Actuarial Fiscal Note


Retirement Systems Impacted by Legislation:

State Police Plan B

FUND(S):

Plan B 2162

Sources of Revenue:

General Fund

Legislation creates:

Neither Program nor Fund



Actuarial Note Summary


Impact this measure will have on the liabilities and contributions associated with the retirement system(s).


    This bill is a clarification bill for the administration of State Police Plan B. Changes include adding and clarifying definitions for administration. The bill removes the minimum $500 restriction on eligible rollover. It additionally clarifies the starting date for surviving spouse or dependent children’s benefits. Retirement benefits will not be impacted by the changes.



Fiscal Detail of Actuarial Impact

Impact on current benefit costs, prior service benefit costs and ongoing contribution requirements following full implementation.


Impact On Following Full Implementation
Increase in Unfunded Actuarial Accrued Liability Initial Impact on Annual Contribution Requirement of System(s) Contribution Increase as a Percentage of Annual Payroll
Total Annual Costs $0.00 $0.00 0.00 %
Normal Cost of System N/A $0.00 0.00 %
Past Service Liabilities $0.00 $0.00 0.00 %
Fiscal Year Past Service
Amortization Period Ends
N/A N/A


Explanation of above estimates:


    There is no impact on the Normal Cost nor Actuarial Accrued Liabilities. Bill provides administrative and clarification changes only.

Analysis of Impact on Public Pension Policy:


    Changes should limit possibility of future litigation due to clarifications in definitions.



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    This bill is a clarification bill for the administration of State Police Plan B. Changes include adding and clarifying definitions for administration. The bill removes the minimum $500 restriction on eligible rollover. It additionally clarifies the starting date for surviving spouse or dependent children’s benefits. Retirement benefits will not be impacted by the changes.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2008
Increase/Decrease
(use"-")
2009
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    There is no impact on the Normal Cost nor Actuarial Accrued Liabilities. Bill provides administrative and clarification changes only.



Memorandum


    Changes should limit possibility of future litigation due to clarifications in definitions.



    Person submitting Fiscal Note: Harry W. Mandel, MAAA, MSPA, EA, Board Actuary
    Email Address: Harry.W.Mandel@wv.gov