Actuarial Fiscal Note


Retirement Systems Impacted by Legislation:

PERS and State Police Plan B

FUND(S):

PERS 2510 and Plan B 2162

Sources of Revenue:

General Fund,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).


    This bill eliminates the requirement that CPRB adopt a legislative rule when setting the employer contribution rate for the Public Employees Retirement System and State Police Plan B. Such rates shall be set upon adoption of the rate by the Board.
    
    The bill further provides clarification of the member contribution rate for State Police Plan B based on funding percentage as reported in latest actuarial valuatiion for Plan B.
    
    The bill does not increase any benefits otherwise provided under either plan. There is no increase in either Normal Cost nor Actuarial Accrued Liability.



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 does not change benefits provided under either CPRB administered plan. There is no increase in either Normal Cost nor Actuarial Accrued Liabilities for PERS or State Police Plan B.
    
    The bill does not change the basis for determining the employer contribution rate for PERS and State Police Plan B as set by the CPRB Board upon recommendation of the Board Actuary.

Analysis of Impact on Public Pension Policy:


    The bill eliminates duplication of clerical and rule making efforts in setting the employer contribution rate for PERS and State Police Plan B.



Fiscal Note Summary


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


    This bill eliminates the requirement that CPRB adopt a legislative rule when setting the employer contribution rate for the Public Employees Retirement System and State Police Plan B. Such rates shall be set upon adoption of the rate by the Board.
    
    The bill further provides clarification of the member contribution rate for State Police Plan B based on funding percentage as reported in latest actuarial valuatiion for Plan B.
    
    The bill does not increase any benefits otherwise provided under either plan. There is no increase in either Normal Cost nor Actuarial Accrued Liability.



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 change benefits provided under either CPRB administered plan. There is no increase in either Normal Cost nor Actuarial Accrued Liabilities for PERS or State Police Plan B.
    
    The bill does not change the basis for determining the employer contribution rate for PERS and State Police Plan B as set by the CPRB Board upon recommendation of the Board Actuary.



Memorandum


    The bill eliminates duplication of clerical and rule making efforts in setting the employer contribution rate for PERS and State Police Plan B.



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