No: 0

Senate vote • 4/12/2025

Senate concurred in House amendments and passed bill (Roll No. 554)

Yes: 33 • No: 0 • Other: 1

House vote • 4/7/2025

Passed House (Roll No. 404)

Yes: 98 • No: 0

Senate vote • 3/14/2025

Passed Senate (Roll No. 114)

Yes: 31 • No: 0 • Other: 1

Actions Timeline

Chapter 199, Acts, Regular Session, 2025
8/8/2025Senate
Approved by Governor 4/24/2025
4/24/2025Senate
To Governor 4/21/2025
4/21/2025Senate
House Message received
4/12/2025Senate
Senate concurred in House amendments and passed bill (Roll No. 554)
4/12/2025Senate
Communicated to House
4/12/2025Senate
Completed legislative action
4/12/2025Senate
To Governor 4/21/2025 - Senate Journal
4/12/2025Senate
Approved by Governor 4/24/2025 - Senate Journal
4/12/2025Senate
Approved by Governor 4/24/2025 - House Journal
4/12/2025House
On 3rd reading, Special Calendar
4/7/2025House
Amendment reported by the Clerk
4/7/2025House
Amendment adopted (Voice vote)
4/7/2025House
Read 3rd time
4/7/2025House
Passed House (Roll No. 404)
4/7/2025House
Communicated to Senate
4/7/2025House
On 2nd reading, Special Calendar
4/4/2025House
Read 2nd time
4/4/2025House
Amendment reported by the Clerk
4/4/2025House
Committee amendment adopted (Voice vote)
4/4/2025House
On 1st reading, Special Calendar
4/3/2025House
Read 1st time
4/3/2025House
With amendment, do pass
4/2/2025House
House received Senate message
3/17/2025House
Introduced in House
3/17/2025House

Bill Text

Engrossed
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Enrolled
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Introduced Version
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