Actuarial Fiscal Note


Retirement Systems Impacted by Legislation:

Teachers Retirement System

FUND(S):

TRS 2601

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 provides technical clean up and clarifications impacting CPRB administration of the Plan. The primary provisions clarify certain definitions. The bill eliminates the Teachers Employer Contribution Collection Account (TECCA Account) which acts as a preliminary holding account for current TRS employer and School Aid Formula contributions. Amounts in the TECCA account may only be transferred once each month to the Investment Management Board for deposit into the TRS Trust Fund for investment.
    
    There is no increase in benefits to any members of TRS. There is no change in either the Normal Cost nor the Actuarial Accrued Liabilities.



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:


    Changes are procedural in nature. There are no changes in either the Normal Cost nor the Actuarial Accrued Liabilities. The elimination of the TECCA account does not impact Plan funding directly.

Analysis of Impact on Public Pension Policy:


    The elimination of the TECCA holding account requirement should improve the flow of employer contributions being deposited with the Investment Management Board in the TRS Trust Fund.



Fiscal Note Summary


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


    The bill provides technical clean up and clarifications impacting CPRB administration of the Plan. The primary provisions clarify certain definitions. The bill eliminates the Teachers Employer Contribution Collection Account (TECCA Account) which acts as a preliminary holding account for current TRS employer and School Aid Formula contributions. Amounts in the TECCA account may only be transferred once each month to the Investment Management Board for deposit into the TRS Trust Fund for investment.
    
    There is no increase in benefits to any members of TRS. There is no change in either the Normal Cost nor the Actuarial Accrued Liabilities.



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 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):


    Changes are procedural in nature. There are no changes in either the Normal Cost nor the Actuarial Accrued Liabilities. The elimination of the TECCA account does not impact Plan funding directly.



Memorandum


    The elimination of the TECCA holding account requirement should improve the flow of employer contributions being deposited with the Investment Management Board in the TRS Trust Fund.



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