This bill proposes amendments to the Code of West Virginia regarding the distribution of funds collected from a premium tax on fire and casualty insurance policies. Specifically, it reallocates 10 percent of the funds that were previously directed to the Teachers Retirement System to the Municipal Pensions Security Fund. The bill also increases the percentage of funds allocated to the Municipal Pensions Security Fund from 65 percent to 75 percent, while ensuring that 13 and one-third percent of this amount is designated for municipalities that employ specific financing methods until December 31, 2027. Additionally, the bill mandates that the Municipal Pensions Oversight Board will oversee the allocation and distribution of these funds.

Furthermore, the bill reduces the time frame in which municipal pension and relief funds can be noncompliant with investment provisions before being required to invest with the state Investment Management Board. It establishes a more stringent compliance requirement for municipal pension funds, ensuring that they adhere to investment guidelines to continue receiving allocations from the premium tax. The legislation aims to enhance the financial stability of municipal pension funds while ensuring that funds are appropriately distributed to support local fire and police services.

Statutes affected:
Introduced Version: 33-3-14d