To require all West Virginia public employee retirement agencies to provide an annual cost of living adjustment for all retirees who have been retired for over ten (10) years

HB 4154 Text

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WEST VIRGINIA LEGISLATURE
2026
REGULAR SESSION

FISCAL NOTE

Introduced
House Bill 4154
By Delegates Kump, Hillenbrand, Funkhouser, and Fehrenbacher
[Introduced January 14, 2026; referred to the Committee on Finance]
A BILL to amend the Code of West Virginia, 1931, as amended, by adding two new sections, designated §5-10-22o and §18-7A-26z, relating to the Public Employees Retirement Act; providing a cost-of-living adjustment to certain retirees of the Public Employees Retirement System and the State Teachers Retirement System who have been retired for over 10 years; and providing for the pro rata distribution of the cost-of-living adjustment to certain beneficiaries.
Be it enacted by the Legislature of West Virginia:

CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR, SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS, OFFICES, PROGRAMS, ETC.

ARTICLE 10. WEST VIRGINIA PUBLIC EMPLOYEES RETIREMENT ACT.

§5-10-22o. Cost-of-living adjustments for certain annuitants effective on or before June 30, 2026.

(a) As an additional cost-of-living adjustment to other retirement allowances provided, an annual cost-of-living adjustment to retirement benefits shall be paid to retirees of the system as provided in subsection (b) of this section. The cost-of-living adjustment shall be for existing retirees who voluntarily retired from the state of West Virginia in good standing and under normal circumstances for over 10 years, and the first payment shall be paid in full by June 30, 2026.
(b) The cost-of-living adjustment provided by this section applies to any retiree who currently receives an annual retirement annuity and has been retired over 10 years. This cost-of-living adjustment is subject to any applicable limitations under section 415 of the Internal Revenue Code of 1986, as amended.
(c) The cost-of-living adjustment provided by this section is payable pro rata to any beneficiary of a qualifying retiree who currently receives an annuity or other benefit payable by the system.
(d) The Legislature shall review this section every 10 years to determine the potential for cost-of-living adjustment increases in pensions for future retirees.

CHAPTER 18. EDUCATION.

ARTICLE 7A. STATE TEACHERS RETIREMENT SYSTEM.

§18-7A-26z.
Cost-of-living adjustments for certain annuitants effective on or before June 30, 2026.

(a) As an additional cost-of-living adjustment to other retirement allowances provided, a cost-of-living adjustment to retirement benefits shall be paid to certain retirees of the retirement system as provided in subsection (b) of this section. The cost-of-living adjustment shall be for existing retirees who voluntarily retired from the state of West Virginia in good standing and under normal circumstances, and the first payment shall be paid in full by June 30, 2026.
(b) The cost-of-living adjustment provided in this section applies to any retiree who currently receives an annual retirement annuity. This cost-of-living adjustment is subject to any applicable limitations under Section 415 of the Internal Revenue Code of 1986, as amended.
(c) The cost-of-living adjustment provided by this section is payable pro rata to any beneficiary of a qualifying retiree who currently receives an annuity or other benefit payable by the retirement system.
(d) The Legislature shall review this section every 10 years to determine the potential for cost-of-living adjustment increases in pensions for future retirees.

NOTE: The purpose of this bill is to provide a cost-of-living adjustment for retired public employees and school personnel.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.

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