Actuarial Fiscal Note

Retirement Systems Impacted by Legislation:

Teachers' Retirement System


TRS 2601

Sources of Revenue:

General Fund,Other Fund Add'l local govts

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).

    The legislation will increase the liabilities and costs of the Teachers' Retirement System, as it provides for certain monetary incentive payments that are to be recognized as compensation for pension purposes of teachers who receive them.

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 $998,000.00 0.06 %
Normal Cost of System N/A ($483,000.00) -0.03 %
Past Service Liabilities $16,900,000.00 $1,481,000.00 0.09 %
Fiscal Year Past Service
Amortization Period Ends
N/A 2034 N/A

Explanation of above estimates:

    The change actually creates a decrease in normal cost (as a percentage of payroll) but increases accrued liabilities because of the manner in which the cost method allocates costs over participants' careers. On the basis of information supplied to us, we have assumed that approximately 12.28% of active teachers would be eligible for the high-poverty/high-minority payments and 3.55% would be eligible for those payments plus those for teachers covering areas of demonstrated statewide shortage. All other data, assumptions and methods are those used in the July 1, 2009 actuarial valuation of the Teachers' Retirement System.

Analysis of Impact on Public Pension Policy:


Fiscal Note Summary

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


Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
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):




    Person submitting Fiscal Note: David L Driscoll, FSA of Buck Consultants, LLC
    Email Address: