Actuarial Fiscal Note


Retirement Systems Impacted by Legislation:

EMSRS

FUND(S):

WMSRS

Sources of Revenue:

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 revises the voluntary transfer provisions for certain EMS directors currently participating in PERS.
    
    The bill does not increase either the Normal Cost nor the Actuarial Accrued Liabilities under the Plan.



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 EMS directors’ transfer window includes a provision requiring the transferring EMS directory to pay all increased benefit costs. Due to this provision, there is no benefit related costs to the employers.
    
    The benefit transfer costs require a highly technical actuarial cost analsysis for both PERS and EMSRS benefits. It is estimated that the increased administrative costs and fees are approximately $2,500 per calculation date.

Analysis of Impact on Public Pension Policy:


    The bill is designed to provide an extended 36 month window for an applying EMS director to make the required lump sum payment.



Fiscal Note Summary


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


    None - Local Governmental Plan.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2014
Increase/Decrease
(use"-")
2015
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 2,500 2,500 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



Memorandum


    Local Governmental Plan.



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