Actuarial Fiscal Note


Retirement Systems Impacted by Legislation:

PERS

FUND(S):

PERS 2510

Sources of Revenue:

General Fund,Other Fund Local Governments

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 Bill has no impact on retirement benefits payable to members of any retirement system administered by the CPRB. The Bill incurs additional administrative costs to the CPRB due to additional duties imposed on the CPRB.



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 are no changes in benefit entitlement for any plans administered by CPRB. Therefore, there is no change in NC or AAL for any plan due to the bill.

Analysis of Impact on Public Pension Policy:


    The Bill adds administrative duties in respect to the identification and auditing the independent contractor relationship between publlic employers and independent contractor who employ retired former public employees.



Fiscal Note Summary


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


    The Bill has no impact on retirement benefits payable to members of any retirement system administered by the CPRB.
    
    The Bill incurs additional administrative costs to the CPRB due to additional administrative duties imposed on the CPRB.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2012
Increase/Decrease
(use"-")
2013
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 100,000 250,000 262,500
Personal Services 100,000 250,000 262,500
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 are no changes in benefit entitlement for any plans administered by CPRB. Therefore, there is no change in NC or AAL for any plan due to the bill.
    
    Costs cover additional staff positions and/or services required to complete the services required under the bill in respect to independent contractors. These include legal, investigative, auditing and clerical service functions.



Memorandum


    The Bill adds administrative duties in respect to the identification and auditing the independent contractor relationship between publlic employers and independent contractor who employ retired former public employees.
    
    The duties added are normally associated with Federal Internal Reveue Service audits.



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