EKB News

To deal with municipal police and fire pension funds, this coming week, Governor Joe Manchin will call a special session of the West Virginia Legislature. Following months of discussion during legislative interim committee meetings, lawmakers have reached proposed legislation. This year, more than 20%, or $8.8 million, of Huntington's $42 million budget is going to pension costs, and under the current funding method, those costs will rise to $12.4 million a year by 2015 and will hit approximately $20 million a year between 2020 and 2022. Officials say revenue growth cannot keep up with the current retirement system's costs. The current draft legislation would allow cities to close existing pension plans to new hires and refigure plans over 40 years to pay down unfunded liabilities, while still being administered by local pension boards. A state oversight committee would be created to deal with issues, including investments and disability benefits. New hires would be placed in a plan similar to benefits offered to emergency medical services employees, and they would be allowed an election to receive Social Security.