WV SB878

Redirects 10% of the 1% premium tax on fire and casualty insurance policies from the Teachers Retirement System Reserve Fund to the Municipal Pensions Security Fund for municipal police and firefighter pensions

Allocates the redirected 10% specifically to municipalities that adopted actuarially sound pension funding methods (Optional I or Optional II) on or before December 31, 2027, and have not yet reached 100% funding level

Maintains 25% of collected premiums for volunteer and part-volunteer fire departments and 65% for municipal pension funds, with the 10% reallocation coming from the Teachers Retirement System portion

Reduces from three consecutive years to two consecutive fiscal years the time a municipal pension fund can fail to comply with investment provisions before the Municipal Pensions Oversight Board may require investment through the state Investment Management Board

Requires non-compliant pension funds that fail to transfer investments to the Investment Management Board within 18 months to have their revenues reallocated to compliant municipal pension funds