Actuarial Fiscal Note


Retirement Systems Impacted by Legislation:

Public Employees Retirement System

FUND(S):

PERS 2510

Sources of Revenue:

Other Fund State & 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 clarifies provisions regarding retroactive service purchases in PERS. Clarifies initial purchase must commence withing 24 months of becoming a PERS member or within 24 months of commencing contributions. Provides a window through 12/31/2013 for retroactive service purchases for all current members.
    
    There is no increase in Normal Cost nor Actuarial Accrued Liabilities attributable to the provisions of the bill at this time.



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:


    The bill primarily provides clean up and clarifications to retroactive service purchases. The window is relatively short and is not expected to generate adverse experience. There is therefore no increase in Normal Cost nor Actuarial Accrued Liabilities attributable to the provisions of the bill at this time.

Analysis of Impact on Public Pension Policy:


    This bill primarily provides clean up and clarification provisions.



Fiscal Note Summary


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


    The bill clarifies provisions regarding retroactive service purchases in PERS. Clarifies initial purchase must commence withing 24 months of becoming a PERS member or within 24 months of commencing contributions. Provides a window through 12/31/2013 for retroactive service purchases for all current members.
    
    There is no increase in Normal Cost nor Actuarial Accrued Liabilities attributable to the provisions of the bill at this time.



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 primarily provides clean up and clarifications to retroactive service purchases. The window is relatively short and is not expected to generate adverse experience. There is therefore no increase in Normal Cost nor Actuarial Accrued Liabilities attributable to the provisions of the bill at this time.



Memorandum


    This bill primarily provides clean up and clarification provisions.



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