Actuarial Fiscal Note


Retirement Systems Impacted by Legislation:

Public Employees Retirement System

FUND(S):

PERS 2510

Sources of Revenue:

Other Fund State and 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 bill extends current police officer tax exemptions from WV State income tax to certain DNR police officers retired under PERS.
    
    There are no changes in PERS retirement benefits and therefore no pension costs.
    
    Tax exemption reduces WV State tax collections. A fiscal note should additionally be requested from tax and revenue.



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 N/A


Explanation of above estimates:


    The bill does not increase current or future PERS retirement benefits. As a result there are no pension costs resulting from the bill.

Analysis of Impact on Public Pension Policy:


    The bill provides retired DNR police officer PERS benefits tax exemption.



Fiscal Note Summary


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


    The bill extends current police officer tax exemptions from WV State income tax to certain DNR police officers retired under PERS.
    
    There are no changes in PERS retirement benefits and therefore no pension costs.
    
    Tax exemption reduces WV State tax collections. A fiscal note should additionally be requested from tax and revenue.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2013
Increase/Decrease
(use"-")
2014
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):


    The bill does not increase current or future PERS retirement benefits. As a result there are no pension costs resulting from the bill.



Memorandum


    The bill provides retired DNR police officer PERS benefits tax exemption.



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