Actuarial Fiscal Note

Retirement Systems Impacted by Legislation:

Deputy Sheriff Retirement System


DSRS 2150

Sources of Revenue:

Other Fund 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 DSRS employer contribution rate is determined by the CPRB Board based on the annual actuarial valuation for the plan. The bill removes the 10.5% limit on the employer contribution rate to allow for proper funding of the plan.
    The bill does not increase any benefits payable under the Plan and therefore has no impact on either the Normal Cost nor the Actuarial Accrued Liabilities of the Plan.
    The bill could result in an increase in employer contributions above 10.5% of payroll if actuarially necessary and subject to Board action. Such increase would represent an increase in the funding incidence and not increased costs to DSRS. Each 1% of payroll currently represents about $411,000 in annual employer contributions.

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

Explanation of above estimates:

    The bill does not provide for any additional benefits under the Plan. The Normal Cost and the Actuarial Accrued Liabilities are not impacted by the Bill.

Analysis of Impact on Public Pension Policy:

    The change is required to assure the adequate long term funding for DSRS. Without the change, the Board does not have the ability to assure the proper long term funding of the Plan under the current funding policy for DSRS of level percentage of payroll amortization of the UAAL.

Fiscal Note Summary

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

    Local governmental plan has no impact on 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):

    Local governmental plan has no impact on State Government.


    Local governmental plan has no impact on State Government.

    Person submitting Fiscal Note: Harry W. Mandel, Board Actuary, MAAA, MSPA, EA
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