CHARLESTON, W.Va. (AP) — The 214,000 West Virginians covered by the Public Employees Insurance Agency can expect some new or higher health care copayments while retired enrollees will see a limit to the subsidy that helps them pay premiums, which will rise 9 percent, under provisions approved Tuesday by the agency's finance board.

But officials say the retiree subsidy cap will reduce a projected $10 billion funding shortfall by half. That will allow the state to erase the remaining unfunded liability by 2040, agency Executive Director Ted Cheatham told board members. With each subsidy now at $343, the vote will limit increases to up to 3 percent a year to account for rising health care costs.

The subsidy limit sets the stage for 2012 legislative action to tackle the remaining $5 billion shortfall that involves other post-employment benefits, or OPEB. West Virginia has adopted a tough stance toward tackling these non-pension retiree costs since a 2004 national accounting standard called on government bodies to start calculating their unfunded liabilities.