Budget & Taxes (Pensions · Public Safety)

HB 5030 modifies West Virginia's tax code to expand tax exemptions for certain public safety pensions. It adds Division of Natural Resources police, deputy sheriffs, full-time firefighters, and municipal police officers to the existing list of law enforcement personnel who can exclude the first $2,000 of retirement benefits from state taxable income. The bill amends §11-21-12(c)(6) of the West Virginia Code to include these roles under the tax-exempt pension provision. This change directly affects current and future retirees in these specific public safety professions by reducing their state income tax burden on pension payments. The policy change is limited to the first $2,000 of qualifying pension income per year, consistent with existing tax rules.

HB 5391 amends West Virginia's Emergency Medical Services Retirement System (EMSRS) to benefit current and future EMS personnel. It changes retirement benefit calculations to use a member's five highest-earning years instead of the current method, exempts all EMSRS pension income from West Virginia personal income tax (removing a previous $2,000 tax cap), and eliminates the 1,040-hour annual work limit for retired EMS workers returning to service in areas with staffing shortages. These changes directly affect emergency medical services workers enrolled in the EMSRS, providing tax relief and greater workforce flexibility. The bill creates the "EMS Retirement Equity, Tax Relief, and Workforce Support Act" as part of these policy updates.

HB 5326 increases the amount of pension income subject to annual cost-of-living adjustments (COLA) for retired municipal police officers, firefighters, and water/sewage system employees from $15,000 to $30,000 per year. Currently, only the first $15,000 of a retiree’s pension was adjusted for inflation each year; this change extends the COLA calculation to the first $30,000. The bill does not alter the 4% annual COLA cap or the two-year waiting period for new retirees. This policy change directly affects eligible retired municipal public safety and utility workers by providing broader inflation protection on their pension benefits.

HB 4513 would expand a state tax exemption for pension benefits by extending the existing $2,000 annual exclusion from West Virginia income tax to include Division of Natural Resources police, deputy sheriffs, full-time firefighters, and municipal police officers. Currently, this exemption applies to some retirement benefits but excludes these specific public safety roles. The bill modifies tax code sections to explicitly add these officers to the list of law enforcement personnel whose pension payments qualify for the exemption. This change directly affects eligible officers in these roles by reducing their taxable income for state tax purposes. The bill is in early stages, having been introduced on January 19, 2026, and referred to the House Finance Committee.